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Four steps to deal with a moonlighting employee

by , 26 November 2013
I'm sure all of us could do with some extra cash. Especially at this time of year. Holidays, presents, festivities. The costs just keep racking up. But what if your employee's after hours work is affecting his work and your company? And you feel his double-life has a negative impact on your business.
So what can you do if you catch your employee moonlighting? Follow these four steps...

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What happens to the rest?
Did you know a full 38% if all cases end up at arbitration, the Labour Court or in strikes or lock-outs? That's a massive 247 cases that leave employers, just like you, battling it out with an employee.
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Step-by-step: What to do when you catch your employee moonlighting
Step#1 – Check if there's a conflict of interest
Is he moonlighting at one of your suppliers, clients or competitors? Does he use official working hours, stationery, equipment etc. to perform his external duties?
Step#2 - Investigate the matter properly
You can do this by:
  • Mirroring his computer (downloading or copying his computer for forensic analysis);
  • Searching his office; and
  • Doing a life style audit (check assets and lifestyle information you can find on public databases and compare it to known income. You'll be about to tell if he seems to be living beyond his means).
* Make sure you have an electronic communications policy in place, before you can check his computer. Don't have one? Click here....

One solution that'll help you show the poor performing employee the ropes... Or the door
There's at least one in every company. I know – you don't have to tell me. And most of us just let him coast along because the effort to get him performing 'up to scratch' just isn't worth the time. So the solution?
Leave him be till he moves on. And keep paying him.
But now you don't have to.  Click here to find out more...

Two more steps to deal with a moonlighter
Step#3 – Give a written warning
If there's no conflict of interest, give the employee a written warning for failing to declare one of the following:
  • His involvement and interest in another company;
  • Doing other work during your working hours;  or
  • Doing his other work with your company equipment.
 Make sure you then get him to formally declare his interests and moonlighting activities.
If the external work conflicts with his duties or your company interests, you need to calculate the losses to the company. After doing this move on to step 4.
Step#4 – Take action

Take the following actions:
  • Institute disciplinary action, which could lead to dismissal, depending on the severity of the conflict of interest;
  • Bring a complaint under the Corruption Act. You must only do this when you can prove conflict of interest and financial gain on the part of your employee; and
  • Institute civil action or request a compensation order to recover any losses.
Turn to chapter M03: Moonlighting in your Labour Law for Managers Loose Leaf to find out more about moonlighting employees. Still not a subscriber? Click here...

Until next week,
Taryn Strugnell
P.S. What can you do when you think your employee's gone AWOL? Click here for the abscondment solution you've been waiting for.

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