Moonlighting—the practice of accepting a second job, project, or assignment while working full-time for another company—has been the center of debate in India following the mass termination of employees by Wipro. While the practice is not explicitly prohibited by law, several courts have upheld terminations for undisclosed moonlighting. Employers should communicate clear expectations on moonlighting in employee contracts and company policies.
Legal Implications
Indian laws do not explicitly define or prohibit moonlighting. However, there are laws that have implications for dual or double employment – Industrial Employment Rules provide that a worker shall not at any time work against or adversely affect the interest of their employer. Additionally, the High Court of Punjab and Haryana previously upheld the termination of a driver who had engaged in dual employment due to a conflict of interest.
Another thing to consider is the Provident Fund Act—the government mandatory retiral saving scheme—does not allow two accounts for one individual, which technically prevents one person from having two regular jobs. However, most moonlighting workers do not seek benefits but favor cash bonuses instead.
Debate Among Employers
The phenomenon of moonlighting increased significantly during COVID, as most employees who worked from home suddenly had the ability to work a side job in their free time, an issue on which companies are divided.
IT industries strongly oppose moonlighting, as they claim a second job will affect productivity, lead to conflicts of interest, and possibly data breach. On the other hand, companies which rely heavily on gig workers welcome the practice. Swiggy, an Indian online food ordering and delivering platform, has introduced a 'Moonlighting policy,' wherein employees can take on external projects for pro-bono or economic consideration based on internal approvals.
Outlook: A company’s view on employee moonlighting largely depends on its business and employment model. While laws are not clear in this area, it is beneficial for employers to clarify their expectations in its employment contract and company policies.