Drafting a Respectful Outside Employment Policy

Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice

Introduction

Creating an outside employment policy is an essential step for any employer looking to ensure their staff are treated fairly and their business is protected. It can prevent time and resources from being wasted, help workers balance their workloads, create a respectful workplace and protect the company’s competitive edge.

The Genie AI team understands that forming an appropriate policy can be daunting, but it doesn’t have to be. With the right guidance and access to our template library – which contains millions of datapoints that teach AI what a market-standard outside employment policy looks like – anyone can draft and customize high quality legal documents without paying a lawyer.

Having a clear policy in place helps to protect the time and resources of the company by ensuring staff aren’t using work time for other activities, as well as avoiding potential legal issues arising from employees using company resources for their own gain. Additionally, it aids employers in preventing overworking individuals which can lead to decreased productivity and morale within the workplace.

An outside employment policy also promotes fairness within the organisation; helping employers avoid discrimination by treating all employees equally regardless of what they may do out of working hours. Furthermore, it protects against staff being taken advantage of while simultaneously fostering an environment of respect towards outside commitments.

Finally, having such a policy in place helps businesses protect their bottom line by preventing internal competition with employees’ own affairs or projects. This means they are able to maintain any competitive edges they have established while also helping them steer clear of any legal risks associated with such activity too – saving them both time and money in the long-run.

In summary, having an appropriate outside employment policy is essential for employers to create a healthy work environment whilst protecting both their reputation and finances throughout every stage of operation - something we at Genie AI are proud to provide guidance on through our template library today!

Definitions

Outside Employment: Work that is done in addition to a person’s main job.
Policy: A set of rules and guidelines that are put in place to provide structure and organization.
Jurisdiction: The power or right to make decisions, enforce laws, and settle disputes.
Specifying: Setting out in detail or particularizing.
Expectations: The level of performance or achievement that is expected.
Restrictions: A set of limits on a person or thing.
Parameters: A set of limits or boundaries.
Implications: The possible consequences or effects of something.
Consequences: The result or effect of an action or decision.
Adhering: To comply with or follow a rule or agreement.
Fair: Impartial and just treatment.

Contents

1. Creating a policy that clearly outlines expectations for employees engaging in outside employment
2. Specifying the types of outside employment allowed
3. Setting expectations for the amount of time that can be devoted to outside employment
4. Defining restrictions on the type of outside employment that can be pursued
5. Establishing a process for employees to notify the company of outside employment
6. Setting a timeline for when employees must notify the company of any outside employment
7. Establishing a system for employees to submit their notification of outside employment
8. Defining the parameters of the policy in regards to hours, type of work, and other restrictions
9. Establishing a process for determining which outside employment activities are allowed and which are not
10. Specifying whether outside employment must be approved by the employer
11. Considering the potential implications of outside employment on employee performance
12. Assessing the potential impact of outside employment on employee performance
13. Identifying any potential conflicts of interest that may arise
14. Explaining the consequences of not adhering to the policy
15. Outlining the disciplinary action that may be taken if an employee violates the policy
16. Specifying the process for addressing violations of the policy
17. Establishing a timeline for policy reviews and updates
18. Creating a system for regularly reviewing the policy to ensure that it is up to date
19. Setting a timeline for when policy reviews should take place
20. Creating a system for tracking and monitoring compliance with the policy
21. Establishing a system for tracking employee compliance with the policy
22. Establishing a process for addressing any non-compliance
23. Ensuring that the policy is fair and respectful to employees
24. Consulting with employees and other stakeholders to ensure that the policy is fair
25. Creating a process for addressing any concerns that employees have with the policy
26. Communicating the policy to employees
27. Developing a plan for ensuring that all employees are aware of the policy
28. Establishing a system for verifying that employees have read and understood the policy
29. Training employees on the policy
30. Developing a training program to ensure that employees understand the policy
31. Establishing a timeline for when training should be conducted

Get started

Creating a policy that clearly outlines expectations for employees engaging in outside employment

• Identify the areas of the company that can be impacted by outside employment, such as intellectual property and confidential information
• Draft a policy that includes a description of any activities that are not allowed for employees engaging in outside employment
• Specify expectations around the disclosure of outside employment and any conflicts of interest that may arise
• Include a clause that allows the company to review any outside employment agreements and take appropriate action if necessary
• Include a clause that outlines the consequences of violating the policy
• Ensure the policy is compliant with any applicable laws and regulations

How you’ll know when you can check this off your list and move on to the next step: Once you have drafted a policy that clearly outlines expectations for employees engaging in outside employment, you can move on to the next step.

