Cost of Living Crisis – How Can You as an Employer Help Support Your Staff? Part 2
In our first article we discussed how businesses can financially support staff and the options available to financially reward but also keep outgoings low along with providing some alternative ways that businesses may be able to assist staff that are not necessarily money based.
It is not uncommon for staff in some industries such as retail and hospitality to have more than one job but this has become more common as people are feeling an impact on their finances. Many people are finding that their single salary is no longer stretching to cover the basic necessities and are being left with no choice but to get a second job. However, this is not always as simple as weekend work for a 9-5 Monday-Friday employee especially where restrictive covenants are involved.
Second jobs & restrictive covenants
The number of staff who work second jobs could be on the increase and with this comes a host of practical but potentially legal problems which might put your business at risk.
Some might argue that what a member of staff is doing outside of their working hours should not be a concern for a business. One of the main concerns of staff working multiple jobs is the physical and mental strain this takes. Individuals need rest and time away from work and the Working Time Regulations provide for this and although individuals can opt out of the 48 hour limit on working week, sufficient rest away from all work should be seen as a necessity. If a member of staff is working with you 9-5 Monday to Friday and then working evenings and weekends alongside this, it is likely they will reach a point where they are burnt out and overworked and therefore this puts you at risk of a lower quality of work and the potential loss of a staff member to sickness or lack of capability to do their job.
Many contracts include a clause that restricts work for any other employer without the express consent of the employer. This clause is used not only to keep a check on an individual’s working time but to also ensure that they are not potentially acting in competition with the company among other things. If a member of staff fails to seek permission for a second job, there is scope for this to be considered a disciplinary matter.
If an employee informs you of their second job or their intention to get second job what should you consider?
First, check whether any contractual restrictive covenants are in place which might limit their ability to obtain a second role. When applied to an employee who remains in the business, these are likely to only apply to roles that are in competition with the business or its clients. You should check your contracts and seek advice where necessary.
Check whether the employee is required by their contract to inform you and/or seek your permission. Are there any specific grounds upon which you can refuse the request to take up a second job?
Consider whether there are any real risks for the business in a member of staff having a second job. For example, if the individual is working from home are they completing their second role within their contracted working hours for the business and would this second role have a detrimental impact on the work the employee is carrying out for you? For example, would running a pet boarding service in the day whilst working from home for your business impact on your employee’s productivity?
Before considering whether to approve or refuse a request to take up a second role, or whether to take action against an employee who is working a second role without notifying you, it is recommended that a discussion is held with the employee to confirm exactly what they are seeking to do, when, over what hours and in what industry along with the reasons for them wanting to take up an additional role. This way, the business can make an informed decision as to its next steps and whether any further checks need to be put in place going forwards.
Some employees might take up a side business as something they enjoy and are passionate about alongside their employment, for example they might carry out teaching in an evening or creating products for businesses to sell. You should consider the risk that refusal to allow someone to engage in these activities for their enjoyment might severely impact their role and productivity within your business. However, if their reasons for a second role are purely financial, there may be alternative options to explore with the employee to assist them, we set out some suggestions for consideration in our first article in the series.
If you refuse permission for a second role, there is potentially the risk that you will increase an individual’s hardship further. In doing so this may cause an irretrievable breakdown of the relationship between you and the employee which could result in you losing a valued member of staff.
Our advice
If you are concerned about an employee working a second job or their potential to do so and/or the impact a second job is having on your employee our advice is to first speak to them. If your concerns continue or you have any queries in relation to the above or any other employment query please contact our Employment Law Team on 01246555111 or via the contact details below.
If you want to hear more about employment law updates and changes, you can also find details of our other upcoming events here: Events | BRM Solicitors, Chesterfield (brmlaw.co.uk)
Amy Hallam
Head of Employment
t: 0114 3496989
e: amy.hallam@brmlaw.co.uk
Ellie Leatherday
Associate
t: 01246 564002
e: ellie.leatherday@brmlaw.co.uk
Jade Taylor
Trainee Solicitor
t: 01246 560587
e: jade.taylor@brmlaw.co.uk
