Article by: Daisy Watson – Womble Bond Dickinson |
Published: 16 July 2022
Daisy Watson – Womble Bond Dickinson
12 July 2022
A current survey by Aviva discovered that, since March 2020, 19% of staff have began a “facet hustle” alongside their foremost employment[1] – a further piece of labor or job from which an worker collects income as well as to their foremost employment, often utilized in reference to entrepreneurial exercise.
This phenomenon just isn’t new, however with the approaching of the digital age and a rise in distant working, staff have extra alternatives than ever to interact in facet hustles. In addition, non-traditional occupations comparable to social media influencing have turn out to be extra viable earnings streams.
Here solicitor Daisy Watson, who specialises in employment regulation at regulation agency Womble Bond Dickinson (WBD), examines the authorized implications and sensible ramifications that facet hustles might have for employers navigating this new space of workspace.
Why are staff taking over facet hustles within the present local weather?The work panorama publish COVID-19 is a really completely different house, with many employers embracing versatile and hybrid working fashions. This has given staff extra freedom to pursue not solely leisure actions however further types of earnings technology.
The cost-of-living disaster can also be seemingly to have bolstered staff’ selections to tackle secondary occupations, with current ONS statistics displaying that common pay has fallen on the quickest price in additional than a decade and inflation is considerably outpacing wage progress[2].
There is little doubt that social media has had a big affect. On each social media platform it might appear the message is obvious: you must do extra if you’d like to achieve success. Become an influencer, promote handmade items, dabble in internet affiliate marketing, publish humorous movies, turn out to be a freelancer, or run dietary programs: the alternatives are seemingly infinite.
Why might facet hustles concern employers?
Insufficient relaxation time for workers: Even if staff perform their facet hustles exterior of their working hours for his or her foremost job, they might wrestle to give you the chance to take pleasure in enough relaxation time. In addition, the place staff are unable to take enough relaxation breaks, employers could also be involved about breaching the Working Time Regulations 1998, which require staff not to work greater than 48 hours per week on common.
Employers even have a accountability to guarantee as far as in all fairness practicable the well being and security of their workers and to be sure that extreme working hours should not inflicting a threat to staff or different members of workers. If it comes to gentle that staff are placing themselves or others in danger, one choice may very well be for employers to ask the worker to cut back their working time on the facet hustle or agree that the worker will cut back their working hours.
Employee’s efficiency: If an worker is working lengthy hours on a further earnings stream, it’s attainable that their power reserves and focus span might decline, main to efficiency points. The risk of a facet hustle also needs to be thought-about when investigating efficiency points, however no assumptions made. Problems might come up if an worker just isn’t forthcoming with data concerning a facet hustle and denies they produce other pursuits exterior of labor. In this state of affairs, functionality and disciplinary procedures ought to be adopted the place acceptable.
Monitoring the difficulty: In response to the survey outcomes, employers might want to monitor distant workers extra carefully to guarantee they aren’t engaged on their very own enterprise throughout hours when they need to be working for his or her employer. This raises potential points round privateness and information safety.
The facet hustle might deliver the employer’s enterprise into disrepute: Depending on the actions the worker is engaged in, there’s a threat that they might deliver their employer’s enterprise into disrepute and/or tarnish their popularity, for instance, in the event that they publish views on controversial matters as an influencer.
Use of firm gear, supplies and merchandise: Employers could also be involved about their staff utilizing firm gear or supplies to complement their further earnings streams, particularly if the worker is utilizing the employer’s merchandise, for instance in making movies as a social media influencer, or is utilizing firm supplies to make items to promote.
Intellectual property rights: Where staff are utilizing firm gear or engaged on their facet hustles similtaneously their foremost employment, this may increasingly elevate questions as to whether or not their employer has any mental property rights over something they create.
Working two jobs on the identical time: We are conscious anecdotally that, whereas engaged on a totally distant foundation, some staff have been in a position to work two conventional full-time roles on the identical time, whereas conserving their different job a secret from their employer. Employers could also be notably involved if their staff should not dedicating their regular work hours to their employment. Employees who do that are seemingly to be in breach of their employment phrases, which may very well be a misconduct challenge main to disciplinary motion and presumably dismissal.
Non-competition: If an worker’s facet hustle is inside the identical sector as their foremost employment, employers might turn out to be involved about whether or not their worker is making the most of data they obtain from their foremost employment or instantly competing with their employer.
Risk that staff will resign: If an worker’s facet hustle turns into notably profitable, employers could also be involved that the worker will resign to pursue their second occupation full time, that means that they’ve to recruit a substitute in a really tight jobs market.
What are the advantages to staff engaged on facet hustles?
Increased wellbeing – usually staff will tackle a facet hustle to do one thing they notably take pleasure in. They would possibly discover that their facet hustle gives them with a launch from their regular day to day work and is sweet for his or her psychological well being. Imposing restrictions could lead on to poor morale.
Bringing new abilities to their foremost employment – staff would possibly study invaluable transferable abilities from their facet hustles, which can finally imply they’re in a position to carry out higher of their foremost employment.
So what can employers do?Legally, there’s nothing to forestall an worker from participating in a facet hustle if they’re doing it exterior of their regular working hours and it isn’t in breach of their contract of employment. However, employers ought to preserve their employment contracts and insurance policies below common evaluation to guarantee they comprise provisions that, if essential, prohibit an worker from finishing up secondary employment, or require permission to be sought earlier than any competing work is undertaken.
Employers might need to replace or impose restrictive covenants to guarantee staff should not in a position to arrange companies in direct competitors with them. While restrictive covenants could be tough to implement, they’ll act as a deterrent.
Finally, whether it is clear staff are taking over facet hustles to make ends meet, employers ought to think about reviewing pay to be sure that they’re paying market charges and finally make a extra interesting case for workers to consolidate their working hours and dedication to a singular position.
[1] One in 5 Brits have began a ‘facet hustle’ since March 2020 – Aviva plc
[2] Labour market overview, UK – Office for National Statistics (ons.gov.uk)
https://www.thehrdirector.com/options/future-of-work/side-hustles-employers-need-know/
