HR Advice Hub

Can You Stop an Employee Having a Second Job?

It is increasingly common for employees to have a second job alongside their main employment.

For employers, however, secondary employment can sometimes create genuine concerns around working hours, performance, confidentiality and conflicts of interest.

So, can you stop an employee having a second job? Potentially, yes. In some circumstances, an employer can prevent or restrict an employee from having a second job, particularly where there is a legitimate business reason or the employee's contract places restrictions on secondary employment.

However, employers should be cautious about imposing a blanket ban. The right approach will depend on the employee's contract, the nature of their second job and whether it creates an actual problem for the business.

Can an Employee Have a Second Job?

There is no general rule preventing an employee from having a second job alongside their main employment.

However, employees are still bound by their employment contract and their obligations towards their employer. Secondary employment may therefore become an issue where it conflicts with those obligations. An employer may have legitimate concerns where an employee's second job:

• creates a conflict of interest

• involves working for a direct competitor

• creates confidentiality or data protection risks

• affects their attendance, reliability or performance

• results in them regularly attending work overtired

• creates health and safety concerns

• causes issues under the Working Time Regulations

The fact that an employee has another job is not necessarily the problem. Employers should focus on what impact, if any, that second job has on the employment relationship or the business.

Check What the Employment Contract Says About Second Jobs

If you discover that an employee has another job, one of the first things to check is their employment contract. Some contracts contain a secondary employment clause requiring employees to notify their employer or obtain permission before taking another job. Others may contain restrictions specifically relating to competitors, conflicts of interest, confidentiality or outside business interests.

The exact wording matters. For example, a requirement to obtain permission before undertaking additional employment does not necessarily mean an employer should automatically refuse every request. If you are considering refusing permission, you should be able to explain the genuine concern created by the second job.

There are also legal restrictions on the use of exclusivity clauses for certain workers, including those working under zero-hours arrangements and some workers whose guaranteed weekly income falls below the relevant statutory threshold.

Employers should therefore be particularly careful about attempting to impose a blanket restriction preventing an employee from working elsewhere.

Can You Stop an Employee Working for a Competitor?

Working for a competitor is one situation where an employer may have stronger grounds for restricting an employee's second job. Depending on the employee's role, there could be legitimate concerns around:

• confidential information

• commercially sensitive information

• customer or client relationships

• intellectual property

• conflicts of interest

However, simply saying that another organisation operates within the same industry will not necessarily be enough. Consider what the employee actually does in both roles and what genuine risk this creates.

For example, an employee undertaking a few unrelated weekend hours for another organisation may present very little risk. A senior employee with access to commercially sensitive information working simultaneously for a direct competitor could be a very different situation. This is why secondary employment concerns should normally be assessed case by case.

What Are the Working Time Regulations Rules if an Employee Has Two Jobs?

Second jobs can also create issues under the Working Time Regulations 1998. Adult workers are generally subject to an average maximum working week of 48 hours, normally averaged over a 17-week reference period, unless they have voluntarily agreed to opt out of the 48-hour limit.

Importantly, where an employee has more than one job, their combined working hours may need to be considered when assessing compliance with the 48-hour average.

If you know an employee has another job, it is therefore sensible to establish approximately how many hours they are working elsewhere. Depending on the circumstances, you may need to discuss their overall working hours and whether an opt-out agreement is appropriate.

However, an opt-out does not remove all working time obligations. Employers should still consider applicable requirements around daily rest, weekly rest and rest breaks, as well as any health and safety risks caused by excessive working hours. For example, an employee working late-night shifts elsewhere before starting an early shift with you may raise concerns even if the 48-hour average itself can be addressed.

What if an Employee's Second Job Is Affecting Their Performance?

If an employee's second job starts affecting their performance, attendance or reliability, you can address those concerns. However, it is usually better to focus initially on the actual workplace problem, rather than simply demanding that the employee gives up their second job. For example, you might have noticed that an employee is:

• repeatedly arriving late

• struggling to concentrate

• making more mistakes

• regularly appearing extremely tired

• failing to meet expected performance standards

Speak to the employee and establish what is happening. If their second job is contributing to the problem, you can explain your concerns and discuss what needs to change.

