Workplaces introduce side hustle policies to reduce risks

Side hustle policies are being rolled out in workplaces, as hundreds of thousands of Aussies seek second jobs. Find out how to avoid crossing the line.

Bosses are cracking down on questionable side hustles as more Aussies look to additional income streams to help make ends meet.

Specific side hustle policies – covering everything from administrative second jobs to OnlyFans accounts – are being rolled out across workplaces in a bid to reduce the ramifications to employers from workers with multiple jobs.

Workplace relations legal expert Joe Murphy, from Cowell Clarke Commercial Lawyers, says companies are increasingly concerned that side hustles may place their business operations and reputation at risk, and lead to worker burnout.

“More Australian workers are seeking out additional sources of income to cope with the rising costs of living, some more risqué than others,” Murphy says.

“It’s got to the stage where employers and employees are requiring a clear set of rules and expectations on side hustles or it could lead to costly court action.”

Accounts on adults-only platform OnlyFans are among those causing headaches for employers – last year, a NSW worker was sacked after it was discovered she was operating a secret OnlyFans account in breach of company rules.

There are 955,600 multiple jobholders in Australia. Picture: iStock

The problem with side hustles

Many workers need several income streams to pay their mortgage and put food on the table as the cost-of-living crisis continues, with recent ABS figures reflecting 955,600 multiple jobholders in Australia.

A major concern for employers is a lack of productivity, says Murphy, as workers “burn the candle at both ends”.

“(Employers) are seeing their employees fall asleep on the job, or taking naps in select locations, and they are genuinely worried about (staff) health and wellbeing, let alone their productivity,” he says.

Side hustles that are closely aligned with a worker’s main employment are also problematic, he says.

“Some (employers) suspect the worker is using their side hustle to build a business in direct competition, and occasionally that is the case, or its very nature could cause irreparable damage to their brand,” Murphy says.

“This is having an increasing impact on workplaces across the country … (and) is likely to become more prevalent and contentious in the year ahead.”

Mitigating risk

Employees should select side hustles carefully and avoid anything that could put their primary employment at risk, workplace expert Michelle Gibbings says.

“If you’re working (in your main job) as an accountant and your side hustle is selling candles, it’s not likely to be in conflict. But if you’re accountant doing tax returns on the side, then you could find yourself in hot water,” she says.

“You have got a huge amount of skills (from your primary employment) that are highly transferable that you can safely use (in a side hustle) – customer service skills from your job in retail can easily transfer to a second job in a call centre, where it’s unlikely they will be in conflict with one another.”

Unless stated in their employment contract, Gibbings says there’s no legal requirement for workers to disclose a side hustle to their primary employer but suggests that, wherever possible, it’s best to be transparent.

Understanding bosses may support workers by changing rostered shifts to better accommodate a second job, she says.

“Be aware of what’s realistic in terms of your capacity to take on extra work and the potential it has to have an impact on your primary employment,” Gibbings says.

“You don’t want to get burnt out and you don’t want your primary job to suffer, which it could do because of all the energy and effort you are putting in to your side hustle.”

Separating your side hustle from your primary employment is paramount, Gibbings says.

“Don’t use what is not yours. If you are running a side hustle, everything associated with that side hustle needs to be your own equipment, your own tech and your own resources,” she says.

“Don’t use your work computer or your work email or your company’s resources for something that’s not work-related. And be really clear around IP (intellectual property), which is much easier to do if you’re side hustle is in an unrelated industry.”

Glen Polak has a side hustle as a delivery driver for Amazon Flex.

Supporting side hustlers

Glen Polak works as a supply planner with a national plumbing company, but took on a second job as a delivery driver for Amazon Flex a little more than two years ago, to save for a home deposit.

After telling his main employer about the side hustle, Polak was rostered to earlier shifts to allow him more time for delivery work. However, he was still required by his boss to be on call for emergencies.

“I definitely went to my (primary) boss with it and … they were really accommodating and understood I wanted to do this … to get a house deposit,” says Polak, who was able to save $22,000 within four months by working an extra 30 hours each week.

Having now bought his home, Polak still does one weekend shift a week with Amazon Flex to help meet mortgage repayments.

“The flexibility of it (Amazon Flex work) is really good,” he says.

“I can pick a day and time where I’m able to do something (without it interfering with my main job), whereas if you worked somewhere else, you may have to abide by their (set) hours.

“Here, you rock up and you load your car up and you’re off.”

Side hustles turned sour

• Newcastle woman Annie Knight was dismissed from her job after just five days, when her boss uncovered her secret OnlyFans account. Knight did not fight the dismissal.

• Paul Box was sacked by his employer Linfox in February 2022 after failing to obtain written permission to work on a side hustle. The Fair Work Commission found that Box’s claims of verbal approval did not meet the contractual obligation he had to get written permission and ruled there was a valid reason for dismissal.

• The Fair Work Commission upheld the dismissal of Shane Harris from his employment in 2019. Harris was found to have been providing up to 20 hours per week of financial services advice, which was in conflict with the work he did for his employer.

Source: Cowell Clarke Commercial Lawyers

Originally published as Workplaces introduce side hustle policies to reduce risks