Specifying the types of outside employment allowed

• Determine the types of outside employment that are permissible within your company.
• Consider what types of outside employment might be impacted by the employee’s time or duties at the company.
• Create a list of permissible outside employment types and make sure that the list is clear and comprehensive.
• Consider the impact of outside employment on the employee’s ability to meet the expectations of their current role.
• Review the list with legal counsel to ensure that it does not conflict with any applicable laws or regulations.

You will know that you have completed this step when you have created a list of permissible outside employment types and reviewed it with legal counsel.

Setting expectations for the amount of time that can be devoted to outside employment

• Establish clear parameters on the amount of time that is permissible for engaging in outside employment.
• Consider the company’s needs and the employee’s workload when deciding what is a reasonable amount of time to devote to outside employment.
• Outline the expectations for the amount of time that can be spent on outside employment in the policy.
• Provide examples of the types of activities that are considered outside employment and the amount of time that is allowed for each activity.
• Set clear guidelines and rules regarding the amount of time that can be devoted to outside employment.

How you’ll know when you can check this off your list and move on to the next step:

• When you have set clear expectations for the amount of time that can be devoted to outside employment and outlined these expectations in the policy, you can move on to the next step.

Defining restrictions on the type of outside employment that can be pursued

• Outline any restrictions on the type of outside employment that can be pursued, such as restrictions on types of employers, types of positions, or activities that are prohibited
• Make sure to include examples and explanations of any restrictions to help employees understand what’s acceptable and what’s not
• Use language that is clear, consistent, and respectful throughout the policy
• Review the policy with a lawyer to make sure it meets all legal requirements
• Once the policy is drafted, review it with the HR department and other key stakeholders to make sure it meets the needs of the business
• When the policy is finalized, you can check this step off your list and move on to the next step.

Establishing a process for employees to notify the company of outside employment

• Determine the best way for employees to inform the company of any outside employment they may pursue, such as requiring a written notification or having employees submit an electronic form.
• Set a timeline for when employees must notify the company of any outside employment, such as requiring notification within 30 days of any new outside employment.
• Create a process to ensure employees follow the timeline and any other requirements for informing the company of their outside employment.
• Create a record-keeping system to track employees’ notifications of outside employment.
• When the process is established and communicated to employees, you can check this off your list and move on to the next step.

Setting a timeline for when employees must notify the company of any outside employment

• Establish specific timelines for when employees must notify the company of outside employment, such as 30 days before starting an outside job, or as soon as possible.
• Decide how you will handle employees who do not comply with the timeline requirement.
• Make sure to document the timeline and any related policies in the company handbook or policy manual.
• Once you have established a timeline and documented it, you can check this step off your list and move on to the next step.

Establishing a system for employees to submit their notification of outside employment

• Identify the information that needs to be collected from employees regarding outside employment (e.g. hours of work, type of employment, etc.)
• Create a system for employees to submit their notification of outside employment. This could involve an online form, a paper form, or a combination of both.
• Ensure that the system is secure and confidential.
• Specify where the form should be submitted, such as HR or a designated manager.
• Establish a timeline for when the form should be submitted.

When you can check this off your list and move on to the next step:

• When the system is established and communicated to employees.
• When the form is tested and any necessary adjustments are made.

Defining the parameters of the policy in regards to hours, type of work, and other restrictions

• Outline the maximum number of hours employees are allowed to work outside of their primary job
• Define the types of outside employment that are not allowed
• Specify what restrictions apply to outside employment activities, such as the need for approval from a supervisor or HR prior to engaging in outside work
• Create a system for tracking the hours worked outside of the primary job

When you can check this off your list and move on to the next step:

• Once the parameters have been outlined, the policy is ready to be reviewed and approved.

