Is The Cost Of Living Crisis Leading Your Employees To Take On Second Jobs?

As we prepare for winter against a backdrop of rising inflation and soaring energy prices, it is no surprise that some employees are looking for second jobs to keep up with the cost of living.

The prospect of an employee taking on multiple jobs raises a host of human resources, well-being and safety concerns.

Can employment contracts prevent employees from taking on second jobs?

If you become aware that one or more of your employees are contemplating taking on or are already working second jobs, your first thought may be to check the wording of their employment contracts.

Exclusivity clauses

Some employment contracts seek to prohibit employees from having second jobs, and some contracts require employees to obtain consent before undertaking additional work. Clauses that prevent employees from working elsewhere are known as exclusivity clauses.

It is important to note that exclusivity clauses are unenforceable if they are in a zero-hours contract. The ban on exclusivity clauses will soon be extended to include low-income employees i.e. those whose average income is below the lower earnings limit (£123 a week at the time of writing). Therefore, if an employee who fits into one or both of these categories breaches an exclusivity clause in her/his employment contract, s/he will be protected from dismissal or detriment as a result.

In light of the above, and in the interests of fairness and employee relations more generally, employers should take care when considering whether to include and/or enforce exclusivity clauses in employees’ employment contracts.

What should employers be doing?

It is advisable for employers to consider adopting a policy or guidelines for the type of second jobs that employees may be allowed to have. If an employee wanted to work for a direct competitor (where s/he could, for example, make use of an employer’s confidential information and/or trade connections) the employer would, understandably, want to prevent them from doing so.

However, even where there are no such competitive or commercial concerns at play, there are several factors that employers should bear in mind when it comes to employees having multiple jobs.

Health and safety

Health and safety considerations are critical where multiple jobs are concerned. An employer should undertake appropriate risk assessments and think about whether to introduce extra supervision or breaks as there may be serious health and safety implications in allowing an employee to take on another job. For example, where employees are required to drive or operate heavy machinery as part of their role, being over-tired could pose a serious health and safety risk to them and those around them.

How many hours can my employee legally work?

The Working Time Regulations prove that, in general, maximum weekly working time should not exceed an average of 48 hours. Where an employer allows an employee to take on a second job the employer should, nevertheless, ensure that their total weekly working time does not exceed 48 hours, or else have them sign an opt-out agreement. It is important to note, however, that even where an employee has opted out of the 48-hour limit on weekly working time, an employer remains subject to an overriding duty to protect their health and safety. Moreover, a criminal offence may be committed when an employer fails to take reasonable steps to observe the limits on working time or keep crucial records.

Employee well-being

Financial worries have a major impact on employees’ overall mental and physical health and well-being. It is imperative to ensure that employees’ well-being is protected and to be on alert for signs of stress or burnout. Having good, open, and supportive communication with employees is essential for a healthy working relationship. This is the case whether or not an employee takes on a second job or not.

Exceptional circumstances caused by the cost of living crisis, for example, should be taken into account when dealing with a dip in an employee’s performance. Where an employer shows care and compassion, employees are more likely to want to stay working for them rather than leave to work elsewhere.

Comment

It is important to recognise when employees may be struggling financially such that they may feel the need to take on a second job.

As discussed above, there are valid and justifiable reasons why an employer may not want an employee to take on a second job, particularly when doing so might give rise to concerns around health, safety, and well-being.

Where employees have enforceable exclusivity clauses in their employment contracts or provisions requiring employer consent before taking on second jobs but, nevertheless, take on second roles without their employer’s knowledge or approval, this will likely be ground for disciplinary action. It is important that employers follow a correct and reasonable process when taking any such action.