Introduction

Moonlighting is a hot topic in recent times. The increased prevalence of working from home has reignited the debate on moonlighting in the IT industry.

Most occupations, such as a doctor or teachers working in a public organization, have some form of moonlighting where they take on additional employment for higher incentives in private institutions.

In this post we will cover what moonlights is about. The benefits and disadvantages for employees and how employers can offer better solutions prevent employees from moonlighting.

What is moonlighting?

Moonlighting is when you have a second job in addition to your primary job.

It is usually done for extra income, but it can also be done to gain experience in a new field or to supplement your primary income.

Moonlighters often work in the evenings or on weekends, and they may have to juggle their schedules to accommodate both jobs.

The term “moonlighting,” which refers to freelancing while holding a full-time job, has become a much-disputed issue among top bosses from the IT sector, employees, HR executives, and other stakeholders.

The key difference between moonlighting and freelancing is that moonlighting refers to having a second job in addition to your primary job whereas freelancing refers to working for oneself without being employed by any company.

Why do people moonlight?

There are many reasons why people might choose to moonlight.

For some, it is a way to earn extra income.

Others may do it to gain experience in a new field or to supplement their primary income.

Still, others may do it for the flexibility it affords them.

What are the drawbacks of moonlighting?

Moonlighting can also have some drawbacks. It can be difficult to juggle two jobs, and there is always the risk that one job will interfere with the other. It can also be tough to find time for family and friends when you are working two jobs.

The biggest risk of moonlighting is that your employer can fire you if they find out that you’re also working for someone else. Moonlighting is frowned upon by most companies.

Recently tech giant Wipro has been in the news for asking its employees to not moonlight. They’ve recently fired 300 employees after finding out that the employees were also secretly working for competitor companies.

The other big tech giants – TCS, HCL Tech, Infosys, & Tech Mahindra have also disapproved of moonlighting.

Is moonlighting legal in India?

Moonlighting is not expressly forbidden by Indian law. However, most companies have policies against it and can fire you if they find out that you’re working for someone else.

Indian law does not have a specific section discussing dual employment.

However, Section 27 of the Indian Contract Act, 1872 explicitly mentions that non-compete clauses are prohibited. A non-compete clause stops an employee from starting their own business or working with a competitor while employed and even after they leave their job.

Consequently, the ex-employee is restricted from competing against their previous employer, as well as limiting them from sharing confidential company information during or after employment.

Because of this, it is in violation of the non-compete clause to have two jobs at once. However, Indian law has not reached a conclusion on this matter.

The Industrial Employment (Standing Orders) Act, 1946 permits dual employment while under the Factories Act 1948, it is forbidden. In some cases though, IT companies are exempt from this act.

In 2006, the Delhi High Court ruled that non-solicitation clauses prohibiting an employee from disclosing or soliciting clients are allowed.

Even the Madras High Court observed in 1993 that dual employment will be permitted if there is no prohibition against it in the employment contract or if consent is given by the employer.

Thus, to avoid moonlighting by an employee, the terms of their employment contract must be examined.

What about the United States?

In the United States, it is very typical to have some type of unique work arrangement.

This has become increasingly true with the growth of online platforms that offer opportunities for self-employment. Hand in hand with this shift, proxy employment has also increased.

An example of this could be somebody who holds multiple jobs on an hourly basis across different companies or someone who uses a proxy to appear in interviews or report back on a job they took.

From a legal standpoint, these types of work arrangements are allowed in the U.S. and often result in simpler tax assessments due to self-assessment and voluntary reporting procedures already set up by the government here.

Americans are now, more than ever, taking on multiple jobs.

In fact, new research from Lawrence F. Katz and Alan B Krueger found that the percentage of Americans with multiple jobs has risen from 39% in 2013 to 77% in 2018.

The data collected by them also showed that most of the workforce is made up of independent contractors, contract workers, temporary help agency workers, and on-call workers.

Additionally, holding multiple jobs is not restricted in the United Kingdom and does not require a change in payroll status.

What are some things to keep in mind when moonlighting?

There are a few things to keep in mind when moonlighting.

First, you will need to juggle your schedule so that you can work both jobs. This may take some trial and error, but it is important to find a balance that works for you.

Second, you will need to be sure that your primary job does not suffer.

Finally, you will need to make sure that you are taking care of yourself. Working two jobs can be taxing, and it is important to take care of your health.

How should companies deal with moonlighters?

People moonlight for more money, more experience, new exciting projects and to make use of their free time. So, companies need to address these issues.

There are a few things that companies can do to prevent moonlighting.

First, they can try to understand the reasons why employees moonlight. This can help to create a more flexible work environment.

Second, they can make sure that the primary job does not suffer.

Third, they can take care of the health of the moonlighter. Working two jobs can be taxing, and it is important to make sure that the employee is taking care of him or herself.

Fourth, they can create a policy against moonlighting.

Finally, they can try to work with the other company to find a solution that works for both parties.

Moonlighting can be a difficult situation for both employees and employers. However, there are a few things that companies can do to make the situation better.

What are the future challenges with regard to moonlighting?

In India, moonlighting is not allowed according to law, which suggests that it violates employment contracts.

However, many legal experts believe this isn’t fair.

The reason for this is that the law prevents individuals from contractually agreeing upon certain labor conditions and unfairly restricts trade by doing so.

Additionally, in 1958 the Law Commission of India noted in its 13th report that section 27’s prohibition should be reviewed to become more reasonable.

Therefore, employees can have a second job as long as there is a clear policy in place regarding what types of agreements they are allowed to enter into while employed and after they leave the company.

Conclusion

In general, moonlighting is a tricky subject. There is a huge difference when it comes to salaries offered by different companies. And salary is probably the most important reason why people moonlight when they can’t afford to officially leave the company. So companies should try to bridge the salary gaps.

For employees who are moonlighting, you must also consider that it is important to give your best to your employer. Also, think like an entrepreneur. If it was your company, would you be happy with your employees working for someone else, especially a competitor?

There are a lot of questions that need to be answered and a lot of solutions that need to be found. For now, let’s just hope that companies and employees can find a way to work together so that everyone can benefit.

Thank you for reading! We hope this article has helped clear up some questions you may have had about moonlighting.