Establishing a process for determining which outside employment activities are allowed and which are not

• Develop a list of criteria for determining which types of outside employment activities are allowed and which are not
• Consider factors such as hours, type of work, and other restrictions that may be applicable
• Establish a process for employees to submit requests for outside employment activities
• Review and evaluate requests against the criteria established to determine if they are allowed
• Create a standard process and timeline for reviewing, approving, and rejecting requests
• Make sure all decisions are documented in writing
• Once you have established and documented the process, you can check this off your list and move on to the next step.

Specifying whether outside employment must be approved by the employer

• Determine if outside employment activities must be approved by the employer.
• Consider jurisdictional laws and regulations when making this decision.
• Decide whether to require employees to seek approval prior to engaging in outside employment activities or after they have already begun.
• Consider the potential implications on employee morale, productivity, and turnover if approval is required prior to engaging in outside employment activities.
• Develop a policy that clearly outlines the approval process.
• Draft a policy that clearly outlines the consequences for employees who do not seek approval before engaging in outside employment activities.

Once you have determined whether outside employment must be approved by the employer and developed a policy that outlines the approval process, you can check this off your list and move on to the next step.

Considering the potential implications of outside employment on employee performance

• Analyze the impact of an employee’s outside employment duties on the job performance and company interests.
• Identify potential conflicts of interests that could arise from an employee’s outside employment duties.
• Consider any potential conflicts with company policies or other similar outside positions taken by other employees.
• Create a policy that outlines guidelines for outside employment and its implications on employee performance.

You should be able to check this step off your list once you have considered the potential implications of outside employment on employee performance, identified potential conflicts of interests, and created a policy that outlines the guidelines for outside employment and its implications on employee performance.

Assessing the potential impact of outside employment on employee performance

• Examine the impact of outside employment on employee performance, including potential distractions and lack of focus on the job
• Analyze data on employee performance, both before and after they have taken outside employment
• Assess the potential impact of outside employment on employee satisfaction, engagement, and job tenure
• Survey employees to better understand the reasons they take outside employment and the potential impact of the job on their performance
• When you have gathered sufficient data and have a comprehensive understanding of the potential impact of outside employment on employee performance, you can check this step off your list.

Identifying any potential conflicts of interest that may arise

• Identify and consider potential conflicts of interest that may arise when a staff member takes on outside employment, such as when their outside employer is a competitor or a customer of your organization.
• Research the industry to identify potential conflicts of interest.
• Speak to other staff members in the organization to learn about any conflicts they may be aware of.
• Make sure that the outside employment doesn’t interfere with the company’s policies or goals.
• Check the rules or regulations of the industry to see if there are any restrictions on outside employment.
• When you are confident that any potential conflicts of interest have been identified, you can check this off your list and move on to the next step.

Explaining the consequences of not adhering to the policy

• List the consequences of not following the outside employment policy, such as disciplinary action, potential termination, and/or potential legal action where needed
• Make sure the consequences are clear and can be easily understood
• Check with legal counsel to ensure the consequences are compliant with applicable laws
• When finished, make sure the consequences are clearly stated in the policy and can be understood by all employees
• Check off this step and move on to the next step when you are satisfied the policy outlines the appropriate consequences for not adhering to the policy.

Outlining the disciplinary action that may be taken if an employee violates the policy

• Identify the types of violations that would be subject to disciplinary action, such as working for an outside employer without approval or failing to comply with the approval process
• Outline the possible disciplinary actions that can be taken, such as suspension, termination, or loss of benefits
• Describe the process for determining the appropriate disciplinary action for each violation
• Specify any other procedures or requirements that must be followed in the disciplinary process

You can check this off your list when you have outlined the disciplinary action that may be taken if an employee violates the policy.

