Shining A Light on Moonlighting: Exploring the Rise and Risks in India’s Workforce

Moonlighting In India: What You Need to Know

Moonlighting is a term that refers to having a second job, typically secretly and at night, in addition to one’s regular employment. Moonlighting can be a way of earning extra income, pursuing a passion, or exploring a new career path. However, it can also pose some challenges and risks for both employees and employers.

In this blog post, we will discuss the basics of moonlighting, why it is gaining popularity in India, and what are the legal and ethical implications of moonlighting with respect to labour laws.

What Is Moonlighting?

Moonlighting is the act of working at an extra job, especially without telling your main employer. For example, an IT professional who works as a freelance graphic designer after office hours, or a teacher who tutors students on weekends.

Why Do Employees Moonlight?

Moonlighting can have various benefits for employees, such as:

• Increasing their income and financial security
• Developing new skills and expanding their network
• Pursuing their hobbies and interests
• Exploring alternative career options
• Enhancing their resume and portfolio

However, moonlighting can also have some drawbacks, such as:

• Reducing their productivity and performance at their primary job
• Creating conflicts of interest or competition with their main employer
• Violating their employment contract or company policies
• Facing legal action or termination from their main employer
• Affecting their work-life balance and health

Why Is Moonlighting Gaining Popularity In India?

Moonlighting is not a new phenomenon in India, but it has become more prevalent in recent years due to various factors, such as:

• The Covid-19 pandemic and the work-from-home model, which have given employees more flexibility and opportunities to take up additional work remotely
• The rise of the gig economy and the digital platforms, which have made it easier for employees to find and offer their services online
• The growing start-up culture and the entrepreneurial spirit, which have encouraged employees to pursue their own ventures or collaborate with others on innovative projects
• The increasing cost of living and the economic uncertainty, which have motivated employees to seek multiple sources of income and financial stability

According to a survey by Kotak Institutional Equities, nearly 65% of IT employees said they or someone they knew had been moonlighting or pursuing part-time opportunities while working from home. Some companies, such as Swiggy and Cred, have even introduced ‘moonlighting policies’ that allow employees to work on other projects after working hours, under certain conditions .

What Are The Legal And Ethical Implications Of Moonlighting In India?

While there is no specific law that prohibits or regulates moonlighting in India, there are some legal and ethical aspects that employees and employers need to consider before engaging in moonlighting activities.

Firstly, employees need to check their employment contract and company policies to see if they have any clauses that restrict or forbid them from taking up another job or engaging in any activity that may conflict with their main employer’s interests . For example, some contracts may have exclusivity clauses that require employees to devote their full time and attention to their primary job, or non-compete clauses that prevent employees from working for a rival company or industry.

Secondly, employees need to ensure that they do not use any confidential information, intellectual property, resources, or contacts of their main employer for their moonlighting work . For example, an employee who works as a software developer for a company cannot use the company’s code, data, software, or clients for their freelance project.

Thirdly, employees need to maintain a clear separation between their primary job and their moonlighting work, and avoid any situations that may compromise their loyalty, integrity, or professionalism . For example, an employee who works as a journalist for a newspaper cannot write articles for another publication that may criticize or contradict their main employer’s views.

If employees violate any of these terms or conditions, they may face legal action or termination from their main employer. Moreover, they may also damage their reputation and credibility in the industry. Therefore, it is advisable for employees to seek permission from their main employer before taking up any moonlighting work .

On the other hand, employers need to be aware of the reasons why their employees may resort to moonlighting, and try to address them.

What Labour Laws In India Can Be Used To Govern On The Issue Of Moonlighting?

Moonlighting is the practice of working a second job outside normal business hours, usually without informing the primary employer. Moonlighting has become more common among white-collar professionals in India, especially in the IT sector, due to the work from home model during the pandemic. However, moonlighting can also raise ethical and legal issues, such as conflict of interest, breach of confidentiality, data leakage, loss of productivity and loyalty.

Indian laws do not have a clear definition of moonlighting, but there are some laws that regulate dual or double employment to some extent. These include:

• The Factories Act, 1948: This act restricts an employer from requiring or allowing an adult worker to work in the factory on any day on which they have already been working in another factory . This act also limits the working hours of factory workers to nine hours per day and 48 hours per week.
• The Shops and Establishments Act: This act varies from state to state, but generally regulates the working conditions, hours, holidays and leaves of employees working in shops and commercial establishments. Some states, such as Maharashtra and Karnataka, prohibit employees from engaging in any other employment without the consent of the employer.
• The Contract Labour (Regulation and Abolition) Act, 1970: This act applies to establishments that employ contract labour for any work of a perennial nature. The act prohibits contract labour from working in more than one establishment on any day.
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952: This act provides for compulsory provident fund contributions by both employers and employees. The act also requires employers to maintain records of employees’ wages and contributions. If an employee works for more than one employer, they may have multiple active provident fund accounts, which can be detected by authorities.

Apart from these laws, there may be other contractual or ethical obligations that bind employees to their primary employers. For example, employees may have signed non-disclosure agreements, non-compete clauses, or codes of conduct that prohibit them from working for competitors or disclosing confidential information . Employees may also have a fiduciary duty or a duty of loyalty towards their employers, which requires them to act in good faith and avoid conflicts of interest.

Therefore, moonlighting can be a risky and complex issue for both employers and employees in India. Employers should have clear policies and guidelines on moonlighting and monitor their employees’ performance and compliance. Employees should be aware of the legal and ethical implications of moonlighting and seek consent from their primary employers before taking up any additional work.