Outside Employment Policy Example – Conflict of Interest Policies

Outside Employment Policy Sample

In this article, we’ll look at the key elements that make up an example Outside Employment Policy. We’ve included some starter/boilerplate information to help you get started writing this policy for your company. If you’re looking for help in setting up your policies & procedures or employee manual/handbook, our team can assist.

Outside Employment Policy Template

The following are the main elements that should be included in your Outside Employment Policy:

1. Title Page

• Policy Title: Outside Employment Policy
• Company Name: The name of the organization implementing the policy.
• Policy Number (if applicable): For easy reference within the company’s policy structure.
• Version Control: Date of creation, last review, and version number.
• Effective Date: The date the policy becomes operational.
• Approval Authority: Name and title of the individual who approved the policy.

2. Purpose/Objective

• A brief statement explaining why the Outside Employment Policy exists. This section outlines the policy’s purpose in relation to the company’s goals, regulatory requirements, or ethical standards.
• Describe what problem or issue the policy addresses.
• Example Purpose/Objective:

The Purpose/Objective of this Policy is to ensure that employees’ external job commitments do not interfere with their primary responsibilities or loyalty to the company. It aims to prevent conflicts of interest that could arise from outside employment, safeguarding the company’s interests and maintaining professional integrity. By restricting conflicting external work, the policy seeks to uphold the company’s standards and ensure that employees remain focused and dedicated to their roles within the organization

3. Scope

• A description of who the Outside Employment Policy applies to (e.g., employees, contractors, vendors).
• Specify any exceptions to the policy.
• Explain departments or roles affected, if necessary.
• Example Scope:

This policy applies to all employees, ensuring their primary professional focus and loyalty remain with the company. It restricts any outside employment that could create a conflict of interest or interfere with their responsibilities. Employees must disclose any external job opportunities to management for review and approval. The policy aims to prevent situations where outside work could compromise the company’s interests or the employee’s performance. Compliance is mandatory, and violations may result in disciplinary action, including termination

4. Definitions

• Clarify any key terms or jargon used within the Outside Employment Policy to ensure understanding.
• Avoid assumptions about familiarity with industry-specific terminology.
• Example Definitions:

The Outside Employment Policy defines restrictions on employees holding external jobs that may conflict with their responsibilities or loyalty to the company. It falls under Conflict of Interest Policies, ensuring that employees’ external engagements do not interfere with their primary duties or create divided loyalties. The policy aims to maintain the integrity and focus of employees on their roles within the company, preventing any potential conflicts that could arise from outside employment

5. Policy Statement

• A detailed outline of the Outside Employment Policy itself, including all rules, expectations, and standards.
• It should be direct and clear so that it leaves no ambiguity about the company’s position or requirements.

6. Procedures

• Step-by-step instructions on how to implement or comply with the Outside Employment Policy.
• Include any forms, tools, or systems that employees must use.
• Describe the responsibilities of different roles in ensuring adherence to the policy.
• Example Procedures:

Employees must disclose any outside employment to ensure it doesn’t conflict with their company responsibilities or loyalty. The company reviews these disclosures to assess potential conflicts of interest. Employees are prohibited from engaging in outside work that interferes with their job performance or competes with the company. If a conflict is identified, employees may be required to terminate the outside employment. Failure to comply with this policy can result in disciplinary action, up to and including termination. Regular reviews ensure ongoing compliance, and employees are encouraged to seek guidance if unsure about potential conflicts

7. Roles and Responsibilities

• List the roles responsible for enforcing or overseeing the Outside Employment Policy (e.g., managers, HR).
• Define who is accountable for reporting, monitoring, and updating the policy as needed.
• Example Roles and Responsibilities:

Employees must ensure that any outside employment does not interfere with their primary responsibilities or loyalty to the company. They are required to disclose any potential conflicts of interest arising from external jobs. Managers are responsible for reviewing these disclosures and determining if a conflict exists. Human Resources will maintain records of disclosures and provide guidance on policy compliance. Violations of this policy may result in disciplinary action, up to and including termination. The policy aims to prevent conflicts of interest and ensure employees’ commitment to their roles within the company

8. Compliance and Disciplinary Measures

• Outline how compliance will be monitored or enforced.
• Describe any consequences or disciplinary actions for failing to follow the policy, including the escalation process.

9. References and Related Documents

• Include links or references to any laws, regulations, or company guidelines that support the Outside Employment Policy.
• Reference related company policies that connect or overlap with the document.

10. Review and Revision History

• State the review cycle (e.g., annually, biannually) and who is responsible for reviewing the Outside Employment Policy.
• A history section that lists all revisions made to the document, including dates and reasons for changes.

11. Approval Signatures

• Signature lines for key decision-makers who have authorized the policy (CEO, department head, HR manager).

12. Appendices or Attachments (if needed)

• Additional information, FAQs, or case examples to provide more context or clarify how the Outside Employment Policy applies in specific situations.
• Any relevant forms or templates employees need to complete.