Legal Implications of Working Two Jobs

The growth of side jobs and portfolio working, especially given economic pressures and changing work culture, means that employers are increasingly likely to encounter staff with secondary work. While not necessarily unlawful, this can create a number of legal, operational and reputational considerations.

In this guide for employers, we explain the practical and legal implications of employees with two jobs or a side hustle, and the rights of the employer and employee when it comes to ‘double jobbing’. We also look at what steps can be taken by the employer where taking on secondary employment is in breach of contract, together with best practice advice on how to minimise the risks involved.

 

Section A: Types of secondary employment

 

‘Secondary employment’ refers to any situation where an individual engages in more than one form of work at the same time. It typically involves having multiple sources of income in addition to their main job.

While it traditionally described holding two separate employment contracts with different employers (sometimes called ‘double jobbing’), the term now commonly includes a broader range of working arrangements, such as freelance work, self-employment or running a side business.

For employers, it’s useful to understand the different forms secondary work can take:

 

1. Dual employment

 

The employee holds more than one job under separate employment contracts with different employers. Both roles may be part-time or one full-time and one part-time. This is the most traditional form of secondary employment.

 

2. Freelancing

 

The employee provides services to third parties on a project or ad hoc basis, often outside the scope of PAYE employment. Freelance work may relate to the employee’s professional expertise or be entirely unrelated to their main role.

 

3. Self-employment or running a business

 

The individual runs their own business (e.g. an online shop, consulting practice, or trades service) while remaining employed elsewhere. This is increasingly common under the broader ‘side hustle’ trend.

 

4. Gig economy work

 

Some workers take on casual, app-based roles such as food delivery or ride-sharing outside their primary employment. These often involve no fixed hours or employment rights, but can present risks around fatigue and scheduling conflicts.

 

5. Voluntary or unpaid roles

 

In some cases, employees undertake unpaid work, such as volunteering, charity roles or unpaid directorships. While not financially motivated, these roles can still raise concerns over time commitments or reputational impact.

 

Section B: Legal implications of employees working two jobs

 

Whatever the reasons for staff working two jobs, there are various implications that can arise.

 

1. Health & safety risks

 

The most immediate concern is the risk to health and safety. If an employee is working long hours across multiple roles, they are more likely to become fatigued and overworked. This in turn can directly impact workplace performance, increase the likelihood of mistakes and contribute to accidents, particularly in safety-critical roles such as driving, healthcare or construction.

Under the Health and Safety at Work etc Act 1974, employers are under a general duty to ensure, as far as reasonably practicable, the health, safety and welfare of their employees and others affected by their operations. Where fatigue caused by secondary employment contributes to a workplace incident, an employer could be exposed to liability for failing to assess and manage the associated risks.

 

2. Working Time Regulations

 

When it comes to working hours, employers are under a statutory duty to ensure that their staff do not work in excess of the maximum weekly working limit. By law, most workers are not permitted to undertake more than an average of 48 hours a week, normally averaged over 17 weeks, unless they have opted out of these provisions in writing.

When calculating the average hours worked, this must include the worker’s combined hours from both their primary and additional employment, where the responsibility for ensuring that an individual does not exceed the maximum weekly working hours lies with both (or all) of the employers.

Under the 1998 Regulations, there are also strict rules around daily and weekly rest breaks, where workers have the right to 11 consecutive hours rest between shifts. For example, if they finish work at 8pm, they should not be required to start work again until 7am the next day. Workers also have the right to either an uninterrupted period of 24 hours each week without any work or an uninterrupted 48 hours each fortnight.

The biggest challenge, therefore, is that staff may be working beyond the weekly working time limit and may not be getting the required rest breaks by having two jobs. This means that employers have to take reasonable steps to:

 

• Establish whether an employee has secondary employment.
• Obtain a record of their combined hours across all roles.
• Ensure that total hours worked do not breach the statutory weekly limit, unless a valid opt-out is in place.

 

Employers also have to ensure compliance with the other working time protections, including:

 

• A minimum 11 consecutive hours of rest in every 24-hour period.
• A 24-hour uninterrupted rest period each week, or 48 hours every fortnight.
• A 20-minute uninterrupted break during any working day longer than six hours.

 

In light of these rights and obligations, secondary work arrangements can easily lead to inadvertent breaches of these rules, such as exceeding the 48-hour limit, by interfering with rest periods or causing schedules to overlap in a way that denies proper recovery time. In certain sectors, such as healthcare, or where staff are required to operate machinery, human error caused by exhaustion can be life threatening. The risk of stress-related illness, together with absenteeism and staff turnover rates, can also significantly increase if staff work long hours, leaving the employer potentially liable for the consequences of this.

