HR Tips: Handling the Case of Double Employment

The risk of workplace disputes being triggered by secondary employment is not something to be underestimated. The widespread usage of zero-hour contracts and casual working conditions in today's post-covid era have made double employment more prevalent. However, this is still not viewed favorably by many companies. As an HR, have you handled such case too within your organization?

Double employment is when an employee is employed in another role in addition to their primary role. This position can be either paid or unpaid and is typically held alongside another employer.

- The spring season of double employment
Nothing prevents a person from working a second job in this economy. The provisions of the employment contract must be taken into account though, as they can forbid an employee from engaging in side work. A senior employee's employment contract will frequently state that they are expected to provide their employer's firm with all of their time, attention, and skills. A more junior employee's contract may simply state that permission to pursue secondary work must first be obtained.

- A loophole in your contract
What if the work contract makes no mention of side jobs? Even if the contract is silent on the subject, an employer may nonetheless withhold consent based on the implicit term of trust and confidence if it believes that the second role will put the company in danger or be detrimental to it. The employee may be subject to dismissal for another important cause if they refuse to give up the second role.

- Indonesian Law on Double Employment
How about from a regulatory point of view of the Indonesian government? Law number 13 of 2003 concerning Manpower does not explicitly regulate the prohibition of workers from working in two different places or companies. However, if the prohibition on double employment is stated in the Employment Agreement (PK), Company Regulations (PP) or Collective Labor Agreement (PKB), employees who violate it can be subject to legal sanctions.

In general, if a second job severely interferes with or competes with an employee's principal job tasks, an employer may legally limit the employee's ability to work a second job (often referred to as moonlighting). However, there can be certain restrictions on what kind of employment you can restrict or when you can do so, depending on state labor rules.

For instance, it is obvious that you can forbid an employee from working on their second job during the times they have agreed to work for you. Employees may be prohibited from working for rival companies, stealing your clientele, or opening up a rival company. This could be the case both while they work for you and occasionally even after they stop.

Keep in mind that unless the employee's behavior is exceptionally terrible, you might be compelled to give them an Employee Warning Letter and a chance to right their wrongs before terminating them in such circumstances.

How can I create a contract that is simple to execute and legally forbids employees from working second jobs? How could the proper warning letter be written in the event of such unethical multiple employment? Trust a reputable service provider like KPSG with all of these concerns. Contact us right away if you have any queries concerning the employment laws in your state.