How Moonlighting Affects Your Business & What You Can Do
September 17, 2023 - Reading time: 11 minutes
Updated on: September 4, 2025
In today’s economy, it’s increasingly common for employees to take on second jobs - weekend shifts, freelance gigs, or online side hustles. While moonlighting can help workers manage the cost of living, it can also create real risks for employers.
If a second job affects performance, creates a conflict of interest, or breaches your company policies, you need to address it carefully. This guide explains what moonlighting is, how to spot the warning signs, and practical steps you can take - including when to bring in a private investigator.
What Is Moonlighting?
Moonlighting means holding a second job outside someone’s main employment. It is not automatically unlawful, but it becomes a problem when any of the following apply:
- Performance in the primary job is slipping
- Company policies or contract terms are breached
- There is a conflict of interest - for example, working for a competitor or servicing your clients on the side
- Company time, data, or equipment are being misused for secondary work
Some employees manage extra work without issues. Problems arise when it is hidden, unmanaged, or begins to impact your business.
Common Signs an Employee Is Moonlighting
Moonlighting can be subtle. Typical red flags include:
- Frequent lateness, early finishes, or unexplained absences
- Unusual fatigue, low focus, falling productivity, or missed deadlines
- Excessive sick leave or short-notice time off requests around the same days
- Using company devices or networks for non-work activity
- Other staff raising concerns about unfair workloads
These patterns do not prove moonlighting on their own - personal issues or burnout may also be in play. Treat them as prompts to look closer.
What’s the Impact on Your Business?
- Lower performance - tired or distracted staff rarely meet expectations
- Team morale - resentment builds if others pick up the slack
- Conflicts of interest - side work for competitors or your clients undercuts your business
- Data and confidentiality risks - information can leak, even accidentally
- Health and safety - fatigue can raise accident risk and breach working time limits
Left alone, these issues can harm customer experience, increase turnover, and damage your reputation.
Set a Clear Moonlighting Policy
A clear, written policy helps you manage secondary employment fairly. Useful points to include:
- Disclosure - staff must tell you about any second job or freelance work
- Approval - set a simple request-and-approval process with reasonable criteria
- Working time - remind staff to stay within legal hours and take proper rest
- Conflicts of interest - define competing work and client poaching
- Confidentiality and data - ban using your data, kit, or brand for side jobs
- Use of company time - no secondary work during contracted hours
- Consequences - link breaches to your disciplinary procedure
Share the policy, obtain acknowledgement, and apply it consistently to avoid claims of unfair treatment.
How to Investigate Fairly
If you suspect moonlighting, follow a fair and proportionate process:
- Document concerns - dates, times, missed deadlines, team feedback
- Secure data properly - preserve timesheets, network logs, rota info, and relevant emails
- Invite the employee to an initial meeting - outline concerns and hear their explanation
- Check conflicts - look for links to competitors or your clients
- Assess risk - performance, confidentiality, and health and safety
- Decide on next steps - improvement plan, formal investigation, or no action
If you need external fact-finding, consider discreet help rather than confronting without evidence.
Why and When to Use a Private Investigator
Confronting an employee without evidence is risky. A discreet investigation can confirm facts while protecting the working relationship. At Private Investigators UK we support HR and legal teams with:
- Covert surveillance to verify working patterns
- Social media and online activity review
- Employment and income verification checks
- Background checks and discreet enquiries
Our goal is to provide clear, tribunal-ready evidence so you can act confidently. If nothing is found, the matter stays confidential.
Frequently Asked Questions
Is moonlighting illegal in the UK?
Not by itself. Issues arise if it breaches contract terms, company policy, working time limits, or confidentiality duties, or if it creates a conflict of interest.
Can we ban second jobs completely?
You can set rules and require disclosure and approval. A blanket ban may be hard to justify. Clear criteria and a fair approval process are safer.
Can we dismiss someone for moonlighting?
Potentially, if there is serious misconduct such as dishonesty, conflict of interest, or misuse of company time or data. Follow a fair process and take advice before disciplinary action.
Do we need consent to check social media?
Public posts can be reviewed. For workplace devices or personal data, follow your policies and data protection rules and be proportionate.
When should we use a private investigator?
When you need discreet, lawful fact finding to verify patterns, confirm conflicts, or gather evidence without escalating tensions.
Take Action Without Taking Risks
Moonlighting is not always a problem, but if it affects performance, creates a conflict, or breaches trust, it is worth addressing. Do not let suspicion linger or jump to conclusions without facts.
To speak in confidence and get a free, no obligation quote, visit our contact page. We will help you assess the situation and plan next steps with discretion and professionalism.
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