Employers in breach of their obligations risk enforcement action by the Health and Safety Executive (HSE) or employment tribunal claims.

 

3. Contractual and policy considerations

 

Most employment contracts include terms that require employees to devote their full attention and efforts to their role during working hours. Many contracts also contain exclusivity clauses or restrictions on engaging in external work without prior consent.

Even in the absence of a formal clause, employees owe a duty of fidelity and good faith to their employer. This means they must not act in competition with their employer, misuse company resources or allow outside work to impair their performance.

Employers should review and, where necessary, update their employment contracts and policies to require disclosure of any secondary work or side income, set out when approval is required and the grounds for refusal, and clarify what constitutes a conflict of interest or a breach of trust.

 

4. Data protection and confidentiality

 

Employees who take on work in a similar industry or who use the same laptop or phone for freelance work may inadvertently (or deliberately) expose sensitive company data to third parties. This raises the risk of breaches under both internal confidentiality obligations and the UK data protection regulations, especially where personal data is involved.

Employers should remind staff of their confidentiality obligations and consider whether technical restrictions (e.g. device use or data transfer limits) are necessary to prevent risks.

 

5. Reputational and regulatory risk

 

Where employees engage in public-facing freelance work, online content creation or side businesses, their behaviour outside work can still reflect on their employer, particularly if they identify themselves publicly as being employed by the organisation.

In some sectors, such as financial services or healthcare, employees may also be subject to professional conduct codes or sector-specific working time regulations, which impose stricter limits or disclosure obligations. Employers in these fields should ensure they are applying both internal and regulatory requirements consistently.

 

Section C: Employer’s rights in respect of double jobbing

 

An employer’s rights when it comes to an employee undertaking secondary employment, whether another job, freelance work or self-employment, will primarily depend on the terms of the employment contract and any relevant workplace policies.

 

1. Contractual restrictions

 

Employers can only lawfully restrict an employee from working a second job in certain circumstances, particularly where the employment contract contains a requirement to seek prior approval before taking on outside work or includes a non-compete clause, preventing the employee from working for a direct competitor during their employment. Also, it may be possible where there is a conflict of interest clause, prohibiting the employee from engaging in activities that could undermine the employer’s business, reputation or confidentiality obligations.

If a contract prohibits certain types of secondary employment, for example, work that competes with or is similar to the employer’s business, and the employee breaches this condition, the employer is generally entitled to take disciplinary action. In serious cases, this could include dismissal for misconduct or breach of contract, provided a fair process is followed.

Importantly, restrictive clauses such as non-competes have to be reasonable in scope and duration to be enforceable. A blanket prohibition on all outside work is likely to be unenforceable unless objectively justified, such as being due to national security, safety-critical work or regulated industry restrictions.

 

2. Notification requirements

 

Even where outside work is not expressly prohibited, many employment contracts and policies require employees to notify the employer if they intend to take on secondary work. Taking this approach enables the employer to assess working time compliance and avoid breaching the 48-hour average weekly limit under the Working Time Regulations 1998. It can also help to prevent health and safety risks, particularly where fatigue could impact performance or wellbeing, and potential conflicts of interest, including risks to confidentiality or reputational harm.

Where such notification obligations exist and an employee fails to disclose secondary work, this may amount to a breach of contract or failure to comply with a reasonable management instruction. In such cases, the employer may be entitled to commence disciplinary proceedings, depending on the circumstances and the potential consequences of the breach.

 

3. Right to manage performance and conduct

 

Secondary employment does not excuse underperformance or breach of contractual obligations. Regardless of whether secondary employment is permitted or disclosed, employers retain the right to manage employee performance and conduct. If an employee’s outside work affects their attendance or punctuality, quality of work or productivity, availability for work (e.g. due to scheduling conflicts or fatigue), or engagement with duties or responsiveness to work needs, then the employer may be entitled to address these concerns through normal performance management or disciplinary channels.

 

4. Monitoring and enforcement considerations

 

Employers should be cautious not to infringe employee privacy rights when investigating secondary employment. While it is reasonable to request disclosure and manage contractual compliance, covert monitoring or interrogating social media activity must be approached in accordance with UK data protection regulations and internal data protection policies.

 

Section D: Employee rights when working two jobs

 

Generally, it is not unlawful for a person to work two jobs at the same time. In the UK, there is no general legal prohibition against holding secondary employment. This means that, in the absence of any contractual restriction, an employee is legally free to take on a second job alongside their primary role.

