Disclaimer: Affiliate links ahead! Some links earn us a small commission (at no extra cost to you). It’s like shouting us a coffee – and we really appreciate it. Thank you!
This topic popped up in our Facebook group recently, and I felt compelled to write about it. I wish I had known these details and what my rights were when I started my side hustle (Fruit Punch Digital) while still working full time.
More and more Kiwis are picking up side hustles these days — from building websites on the weekend to selling handmade crafts online. But when you’re also working a day job, it raises a few important questions. Are you allowed to do both? Do you need to tell your boss? Can they say no? And what’s with contracts asking about your partner’s side gigs too?
Let’s break down what the law actually says about juggling a side hustle with your main job.
This Act is the backbone of employment law in New Zealand. You can find the full text here, but here are the bits that matter most:
So, no, your boss can’t just slap a “no side hustles allowed” rule on your contract without a good reason. Valid reasons might include:
More details are available on legislation.govt.nz.
A lot of employment agreements include a clause asking you to disclose any secondary employment or business interests. Some even stretch to your partner’s or family’s business dealings.
If your contract includes one of these clauses and it’s tied to a real business concern (like those mentioned above) then yes, you’re legally expected to be upfront. Not telling them could put you in breach of contract.
If your contract doesn’t mention anything about this, and your side hustle doesn’t affect your day job, you may not have to say a thing. But the general duty to act in good faith still applies, so use your judgement. You can learn more about your responsibilities as an employee on Employment New Zealand’s employee rights and responsibilities page.
Check out MBIE’s advice on employment agreements for more clarity.
According to the Ministry of Business, Innovation and Employment, your employer must have a real, business-based reason for any restriction on side gigs. The rule needs to be:
In short, your boss can’t tell you not to run a side hustle just because they don’t like the idea of it. If you’re unsure about whether a clause in your contract is fair, it’s worth getting a second opinion.
If your contract says you need to disclose other work and you don’t, you could face disciplinary action, like a formal warning or even losing your job, especially if your side gig overlaps with your main work.
But if your contract says nothing about it, and your side hustle is totally unrelated and doesn’t affect your performance, you’re likely in the clear.
While we don’t have loads of side hustle case law in New Zealand, a couple of examples offer some insight:
Air New Zealand Ltd v Hudson [2006] ERNZ 415
This case reminded employers that if they’re going to investigate something like outside work, it needs to be done properly and fairly.
Norseman v Waikato District Health Board [2009] ERNZ 336
Here, the court backed the employer because the employee didn’t disclose a side business that could have conflicted with their main role.
The takeaway? Be upfront when there’s even a hint of a conflict.
Whether you have to disclose your side hustle to your employer depends on what’s in your employment agreement. This article gives a really clear summary of the relevant law and how the clauses in your employment agreement apply.
But beyond what the contract says, another question to consider is whether your side hustle could ‘reasonably affect your day job’. This could be through a conflict of interest, a drop in performance, or the use of company resources.
I’ve seen real-life cases where something as simple as using a work laptop to check side hustle emails, or repurposing a company-branded photo, has been treated as a breach of contract. Beyond that, there have also been situations where an employee’s secondary work has led to burnout or exhaustion, and that’s impacted their ability to perform in their primary job.
If you’re building a side hustle, make sure you’re still showing up fully in your day job. This will help to maintain the trust of your employer.
One of the most common (and often overlooked) risks when running a side hustle is using your employer’s time, tools, or materials to support your own business, even if this comes about unintentionally.
Your employment agreement will often include clauses around the use of company property and intellectual property. Breaching those clauses – even in small ways – can carry serious consequences.
To avoid this, my top tip is to keep your side hustle completely independent by using your own time, your own devices, and your own materials for marketing etc. This will help to protect you, your business, and the trust you’ve built in your day job.
Jenny O’Neil is a former employment lawyer turned mindset coach. She works with ambitious individuals who are ready for something more. They’re excited for what’s next, but want support getting clear on their direction and clearing the mental blocks that are holding them back.
Whether it’s a new job, a business, or a bold career move, she helps them make it happen. Learn more at www.messyactioncoaching.com or check out her Instagram @messy_action.
Most of the time, yes – you can have a side hustle in New Zealand. But here’s what to keep in mind:
If your employer has a legit reason for concern, it’s best to have a conversation about it. But if the clause in your contract seems over the top or irrelevant, you might have grounds to push back.
Still unsure? Get in touch with Employment New Zealand, Citizens Advice Bureau, or have a chat with an employment lawyer.
Disclaimer: This guide is for general information and isn’t legal advice. For help with your specific situation, speak to a lawyer or contact MBIE directly.
If our site has helped you even once, here’s your chance to be part of what keeps it going. Shout us a coffee to say thank you! There's no pressure at all, but every little bit helps keep these updates coming.
Hey, I’m Rachel! I started Side Hustles NZ in 2021 with the goal of helping Kiwi’s start and grow small businesses in New Zealand. During the week you’ll find me discussing side hustle ideas in our Facebook group, working in my website design business, or riding my horses.
