A recent ruling by the Fair Work Commission has underscored the risks employees face when juggling a full-time job with a side hustle. In a case involving a worker dismissed over his second business, the Commission found the termination was not unfair, highlighting the legal and practical boundaries that apply to second jobs in Australia.
What happened
The employee, who said he had disclosed his second job to his employer, was dismissed for breaching employment conditions. He lodged a claim of unfair dismissal with the Fair Work Commission.
The Commission ruled the dismissal was not unfair. It cited two main reasons:
- The side business operated in a field similar to his primary employment
- The employee spent normal working hours on his second job
Under Australian employment law, dismissal refers to termination for breach of employment conditions. Employees can challenge such decisions before the Commission, which assesses the legal merits of each case.
Five practical tips for employees with side gigs
1. Check your employment contract
Review your letter of offer or employment agreement. Some contracts prohibit second jobs outright. Others require prior approval from the employer.
2. Avoid direct competition
A side hustle should not operate in competition with your main employer. Competing activities can be seen as a breach of loyalty and trust.
3. Maintain loyalty and focus
Employers are entitled to expect that your primary professional commitment remains with them. A side job must not undermine your responsibilities.
4. Keep work hours separate
Your side hustle must not spill into your agreed working hours. There is a reasonable expectation that employees devote full attention to their primary role during paid time.
5. Do not use employer resources
Company equipment, systems, data or other resources must not be used for personal business activities.
How common are second jobs?
According to the Australian Bureau of Statistics, nearly one million Australians hold more than one job out of a workforce of roughly ten million full-time workers.
On average, multiple job holders work around eight hours per week in their second job. They also tend to work slightly fewer hours in their main job, averaging about 30.5 hours weekly.
However, these figures may understate the true scale of side hustles, as the data includes both formal second jobs and gig-based work.
Why more people are taking on side hustles
The increase in multiple job holding over the past five years has mirrored rising cost-of-living pressures, particularly higher housing costs.
The growth of digital platforms has also made flexible income streams easier. Ride-share services, food delivery apps and short-term rental platforms have expanded opportunities within the gig economy.
Beyond financial necessity, motivations for second jobs include:
- Pursuing a new career path
- Developing new skills
- Seeking personal fulfilment
Some employers permit side gigs to retain staff and support professional growth, provided there is no conflict of interest. A side hustle can be legally and professionally viable — but only if it does not breach contract terms, compete with your employer, interfere with work hours or misuse company resources.
The recent Fair Work Commission ruling serves as a reminder that transparency alone may not be enough if the second job creates a conflict with primary employment.
(With ANI inputs)
