This clause stops you from working a second job or running a side business while employed. It matters because courts in both the UK and US generally allow employers to restrict outside work that competes with the company, wastes your energy, or breaches confidentiality—but only if the restriction is "reasonable" in scope. For example, an employer can usually prevent you from consulting for a direct competitor, but probably cannot ban you from tutoring math on weekends. The clause protects the employer's business but can limit your income and flexibility.
Negotiate to narrow this clause to only "competing" work or work in your specific industry. Ask for a clear definition of what counts as moonlighting—for instance, "any paid work in software development" is clearer than "any outside employment." If the restriction is very broad, push back and offer to disclose side work in advance so the employer can object only if there's a real conflict. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause stops you from working a second job or running a side business while employed.
Why should I care about this clause?
It matters because courts in both the UK and US generally allow employers to restrict outside work that competes with the company, wastes your energy, or breaches confidentiality—but only if the restriction is "reasonable" in scope.
What are my options?
For example, an employer can usually prevent you from consulting for a direct competitor, but probably cannot ban you from tutoring math on weekends.
How does this affect small businesses?
The clause protects the employer's business but can limit your income and flexibility.