By: Dora Tamas
As working remotely becomes increasingly popular, many people are finding themselves with flexible hours. In the face of rising inflation increasing the cost of living, many people are using their flexible hours to work two jobs. There is no law in Canada that prevents someone from dual employment, but whether it is appropriate for you depends on your specific circumstances.
Contract
There are many ways that a job contract can prohibit you from dual employment. Directly, your contract might include non-compete and non-solicitation clauses. The main difference is that non-solicitation clauses prohibit “poaching”, where employees deliberately take business or employees away from their employer.[2] If you wish to have two jobs and your contract contains a non-compete clause, you should choose a second employer who is in a different field than your current employer.
Indirectly, your contract might require you to be available outside of working hours. This might limit your capacity for dual employment by making it impossible to commit specific hours to your second employer.
Job Performance
Even if your contract does not prohibit dual employment, depending on the work it might not be the right choice for you. Dual employment can lead to stress and fatigue, reducing your job performance. This can lead to poor mental health and negatively impact your employment at either job.[3]
Tax Consequences
When you file income taxes your annual income could be higher than expected which might result in owing additional taxes or reduce your expected tax refund.[4] Additionally, it might complicate calculating your income for tax purposes. It is important for people in dual employment to be aware that failing to report all of your income might lead to financial penalties.[5]
Other Considerations
If you are working two full time jobs that both provide benefits, you might end up paying into multiple coverages. This can be expensive and make the reimbursement process overly complicated.[6]
In Canada, any time worked beyond the standard hours entitles employees to 1.5x regular hourly wage, or time off with pay.[7] When the combined sum of hours spent at both jobs puts the employee’s work hours beyond regular full time, they will not be entitled to overtime pay.
Summary
Unless your contract says otherwise, you are not legally obligated to tell your employer that you have a second job. Regardless of if you should, getting caught with a second job by your primary employer is not a preferable position. The benefits of working two jobs are clear- in the face of a rising cost of living people are met with a real demand for increased income. However, the way you go about attaining and performing dual employment determines if it will be harmful to your situation, and if that harm will outweigh the benefit. In addition to impacting your wellbeing and complicating taxes and benefits, the pressure of working two jobs can reduce your performance, straining your relationship with both employers.[8] Dual employment can be an extremely beneficial endeavour for those with flexible hours and a desire for increased income. There are many people with two jobs who have a healthy work life balance, and positive relationships with both employers. In making the decision to have two jobs, chose what best compliments your lifestyle while keeping these considerations in mind.
Disclaimer: The information provided in this response is for general informational purposes only and is not intended to be legal advice. The content provided does not create a legal client relationship, and nothing in this response should be considered as a substitute for professional legal advice. The information is based on general principles of law and may not reflect the most current legal developments or interpretations in your jurisdiction. Laws and regulations vary by jurisdiction, and the application and impact of laws can vary widely based on the specific facts and circumstances involved. You should consult with a qualified legal professional for advice regarding your specific situation.
[1] “Non-Solicitation Clause”, Contracts Counsel, online: <https://www.contractscounsel.com/g/68/us/non-solicitation-clause>.
[2] “Non-Competition Clause”, Contracts Counsel, online: <https://www.contractscounsel.com/g/49/us/non-competition-clause>.
[3] “Is Working Two Jobs Good for Your Mental Health?” Walden University, online: <https://www.waldenu.edu/programs/counseling/resource/is-working-two-jobs-good-for-your-mental-health>.
[4] Christopher Liew, “There may be ethical and tax implications if you work two remote jobs at the same time” (2022) CTV News, online: <https://www.ctvnews.ca/business/there-may-be-ethical-and-tax-implications-if-you-work-two-remote-jobs-at-the-same-time-1.6100879>.
[5] “Small business and self-employed income” Government of Canada, online: <https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income.html>.
[6] “Is Dual Employment Allowed in Canada?” (2023) Tierney Stauffer LLP, online: <https://www.tslawyers.ca/blog/employment-law/is-dual-employment-allowed-in-canada/#:~:text=Subject%20to%20several%20factors%20(which,your%20situation%20is%20another%20matter.>.
[7] “Hours of work- Federally regulated workplaces” Government of Canada, online: <https://www.canada.ca/en/services/jobs/workplace/federal-labour-standards/work-hours.html>.
[8] Ibid note 6.