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Thread: Legalities of running a side business

  1. #1
    Join Date
    Jul 2013
    Location
    New Zealand
    Posts
    5

    Default Legalities of running a side business

    Hi there, just looking for information regarding legalities of running a side business.

    So I have started a side business as a sole trader for tax purposes. In my day job I work in refrigeration and commercial air conditioning, Installs, IQP work, that sort of thing.

    In my side business, I only do domestic heat pump servicing, no repairs or installs.

    In my day job we don't do any of this kind of work, no work even in the towns I advertise in.

    I have been told though by management, although they cant intervene in my work outside of my day job, that I am breaking the law regarding advertising my business on social media etc as it is inline with their work, which it isnt, (no large companies bother with domestic heat pump servicing for obvious financial reasons).

    Any advice in this matter would be hugely appreciated as I have looked online for laws but cant find anything.

    Thank you in advance

  2. #2
    Join Date
    Feb 2008
    Posts
    37,824

    Default

    I suggest you need to talk to a Citizens' Advice Bureau, or a law centre if there is one near to you. Although the matter of any such law hasn't cropped up on here that I remember, the thought just came to me that they might have a leg to stand on if there is anything in your contract restricting you in some way, so you'll need to read your small print.

    What visa are you on now?

  3. #3
    Join Date
    Jul 2013
    Location
    New Zealand
    Posts
    5

    Default

    Thanks JandM, have got full residency now through partnership.

    My contract only says :
    "you must not carry out any work, paid or unpaid, that is in line with the work that the company does"

    I have emailed CAB and am awaiting a reply

  4. #4
    Join Date
    Feb 2008
    Posts
    37,824

    Default

    Okay, with Residence, you have the right to do any work you want, run a business, study, drop out, etc., etc.. So your employer's claim that what you're doing is illegal isn't anything to do with your immigration status. It must be to do with their interpretation of what your private work is. You know you're not poaching work that they would do, but they're interpreting it differently.

  5. #5
    Join Date
    Nov 2013
    Location
    New Zealand
    Posts
    41

    Default

    Sounds like you might have a problem.

    Does the company install heat pumps? If so, you will then need written permission from them that you can do heat pump servicing on the side. It's not what you do at the company but what the company does anything in line with with heat pumps. A heat pump is just an air con unit - so its going to be hard to argue that is not 'in line with'.

    They will be worried about you promoting your own business while you were working for them.

    Most business owners and managers are pretty flexible if you talk to them about it. If you have started doing this business on the side and they have "found out" from anyone but you - they probably feel like they can't trust you. Just say you have no idea how things work in NZ and tell them you are happy to give up the extra work. Then give it up / stop advertising. Then in a couple of weeks when you get referred another job talk to them first (before the job starts) and then work through whatever issues they have.

    You should be able to come to some arrangement.

    If not - you need to decide if this extra work is worth it and quit. Or give it up completely. And when you have a chance to negotiate a new contract then make sure you don't have the non-compete clause.

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