Moonlighting is doing a second job or many jobs in addition to one’s full-time employment. Companies have objected to the practice, claiming that people with numerous jobs are less productive. Moreover, it has been a hot subject in the IT business since working from home became the norm during the Covid-19 epidemic, which is said to have increased multiple employment.
However, when it comes to moonlighting, Indian IT organizations are divided. Some consider it immoral, while others see it as a necessity. NG Subramaniam, the chief operating officer (CFO) of Tata Consultancy Services, has described it as an ethical concern. Infosys has also urged its employees not to take a second job without informing the business. In one of the most recent letters from the HR department, Infosys emphasized that all employees must study their employment contracts before accepting another job. The corporation informed employees that they would be fired if they worked a second job during or after working hours. Sandip Patel, the MD of IBM India, declared moonlighting immoral on September 15.
Meanwhile, Tech Mahindra CEO CP Gurnani has stated that he could be amenable to the practice if it allows staff to earn extra money. “If you look at the definition of moonlighting, it is having a second job that is done secretly. I am all about transparency. Individuals in organizations may have extremely open dialogues as part of transparency,” Premji said at an event, emphasizing that existing workers working for competitor businesses constitute a “total violation of integrity in its deepest form.” “.
Mohandas Pai also opposes Premji on this point. The former Infosys director does not consider moonlighting to be “cheating.” “. “Employment is a contract between me and an employer in which I get paid for working for them for ‘n’ number of hours each day.” Now that I have my freedom, I can do whatever I want “According to Business Today, he said.
According to IT workers unions, there is no law that prohibits dual employment. They argue that, in the absence of overtime pay and employment contract regulation, IT employees have the right to disconnect from their primary job after the assigned work hours and engage in other projects for extra income or skill development, or to pursue other interests outside of their job.
It is not specified under any provision in Indian work laws. Moonlighting is not always the same as dual employment, which is a former employer-employee relationship with legal duties such as minimum salary, provident fund, gratuity, and so on. It might also be side hustles or freelancing, with or without the major employer’s knowledge.
Swiggy earlier announced a “industry first” policy that allowed moonlighting for its employees. “Any project or activity that is taken up outside office hours or on the weekend, without affecting productivity, and does not have a conflict of interest, can be picked up by the employees,” Swiggy said.
If an employee’s contract requires non-compete and single employment, as is the case with the majority of traditional employment contracts, moonlighting might be deemed cheating. However, it is not cheating if the employment contracts do not include such a condition or give relaxations.
The biggest worries that businesses have about moonlighting are data and confidentiality breaches, as well as lost productivity. Employees who moonlight may be able to reveal trade secrets if they operate in a comparable sector and position.
Employees must appreciate the necessity of keeping secret information that might help a competitor. Employees that work long hours may become distracted, unproductive, and ignore job tasks due to physical tiredness from their second employment. Employees may use corporate resources for a second employment, raising operational costs.
Employee moonlighting occurs when a full-time employee of a firm takes on an additional job, generally without the knowledge of the employer. Employee moonlighting grew in India during the COVID-19 epidemic and the work-from-home concept, particularly among IT sector employees. There is no legal structure in place to govern moonlighting by IT personnel. Dual employment is prohibited under Indian labor rules for manufacturing workers. However, workers do not include personnel in the IT industry.
Employees in the IT business are obligated by their offer letters which they accept before commencing work. Many employers indicate in their offer letters that dual employment is not permitted or that the employee should not work for another firm while working for them. In such cases, the employees should not resort to moonlighting, or they may be removed from their jobs.
Employee moonlighting has gaining traction in India, and big firms are weighing in. There is still no clear answer as to whether moonlighting is ethical or lawful.
Companies and their human resources departments are responsible for developing a policy on moonlighting. As a result, the moonlighting policy may differ from one firm to the next. A few firms have already developed a policy on moonlighting, while others have yet to develop such a strategy. However, most firms forbid their workers from working in organizations that do similar work since it creates a conflict of interest. Even though some organizations do not have a specific policy for moonlighting, they ban dual employment of individuals by putting a phrase in the employment offer letter.
Companies can use the Employees’ Provident Fund’s Universal Account Number (UAN) to determine whether an employee is moonlighting and working for competitors (EPF). Firms can obtain an employee’s UAN number to get to know if two PF payments are being made by distinct companies. When two PF contributions are being made concurrently to a UAN, it is a strong indicator of moonlighting by the employees.
Wipro sacked 300 workers for moonlighting by following the EPF accounts held under the UANs. However, it is difficult to identify moonlighting by an employee who works as a consultant, freelancer, or part-timer because the employer does not make a PF payment for such employment.
Companies may, however, begin utilizing cutting-edge technology to track gadgets assigned to employees strictly for office work and detect when a person uses it to conduct work for another firm. They may also pay a third-party service to do background checks to determine whether an employee is moonlighting.
Employees moonlighting or wanting to take up a side job must look at the provisions of their employment agreements and corporate rules addressing a second employment. Many IT firms have contract agreements that prohibit dual employment. Even if there are no such stipulations, it is best to consult with business HR and learn about the firm’s moonlighting practices before proceeding.