For many electrical contractors, it is a situation that eventually comes up – one of your A-grade sparkies is doing private jobs on weekends using their own tools and equipment.
So, does that create a conflict of interest?
According to Katie Richards from Virtual Legal, not necessarily.
What is considered a conflict of interest?
From an employment law perspective, side work is not automatically prohibited.
Katie says the issue becomes more serious when the employee starts competing directly with the business or creating operational or legal risks.
“It becomes a genuine conflict where the employee is competing with your business, soliciting your customers, using confidential pricing or job information, misusing company time or goodwill, or creating fatigue and safety risks that spill into their weekday work.”
If the employee is simply completing occasional lawful private work using their own equipment for unrelated clients, the situation is less clear-cut.
“If they are simply doing occasional lawful private work, using their own gear, for people wholly unconnected with your business, that is a weaker conflict case.”
Key takeaways for electrical contractors
Private weekend work is not automatically a conflict of interest.
Problems arise when employees compete with the business or use confidential information.
Use of company tools, materials or customer relationships can create legal risk.
Fatigue and workplace safety also need to be considered.
A formal policy can help prevent disputes before they escalate.
When does side work become a problem?
Katie says concerns increase when employees begin:
poaching leads or customers
undercutting business quotes
using confidential pricing information
using company tools or materials
blurring the line between private work and company work
“If they are poaching leads, undercutting your quotes, or blurring the line between their work and your business, you have a real issue.”
How do the Right to Disconnect laws apply?
Katie also says employers need to remember that employees are generally entitled to personal time outside paid working hours.
“Consider also the Right to Disconnect rules and that employee not having to answer to you in most cases outside of the hours you pay them for, unless it would be reasonable for them to do so.”
“You don’t own their entire life, and can only mandate what they do while you’re paying them, provided they’re not breaching their employment agreement terms.”
Should electrical contractors have a formal policy?
Katie says a written policy is a good idea, particularly if outside work is not already addressed within employment agreements.
“Assuming this is not already addressed in your employment agreement, a written policy is worth having because it may help to regulate the problem before it becomes a dispute.”
A workplace policy should typically cover:
disclosure of outside electrical work
use of confidential information
use of company tools, materials and vehicles
fatigue and safety expectations
approval requirements where work may compete with the business
Katie says any policy should be applied consistently and for legitimate business reasons.
“Fair Work’s general protections also mean you should enforce any policy consistently and for legitimate business reasons, not arbitrarily.”
What should employers include in a side work policy?
According to Katie, a practical policy should make it clear that employees cannot:
use business contacts for private work
use confidential pricing or quoting information
use company-owned equipment or materials
create safety risks through fatigue or excessive hours
The policy should also explain when approval may be refused.
Frequently asked questions about employee side work
Can sparkies legally do private jobs on weekends?
Yes. Private side work is not automatically prohibited unless it breaches employment agreements or creates a genuine conflict of interest.
What makes side work a conflict of interest?
Using business customers, confidential information, company resources or directly competing with the employer may create a conflict.
Can employers ban all private work?
Employers may be able to restrict some outside work through employment agreements or workplace policies, but restrictions need to be reasonable and legally enforceable.
Why does fatigue matter?
Weekend work can create workplace health and safety risks if fatigue affects the employee’s weekday performance.
Should electrical contractors have a formal side work policy?
Yes. A clear written policy can help prevent misunderstandings and disputes before they escalate.
What electrical contractors should remember
Private weekend work is not inherently prohibited. The real issue is whether the employee’s side work creates competition, confidentiality concerns, safety risks or misuse of company resources.
For electrical contractors, having a clear and consistently applied workplace policy can help set expectations early and reduce the risk of future disputes.
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