Employees are not required by law to seek permission before accepting another job, unless their employment contract specifically says otherwise. Many contracts, particularly in senior, regulated or safety-critical roles, may include provisions that prohibit working for a competitor or engaging in similar work, or require disclosure or approval of any secondary work, or prohibit outside work that could result in a conflict of interest. But, unless a contractual clause restricts secondary employment, and the restriction is reasonable, the employee remains legally entitled to take on another role. Clauses that seek to impose a blanket ban on all forms of external work may be unenforceable if they are overly broad and not objectively justified.

Even where an employee chooses to work two jobs, they remain entitled to the statutory protections under the Working Time Regulations 1998, combining hours across both jobs. The responsibility for compliance lies with both employers, and employees cannot be penalised simply for holding two jobs if they are otherwise meeting their contractual and statutory obligations.

If an employee wishes to work beyond the 48-hour weekly limit, they may sign a voluntary opt-out agreement, which they are free to withdraw at any time with notice (typically seven days or up to three months depending on the terms).

Employees also have the right not to be treated unfairly or subjected to disciplinary action solely for working a second job, unless doing so breaches their contract or negatively affects their performance or attendance. For example, an employer may take action if the second job causes the employee to be consistently late, tired or underperforming or involves working for a direct competitor in breach of a contractual clause. However, disciplinary action must always be proportionate and based on clear contractual or policy grounds, with a fair process followed.

Employees also have the right to a reasonable expectation of privacy. Employers must not undertake excessive or intrusive monitoring to detect outside work. Any monitoring, including social media checks or surveillance, must be proportionate, justified, and comply with the data protection rules.

 

Section E: Can an employee be dismissed for working two jobs?

 

An employee can, in some circumstances, be fairly dismissed for working a second job, but this will depend entirely on the facts of the case, the terms of the employment contract and whether the employer has acted reasonably and followed a fair dismissal process.

Working for a competitor, in breach of a contractual clause prohibiting such activity, may go to the very root of the employment relationship and breach the implied duty of mutual trust and confidence. Where an employee takes on work that directly competes with their employer’s business, discloses confidential information or misuses their position for personal gain, dismissal is likely to be considered a reasonable response. In most cases, this would justify instigating disciplinary proceedings, and potentially dismissal for gross misconduct, subject to a fair process and consideration of mitigating factors.

Even where there is no direct competition, dismissal may still be justified if the employee has breached an express contractual obligation. For example, if the employment contract requires the employee to disclose any secondary employment and the employee fails to do so, this could expose the employer to legal and operational risk. Where a failure to disclose a second job puts the employer in potential breach of statutory obligations, including under health and safety legislation, disciplinary action up to and including dismissal may be appropriate.

If the contract includes a non-compete clause prohibiting the employee from directly or indirectly working for a competitor, the employer is entitled to initiate disciplinary proceedings if that clause is breached. Dismissal may follow where the breach is serious and demonstrably undermines the employment relationship or the employer’s commercial interests. However, restrictive covenants such as non-compete clauses must be reasonable in scope and duration, and tailored to the specific risks of the role; otherwise, they may be difficult to enforce.

The same principles apply to contractual provisions that prohibit employees from undertaking any form of external work whatsoever. However, in such cases, whether dismissal is legally and procedurally fair will depend on whether the restriction itself is reasonable and proportionate. A blanket prohibition on all outside work, without regard to the nature of the second job or its impact on the employer, may be viewed as excessive unless justified by specific operational needs.

Tribunals will expect employers to act fairly, proportionately, and in accordance with the Acas Code of Practice on Disciplinary and Grievance Procedures. Where the employee has taken on a second job out of financial necessity, and the additional work has no adverse impact on their performance, attendance, or the employer’s business interests, dismissal may not be a reasonable or proportionate outcome. In such cases, a formal warning or discussion about hours and rest compliance may be more appropriate.

In the current economic climate, where rising living costs are driving more workers to seek additional income, employers may also want to carefully reconsider the risks of blanket prohibitions against all secondary work. While certain restrictions may remain appropriate, particularly for senior roles, regulated industries or roles with access to sensitive data, a balanced approach that focuses on managing risk rather than imposing unnecessary controls may help retain goodwill and reduce tribunal exposure.

 

Section F: Can an employer prevent an employee from getting a second job?

 

At the outset of employment, employers and employees are free to agree the terms of the contract, subject to statutory constraints, which includes the ability to include provisions that limit or restrict secondary employment. If the employee agrees to such terms at the point of hire, they will usually be enforceable, provided they are reasonable, clearly drafted and not in breach of employment rights or public policy. For example, a clause may be inserted to prevent an employee from taking on any second job, or from working for a competitor during the course of their employment.

