The Perils of Moonlighting: How a Side Hustle Can Lead to Job Loss

In the ever-evolving job market, where financial pressures mount and the gig economy flourishes, South African employees are increasingly tempted to take on additional work to supplement their incomes. However, a growing number of labour disputes serve as a stark reminder of the potential dangers of moonlighting—having a side job or business alongside one’s main employment.

This trend has recently come into sharp focus following the high-profile case of Dr. Sibongile Vilakazi, a former lecturer at Wits Business School, who was dismissed for failing to adhere to her contractual obligations by taking up an additional full-time position with Kantar SA without the necessary approvals.

The case, which resulted in Vilakazi's dismissal on 6 March 2019, exemplifies the necessity of understanding and respecting the legal frameworks governing employment contracts. It's a costly lesson on how the pursuit of a second income can lead to unintended consequences, such as job loss.

Vilakazi's oversight was her failure to declare and obtain consent for her external engagement, as was stipulated in her contract with the university. The repercussions for her non-disclosure were significant, putting into sharp relief the importance for employees to familiarize themselves with their contract's specific clauses regarding additional employment.

The Labour Appeal Court has made it clear that it is not illicit for employees to undertake side hustles, provided these activities do not interfere with their primary job responsibilities or pose a direct conflict of interest. However, Dr. Vilakazi's case demonstrates how a breach of contractual obligations, especially where non-compete and moonlighting policies are specified, can result in termination of employment.

Chris Pio, a dispute resolution official, highlights the legal latitude provided to employees who engage in side jobs that do not compromise their primary employment. However, he advises caution, signaling that contractual details and honesty with employers are critical in navigating the territory of moonlighting.

Key to avoiding the pitfalls reflected in Vilakazi's misstep is awareness and adherence to employment contracts and company policies. These documents sometimes include a non-compete policy, which bars employees from working for or owning businesses that compete with their primary employer. Additionally, a moonlighting policy might restrain employees from any external work that could adversely affect their primary job performance or allegiance.

The case serves as a cautionary tale, especially during financially challenging times when the allure of secondary jobs is compelling. Workers must maintain a transparent dialogue with their primary employers and seek consent where necessary to avoid jeopardizing their primary job. As the job market becomes more dynamic and fluid, it's more important than ever to ensure that a side hustle does not spell the end of a full-time career.