In Ontario, you cannot automatically be fired for having a second job unless it causes a direct conflict of interest, breaches a specific employment contract, or negatively affects your primary job performance. If fired without cause, you are legally entitled to severance pay under the Employment Standards Act.
With the rising cost of living across Canada, especially in major urban centres like Toronto, Ottawa, and Mississauga, many Ontarians are taking on secondary employment or “moonlighting” to make ends meet. Whether it involves driving for a rideshare app on weekends, doing freelance consulting, or working a retail shift, having a side hustle has become incredibly common.
However, this often raises concerns for both employees and employers. Can your boss terminate your employment simply because you have another job? 💰 Generally, Ontario law respects an employee’s right to earn a living during their off-duty hours. Unless your second job violates your duty of loyalty, breaches an exclusivity clause, or destroys your productivity, your primary employer has limited grounds to fire you “for cause.”
Step-by-Step Guide: How to Handle a Second Job as an Ontario Employee
If you are considering taking a second job, or if your employer has recently confronted you about your side business, it is important to understand where you stand under Ontario’s Employment Standards Act (ESA) and the common law. Following these steps can help protect your primary income.
Step 1: Review Your Employment Contract
The first step is carefully reading the employment contract you signed with your primary employer. Look for exclusivity clauses, moonlighting policies, or conflict of interest guidelines. 📄 Since late 2021, Ontario has largely banned non-compete clauses for most standard employees, meaning your employer cannot stop you from working in the same industry after you leave, but they can still restrict you from working for a direct competitor while you are actively employed by them.
Step 2: Assess Potential Conflicts of Interest
You must ensure your second job does not compete with your primary employer. For example, if you work as a marketing manager for an agency in Hamilton, secretly doing freelance marketing for that agency’s clients on the side is a massive conflict of interest. This violates your fundamental duty of loyalty and is grounds for immediate termination with cause.
Step 3: Ensure Your Performance Does Not Slip
Your off-duty conduct is your own business, provided it does not bleed into your regular working hours. If your second job leaves you so exhausted that you are constantly late, falling asleep at your desk, or missing deadlines, your employer can absolutely discipline you. ⏰ Repeated performance issues can eventually lead to termination.
Step 4: Disclose When Required
If your employee handbook requires you to disclose secondary employment, honesty is usually the best policy. By failing to disclose a side hustle, you risk breaching company trust, which can complicate matters if they discover it later.
Termination for Cause vs. Without Cause
When an employer in Ontario wants to fire someone for moonlighting, they have two options, and understanding the difference is critical for your financial protection.
| Type of Dismissal | Conditions for Moonlighting | Employee Entitlements |
|---|---|---|
| Termination For Cause | Working for a direct competitor, stealing clients, or severe exhaustion affecting safety. | No common law reasonable notice. However, unless the conduct meets the higher statutory threshold of “wilful misconduct” under O. Reg. 288/01, you are still entitled to ESA minimum termination and severance pay. |
| Termination Without Cause | Employer just doesn’t like you having a second job, but you haven’t broken major rules. | Full severance pay, termination pay, and reasonable notice under the ESA and common law. |
If you are fired without cause because your boss disapproved of your weekend job, you may be entitled to significant severance. An employment lawyer can review your situation to ensure you receive a fair package.
Legal Costs and Timelines for Wrongful Dismissal
If you believe you were wrongfully dismissed, you might wonder how much it costs to fight back. Many Ontario employment law firms operate on a contingency fee basis, meaning they take a percentage of the severance they negotiate for you, rather than charging hourly rates. 💰 As of May 2026, standard contingency fees range from 25% to 35% of the settlement.
Negotiating a better severance package can take anywhere from a few weeks to several months. If the case requires filing a lawsuit in the Ontario Superior Court of Justice, it can take 12 to 18 months, though the vast majority of cases settle outside of court long before a trial happens. 📅
Frequently Asked Questions (FAQ)
Can my employer ban me from having any second job?
Generally, no. Unless you signed a highly specific exclusivity agreement, an employer cannot control your off-duty hours. However, they can mandate that your second job does not create a conflict of interest or interfere with your primary duties.
Is a non-compete clause valid in Ontario?
For the vast majority of employees, non-compete clauses signed after October 25, 2021, are void and illegal under the Employment Standards Act. Exceptions only apply to C-suite executives or in cases involving the sale of a business.
Do I have to tell my boss about my side hustle?
If your employment contract or company handbook explicitly requires disclosure, you should inform HR. If there is no such policy, and the side hustle is completely unrelated to your main job (e.g., an accountant playing in a weekend wedding band), disclosure is usually not legally required.
What should I do if I am fired for moonlighting?
Do not sign any initial severance offers right away. Politely take the documents home and consult with an Ontario employment lawyer. If your moonlighting did not breach a duty of loyalty, you are likely owed full common law severance pay.
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