These types of clauses are typically justified where the employer needs to ensure a high level of focus, performance and availability, especially in senior, safety-critical or client-facing roles, or where working elsewhere could create conflicts of interest, confidentiality risks or harm to business reputation.

However, the enforceability of any restriction will depend on its scope and reasonableness. A blanket prohibition on any form of external work, regardless of the nature or impact of that work, may be difficult to justify unless there is a legitimate business interest at stake. Restrictions that are overly broad or appear to disproportionately limit an individual’s ability to earn a living may be viewed by employment tribunals as unenforceable or unfair, particularly where the role does not genuinely demand exclusivity.

In the current economic climate, where inflation and rising living costs are leading more workers to seek additional sources of income, enforcing contractual restrictions on secondary work carries significant practical and reputational risks. Strict policies against second jobs, especially where the additional work does not interfere with the employee’s primary role, may lead to employee dissatisfaction, disengagement or even increased staff attrition. Candidates may also be deterred from accepting job offers from employers perceived to impose overly controlling or inflexible conditions.

Rather than imposing blanket bans, many employers now opt for more flexible arrangements that permit secondary work with prior disclosure and approval. This allows the employer to assess whether the second job poses any risk to performance, conflicts of interest or legal compliance, while also recognising employees’ autonomy and financial pressures. In many cases, a balanced policy that promotes transparency and manages risk is likely to be more effective, and legally sustainable, than rigid prohibitions.

 

Section G: Employees with Side Hustles

 

Whether selling products online, offering freelance services or running a small business, these activities can raise a number of legal and operational issues for employers, particularly around working hours, performance and conflict of interest. Handled well and openly, side hustles can coexist with full-time jobs. But managed badly, they can create compliance, safety and reputational risk for the employer.

 

1. Contractual restrictions

 

Many employers include clauses requiring staff to seek written permission before taking on other paid work, or prohibiting work that competes with the employer’s business. While these clauses are generally lawful for full-time staff, they are unenforceable against employees on zero-hours contracts or those earning at or below the Lower Earnings Limit due to statutory protections. For other employees, however, the clause can only be enforced if clearly drafted and proportionate.

 

2. Confidentiality, IP and loyalty

 

Even if the contract is silent on secondary work, every employee owes a duty of fidelity to their employer. This typically includes a requirement not to misuse confidential information, solicit clients or use company time and resources for personal gain.

If an employee’s side hustle involves similar work, or they’re using business contacts or know-how gained from their main job, this could amount to serious misconduct.

 

3. Working time and rest breaks

 

Employers have a legal obligation to monitor and manage employee working time under the Working Time Regulations 1998. This includes ensuring employees do not exceed an average of 48 hours per week across all work (unless they’ve opted out), and that they receive minimum daily and weekly rest.

Although self-employment is not directly covered by the working time rules, if the employee’s side hustle is causing fatigue, the employer may still be exposed to health and safety risks—particularly if the employee is operating machinery, driving, or working in high-risk environments.

 

4. Health and safety duties

 

Employers are required under the Health and Safety at Work etc. Act 1974 to ensure, so far as is reasonably practicable, the health, safety and welfare of staff. If a side hustle is causing tiredness or stress that increases the risk of accidents or illness, this could expose the employer to liability, especially if there is no record of any steps being taken to assess or manage that risk.

 

5. Tax and reporting responsibilities

 

Employees are personally responsible for registering self-employment with HMRC and for declaring any income from side businesses. While employers have no obligation to oversee their tax compliance, it may be helpful to remind staff of their responsibilities, especially if there is confusion around use of the trading allowance, self-assessment deadlines or insurance requirements.

 

6. Use of company resources

 

Side hustles should never be run using company time, equipment or materials. Employers should make this clear in written policies and ensure there are controls in place to prevent the misuse of email, software, data and devices. Where appropriate, employers can ask for proof of insurance or professional registration if the side business has legal or reputational implications.

 

7. Sector-specific rules

 

Public-sector roles and regulated professions often have stricter obligations. For example, NHS staff, teachers, civil servants and FCA-regulated individuals may be required to declare or seek approval for any other paid work. Employers should check any applicable conduct rules or internal codes of practice.

