Moonlighting Clause in UK Contracts: What It Means & Example Wording

When to Include a Moonlighting Clause

• In employment contracts for full-time roles where the employer needs the employee's full commitment and availability
• When the employee has access to confidential information or works in a competitive market where a side role could create a conflict of interest
• In contracts for senior employees and directors who owe fiduciary duties and whose outside activities could affect their judgment or loyalty

Example Wording

This example wording is illustrative only. Customise it to your specific circumstances and consider seeking legal advice.

Is a Moonlighting Clause Enforceable in the UK?

Moonlighting clauses are enforceable as contractual terms, provided they are reasonable. An absolute prohibition on all outside activities (including unpaid volunteering) may be considered unreasonable, particularly for part-time employees. The clause should focus on activities that genuinely conflict with the employee's duties, compete with the employer's business, or could affect the employee's performance. Directors of companies owe statutory duties under the Companies Act 2006 (including the duty to avoid conflicts of interest under section 175) which provide additional grounds for restricting outside activities.

Common Mistakes

• Imposing an absolute ban on all outside activities without exceptions — this is likely unreasonable, especially for employees working part-time or on reduced hours
• Not requiring the employee to disclose outside interests — without a disclosure obligation, the employer may not become aware of potential conflicts until damage is done
• Failing to consider the Working Time Regulations — if an employee works multiple jobs, their combined hours must not exceed 48 per week unless they have opted out, and the employer has a duty of care regarding working hours