{"id":30024,"date":"2023-08-09T07:19:09","date_gmt":"2023-08-08T23:19:09","guid":{"rendered":"https:\/\/zegal.com\/?p=30024"},"modified":"2025-01-17T02:26:15","modified_gmt":"2025-01-16T18:26:15","slug":"my-star-employee-is-moonlighting-for-someone-else-in-the-evening-is-that-legal","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-hk\/blog\/post\/my-star-employee-is-moonlighting-for-someone-else-in-the-evening-is-that-legal\/","title":{"rendered":"My Star Employee Is Moonlighting For Someone Else, Is That Legal?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Picture the scene: you are the business owner of a&nbsp;<a target=\"_blank\" href=\"https:\/\/zegal.com\/starting-a-business\/\" rel=\"noreferrer noopener\">growing startup<\/a>&nbsp;with ten employees. One employee, Jack, has been with you from day one, and whilst he isn\u2019t an&nbsp;<a target=\"_blank\" href=\"https:\/\/zegal.com\/appoint-or-remove-directors\/\" rel=\"noreferrer noopener\">appointed director<\/a>, you view him as your number two.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jack has helped the business grow as a key player and has access to important confidential information, client lists and budgets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jack has been a committed employee since he first received the&nbsp;<a target=\"_blank\" href=\"https:\/\/zegal.com\/job-offer-letter\/\" rel=\"noreferrer noopener\">employment offer<\/a>. He\u2019s the highest performer at the company, but recently he\u2019s had his eye off the ball, and his performance has dropped.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He also seems particularly tired in the mornings. You ask him if everything\u2019s okay, but he doesn\u2019t give anything away.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After this goes on for a few weeks, you become suspicious and check his work emails. He has been working with his friend on a new venture in the evenings. At this point, you cannot tell if this venture&nbsp;<a target=\"_blank\" href=\"https:\/\/zegal.com\/non-compete-agreement\/\" rel=\"noreferrer noopener\">competes with your business<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-is-your-employee-moonlighting-what-is-moonlighting\"><span class=\"ez-toc-section\" id=\"Is_your_employee_moonlighting_What_is_moonlighting\"><\/span>Is your employee moonlighting? What is moonlighting?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This kind of situation is commonly known as moonlighting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moonlighting refers to holding a secondary job or profession in addition to one\u2019s primary employment. Typically, individuals moonlight to <a class=\"ek-link\" href=\"https:\/\/themodestwallet.com\/make-extra-money\">earn extra income<\/a>, acquire new skills, or pursue a passion like becoming the author of the <a href=\"https:\/\/www.bestnewauthors.com\/scifi\">best sci-fi books<\/a>. The secondary job usually takes place outside of <a class=\"ek-link\" href=\"https:\/\/www.wikijob.co.uk\/finance\/pay-salary\/calculate-hours-worked\">regular working hours<\/a>, where the term moonlighting \u2013 working by the light of the moon \u2013 comes from.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether moonlighting is lawful depends on numerous factors, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What is written in the&nbsp;<a target=\"_blank\" href=\"https:\/\/zegal.com\/employment-contract\/\" rel=\"noreferrer noopener\">employment contract<\/a><\/li>\n\n\n\n<li>How senior the salesperson is<\/li>\n\n\n\n<li>What kind of work is the employee doing on the side<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-is-moonlighting-illegal\"><span class=\"ez-toc-section\" id=\"Is_moonlighting_illegal\"><\/span>Is moonlighting illegal?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Moonlighting is not universally illegal. However, employees may be surprised to discover they can be restricted from doing other work on their own time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are several reasons behind this, but common concerns are the knock-on effect on their performance at their primary employer, as well as the effect on health and safety regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Like Jack, if your star employee is working in the evenings, they will likely be tired when they come to work, which may harm their performance, and before you know it, that star isn\u2019t shining quite so brightly!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Not only does this cause losses to your business, but it\u2019s demotivating for the employee too. If they aren\u2019t doing as well at work, this may lead them to become more focused on their outside activities, which will negatively perpetuate the cycle.