The Rise Of The Side Hustle - What Employers Need To Know.
Summer is here and with it comes fresh challenges for employers. From the surge in side hustles to the never ending debate about switching off after hours. In this blog, we’re diving into what these trends mean for your business and sharing practical tips to help you stay ahead and keep your team happy and compliant.
With the gig economy booming and the cost of living continuing to bite, more employees are taking on secondary employment, or more commonly named ‘side hustles’ to supplement their income. From food delivery to personal training, there is a growing variety of ways people are earning outside of their main roles.
These side roles can take many forms, such as employment, zero hours, freelance, or contractor arrangements which can make it tricky to understand the full implications for both the individual and the employer.
Why it matters to employers
If your team members are working more than one job, there are practical and legal implications for you to be aware of:
- Working Time Regulations – Hours across all roles must stay within legal limits. This means that if your employees have not opted out of the Working Time Regulations and are employed else where, they may be in breach of the regulations.
- Commitment & Performance – Fatigue can creep in slowly when an employee has a side hustle, impacting concentration, engagement and long-term health. Make sure that your managers are trained to identify risks around employee wellbeing and importantly have the confidence to raise any concerns with employees directly so that things are not left to fester.
- Confidentiality Risks – If an employee’s second job is in a related field, it could breach their employment terms, particularly around confidentiality. Review the details in your Contracts of Employment carefully to ensure you're fully protected.
- Tax & NI – Secondary jobs can complicate tax codes and National Insurance so keep an eye out for any changes that may indicate an employee has a second job if they haven't already declared this to you.
- Employees may be entitled to statutory payments and pension contributions from multiple employers - but this only applies if they’re employees, not freelancers or contractors.
To help manage the situation, we recommend introducing a policy requiring employees to seek permission before taking on secondary employment. This gives you the chance to review potential conflicts, protect your business and support your team appropriately.
The Legal Perspective
A recent Tribunal case highlights the potential pitfalls of juggling multiple jobs dishonestly. Solicitor Belinda Owusuah Sarkodie was struck off after working simultaneously for three different law firms from home. Evidence showed that she submitted overlapping timesheets, claiming payment for the same hours across all three roles without disclosing her multiple employments. The tribunal found she had acted dishonestly, breaching professional standards and ordered her removal from the profession. This case serves as a reminder of the importance of transparency and integrity when employees engage in secondary work.
Need a little extra help?
If this topic has struck a chord, or raised a few questions, we’re here to help. Whether you’re reviewing policies, managing wellbeing concerns, or just wanting to stay one step ahead, our team is on hand. And, if you’re looking for ongoing, flexible support, our Evolve membership is a great place to start.
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