[Direct answer]In the Beijing area, whether it is legal for an employee to be dismissed for engaging in part-time work depends on three aspects of judgment. Firstly, the contract and system provisions: whether the labor contract or employee handbook explicitly stipulates that part-time work is prohibited, or requires written consent for part-time work; this is the basis for determining whether the dismissal is legal. If there is no contractual basis, it will be difficult for the employer to claim that part-time work constitutes a violation of discipline. Secondly, the actual impact: whether part-time work conflicts with the employee's main job, affects the quality of the employee's main job, or occupies working time and company resources. If part-time work is unrelated to the employee's main job and does not cause actual impact, it will be highly controversial to dismiss the employee solely based on the fact of part-time work. Thirdly, whether it violates confidentiality and non-compete restrictions: during part-time work, the employee may come into contact with customer resources, technical materials, supplier prices, etc., which may involve trade secrets or violate non-compete agreements, and this part of the risk is higher. Article 39 of the Labor Contract Law of the People's Republic of China (amended in 2012 and implemented on July 1, 2013) stipulates the circumstances of fault-based dismissal. For the employer to terminate the contract based on this provision, it is necessary to have clear provisions in the rules and regulations and to follow the corresponding procedures.Labor arbitration and work-related injury compensationThe services in this column can assist in assessing and mitigating risks.

I. Problem Background and Typical Scenarios

Common consultation situations include: the company terminates an employee after discovering that they are working part-time outside the company; an employee uses company equipment to engage in private work during working hours; an employee works part-time for a competitor and contacts the same customers; an employee claims to be starting a business but actually competes with the company; an employee's part-time work does not affect their main job, but the company demands termination after discovering it.Business and contract disputes in enterprisesThe analysis of trade secrets and non-compete clauses in this column can be used for reference.

II. Key points of dispute

Focus One: The agreed content in the labor contract and the rules and regulations. Focus Two: Whether there is a conflict between the part-time job and the main job. Focus Three: Whether it involves trade secrets. Focus Four: The legality and timing of the termination procedures. Focus Five: The calculation standard for compensation. Focus Six: Whether the income from the part-time job affects other benefits.Special services and other casesThe institutional design described in the column can be used for reference. Focus 7: Is it possible to separately agree on the reporting obligations and approval processes for part-time work, so as to proactively manage risks before they occur?

III. Professional analysis by Henglue Lawyers

When evaluating such cases, Henglue Lawyers typically proceed in four steps. The first step is contract review: checking the specific provisions in the labor contract regarding part-time work, non-compete clauses, and confidentiality obligations, to determine whether the prohibition of part-time work is a contractual obligation or a unilateral claim by the employer; if it is a prohibitive clause in the rules and regulations, it is necessary to verify whether the system was established through democratic procedures and has been publicly announced. The second step is fact investigation: sorting out the time, location, work content, and income of the part-time job, with a focus on verifying whether the employee used the employer's resources, whether there was a time or business overlap with their main job, and whether they accessed information that should not be leaked. The third step is impact assessment: combining performance evaluation records, overtime hours, and work output, to determine whether the part-time job has actually affected the employee's main job, avoiding making judgments based solely on subjective feelings. The fourth step is solution design: if the basis for termination is sufficient, the employer can terminate the contract in accordance with the law and retain all evidence; if the basis is insufficient, it is recommended to handle the matter through consultation and adjustment, written warnings, or by improving the system. It should be noted that in some industries, there is a natural overlap between employees' part-time jobs and their main jobs, so employers' termination policies should be carefully formulated in light of the specific characteristics of the industry.Intellectual property protection and corporate lawThe institutional management suggestions in the column can be supplemented.