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-might-employers-restrict-moonlighting\"><span class=\"ez-toc-section\" id=\"Why_might_employers_restrict_moonlighting\"><\/span>Why might employers restrict moonlighting?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are several reasons an employer might be against moonlighting:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Conflict of Interest<\/strong>: An employer might be concerned that an employee\u2019s second job could be with a competitor or in a field that creates a conflict with their primary job\u2019s duties or responsibilities.<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/engagedly.com\/blog\/employee-productivity\/\" class=\"ek-link\">Reduced Productivity and Performance<\/a><\/strong>: If an employee is working another job, especially if it involves long or irregular hours, they might come to their primary job fatigued, which could affect their productivity and performance.<\/li>\n\n\n\n<li><strong>Overexertion and Health Concerns<\/strong>: Working multiple jobs can lead to overexertion and related health issues, potentially leading to more sick days and reduced overall productivity.<\/li>\n\n\n\n<li><strong>Divided Loyalty<\/strong>: There could be concerns that the employee might prioritize their secondary employment over their primary job, leading to potential loyalty issues.<\/li>\n\n\n\n<li><strong>Availability and Flexibility<\/strong>: Employees who moonlight might not be as available for overtime, unexpected shifts, or last-minute tasks that arise in their primary job.<\/li>\n\n\n\n<li><strong>Intellectual Property Concerns<\/strong>: Employers might worry about potential overlap in the kinds of work being done in both jobs and the possible sharing or unintentional use of intellectual property.<\/li>\n\n\n\n<li><strong>Confidentiality Issues<\/strong>: If an employee has access to sensitive information in their primary job, there\u2019s a potential risk (even if it\u2019s perceived and not real) that they might inadvertently share or misuse this information in their second job.<\/li>\n\n\n\n<li><strong>Distraction<\/strong>: Moonlighting can lead to an employee being mentally preoccupied with their secondary job while at their primary job.<\/li>\n\n\n\n<li><strong>Company Image and Reputation<\/strong>: If an employee\u2019s second job is controversial or in an industry that could be perceived negatively by stakeholders, clients, or the general public, it might reflect poorly on the primary employer.<\/li>\n\n\n\n<li><strong>Violation of Employment Contracts<\/strong>: Many employers include clauses in their employment contracts that restrict or prohibit secondary employment, mainly to address many of the concerns listed above.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-health-and-safety-concerns-with-moonlighting\"><span class=\"ez-toc-section\" id=\"Health_and_safety_concerns_with_moonlighting\"><\/span>Health and safety concerns with moonlighting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The working time regulations set specific rest breaks and maximum working hours (e.g., 48 hours per week in the UK).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you have consented to your employee working elsewhere in the evenings, you must keep an eye on their rest breaks and working hours to ensure compliance with these regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Health and safety issues will be far more relevant if your business uses drivers or manual workers.<\/p>\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"lyte-wrapper\" title=\"How to Create and Sign an NDA in Under a Minute with Zegal\" style=\"width:640px;max-width:100%;margin:5px;\"><div class=\"lyMe\" id=\"WYL_eoYnP2TOA_w\" itemprop=\"video\" itemscope itemtype=\"https:\/\/schema.org\/VideoObject\"><div><meta itemprop=\"thumbnailUrl\" content=\"https:\/\/zegal.com\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2FeoYnP2TOA_w%2Fhqdefault.jpg\" \/><meta itemprop=\"embedURL\" content=\"https:\/\/www.youtube.com\/embed\/eoYnP2TOA_w\" \/><meta itemprop=\"duration\" content=\"PT1M4S\" \/><meta itemprop=\"uploadDate\" content=\"2023-08-07T10:33:07Z\" \/><\/div><meta itemprop=\"accessibilityFeature\" content=\"captions\" \/><div id=\"lyte_eoYnP2TOA_w\" data-src=\"https:\/\/zegal.com\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2FeoYnP2TOA_w%2Fhqdefault.jpg\" class=\"pL\"><div class=\"tC\"><div class=\"tT\" itemprop=\"name\">How to Create and Sign an NDA in Under a Minute with Zegal<\/div><\/div><div class=\"play\"><\/div><div class=\"ctrl\"><div class=\"Lctrl\"><\/div><div class=\"Rctrl\"><\/div><\/div><\/div><noscript><a href=\"https:\/\/youtu.be\/eoYnP2TOA_w\" rel=\"nofollow\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/zegal.com\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2FeoYnP2TOA_w%2F0.jpg\" alt=\"How