Specifying the process for addressing violations of the policy

• Define the process for addressing violations of the policy, such as giving employees an opportunity to explain their actions and/or allowing them to appeal any disciplinary action
• Describe the process in detail, including who will be responsible for handling violations and how the disciplinary action will be carried out
• Specify the timeline for responding to violations and taking disciplinary action
• When you have completed this step, you should be able to clearly explain the process for addressing violations of the policy and what disciplinary action may be taken if an employee violates the policy.

Establishing a timeline for policy reviews and updates

• Identify and agree upon a timeline for reviewing and updating the policy.
• Determine how often the policy should be reviewed and updated, such as annually or biannually.
• Establish and communicate the timeline to all relevant employees.
• Have all relevant employees acknowledge the timeline.
• When reviews and updates to the policy are necessary, follow the process established in the previous step.
• Once the timeline has been established and communicated, this step can be checked off the list and the next step can be completed.

Creating a system for regularly reviewing the policy to ensure that it is up to date

• Set a timeline for regularly reviewing and updating the policy, based on the timeline established in the previous step
• Decide if the policy should be reviewed annually, biannually, or quarterly
• Assign a team or individual to be responsible for reviewing the policy
• Have the assigned team or individual review the policy and make any necessary changes or updates
• Once changes or updates to the policy have been made, have the team or individual responsible for reviewing the policy sign off on it
• Check off this step when the policy has been reviewed and updated, and the assigned team or individual has signed off on it

Setting a timeline for when policy reviews should take place

• Determine the frequency of policy reviews (e.g. annually, bi-annually, or whenever changes are made to the policy)
• Set a timeline for when reviews should take place (e.g. the first quarter of the year or the beginning of a new school year)
• Make sure the timeline is realistic and achievable
• Document the timeline, frequency, and any other related information in the policy
• When the timeline is completed, check off this step and move on to the next step.

Creating a system for tracking and monitoring compliance with the policy

• Decide the most effective way to monitor employee compliance with the policy, such as an online system or manual tracking.
• Develop a process for submitting and approving outside employment requests.
• Create a system for logging and tracking employee compliance with the policy.
• Ensure that the system is easy to use and understand.
• Train staff in the use of the system.
• Determine the frequency of policy reviews.

Once these steps are completed, check them off the list and proceed to the next step.

Establishing a system for tracking employee compliance with the policy

• Determine the information that should be tracked, such as dates and times of outside employment, the type of outside employment, and the amount of hours worked
• Choose a method of tracking, such as a spreadsheet or database
• Create a system to ensure that all employees are aware of the policy, including how to access the system and submit their outside employment information
• Make sure that the system is secure and that all information is confidential
• Set up notifications so that supervisors or other designated personnel are alerted when new information is entered
• Once the system is established, communicate the process to employees
• How you’ll know when you can check this off your list and move on to the next step: Once the system is established, tested and the process is communicated to employees, the step is complete.

Establishing a process for addressing any non-compliance

• Review the policy to identify where non-compliance could arise and develop a process for addressing it, including steps for enforcement if necessary.
• Create a form for employees to declare any outside employment, and make sure you have a system for tracking and monitoring compliance with the policy.
• Develop a plan for how to respond if an employee’s outside employment may be in conflict with their employment with your company.
• Establish a timeline for addressing any non-compliance and make sure all parties are aware of it.
• When you’re satisfied with the process you’ve established, you can check this off your list and move on to the next step.

Ensuring that the policy is fair and respectful to employees

• Research relevant laws and regulations to ensure that the policy is compliant with all relevant labor and employment laws and regulations.
• Review the policy with a team of legal professionals to ensure that it is fair and respectful to employees.
• Create a formal document with the finalized policy, making sure to include provisions that provide employees with due process protections.
• When all the above is completed, you can move on to consulting with employees and other stakeholders to ensure that the policy is fair.

Consulting with employees and other stakeholders to ensure that the policy is fair

• Identify any stakeholders that should be included in the policy-making process, such as employees, labor representatives, and other external partners.
• Reach out to stakeholders to give them an opportunity to provide input or feedback on the policy.
• Listen to all stakeholders and take into account any feedback provided.
• Make any necessary changes to the policy to ensure that it is fair and respectful to all stakeholders.

