Australian Worker Sacked Over Side Hustle Despite Disclosure Claim
A recent case before Australia's Fair Work Commission has highlighted the significant limitations employees face when attempting to balance a full-time position with a secondary income stream. An employee was dismissed for maintaining a second job, which he asserted he had fully disclosed to his employer. The worker subsequently brought his case to the Fair Work Commission, alleging unfair dismissal.
Commission's Ruling on Unfair Dismissal Claim
Dismissal refers to the termination of employment due to a breach of employment conditions. Employees in Australia can lodge an "unfair dismissal" claim with the Fair Work Commission, which then evaluates the legal merits of the situation before issuing a ruling. In this instance, the Commission determined the dismissal was not unfair, citing two critical factors.
Firstly, the employee was operating a side business in a field closely related to his primary employment. Secondly, running this personal venture caused the individual to dedicate his standard work hours to his second job, thereby neglecting his duties to his main employer.
Understanding Employer Policies on Side Hustles
Many employers explicitly prohibit employees from holding second jobs or running side businesses, often stipulating this requirement within the letter of offer for a new position. Others mandate that employees must seek permission before undertaking any additional work. Employers typically assess whether a secondary job might impact the worker's safety and wellbeing, including risks such as excessive fatigue or potential competition with the company's interests.
Second jobs can vary widely from formal to informal arrangements. A side job typically constitutes formal employment with regulated hours and specific tasks, such as evening shifts in hospitality or teaching classes. In contrast, a side hustle is an informal money-earning activity pursued alongside full-time work, often within the gig economy or as an online business.
Practical Guidelines for Managing Side Hustles
To avoid conflicts with primary employment, employees should adhere to several key principles. Thoroughly review your letter of offer; if it contains a clause prohibiting side hustles, you cannot legally undertake a second job. If permission is required, always inform your employer. Ensure your side hustle does not compete with your main job, as employee loyalty is paramount. Your secondary work must not encroach on your primary responsibilities during agreed working hours, and you should never utilise your employer's resources for personal business activities.
Statistics and Motivations Behind Multiple Job Holding
While precise data on side hustles alone is scarce, the Australian Bureau of Statistics reports that nearly one million people hold more than one job within a workforce of ten million full-time workers. Employees with multiple jobs typically work approximately eight hours weekly in their second job and slightly fewer hours in their primary role, averaging around 30.5 hours per week. These figures likely underestimate the true scale, as they encompass both formal second jobs and informal side hustles.
The increase in multiple job holders over the past five years parallels rising living costs, particularly driven by higher housing prices. The proliferation of side hustles is also attributed to the expansion of digital platforms like ride-sharing, food delivery, and holiday rentals, which offer highly flexible work options through the gig economy.
Financial pressures are a primary motivator, but other reasons include career diversification, skill development, and personal fulfilment. Some employers permit side gigs to retain staff and boost motivation in primary roles. If you can convert a passion project into a paid side hustle without creating competition or infringing on work time, a clear pathway exists to explore alternative ventures.
