Moonlighting basically means to have a second job, typically secretly and at night, in addition to one's regular employment.
In simple terms, if you have taken up an extra job or assignment to have an extra income, typically without your employer's knowledge, it means you are moonlighting.
Moonlighting is taking on a second job separate from your main source of income. An example of moonlighting is working as a pizza delivery person at night when your full time job is as a secretary.
Moonlighting may also be coupled with other issues such as a conflict of interest, breach of confidentiality and/or proprietary information, competition, solicitation of co-employees or vendors, compromise of intellectual properties, and attrition.
Indian laws do not define ‘moonlighting’. However, the laws mentioned below regulate dual or double employment to a certain extent.
Employees of retail stores, restaurants, theatres, and other public amusement or entertainment facilities, information technology, and information technology-enabled services are governed by the Shops and Establishments Act. This is different in each state. For example, dual employment is prohibited by the Delhi Shops and Establishments Act, 1954.
The policy of allowing the employees to do a part-time job after shift hours divided $130 Bn -dollar-plus Indian IT industry. While Wipro's Rishad Premji said moonlighting is “cheating, plain and simple”, Ex-Infosys director, Mohandas Pai came out in support of it as he said, "No, moonlighting is not cheating"
Employers may differ in their views and approach to moonlighting. Under Swiggy’s moonlighting policy, for example, the employer’s consent is required if the additional project is highly sensitive and leverages professional know-how. However, it is different if an employee is pursuing an interest or hobby.
Performance slippage: One reason many employers look askance at moonlighters is the fear that they'll burn out. Some companies may demand your full-time attention, even off-hours. Employer irritation: Even if the company allows moonlighting, supervisors might not like the idea.
Employees get additional source of income for their needs but at the same time it should not directly conflict with the current employment agreement.
Employers can take the following steps to effectively manage moonlighting: An agreement to not work for competitors or start a competing business: Employers need to ensure that the employees do not work with or engage in a business that is a direct competitor. It greatly reduces the risk of losing business secrecy.
Form 26AS - Employers can ask for the Form 26AS from their employees for cross checking of any deductions from another employer.
Companies must identify the activities of employees they intend to permit beyond work hours. If the job is exclusive, it should be mentioned in the employment contract. Companies should also consider having robust employment contracts and HR policies that clearly define the terms of employment, including the obligations and restrictions on employees, and what would constitute ‘misconduct’ necessitating disciplinary action. However, any action by the employer should be fair and reasonable to ensure it is upheld by the courts.
Furthermore, moonlighting may be considered unethical if an employee’s contract includes non-compete clauses and exclusive employment, as is the case with the vast majority of traditional employment contracts.