Corporate is trying to screw employees... help !

[Fudgecorpo]

The company I'm working for is a fintech which is getting bought out by a big corporate business. We have just been provided with new contracts and the contract prohibits any side work or business activity. I have said to my director that I can't sign because of that clause and need written permission to continue doing consulting in my spare time ( weekends).

Firstly, he has said that its the first he has heard about me consulting, which is a total lie as it was on my CV when I was interviewed over a year ago and we discussed it during interview process. Not once have I been asked to cease. I have also mentioned / discussed this on other occasions like Xmas do and other company meet ups. The whole company is aware that Im single parenting and need extra income and im contracting on the side. I was always super transparent about it. Contracting is done the legal way of course, so I pay taxes.

Secondly, the original contract only mentions it is an issue if it generates conflict of interest and should seek permission from management which I assumed I had due to the above. Not once was it indicated otherwise.

The consulting i do is obviously relates to my skill but the customers couldn't be further from the corpos or boss' business. There is zero conflict of interest.

Now my boss has responded with:

"After careful consideration, we have concluded that your external consulting activity presents a conflict of interest and is not compatible with your current role within the company. This decision is based on the internal policies of the bank and the nature of your position, particularly in light of the forthcoming changes associated with the sale of the company.

As such, we kindly ask you to cease your external consulting activity and provide us with evidence of this in order to avoid any conflict of interest. In any case, please let us know your decision by ...date".

He also said he consulted corpos HR...Now I can guarantee he has not. Their HR is so slow and thorough. I think he is just saying it to force me to sign by the given date which is the date of the sale... he wants this quiet before company is sold.

What on earth do I do ?

If i refuse new contract, I will most likely get my notice.

I query, I push him to fire me.

I sign the contract and need to stop extra work ? Can't afford that plus I dont want to work for them now anyway but they pay well so again not much choice until I find replacement.

Sign contract and continue to do what im doing and keep looking for new job in the meantime ?

Feel like im being pushed to do something that will put me in precarious situation just so the deal gets signed. I took this job because the team is fab and it was super flexible. We have now lost the flexibility. I have also been there under 2 years which limits my chances for unfair dismissal.

Attached is the snipped from new contract.

I'd have thought this was industry standard in FS. I'd be surprised if any large employer allows it, and when smaller ones haven't "banned" it, that's probably an oversight.

I think you need to write back saying that you respect their right to adopt new policies but that you are not bound by this new policy because you have always been open about your parallel work, and they were fully aware of it during the original interview and throughout the years since then. This term is not in your existing contract and you decline to sign the new contract so if they wish to terminate your employment under the existing contract they will need to decide how to proceed to do that legally.

Meanwhile you will need to start job hunting because they will be able to terminate your contract sooner or later.

From a quick read through, although the OP says she told them, she doesn't seem to have any written proof that her side gig was approved. Given that she also has less than 2 years in post, I think its looking difficult.

But you’ve also said that you’re declaring the additional income and paying tax on so all your employer needs to do is ask for a statement of employment from HMRC and bingo! Extra income revealed.

Your employer isn’t being unreasonable. As every other poster has confirmed, approval for secondary/additional employment and/or a potential conflict of interest is pretty standard in FS. I can’t believe you’ve already got away with it for so long without it being stopped to be frank. You’re going to have to make a choice. You can’t do both jobs.

In the UK, employer cannot directly request or access my employment or income records from HM Revenue & Customs (HMRC) without employees explicit consent...

Thanks. To be fair I don't think I was getting away with anything, its not like committing a crime. In fact I think it's quite admirable that rather than sit on my arse and claim from the government, im working 2 jobs trying to survive and support my DC and put more taxes into the pot than 80% of the UK population based on my income. Dammed if you do, and damned if you dont.

But your employer can ask you to get a statement from HMRC (and this happens fairly regularly in some pre-employment checks in FS) and your refusal to do it will be very telling.

You say it’s not a crime but it IS a question of integrity and if you’re knowingly breaching your contract of employment it’s misconduct and could easily result in dismissal. Which you would have to declare to any future FS employers. Unless you’re planning to lie to them to and continue the misconduct.

payroll will also be able to tell your income from your tax code if you are legitimately putting it through a business and paying yourself as an employee

It’s completely normal as part of an acquisition for employees to have to sign new employment contracts. It’s also normal to have to obtain consent for any other income-generating activity.

Your real issue isn’t whether or not you oblige your current employer, it’s whether you sign the contract for the acquiring company. That is black and white because if you don’t, they will require you to leave. You need advice from an employment lawyer.

Just seen less than 2 years in this employment - so they can get rid of you swiftly.

Telling your current employer that you do this is not the same as formally seeking consent and receiving their written consent. They will want to tie up the loose ends before completion of acquisition but whether or not they manage to, the new company doesn’t have to accept your side hustle. You don’t have to accept their terms either - but that means finding a new job unless you can persuade them to make an exception for you.

I've never worked anywhere where second jobs are acceptable. I find it odd you've just assumed this was ok without written permission.

I’d also heed the warnings of other posters about continuing and being found out. You say they won’t find out but they are already on notice of this now. The sellers of your employer will have to (and will already have done so) disclose this to the buyer. The buyer - your new employer - may well continue to investigate it with you. You can lie to them, but if/when that lie is discovered, in a regulated industry it is likely to cause you serious problems with future employment.