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 workers have began a “facet hustle” alongside their most important employment[1] – a further piece of labor or job from which an worker collects income as well as to their most important employment, normally 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, workers have extra alternatives than ever to interact in facet hustles. In addition, non-traditional occupations equivalent to social media influencing have grow to be extra viable revenue 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 workers taking up facet hustles within the present local weather?The work panorama publish COVID-19 is a really totally different house, with many employers embracing versatile and hybrid working fashions. This has given workers extra freedom to pursue not solely leisure actions however extra types of revenue era.
The cost-of-living disaster can also be probably to have bolstered workers’ choices to tackle secondary occupations, with current ONS statistics displaying that common pay has fallen on the quickest fee in additional than a decade and inflation is considerably outpacing wage progress[2].
There is little doubt that social media has had a big impression. On each social media platform it might appear the message is obvious: it is best to do extra if you’d like to achieve success. Become an influencer, promote handmade items, dabble in affiliate marketing online, publish humorous movies, grow to be a freelancer, or run dietary programs: the alternatives are seemingly countless.
Why may facet hustles concern employers?
Insufficient relaxation time for workers: Even if workers perform their facet hustles exterior of their working hours for his or her most important job, they might wrestle to have the ability to get pleasure from enough relaxation time. In addition, the place workers are unable to take enough relaxation breaks, employers could also be involved about breaching the Working Time Regulations 1998, which require workers not to work greater than 48 hours per week on common.
Employers even have a duty to guarantee as far as in all fairness practicable the well being and security of their workers and to be certain that extreme working hours will not be inflicting a threat to workers or different members of workers. If it comes to mild that workers are placing themselves or others in danger, one choice might 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 revenue stream, it’s attainable that their vitality reserves and focus span might decline, main to efficiency points. The risk of a facet hustle must also be thought of when investigating efficiency points, however no assumptions made. Problems might come up if an worker just isn’t forthcoming with data relating to a facet hustle and denies they produce other pursuits exterior of labor. In this state of affairs, functionality and disciplinary procedures needs to be adopted the place applicable.
Monitoring the difficulty: In response to the survey outcomes, employers might want to monitor distant workers extra intently to guarantee they don’t seem to be 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 knowledge 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 fame, for instance, in the event that they publish views on controversial matters as an influencer.
Use of firm tools, supplies and merchandise: Employers could also be involved about their workers utilizing firm tools or supplies to complement their extra revenue 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 workers are utilizing firm tools or engaged on their facet hustles similtaneously their most important employment, this will likely elevate questions as to whether or not their employer has any mental property rights over something they create.
Working two jobs on the similar time: We are conscious anecdotally that, whereas engaged on a totally distant foundation, some workers have been ready to work two conventional full-time roles on the similar time, whereas preserving their different job a secret from their employer. Employers could also be significantly involved if their workers will not be dedicating their regular work hours to their employment. Employees who do that are probably to be in breach of their employment phrases, which might be a misconduct concern main to disciplinary motion and presumably dismissal.
Non-competition: If an worker’s facet hustle is throughout the similar sector as their most important employment, employers may grow to be involved about whether or not their worker is taking advantage of data they obtain from their most important employment or straight competing with their employer.
Risk that workers will resign: If an worker’s facet hustle turns into significantly 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 workers engaged on facet hustles?
Increased wellbeing – usually workers will tackle a facet hustle to do one thing they significantly get pleasure from. They may 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 may lead to poor morale.
Bringing new expertise to their most important employment – workers may be taught precious transferable expertise from their facet hustles, which is able to in the end imply they’re ready to carry out higher of their most important employment.
So what can employers do?Legally, there may be nothing to forestall an worker from partaking in a facet hustle if they’re doing it exterior of their regular working hours and it’s not in breach of their contract of employment. However, employers ought to hold their employment contracts and insurance policies below common evaluation to guarantee they include provisions that, if crucial, 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 workers will not be ready to arrange companies in direct competitors with them. While restrictive covenants will be tough to implement, they will act as a deterrent.
Finally, whether it is clear workers are taking up facet hustles to make ends meet, employers ought to contemplate reviewing pay to be certain that they’re paying market charges and in the end make a extra interesting case for workers to consolidate their working hours and dedication to a singular function.
[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/features/future-of-work/side-hustles-employers-need-know/
