Outside activities: Overview, definition, and example
What are outside activities?
Outside activities refer to any work, business ventures, or activities that an employee, executive, or contractor engages in outside the scope of their primary job responsibilities with their employer or client. These activities may include side jobs, freelancing, involvement in other businesses, professional associations, teaching, or even volunteer work. In many cases, employees or contractors may be required to disclose or seek approval for outside activities, especially if they could potentially create conflicts of interest, violate non-compete agreements, or interfere with their primary work duties.
Outside activities are usually addressed in employment contracts or company policies to ensure that they do not negatively impact the performance of the employee’s main job, compromise the employer’s confidential information, or present conflicts of interest.
Why are outside activities important?
Outside activities are important because they can impact an individual’s performance, commitment, and loyalty to their primary employer or client. While many outside activities can provide personal fulfillment and professional growth, they may also present potential risks, such as:
- Conflicts of interest: If the outside activity involves working for a competing business or disclosing confidential information from the primary employer.
- Time and energy management: If the individual’s outside commitments interfere with their job responsibilities.
- Legal or contractual issues: If the individual’s outside activities violate non-compete clauses, confidentiality agreements, or other terms in their contract.
For businesses, managing outside activities through clear policies ensures that employees remain focused and productive while avoiding conflicts that could damage the company’s interests. For individuals, being transparent about outside activities ensures they comply with company policies and avoid legal or professional conflicts.
Understanding outside activities through an example
Imagine a software developer working for a large technology firm who also works on freelance coding projects in their free time. The developer’s freelance work involves developing software for a startup in the same industry. The company may require the developer to disclose their outside activities to ensure that there are no conflicts of interest and that the freelancer is not using proprietary knowledge gained at the company in their freelance work.
In another example, an executive in a financial firm may be involved in a non-profit organization on the board of directors. While the involvement in the non-profit may be viewed positively, the firm may require the executive to seek approval to ensure there is no conflict of interest or any disclosure of sensitive business information.
An example of an outside activities clause
Here’s how an outside activities clause might appear in an employment contract or company policy:
“The Employee agrees to disclose any outside activities, including business ventures, freelance work, or involvement in any professional organizations, that may reasonably be deemed to interfere with the Employee’s duties or create a conflict of interest. The Employee must obtain prior written approval from the Employer for any outside activities that involve a competing business or require significant time and resources that could affect the performance of their primary duties.”
Conclusion
Outside activities can provide personal and professional benefits, but they also require careful consideration to avoid conflicts of interest, legal issues, and distractions from primary job duties. Both employees and employers should ensure that there is clarity around the nature and scope of outside activities. Having clear policies in place helps employees balance their outside interests while protecting the employer’s business interests and ensuring that the individual can perform their primary responsibilities effectively.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.