IV. Practical suggestions and legal basis

Action suggestions: First, review the relevant provisions of the labor contract and rules and regulations; Second, verify whether the system was established and publicized through democratic procedures; Third, collect objective evidence of part-time work and impact assessment materials; Fourth, assess the risks of termination before deciding whether to terminate or negotiate a settlement; Fifth, improve confidentiality and non-compete clauses; Sixth, pay attention to the termination procedures and the delivery of notifications. Legal basis: Relevant provisions of Articles 39, 43, 47, and 87 of the Labor Contract Law of the People's Republic of China (amended in 2012 and implemented on July 1, 2013); Provisions on trade secret protection in the Anti-Unfair Competition Law of the People's Republic of China (amended in 2019); Specific applications shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

First, part-time work itself does not necessarily constitute a serious disciplinary violation that can lead to termination, but the risk is higher when there is no contractual basis. Second, the democratic process and public disclosure of rules and regulations are important defense points, and the unit should pay attention to preserving evidence. Third, the risk of part-time work involving trade secrets is greater, so it is recommended to simultaneously evaluate whether the confidentiality measures are in place. Fourth, the termination notice should clearly state the specific facts and grounds, avoiding vague statements. Fifth, the income from part-time work generally does not directly affect other benefits, unless the system explicitly stipulates otherwise. Sixth, it is recommended to clarify the rules on part-time work and confirm them in writing during the onboarding stage.Special services and other casesThe column can also provide supporting explanations.

VI. Frequently Asked Questions

Q1: If an employee works a part-time job outside of their main job and the company discovers this, can the company terminate their employment contract?

It depends on the contractual provisions and the actual impact. If the labor contract or the rules and regulations clearly stipulate that part-time work is prohibited and the stipulation has been publicized to the employees, the company has a more solid basis to terminate the contract; if it's just the company's claim after the fact without a contractual basis, the legality of the termination is highly controversial. In addition, it should be evaluated whether the part-time work actually affects the employee's main job and whether it occupies working time and company resources. If the part-time work doesn't affect the employee's main job at all and has no connection with the business, it's often difficult to obtain support just based on the fact of part-time work.

Q2: If there's no agreement prohibiting part-time work, can the company not terminate the employment contract at all?

It's not absolutely impossible, but the risk is significantly higher. In the absence of a prohibitive agreement, the company can attempt to justify the termination from other perspectives, such as claiming that the employee simultaneously established a labor relationship with other units and seriously affected their work duties, violated the obligation of confidentiality or non-compete, or refused to comply with reasonable work arrangements. However, such claims all require corresponding evidence to support them, and the burden of proof lies with the company. If there is neither an agreement basis nor proof of actual impact, there is a high likelihood that the direct termination will be deemed illegal.

Q3: If an employee is dismissed for working part-time, do they need to pay compensation?

It depends on whether the termination is deemed legal. If the termination is deemed illegal, the employer needs to pay compensation to the employee based on the employee's length of service with the company, typically calculated at twice the standard of economic compensation. If the termination is deemed legal, there is no need to pay compensation, but the employer must go through the legal termination procedures and issue relevant certificates. In practice, it is necessary to first conduct a legality assessment before making a decision, as the cost of an illegal termination is usually higher than the cost of a negotiated settlement.Labor arbitration and work-related injury compensationThe column can provide an explanation of the negotiation and rights protection pathways.

Q4: If we find out that an employee is working part-time, how can we collect evidence effectively?

Evidence can be obtained through various legal channels: checking whether there are any abnormalities in the employee's work logs and attendance records; verifying whether the company's equipment, accounts, and office premises are used to handle personal affairs; sorting out the abnormal contact records with clients and suppliers; and verifying the employment status through official channels and keeping written records. It should be noted that the collection of evidence should be legal and compliant, and avoid obtaining evidence by infringing on employees' privacy, such as illegally viewing their personal devices or accounts. Such evidence may be excluded in disputes and may also lead to legal risks.

Q5: The company deducted the performance bonus from the part-time employees' salaries. Does the company have the right not to pay it to them?

This needs to be judged according to the performance management system. Performance-based wages are usually issued by the unit based on the assessment results, and the assessment standards and rules should be clearly defined in advance and publicly disclosed to employees. If the employee's part-time job has violated the unit's explicit regulations, resulting in an unsatisfactory assessment result, the unit usually has grounds to deduct the performance-based wages accordingly; if the performance rules themselves are vague or the assessment basis is insufficient, the deduction may be deemed improper. In addition, it is necessary to distinguish the nature of wages from that of performance-based wages. If the performance-based wages are part of the total wages, the employer should issue them in accordance with the agreement and the actual assessment results, and cannot arbitrarily cancel them.Business and contract disputes in enterprisesThe design concept of the rules in this column can be used as a reference.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify regional differences.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence to avoid missing the statutory time limit.Labor arbitration legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.