 

8. Disciplinary risks and managing non-compliance

 

If an employee fails to disclose other work, breaches a contractual restriction or their outside activities compromise performance, health and safety or trust in the employment relationship, disciplinary action may be justified. In serious cases, particularly where there is a risk to business interests or safety, dismissal may be lawful, but this will always depend on the circumstances and whether a fair procedure has been followed.

 

Section H: Need assistance?

 

DavidsonMorris are specialist employment law advisers to businesses. For expert advice on the legal implications of employees working second jobs or side hustles, contact us.

 

Section I: Working two jobs FAQs

 

Can I stop an employee from getting a second job?

Only if you have a valid contractual restriction in place that is reasonable and clearly communicated. Clauses that prohibit competing work or require prior approval for outside employment are more likely to be enforceable than blanket bans. In all cases, restrictions must be justifiable based on legitimate business needs.

 

Is it illegal for employees to work more than one job?

UK law does not prevent individuals from holding multiple jobs. However, employers have to ensure that total working hours comply with the Working Time Regulations 1998, and that health and safety is not compromised.

 

Do I have to monitor how many hours an employee works across both jobs?

Employers have a duty to take reasonable steps to ensure that working time limits are not breached. If you are aware an employee has secondary employment, you should ask them to confirm their total working hours and consider asking them to sign a 48-hour opt-out agreement if needed.

 

Can I dismiss an employee for not disclosing a second job?

Potentially, if the employment contract requires disclosure and the failure to do so causes a breach of working time rules, creates a health and safety risk or leads to a conflict of interest. Any disciplinary action must be reasonable, proportionate and follow a fair procedure.

 

Do I have to allow staff to freelance or run a side business?

Whether you can restrict this depends on what the employment contract or internal policies say. Freelance or self-employed work may not compete with your business but could still impact employee performance or working hours. A requirement to disclose such work is often more enforceable than a total ban.

 

What should I include in my employment contract or policy to manage this?

It’s advisable to include clear terms requiring employees to seek written permission before taking on additional work. You may also want to include clauses on confidentiality, conflicts of interest and working time compliance. Policies should be reviewed regularly and reflect the current working environment.

 

How should I deal with performance issues caused by a second job?

If you suspect that secondary employment is affecting an employee’s performance, attendance or wellbeing, this should be addressed through normal performance or disciplinary procedures. The focus should remain on the conduct or output, not the fact that they have outside work in itself.

 

Are there data protection risks if an employee has a side hustle?

Potentially – particularly if they use work devices or handle confidential information. Employees should be reminded of their obligations under your organisation’s confidentiality and data protection policies, and technical safeguards may be necessary to minimise risk.

 

Can secondary work be a health and safety issue?

Fatigue caused by working long hours across multiple roles can increase the risk of accidents or errors, particularly in safety-sensitive roles. Employers have a duty under the Health and Safety at Work etc Act 1974 to assess and manage such risks.

 

 

Section J: Glossary

 

Term	Definition
Exclusivity Clause	A contractual term that restricts an employee from taking other paid work; unenforceable if the worker’s main job pays at or below the Lower Earnings Limit.
Lower Earnings Limit (LEL)	The weekly pay threshold (£125 in 2025/26) tied to National Insurance; workers earning at or below the LEL cannot be bound by an exclusivity clause.
Working Time Regulations 1998	UK law that caps average working hours at 48 per week across all jobs, provides minimum daily and weekly rest and sets paid-holiday minima.
48-Hour Opt-out	A written agreement allowing a worker to exceed the 48-hour average limit; it can be withdrawn by the worker with notice (usually seven days).
Duty of Fidelity	An implied contractual duty requiring employees to act in their employer’s interests, refrain from competing and protect confidentiality.
Conflict of Interest	A situation where an employee’s outside work or personal interests could improperly influence their main employment duties.
Statutory Holiday Entitlement	Minimum paid annual leave of 5.6 weeks per job; entitlement is calculated separately for each employer.
Zero-hours Contract	A contract with no guaranteed hours; exclusivity clauses are banned, allowing holders to work for multiple employers.
Daily Rest	The right to 11 consecutive hours’ rest in every 24-hour period under the Working Time Regulations.
Weekly Rest	The right to an uninterrupted 24-hour rest each week (or 48 hours each fortnight) across combined employments.
Rest-break Duty	Employers must ensure workers taking multiple jobs still receive statutory rest under the Working Time Regulations.
Outside Employment Policy	An employer’s written rules on second jobs, disclosure duties and conflicts of interest, often found in the staff handbook.
Moonlighting	Informal term for holding a second job in addition to a primary employment.
Agency Worker	Individual supplied by an employment agency; may hold multiple assignments but must observe rest and working-time limits across them.