Kritika 
(C): Unsplash
You have an awesome side business idea for the UK – perhaps you’re a freelancer on weekends, sell handmade items online or consult on a side business. However, a disturbing thought strikes: “Will my boss be allowed to fire me for this?”
The short answer? Yes, but with some restrictions. Before getting hired, here’s what you should know.
Can Your Employer Legally Fire You?
There are instances where your employer can legally terminate your contract due to a UK side hustle if it:
- Breaches your employment contract
- Creates a conflict of interest at work
- Impairs your ability to do your primary job.
If you have been working at your company for two years or more, though, you cannot be fired on a whim, and you would have a case for unfair dismissal. Your length of service is important to remember here.
4 Contract Clauses You Must Check Right Now
Now, before you sign up with that business or get your first client, pull out your employment contract and search for these areas:
1. Whole Time / Exclusivity Clause
This is the major one. It demands that you put your whole working life and attention into your employer, and can outright prohibit any outside employment. If this condition is within your contract, then be careful.
2. Restrictive Covenants / Non-Compete
This prevents you from working – or starting – a business that would be in competition with your employer or in the same line of business. Loose and unclear non-competes can cause issues with your side business in the UK if you are in the same industry.
3. Prior Consent / Approval Clause
Many contracts will have a condition that you notify HR or obtain written permission prior to pursuing outside work. Even if it isn’t a related matter, failing to do so might get you into trouble.
4. Working Time Regulations
The average working week in the UK is 40 hours. If your side job takes you over this and you have not signed an opt-out agreement, your employer has the right to ask you to cease. Simple as that.
What Actually Counts as a “Conflict of Interest”?
Not all of the UK side hustles are created equal. Typically, a conflict of interest at work occurs when your second job:
- Competes for your employer’s clients or captures your employer’s business opportunities
- Does not use company data, intellectual property or equipment.
- Works for a direct competitor
- Damages Your Employer’s Reputation or Public Image
Do you sell candles on Etsy? Almost certainly fine. Having a “side business” as a consultant? That’s where the legal grey area begins.
How to Protect Yourself: 3 Smart Steps
Tell the truth as soon as possible and as early as possible.
Don’t be shy about speaking to your manager about your contract if it needs to be approved or if you aren’t sure. Make your side business in the UK seem like a completely unrelated activity that won’t have any impact on your regular work. In advance, it builds trust and a paper trail.
Your Company Handbook needs to be reviewed
In addition to the contract, check a Conflict of Interest Policy on your employer’s intranet. This will provide a complete picture of what disclosure is required and where the boundaries lie with employee-side business rules.
If necessary, seek professional advice
When you’re facing a termination due to your side business — or you don’t understand your contract — don’t assume anything. Get free, unbiased advice on your UK employment rights for a second job from the Acas Helpline or an employment solicitor.
Quick Cheat Sheet
| Situation | Risk Level |
| Running a side business in a completely different industry from your employer | Low |
| Freelance work that is related to the type of work you do for your employer | Medium |
| Working for or being involved with a direct competitor | High |
| Using company equipment, resources, or assets for your side business | Very High |
Bottom Line
A side hustle in the UK can be legal or a part of a termination agreement; it’s a matter of the job agreement. Read it carefully, reveal it when asked to do so and steer well clear of anything that compromises your employer’s interests. There is a certain amount of homework that can be done to avoid a lot of headaches later.
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