Court Confirms Employers Can Dismiss Employees Over Conflicting Side Jobs

In recent years, more employees have been taking on side jobs, also known as side hustles, to supplement their income. Rising living costs and inflation have made this trend even more common. While side jobs can help workers financially, they can sometimes create challenges for employers, especially if they interfere with job performance.

If you are an employer, it is important to understand how side jobs can impact your workforce and what steps you can take to protect your business. Consulting a Toronto employment lawyer or a severance package lawyer Toronto can provide guidance if you encounter these situations.

Why Side Jobs Can Be a Problem for Employers

Employees juggling multiple jobs can face several issues that affect their primary work:

• Reduced focus and productivity: Side jobs may leave employees tired, distracted, or less focused during their main job.

• Time theft: Some employees may attempt to work their side jobs during company hours, effectively stealing time from the employer.

• Conflict of interest: Side work may compete with the employer’s business, creating legal and ethical concerns.

Even if an employee’s side job occurs outside of working hours, it can still be an issue if it impacts their performance or violates employment policies.

How Employers Should Address Side Jobs

To protect your business and reduce legal risks, employers should take proactive steps:

1. Include side job policies in employment contracts
   Employment agreements and employee handbooks should clearly outline the employer’s expectations regarding side jobs. This includes stating that employees must remain focused on their primary role during work hours, including what is typically written as a full devotion and exclusivity of employment provision.

2. Require disclosure of other employment
   Employees should be asked to disclose any outside work. This allows employers to assess potential conflicts of interest or scheduling issues.

3. Set limits on outside work
   Agreements can restrict the types of outside employment employees can engage in, provided these restrictions comply with non-competition and labor laws.

Even if your workplace does not currently address side jobs in contracts or policies, employees can still be disciplined or dismissed for just cause if their side job negatively affects their work.

Case Example: Dove v. Destiny Media Technologies

A recent British Columbia case, Dove v. Destiny Media Technologies Inc., 2023 BCSC 1032 illustrates how employers can manage employees with side jobs.

In this case:

• The employee was regularly absent and missed deadlines due to her side job.

• Investigations revealed she was working at her side job during her scheduled hours at the main employer.

• The employer dismissed her for cause, and she subsequently filed a claim arguing there was no justification for dismissal.

The court upheld the employer’s decision, confirming that the dismissal was lawful. This case highlights that:

• Employees can be dismissed without termination pay if their side job interferes with their primary work.

• Employers must conduct a thorough investigation to determine the actual impact of the side job.

• Employees should be given an opportunity to respond to allegations before final disciplinary action is taken.

Steps for Employers Before Dismissing an Employee

Before taking disciplinary action or dismissing an employee, employers should follow a clear process:

1. Investigate thoroughly
   Determine if the side job is affecting performance, causing absenteeism, or creating conflicts of interest. Documentation of findings is crucial.

2. Give employees a chance to respond
   Employees should have the opportunity to explain their side job or address concerns.

3. Choose an appropriate response
   Responses can range from a formal warning to suspension or dismissal for cause, depending on the severity of the situation.

4. Understand termination entitlements
   In Ontario, even if just cause for dismissal is established, some statutory termination entitlements may still apply unless wilful misconduct is proven. Consulting a wrongful dismissal lawyer or employment contract lawyer in Toronto is essential to ensure compliance.

Why Legal Guidance Is Crucial

Employment law can be complex, especially when it comes to dismissals related to side jobs. Hiring a Toronto employment lawyer or a severance package lawyer Toronto can help employers:

• Draft clear employment contracts and policies regarding outside work

• Navigate employee investigations and disciplinary processes

• Minimize the risk of wrongful dismissal claims

Similarly, employees considering legal action after dismissal may benefit from speaking with a wrongful dismissal lawyer to understand their rights and potential entitlements.

Key Takeaways for Employers

• Side jobs are increasingly common and can impact job performance and workplace productivity.

• Clear employment contracts and handbooks are essential to set expectations about outside work.

• Employers must investigate concerns thoroughly and give employees a chance to respond before taking action.

• Legal guidance from an employment contract lawyer or Toronto employment lawyer can ensure compliance with Ontario labor laws and help prevent costly legal disputes.

By proactively addressing side jobs and following a structured approach, employers can protect their business while ensuring fair treatment of employees.

Call Toronto Employment Lawyer Now

It is important for an employee (or an employee) to obtain a legal consultation before taking any action that could affect their situation at workplace. Sezar has experience advocating for both employers and employees, which allows him to anticipate the other side’s arguments and develop an effective strategy, including termination of employment.

If you are looking for a wrongful dismissal lawyer in Toronto, call us today at 647-822-5492 for a case evaluation with an experienced employment lawyer.

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