Side hustles: What’s legal, what’s not?

In a world where gig economies and side hustles are becoming increasingly common, navigating the legalities around engaging in extra work while employed is crucial. The effects of the Covid-19 pandemic have left many individuals seeking additional sources of income, leading them to explore avenues like tutoring, online sales, and other side businesses. But what does the law say about side hustles? Tertius Wessels, Advocate and Legal Director at Strata-g Labour Solutions, sheds light on the legal implications of pursuing side hustles while being employed. According to Wessels, while the law does not explicitly prohibit employees from having side hustles, it is essential to understand that employees are expected to dedicate their time, energy, skills, and hours to furthering the interests of their employer. Engaging in a side hustle that conflicts with the interests of the employer or competes with the employer's business activities can potentially land employees in hot water. One of the key points highlighted by Wessels is that when an employee utilizes skills and experience related to their main job to engage in additional work, such as providing services to clients on weekends, they run the risk of directly competing with their employer. This can result in a conflict of interest where the employee prioritizes their own interests over those of the employer, potentially leading to repercussions. Moreover, the nature of an employee's industry, the specific terms laid out in their employment contract, and the employer's stance on side hustles play a significant role in determining the permissibility of engaging in additional work. While some employers may be open to employees pursuing side businesses, restrictions may apply in terms of using company resources, time management, and avoiding conflicts of interest. Wessels emphasizes the importance of open communication between employees and employers regarding side hustles. Employees are advised to thoroughly review their employment contracts and any non-compete agreements to ensure compliance and avoid conflicts of interest. While activities like tutoring or online sales may not necessarily be prohibited, using employer resources or compromising performance during working hours can raise red flags. Ultimately, obtaining permission or authorization from the employer before venturing into a side hustle is crucial to prevent potential legal issues. By approaching the situation with transparency and honesty, employees can have constructive conversations with their employers to navigate the complexities of engaging in additional work while maintaining their primary job responsibilities.