How you’ll know when you can check this off your list and move on to the next step:

• When all stakeholders have had an opportunity to provide input, and all feedback has been taken into account and incorporated into the policy.

Creating a process for addressing any concerns that employees have with the policy

• Design a communication channel for employees to voice their concerns about the policy, such as an anonymous hotline or a designated staff member
• Identify a process to respond to employees’ concerns, such as setting up a meeting or forming a committee to review the issue
• Create a timeline for responding to raised concerns and provide employees with updates on the status
• Establish a method to document the results of the process, such as a log of all raised issues and their resolutions

Once you have created the process for responding to employees’ concerns and documented it, you can check off this step and move on to the next step of communicating the policy to employees.

Communicating the policy to employees

• Send out the policy to all employees via email
• Include a cover letter explaining the policy and how it should be used
• Make the policy available in hard copy form for those without access to email
• Hold a meeting to discuss the policy with all employees
• Make sure that employees have an opportunity to ask questions and get clarification
• Follow up with any employees who have questions or concerns with additional one-on-one meetings
• Ensure that all employees have signed acknowledgement forms indicating that they have read, understood, and agreed to the policy
• When all employees have read the policy, understood it, and signed the acknowledgement forms, check this off your list and move on to the next step.

Developing a plan for ensuring that all employees are aware of the policy

• Create a communication plan outlining how the policy will be communicated to all employees.
• Determine the best channels for communicating the policy to employees, such as emails, employee handbooks, and posters.
• Create a timeline for executing the plan.
• Develop a method for confirming employees have read and understood the policy, such as requiring employees to sign a form stating that they have read and understood the policy.
• Establish a system for tracking employees who have read and understood the policy.
• Once the plan is developed and executed, check this off your list and move on to the next step.

Establishing a system for verifying that employees have read and understood the policy

• Create a form or checklist that employees will need to sign or complete to confirm they have read and understood the policy
• Develop a system to regularly check that all employees have completed the form or checklist
• Set a timeline for when employees must complete the form or checklist
• Consider adding a question or two to the form or checklist that employees must answer in order to demonstrate understanding of the policy
• Ensure that all employees have signed the form or checklist
• Keep a record of all completed forms or checklists

Once all of the above steps have been completed, you can move on to the next step in the guide.

Training employees on the policy

• Designate a qualified trainer to deliver the policy training
• Ensure the trainer understands the policy and can explain it clearly
• Create a training program agenda that covers the details of the policy
• Make sure the training program is interactive and engaging
• Encourage employees to ask questions and provide feedback
• Give employees the opportunity to take notes and ask questions
• Offer employees the ability to refer back to their notes after the training
• Have employees sign off on the training program at the end
• Collect the signed documents and retain them in the employee’s personnel file
• Check off this step and move on to the next step when all employees have been trained and the signed documents are in their personnel files.

Developing a training program to ensure that employees understand the policy

• Identify key elements of the policy that will be included in the training program
• Create an outline for the training program that includes the key elements
• Develop content for the training program, including videos, slides, quizzes, and other materials as needed
• Create a timeline for when the training program will be conducted
• Designate a trainer or team of trainers to deliver the training program
• Create a system for tracking who has completed the training program
• Test the training program with a small group
• Assess the effectiveness of the training program and make adjustments as needed

Once the training program is developed and tested, you will be able to move on to the next step: Establishing a timeline for when training should be conducted.

Establishing a timeline for when training should be conducted

• Establish a timeline for when the training needs to be conducted.
• Identify who will be responsible for providing the training to the employees.
• Create a timeline for when employees must complete the training.
• Ensure that the timeline is reasonable and allows employees enough time to effectively complete the training.
• When the timeline is determined, document it and make sure it is shared with all employees.
• You can check off this step when the timeline has been established, documented, and shared with all employees.

FAQ

Q: Is an Outside Employment Policy necessary for all companies?

