Second job: Do I have to inform my employer?
If you want to earn additional money next to your main job, a side job is an option. But can the employer really have a say in this?
Working at a bar over the weekend or accepting freelance jobs? A side job, for example, to supplement income, is not uncommon. But do I have to inform my employer and can he prohibit me from doing a side job next to my main job?
According to Alexander Bredereck, labor law expert, it is essential to take a look at the employment contract: "Mostly, it is regulated that one must report any side job before starting." Often, employees must also obtain explicit permission from the employer.
However, even if it is not explicitly stated, employees must inform their employer. And about essential details, such as: What is the nature of the job and when will I perform it. There is a reporting obligation, and if this is violated, it may result in sanctions.
Employer cannot simply prohibit side job without reason
This does not mean that the employer can simply and without reason prohibit a side job. A side job may only be rejected if the employer's legitimate interests are affected, as Bredereck explains. This could be the case if an employee wants to work for a competing company. Or if the scope of the side job is so large that legal regulations on working hours are exceeded.
Important: It is not within the employer's power to generally prohibit side jobs in the employment contract. Such general prohibitions in the employment contract are considered invalid by Bredereck.
It is recommended to inform the boss or CEO in writing about the side job, including proof of authorization from the employer. In this way, the employee has evidence in case of dispute that the side job was reported.
Initially, the employer's approval is unlimited. However, there may be reasons why he can prohibit the employee from doing a side job from one day to the next.
- Some employers may have concerns about their employees engaging in side jobs due to potential conflicts of interest or legal issues related to wage development and income tax.
- In such cases, it's crucial for employees to seek advice from a labor law expert or a financial advisor to ensure they're adhering to labor law and not violating any income tax regulations.
- Stiftung Warentest, a German consumer organization, recommends employees to carefully consider the implications of accepting a side job, as it might impact their primary salary and benefits.
- If an employer suspects that an employee is not declaring their side income correctly, they may request a financial test to verify the income reported in the tax return.
- In some situations, an employer may prohibit an employee from taking up a side job, especially if it interferes with their primary duties or affects the company's profits, thereby causing legal issues.
- Employees should maintain a balance between their main job and side job, ensuring that their performance and focus on the primary job are not compromised, as it could lead to wage stagnation or even termination.
