19 June 2026
The term ‘moonlighting’ refers to the practice of an employee having an extra job or a ‘side hustle’ in addition to their ordinary job, usually without the knowledge of their employer. Typically, the employee will devote extra hours to the ‘side hustle’ after their regular working hours and depending on the nature of the work, sometimes during them.
Moonlighting does not necessarily constitute a breach of the employment contract, although in some instances it may, depending on the contractual provisions. Unfortunately, moonlighting may create a conflict of interest and result in a breach of the duty of good faith owed by the employee towards the employer.
This conflict may take various forms, for instance: the additional job may take the form of competing with the employer or making use of the employer’s resources. It may also arise from the fact that the activities associated with the additional job mean the employee is unable to perform their obligations to their employer adequately. On that basis, it remains necessary for an employee to obtain prior approval before engaging in moonlighting.
Moonlighting can cause divided loyalty or can harm an employer’s business, especially if the secondary job competes with the primary one. Employers are encouraged to investigate moonlighting before concluding the employee’s employment status with the company. Employers can manage moonlighting by adding contract clauses that require permission for secondary work and disclosure of conflicts of interest.
Setting policies that secondary jobs must not:
- Contradict the employment contract
- Harm the employer’s business
- Impair primary job performance
Balancing employees’ rights to earn extra income with business protection is key. For example, if an employee diverts clients to their ‘side hustle’, this breaches good faith and may in some instances warrant dismissal. Employers should list such acts as serious misconduct in disciplinary codes.
- As an employee, before starting a side hustle, ask yourself:
- Could this compete with my employer?
- Could it affect my work performance?
- Am I using any employer resources or information?
- Does my employment contract require disclosure or approval?
- Would I be comfortable explaining this activity to my employer?
If the answer to any of these questions raises concerns, disclosure is usually the safest course of action.
Employers should ensure that employment contracts and policies:
- Define moonlighting clearly.
- Require disclosure of secondary employment.
- Explain what constitutes a conflict of interest.
- Prohibit the use of company resources for personal business.
- Address confidentiality and intellectual property.
- Specify the disciplinary consequences of non-disclosure or misconduct.
The goal should be to manage legitimate business risks while respecting employees’ contractual rights.
Ref: www.labourguide.co.za www.uasa.org.za