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Can You Really Be Fired for a Side Hustle in South Africa? The 2025 Rules Explained
When a Second Job Becomes a Problem
In South Africa, it’s not uncommon to know someone juggling multiple gigs, maybe a by-night craft business, tutoring, or delivery services. The side hustle culture is real. But if you’re also employed full-time, mixing in a side hustle can be risky territory. In South Africa, the law doesn’t flatly ban secondary income, but you can be fired if certain lines are crossed.
Let’s walk through how that works in 2025, with a fresh look at the courts, trends, and lessons for your own hustle.
The Invisible Line: Duty of Good Faith & Employer Trust
At the heart of it all is something called the fiduciary duty of good faith. In South African common law, as well as in labour practice, employees are expected to act loyally and in good faith toward their employer. That means you can’t secretly compete, siphon away clients, or let your side business clash with your day job’s interests.
What’s tricky is that this duty can exist even if your contract is silent about moonlighting. Courts have held that, under the right circumstances, an implied duty can itself justify dismissal.
Recently, in Vilakazi v CCMA & Others (2023), a university lecturer held a full-time academic post but secretly accepted another full-time employment without disclosing it. The Labour Court upheld her dismissal. The two roles were found “mutually incompatible,” and her failure to inform her university broke her duty of good faith.
So, even if your employer doesn’t ban side gigs, you can still land in hot water if the court finds your actions harmed trust or created a conflict.
Four Red Flags That Could Get You Fired
Not every side hustle is a fireable offence, but here are the situations that most often cross the line:
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Conflict of interest or competition
If your secondary gig competes with your employer’s business, or you divert clients, that is a clear conflict. Even operating in a similar industry can be risky. -
Impact on your main job performance
If the side hustle makes you late, fatigued, distracted, or unable to meet your core obligations, or if you do side work during work hours, that’s a red flag. -
Use of employer resources
Using your company’s email, laptop, client lists, or trade secrets for your side business can constitute misconduct. -
Undisclosed or deceptive behaviour
If you don’t tell your employer, especially when policy requires it, or if you lie about your hustle, that can be considered dishonesty or gross misconduct.
One example is the Bakenrug Meat case. An employee ran a meat business that overlapped with the employer’s products, without telling them. The Labour Appeal Court found that the omission was dishonest and justified dismissal.
What Employers Must Do (So It Isn’t a Free-for-All)
Employers can’t just fire someone because they suspect a side hustle. To be fair and legal, they generally must:
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Have a clear rule or policy on moonlighting, or at least a known standard of good faith
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Ensure the employee was aware of the rule or policy
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Prove, on a balance of probabilities, that the employee breached it
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Conduct a proper investigation and disciplinary process
If those procedural steps aren’t followed, a dismissal could itself be deemed unfair, even if the side hustle was problematic.
What You Must Do to Protect Yourself
If you’re thinking of a side hustle (or already have one), here’s how to stay on safer ground:
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Read your contract & policies carefully
Look for any clause about additional work, non-competition, or conflict of interest. -
Disclose early, in writing
Tell your employer before you start the hustle. Be transparent about what it involves so they can assess risks. -
Keep the roles separate
Don’t use your work time, equipment, or contacts. Work on your hustle in your own space and in your off hours. -
Avoid direct competition
If your side business is in a different field or market, you’re less likely to clash with your employer. -
Be ready to prove minimal interference
If your performance remains strong and your side work has no overlap, that gives you a stronger defence.
If things go sour, you’re disciplined or dismissed; getting a labour law expert involved early can make a big difference.
A Local Perspective: Why This Matters in South Africa
In Joburg, with rising living costs, side hustles are often a necessity, not a luxury. Contact centre agents, creative professionals, Uber drivers, freelancers, and many others mix hustles with formal work. But as more people moonlight, stories of dismissals are creeping through workplaces and social media.
On X, some workers have shared how they were disciplined because managers “caught” them doing side work during leave or on after-hours shifts. Others argue that employers should adapt to modern realities rather than crack down.
Yet, courts appear less forgiving when there’s a clear clash. Employers in Gauteng and elsewhere have begun tightening moonlighting policies, requiring written permission or mandatory disclosure forms.
So for many in Joburg, the question isn’t if you should hustle, but how to do it without losing your livelihood.
Hustle Smart, Not Hard
Yes, side hustles are part of the modern survival toolkit in South Africa. But they carry legal risk when not handled smartly. Your safety net lies in:
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Transparency
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Non-competition
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Keeping your performance strong
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Knowing your rights and obligations
If you cross the line and engage in conflict, deceit, or misuse of resources, the courts may side with your employer. And as the 2025 law continues to evolve, the best bet is to hustle wisely.
Also read: WhatsApp Fake News in South Africa: Why It Spreads and How to Stop It
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Featured Image: Arcadia Finance