Asked by Sarah on March 8th 2022.
A: Whether a company needs an Outside Employment Policy depends on the sector, size and needs of the company. Generally, it is beneficial for a company to have a policy in place as it provides guidelines for staff, protects the company from potential legal issues and can ensure that employees understand their rights and responsibilities. However, some smaller businesses may find that such a policy is unnecessary or too restrictive for their operations. Ultimately, it is up to the individual business to decide whether an Outside Employment Policy is necessary.

Q: What is the difference between an Outside Employment Policy and an employment contract?

Asked by David on June 29th 2022.
A: An Outside Employment Policy is usually a set of rules and regulations which applies to all employees of the company, regardless of individual contract type. It may include provisions such as minimum wage requirements, working hours, overtime pay and vacation time. An employment contract, on the other hand, is an agreement between an employer and employee which outlines the terms and conditions of employment specific to that individual employee. It may include provisions such as salary or wages, job duties and job title.

Q: Are there any differences in drafting an Outside Employment Policy for the UK vs US vs EU jurisdictions?

Asked by Emma on April 14th 2022.
A: Yes, there are differences in drafting an Outside Employment Policy for different jurisdictions. For instance, in the UK there are laws which protect employees from discrimination based on age, gender or race, whereas in the US such protection is provided by federal laws rather than national laws. In addition, EU law provides additional protection for employees’ rights when compared to US or UK laws. As such, it is important to be aware of the relevant laws in each jurisdiction when drafting an Outside Employment Policy.

Q: What should be included in an Outside Employment Policy?

Asked by John on August 18th 2022.
A: An Outside Employment Policy should include provisions which define the rights and responsibilities of both employers and employees. This could include provisions regarding minimum wages, overtime pay, working hours and vacation time as well as rules regarding termination of employment and dispute resolution procedures. The policy should also contain provisions which protect both parties from legal liabilities arising out of the employment relationship.

Q: How can employers ensure their Outside Employment Policy is legally compliant?

Asked by Elizabeth on January 28th 2022.
A: Employers should ensure that their Outside Employment Policy is legally compliant by consulting with legal experts who are familiar with applicable laws in their jurisdiction. Additionally, employers should ensure that their policies are regularly reviewed and updated to reflect any changes in legislation or industry practice which may affect them. Finally, employers should ensure that all employees are aware of the contents of their policy so that it can be effectively enforced.

Q: Is it possible to draft an Outside Employment Policy which also applies to independent contractors?

Asked by Thomas on May 30th 2022.
A: Yes, it is possible to draft an Outside Employment Policy which also applies to independent contractors. However, because independent contractors are not considered ‘employees’ under most jurisdictions’ laws, some provisions may not apply to them (for instance those relating to termination or dispute resolution). Additionally, employers should ensure that any policies they have in place do not include clauses which could be interpreted as creating a contractual relationship between them and their independent contractors as this could result in additional legal liabilities.

Q: What steps can employers take to ensure their staff understand their Outside Employment Policy?

Asked by Jennifer on July 10th 2022.
A: Employers should clearly communicate their policies to staff members so that they understand their rights and responsibilities under the policy. This could take the form of face-to-face meetings or training sessions where employees are informed about the policy’s contents and asked questions about it. Additionally, employers should ensure that employees have access to a written version of the policy so that they can refer to it if needed. Finally, employers should provide regular updates on any changes made to their policy so that staff members are always aware of what is expected of them.

Example dispute

Suing a Business for Violating an Outside Employment Policy

• Plaintiff must be able to prove that the business violated an outside employment policy, such as a contract, collective bargaining agreement, or law.
• Court must find that the violation of the policy resulted in a tangible harm to the plaintiff, such as lost wages, emotional distress, or other damages.
• Plaintiff must provide evidence to support their claim, such as copies of the policy, records of the violation, and any other relevant documents.
• Settlement may be reached through negotiation, mediation, or a court ruling, depending on the case.
• Damages may be calculated based on the value of the lost wages, emotional distress, or other harm caused by the violation of the outside employment policy.

Templates available (free to use)

Outside Employment Policy
Outside Employment Policy California

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