Can employers prevent staff from taking on side gigs?

The short answer is yes. Employers in Canada can include a clause in their employment contracts that prevents non-unionized workers from taking on side gigs without explicit approval from the company.

However, many businesses include a provision that simply prohibits staff from focusing on side hustles during their hours of work.

Shopify’s CEO has recently spoken up about side gigs — discouraging employees from engaging in activities that divert attention away from the Canadian e-commerce giant.

According to an internal memo that was obtained by The Canadian Press, Tobi Lutke told staff he “felt like he was on the Truman Show” when he learned that the company was encouraging side gigs in offer letters.

In order to build world-class software for millions of merchants, he said it requires everyone’s unshared attention.

Lutke’s comments come after multiple rounds of layoffs at Shopify in recent years, which have resulted in thousands of jobs being eliminated.

SEE ALSO
• From side hustle to main job: More Canadians turning to gig work
• Employment lawyer discusses ‘spicy side hustles’
• Can I work two full-time jobs at the same time?

Can my boss punish me for taking on a side gig?

If you engage in a side hustle without explicit approval from your employer, and your employment contract requires you to get the thumbs up beforehand, then you could face punishment.

However, it’s very unlikely that your boss would be able to punish you by making substantial changes to the terms of your employment.

Major modifications, such as a demotion, pay cut, or workload increase, are illegal in Canada.

WATCH: Employment lawyer Lior Samfiru explains what non-unionized workers need to know about changes to their job on an episode of the Employment Law Show.

If significant adjustments are made to your job without your consent, there is a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to resign and pursue full severance pay.

However, you shouldn’t quit your job before speaking with an experienced employment lawyer at Samfiru Tumarkin LLP.

We can confirm that you have been constructively dismissed, assess your legal options, and help you secure the compensation you are owed.

ADDITIONAL RESOURCES
• Changes to your job in Ontario: Employee rights
• What Albertans need to know about changes to their job
• Changes to your employment in B.C.: Your rights

How is severance pay calculated?

Severance for non-unionized employees in Canada can be as much as 24 months’ pay.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

The amount of compensation you are entitled to is calculated using several factors, including:

• Age
• Length of service
• Position at the company
• Ability to find new work

To figure out how much you could be owed, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance entitlements.

If your company doesn’t provide you with the correct amount, you have been wrongfully dismissed and should contact Samfiru Tumarkin LLP immediately.

We regularly resolve wrongful dismissal claims and can help you secure proper severance.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance for federally regulated workers
• Severance packages in a recession

My boss is pressuring me to sign a new employment contract immediately, what should I do?

If the employment contract you initially signed doesn’t prevent you from taking on side gigs, you might be asked to accept a new agreement that does.

In the event that you are provided with a new employment contract, don’t sign anything before speaking with an experienced employment lawyer at Samfiru Tumarkin LLP. Your boss can’t legally force you to accept it immediately or a few days after receiving it.

In most cases, these agreements take away key protections that would otherwise be available to non-unionized employees in Canada.

We can review the contract and ensure that your workplace rights are properly protected.

LEARN MORE
• Starting a new job? Here’s how an employment contract could limit your rights
• ’60 days or more’: Is it an enforceable termination clause?
• Employment Law Show: 5 things to know about employment contracts

Validating a new agreement

In order to validate a new employment contract, employers in Canada must provide non-unionized workers with an additional “benefit”.

Potential benefits could include:

• A signing bonus
• Extra vacation days
• More flexibility working remotely

If your company didn’t include an additional benefit in the new agreement, or you aren’t sure that one has been provided, don’t sign anything before contacting our firm.

My boss is pressuring me to quit after taking on a side gig, what should I do?

No matter how upset your employer is that you have taken on a side gig, they can’t pressure or force you to resign.

If your boss is encouraging you to step down, document their attempts. Keep any letters, emails, or text messages that show how the company is pressuring you to quit your job.

Once you have gathered all of the relevant documents, don’t resign before contacting our firm. You might have grounds for a constructive dismissal claim.

Already resigned?

If you were forced to quit your job for any reason, connect with an experienced employment lawyer at Samfiru Tumarkin LLP as soon as possible.

In addition to severance pay, you could be owed compensation for any damages associated with the end of your employment.

LEARN MORE
• Employment Law Show: Facts about forced resignations
• Employment Law Show: What your employer legally can’t do
• Employment Law Show: Situations that trigger legal disputes

Can my boss fire me for taking on a side gig?

In Canada, employers can fire non-unionized workers for taking on a side gig. This is known as a termination without cause.

You can be let go for any reason, as long as:

• You are provided full severance pay
• The reasons for your dismissal aren’t discriminatory

However, it’s very unlikely that your boss would be able to fire you for cause in this situation — meaning no severance package or access to Employment Insurance (EI) benefits.

Considered the harshest punishment in a company’s arsenal, this type of dismissal is reserved for the worst workplace offences, such as serious insubordination, theft, or assault.

To justify firing you for cause, your employer must prove progressive disciplinary measures were applied and that a lesser penalty wouldn’t be suitable, which is very hard to do.

In our experience, most non-unionized employees don’t meet the conditions necessary for this type of dismissal and are entitled to severance pay.

SEE ALSO
• Do I have to look for a new job after getting fired?
• Can I get my job back if I am fired?
• Employment Law Show: Facts about the termination process

Lost your job? Speak with an employment lawyer

If you are fired or let go for taking on a side gig, or for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, enforce your rights, and ensure that you receive the compensation you are owed.