to Create and Sign an NDA in Under a Minute with Zegal\" width=\"640\" height=\"340\" \/><br \/>Watch this video on YouTube<\/a><\/noscript><meta itemprop=\"description\" content=\"Learn how to quickly and efficiently create a Non-Disclosure Agreement (NDA) using Zegal&#039;s innovative legal tech platform, all in under a minute! This tutorial guides you step-by-step, making the process incredibly straightforward. No legal jargon, no confusion, just a simple process that saves you time and effort. In this video, we&#039;ll cover: 1\ufe0f\u20e3 How to navigate Zegal&#039;s intuitive interface 2\ufe0f\u20e3 Step-by-step walkthrough using Zegal 3\ufe0f\u20e3 How to sign and save the NDA with ZegalSign Whether you&#039;re a startup seeking to protect your intellectual property, an employee about to start a new job, or an individual involved in a personal business matter, this tutorial will give you the knowledge and tools needed to navigate the process of signing an NDA smoothly and efficiently. We believe that legal processes should be accessible and comprehensible for everyone, and we aim to make it just that. With Zegal, legal gets easier. Enjoy the video, and don&#039;t forget to like, share, and subscribe for more legal tech tips and tutorials! Disclaimer: This video does not constitute legal advice. Please consult with a legal professional for your specific circumstances. #Zegal #NDA #LegalTech #Tutorial #HowTo\"><\/div><\/div><div class=\"lL\" style=\"max-width:100%;width:640px;margin:5px;\"><\/div><figcaption>An NDA can save a lot of headaches.<\/figcaption><\/figure>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-an-employee-moonlights-for-a-competitor\"><span class=\"ez-toc-section\" id=\"What_is_an_employee_moonlights_for_a_competitor\"><\/span>What is an employee moonlights for a competitor?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The biggest risk to your business is if your employee works for a competitor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your confidential information (if the employee has not&nbsp;signed an <a href=\"https:\/\/zegal.com\/non-disclosure-agreement\/\" class=\"ek-link\">NDA template<\/a>), client list, know-how, and employees may all be compromised.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the individual is cheeky, they may also be diverting your business to the evening employer\/their own venture. The damage to your business could be enormous.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the scenario above, it isn\u2019t clear whether Jack is competing, but the employer needs to start investigations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-can-employers-prevent-and-remedy-moonlighting\"><span class=\"ez-toc-section\" id=\"How_can_employers_prevent_and_remedy_moonlighting\"><\/span>How can employers prevent and remedy moonlighting?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Well, first and foremost, start with the&nbsp;<a target=\"_blank\" href=\"https:\/\/zegal.com\/employment-contract\/\" rel=\"noreferrer noopener\">employment contract<\/a>. A well-drafted contract will contain the following clauses:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The employee must devote their whole time and attention to your business during working hours<\/li>\n\n\n\n<li>They must not work for anyone else whilst employed by you or your company without your consent&nbsp;<\/li>\n\n\n\n<li>They cannot work for a competitor, cannot poach clients and\/or employees and cannot take your confidential information<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">When crafting an <a href=\"https:\/\/www.prezent.ai\/zenpedia\/employee-onboarding-presentation-guide\" class=\"ek-link\">employee onboarding presentation<\/a>, consider incorporating a section on moonlighting that can be thoroughly discussed during the induction process<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you have all of these provisions in the contract, enforcing any disciplinary sanction or&nbsp;<a target=\"_blank\" href=\"https:\/\/zegal.com\/notice-of-termination-by-employer\/\" rel=\"noreferrer noopener\">dismissal<\/a>&nbsp;will be much easier if necessary.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You may also be able to seek damages for any loss of business and breach of contract. (NB, you also need a clause in the employment contract and&nbsp;<a target=\"_blank\" href=\"https:\/\/zegal.com\/employee-handbook\/\" rel=\"noreferrer noopener\">handbook<\/a>&nbsp;which gives you rights to monitor emails and communication as in Jack\u2019s example above.)