If their attendance or performance does not improve, you can then consider your normal performance, attendance or disciplinary procedures as appropriate.

What if the Employee Did Not Tell You About Their Second Job?

Whether this creates a problem will depend largely on what their employment contract and your policies require. If there is a clear contractual requirement to disclose secondary employment or obtain prior approval and the employee has deliberately failed to do so, there could potentially be a conduct issue.

However, discovering an undisclosed second job should not automatically lead to disciplinary action. Establish the facts first. You may want to understand:

• what the second job involves

• how long the employee has been doing it

• how many hours they work

• why they did not disclose it

• whether they understood the contractual requirement

• whether there is a conflict of interest

• whether the second job has caused any actual problems

You can then decide whether any further action is necessary and proportionate.

Can an Employer Refuse Permission for a Second Job?

Potentially, yes. Where an employment contract requires employees to obtain permission before undertaking secondary employment, an employer may have legitimate reasons for refusing a request. For example, you might have concerns about:

• a genuine conflict of interest

• the employee working for a direct competitor

• confidential or commercially sensitive information

• excessive working hours

• health and safety

• the employee's existing attendance or performance

• whether the proposed working arrangements would prevent them fulfilling their contractual obligations

What employers should avoid is automatically refusing permission simply because they would prefer employees not to work elsewhere. The reason for the refusal should relate to the circumstances and the genuine risk or impact on the business.

What Should You Do if You Discover an Employee Has a Second Job?

If you discover that an employee has another job and you are concerned about it, avoid immediately telling them that they must give it up. A sensible HR approach is to work through the issue in stages:

Establish the Facts: Find out what the employee is doing, who they are working for, their approximate working hours and whether there is any overlap with their existing role.

Check the Employment Contract and Policies: Establish whether the employee was required to disclose the second job or obtain permission and whether there are relevant clauses covering conflicts of interest, confidentiality or competitors.

Identify the Actual Business Concern: Be clear about what the problem is. Is it working hours? Performance? Confidentiality? A conflict of interest? Health and safety? Avoid treating secondary employment itself as misconduct unless there is a proper basis for doing so.

Discuss the Concern With the Employee: Explain the issue and give them an opportunity to respond. There may be information you were not previously aware of that changes your assessment.

Consider Whether Restrictions Are Necessary: Depending on the circumstances, you may be able to resolve the concern without preventing the second job altogether.

Confirm the Outcome: Where appropriate, document what has been discussed and any expectations or arrangements agreed with the employee.

Taking this approach helps employers make a proportionate decision based on the actual circumstances rather than reacting to the fact that an employee has another job.

Should Employers Have a Secondary Employment Policy?

For some businesses, a clear secondary employment policy can be useful, particularly where employees are likely to undertake additional work. A policy can explain:

• whether employees need to disclose a second job;

• whether prior approval is required;

• how employees should request permission;

• how conflicts of interest will be assessed;

• expectations around confidentiality;

• responsibilities relating to working hours; and

• what employees should do if their circumstances change.

You may not necessarily need a standalone policy. Secondary employment requirements can also be covered within contracts, codes of conduct or other relevant policies. What matters is that employees and managers understand the rules and know what to do when secondary employment arises.

Can You Dismiss an Employee for Having a Second Job?

Employers should be very cautious about jumping from discovering a second job to considering dismissal. The fact that an employee has secondary employment does not, by itself, automatically justify dismissal.

There may be circumstances where the situation becomes more serious, for example, where an employee has deliberately breached a significant contractual restriction, misused confidential information or continued working for a competitor despite a legitimate conflict being raised.

Even then, employers should establish the facts, consider the seriousness of the situation and follow a fair process before deciding what action is appropriate. The individual circumstances will be important, so taking advice before progressing towards dismissal can help avoid unnecessary risk.

Need HR Advice About an Employee With a Second Job?

If you have discovered that an employee has another job and you are unsure whether you can ask them to stop, BloomHR can help. We can review the employee's contract and the circumstances, help you understand the risks and advise you on a practical and proportionate way forward.

BloomHR provides straightforward, commercially focused HR support to small and growing businesses across the UK, helping employers deal with employee issues confidently and fairly. Contact us for more information.