You’ve Caught an Employee Working a Second Job on Company Time, Now What?

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Our customers often tell us stories about how, through our GPS Tracking software, they discovered an employee was using company time, vehicles and equipment for side jobs. When they make this discovery, they have a few possible courses of action:

  1. Ignore it completely and let it continue
  2. Confront the employee and terminate their employment
  3. Confront the employee and give a warning

 

We decided to post the question to the LinkedIn Small Business Group. We asked:


"How do you handle an employee you discover working side jobs on company time? Immediate dismissal or reprimand?"

The answers were quite diverse. We've removed the names and identified the responder only by title.

The Answers

Crisis Management Executive

In my companies people are employed to achieve things not for fixed time frames. As long as they are achieving what I pay them to do I don't care what else they do or when as long as they do not harm my business in the process. If, however, I were employing people in the traditional 9-5, you're on my book and if I discovered them working for someone else in that time I would fire them without further discussion.


HR Director

If they are indeed doing another job on company time then this would certainly be a disciplinary matter. How you handle it depends on your company policy and their length of service but I would suggest a meeting to investigate further before taking any disciplinary action. The severity of any sanction i.e. warning or dismissal should take into account:

  • If there is a policy which states clearly that employees should not do this
  • If the work they have been doing represents a conflict of interest or is damaging to the company reputation


Consultant

If the facts are correct, the person is stealing from the company. Too often we look for explanations, when what is wrong is wrong. The person by engaging in this action has proved they no longer should be working for the company. (There is a very narrow exception, if others were engaging in the same type of improper activity and nothing happens to them, the lack on consistency could come back to bite you.)

Branch Manager

I would look at it as a positive that they have the entrepreneurial drive and the business savvy to have side jobs that require their time. It only makes your business more reputable and a more powerful force if the people working with you are business owners themselves.

That being said, working on company time is not okay – not at all. They're there to work for you. You don't pay them for any other reason. If they need to work that side job, they need to do it on their lunch break or on their smoke break. This needs to be made clear to them in no uncertain terms.

However, firing this person… you may be firing one of your most ambitious and valuable assets. So, make it clear to them that this isn't acceptable practice and can't be tolerated. If it happens again – then kick them to the curb.

(on another note – if their side jobs are in the same industry, be sure to have them sign a non-compete)

Tradeshow Booth Traffic Builder

Fire them…

Designer / Marketer

You need to discover why they're doing it in the first place. Is it just because they can and they thought they could get away with it? Or are they in serious financial trouble and at risk of being made homeless etc. In which case losing the job would have dramatic consequences for them. When considering what action to take managers really need to take into account the personal situation of the person involved. Saying that, it does work both ways. Many employees don't realize how much managers have to put up with either.

President/CEO

In my company, it is grounds for dismissal but I'd talk to them first to set expectations and provide a written one-time warning that goes in their file with their signature.

Consultant to Nonprofits and Freelance Writer

Are you paying your employees a living wage?
If not, then either raise the compensation package or leave them alone.

Human Resources Manager

This is a VERY open question and one couldn't give you an informed answer without more facts; however, in my opinion, it really depends on did you put the employee on "notice".

For instance:
Do you have a policy? (If not, write one, secure legal's approval and roll it out.)
Has your employee signed the policy?

Without "putting your employee on notice" they may claim "I never knew I couldn't do this on company time; because you never told me I couldn't".

  • If you don't have a policy, what is your past practice?
  • Is there any e-discovery that would jeopardize your organization if it were discovered?
  • Is there anyone else who has or is doing the same thing that you may have "overlooked"?
  • Can you prove you treat everyone who does this the same regardless of protected status?
  • What state are you in?

Do you think if you went before an Unemployment Judge and said, "they were working side jobs on company time; and that is justification for termination", would that win or would the Judge ask you to prove that is against your policy?

We may all "believe" this is wrong in theory, but theory doesn't cut it in practice.

Programmer

There's only one answer – dismissal. And make everyone else know why the person was dismissed.

Associate Project Manager

You need to make sure the employee is aware of the company policy on side jobs. If the employee is meeting/exceeding your expectations on his/her role & responsibilities then perhaps it's a matter of giving that individual more responsibility/compensation. If the employee is in a situation where the expectation is to work from 9-5 but they are caught up, then he/she could be frustrated with the amount of downtime they are wasting when they could be making productive use of that time.

Executive Assistant with over 25 years experience in the Legal Profession and Industry

A study showed that employees admitted to spending up to 30% of their working day surfing the net and playing computer games. You need a supertech to configure your network to severely restrict internet use, allowing it only for business purposes. You can be sure most all of your employees are goofing off on company time and this stops all of them in their tracks.

Management Executive

Sounds like dismissal, however you really need to discuss this fully with the person involved, there could be issues involved that may be resolved.

Independent Education Professional

If the side job is detrimental to your company, immediate dismissal.
Otherwise, in the words of Frank Sinatra, "Everyone has the right to be wrong, at least once".
One warning, and if heeded, no problem.

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