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We recommend a clause stating they cannot work for anyone else without your consent. It\u2019s reasonable, more enforceable, and it should alleviate any dishonesty issues, meaning an employer can monitor the situation and obtain any information you require openly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-if-the-employment-contract-doesn-t-contain-moonlighting-clauses\"><span class=\"ez-toc-section\" id=\"What_if_the_employment_contract_doesnt_contain_moonlighting_clauses\"><\/span>What if the employment contract doesn\u2019t contain moonlighting clauses?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In this situation, you would need to rely on implied terms. Employees have a duty of good faith to their employer, which is implied in the employment contract.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.zavvy.io\/blog\/meaningful-role-descriptions\" class=\"ek-link\">employee\u2019s job description, duties, and seniority<\/a> are relevant as to the level this can be relied upon.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Case law has developed this implied duty to encompass such responsibilities as&nbsp;<strong>not to disrupt the employer\u2019s business; not to compete; not to poach customers;<\/strong>&nbsp;to name a few.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jack has been at the business from the outset, is considered the \u201cnumber 2\u201d, and has access to important confidential information. It would be more justified to discipline Jack based on this implied term.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your employee is a director, there are more significant obligations to the employer known as&nbsp;<strong>fiduciary duties<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Essentially, a director must not put their interests before the company\u2019s.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the director has made a profit whilst moonlighting and in breach of their fiduciary duties, you may get a percentage of such profits as an extra remedy in the courts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-can-you-dismiss-a-moonlighting-employee\"><span class=\"ez-toc-section\" id=\"Can_you_dismiss_a_moonlighting_employee\"><\/span>Can you dismiss a moonlighting employee?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you decide to dismiss your employee for moonlighting, you must show you have a fair reason (usually misconduct in this case) and have followed a proper procedure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If there is dishonesty on the part of the employee, then this would justify&nbsp;<a target=\"_blank\" href=\"https:\/\/zegal.com\/blog\/post\/remedies-for-unfair-dismissal\/\" rel=\"noreferrer noopener\">dismissal<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Remember, always seek legal advice!<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft\"><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/07\/11-resized-1-150x150.jpg\" alt=\"\" class=\"wp-image-29224\"\/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\" id=\"E394\"><em>Jane Johnson of JLJ Legal is an&nbsp;<\/em><a href=\"https:\/\/www.jljlegal.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">employment law solicitor<\/a><em>&nbsp;with many years\u2019 experience. She can advise you on all elements of employment law in relation to your business. Her website is&nbsp;<\/em><a href=\"http:\/\/www.jljlegal.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">www.jljlegal.co.uk<\/a><em>&nbsp;and you can contact her on&nbsp;<\/em><a href=\"mailto:jane@jljlegal.co.uk\" target=\"_blank\" rel=\"noreferrer noopener\">jane@jljlegal.co.uk<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>This article does not constitute legal advice.<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>The opinions expressed in the column above represent the author\u2019s own.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Picture the scene: you are the business owner of a&nbsp;growing startup&nbsp;with ten employees. One employee, Jack, has been with you from day one, and whilst he isn\u2019t an&nbsp;appointed director, you view him as your number two. Jack has helped the business grow as a key player and has access to important confidential information, client lists [&hellip;]<\/p>\n","protected":false},"author":162,"featured_media":130276,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":4,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[14277],"tags":[6405,7043,6510,16,6919,10307],"usecases":[13702],"businesstypes":[],"country":[],"class_list":["post-30024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-and-employment","tag-gig-economy","tag-legal","tag-sme","tag-startups","tag-uk","tag-z-syndicate","usecases-uncategorised"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>My Star Employee Is Moonlighting For Someone Else, is it legal?<\/title>\n<meta name=\"description\" content=\"Are your employees allowed to work elsewhere in the evenings? 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