What is moonlighting?

Before understanding if moonlighting is ethical or unethical one needs to understand what moonlighting is, it refers to the practice of working a second job outside normal business hours. Therefore, an employee may work a normal 9-to-5 job as a primary source of income but work nights at a different job in order to earn extra money. Employees who work for private businesses may be subject to any policies the company has in place regarding moonlighting.

Working for one organization while taking on additional tasks, generally without the employer’s knowledge, is referred to as moonlighting. Moonlighting is part-time work done at night or on weekends. When Americans began seeking for a second job in addition to their 9-to-5 occupations to augment their income, the term “moonlighting” became widespread.

Types of moonlighting

According to the Human Resources Management, Moonlighting is mainly divided into four. They are:

1. Blue Moonlighting

The term “blue moonlighting” is used to describe moonlighting attempts that were unsuccessful. For many people, juggling two jobs a day is difficult. Blue moonlighting refers to the situation where the employee finds it challenging to handle multiple jobs.

2. Quarter Moonlighting

Maybe not every second job is full-time. Even part-time work is possible. Moonlighting, or working a part-time job after a regular employment, is a common activity.

3. Half Moonlighting

Spending more time at a second job than is necessary for a part-time employment is known as half moonlighting. The phrase “half moonlighting” is typically used when an employee works a part-time job for 50% of their free time.

4. Full Moonlighting

Managing two full-time careers or jobs at once is full moonlighting.
Some people even launch their own enterprises while holding down their regular jobs.
There may even be situations where a person’s second job determines their social standing.

Why it is in the news?

Moonlighting will grow as a result of big IT companies like TCS, Infosys, and Wipro announcing they will postpone or reduce variable compensation to employees in the first quarter of the Financial Year 2023 due to reduced margins. The WFH model caused some employees to take on side occupations in order to supplement their income and gave rise to moonlighting among professionals in India, raising compliance issues within businesses.

Swiggy, a food delivery company, unveiled an industry-first ‘Moonlighting policy’ in August, allowing its staff to work on other projects after hours under specific conditions. Days after Swiggy’s announcement, Wipro chairman Rishad Premji called the notion of moonlighting “cheating.”

The Legality of Moonlighting in India

Moonlighting is not totally prohibited by Indian law; there are several statutes that make reference to numerous works. Section 60 of the Workplaces Act of 1948 prohibits the multiple employment of adults in factories. Organizations that do not run factories are free from the laws on double employment.

The laws in India that address multiple employment are as follows:

1. The Factories Act of 1948 has Section 60:

Restriction on dual employment. Unless otherwise specified, no adult worker must be compelled or permitted to work in any factory on any day on which he has already worked in any other industry. Save in such circumstances as may be prescribed.

2. Industrial Employment standing order Act, 1946:

Employers in industrial establishments are required by this Act to clearly define the terms of employment and submit proposal standing orders to the certification Authority for certification. It is applicable to all industrial facilities that employ 100 workers or more (50 workers, in the case of facilities for which the Central Government is the Appropriate Government).

3. Section 65 of the Bombay Shops and Establishment Act, 1948:

Restriction on double employment on a holiday or during leave. No employee shall work in any establishment, nor shall any employer knowingly permit an employee to work in any establishment, on a day on which the employee is given a holiday or is on leave in accordance with the provisions of this Act.

4. Section 9 of the Delhi Shops and Establishment Act 1954:

Restriction on double employment. -No person shall work about the business of an establishment or two or more establishments or an establishment and a factory in excess of the period during which he may be lawfully employed under this Act.

Moreover, each state has its own laws and regulations, which can vary from one state to the next. Most often, IT companies have been exempted from certain provisions of the statutes, such as dual employment. When it comes to employment, they are free to take independent decisions.

All of the following rules, however, apply only to workers and do not apply to professionals, supervisory or administrative staff. As a result, there is no overbroad legislation barring multiple work or moonlighting in the IT sector. When workers work in comparable occupations, however, there may be a breach of confidence when companies put such limits in employment agreements.

Employers may see moonlighting as cheating if an employee’s contract contains non-compete and single employment restrictions. However, it is not cheating if the employment contracts include or do not include such a condition. Employees must review their employment contract and confirm compliance with any moonlighting regulations before taking on a side job or launching a business.

Summing it up

When it comes to moonlighting, the IT industry is divided. Wipro chairman Rishad Premji said that moonlighting in the computer business is unethical. Former Infosys director Mohandas Pai disagrees with Premji on this point. He does not consider moonlighting to be a kind of cheating.

Although moonlighting may not be a major threat to some employers, the management should keep their eyes open for some signs and take disciplinary action if it starts impacting the company. Some pointers when employers should act: moonlighting is against the company policy, moonlighting is shifting towards daylighting, the second job may be illegal, it is affecting the employee’s productivity, risk of data and confidential information leakage.

Employment is a contract between employers who pay employees for working for them for a certain number of hours every day. After ‘n’ hours, the employees are free to do anything they choose. Although there is a lot to be discovered by the Indian courts in relation to moonlighting in employment jurisprudence.