Shedding Light on Moonlighting!
Background
- Moonlighting is a phrase that gained popularity in the United States when more and more individuals began working a second job in addition to their normal 9-to-5 occupations.
- Employees started getting free time after work thanks to the rise of the notion of working from home during the pandemic.
- Some began looking for part-time work, while others pursued their passion during their spare time.
- In the IT field, especially, people frequently started working two jobs at once and made the best of the virtual work model.
What is Moonlighting?
Employees sometimes have several jobs; one is their principal source of income (working the standard 9–5 shift), while the other is a side hustle (working evenings at a separate job) to supplement their income. The act of doing a second job outside of a primary employer’s typical working hours is known as “moonlighting.”
Motives Behind the Practice of Moonlighting
The majority of employees nowadays seek into moonlighting opportunities for the following reasons:
- Extra income
- Demonstrating their skills across a variety of job types.
- Employers’ lack of recognition
- Utilizing free time
Freelancing vs. Moonlighting
How does moonlighting differ from freelancing then? As opposed to being hired by a single company, a freelancer acts as an independent contractor for several different businesses. Freelancing is usually assignment based arrangement where the Freelancer (service provider) has the maximum freedom to complete the assigned tasks as per their will and availability. There aren’t strict timelines as compared to a full-time employment and hence the Freelancer is “free” to do the assigned work as per their own timelines. Payment is usually done after the assignment is complete and submitted to the Owner.
On the other hand, moonlighting refers to when someone has a full-time job and takes up a second one for additional income. Usually Moonlighting is done for the same kinds of skill-sets. E.g. You might be working in a Legal Chamber during the day and assisting a Foreign client with their drafting and research work at night. You could be working in a Lawfirm as well as serving as a Law professor simultaneously. Moonlighting does not include the things you do in furtherance of pursuing your hobby. Ideally, there should be a fixed income generated to support your financial status and the income should be generated from the skillsets used to earn your primary source of income (with or without working with the competitors).
Now, why is moonlighting referred to by its current name? This is because, unlike a full-time job, a part-time job is typically done after regular business hours, making it a nighttime activity and thus linking it to the moon.
In The Eyes of The Law
- Moonlighting is not specified in any of India’s legislation, hence there is no legal precedent for the practice.
- On the other hand, there exist statutes that address the issue of dual employment.
- According to Section 60 of the Factories Act, an adult worker may not work in a factory on a day when he has already worked in another workplace, unless specified otherwise.
- Only factory workers are subject to the regulations imposed by this act of legislation.
- There are state statutes that address employment of people working in offices, banks, stores, and so on; however, there is no law that addresses dual employment.
- According to the Supreme Court’s ruling in Glaxo Laboratories Limited vs. Labour Court, Meerut & others, an employer’s right to control employees’ conduct outside of work hours effectively transforms a contract of service into a contract of slavery.
Corporate Perceptions about Moonlighting
The following are some of the main reasons why employers tend to see moonlighting negatively:
- Working for a competitor while employed by your company is a serious breach of trust.
- Problems with conflict of interest might arise when full-time employees moonlight for companies that compete with their day job.
- Data and confidentiality breaches are another major concern for businesses.
- Employees may use corporate resources for their second jobs, which results in a rise in operational expenditures for the firm.
- Complicating matters further, if the moonlighting money is taken in the form of a salary, the standard deduction will be used by both employers to determine the amount of tax that must be paid.
- The recent organizations which objected to Moonlighting have also raised the issue of employees not being able to deliver to the best of their potential due to their diverted energies between multiple employers.
Employers tend to perceive moonlighters negatively since they are typically late, sloppy, and unprepared for the demands of a regular job.
There are situations in which moonlighting might be seen in a favorable way by an employer:
- Employees who moonlight benefit their employers in a number of ways, including:
- gaining experience in a variety of fields and industries;
- developing a wider range of talents and perspectives; and
- generating fresh ideas
- Employees are more likely to stay around at a company if they are given the green light to hold down a second job, and the additional money they bring in might help them feel secure in their current position. This strategy could make it simpler to hold on to valuable staff members.
- It can save money to hire a moonlighter since they may be open to working part-time or on a contract basis, both of which don’t necessitate the employer to pay a full suite of benefits.
- Seasonal needs can be met by employing moonlighters because of their low rates for one-off or non-recurring tasks.
Reaction of Companies
Moonlighting has become a polarizing issue for companies. While some are allowing and framing policies for employers, the others are vehemently against it.
In Favour:
- Swiggy revealed a moonlighting policy in which workers might engage in outside activities under certain situations.
- Moonlighting is encouraged by Nova Benefits, and workers are free to explore their hobbies and pursue opportunities outside of work.
- Tech Mahindra CEO C P Gurnani has indicated that he is considering a policy change that would let employees engage in outside work. He was for letting workers take on overtime, but they had to be honest about it.
- Moonlighting is frowned upon at Infosys, which has issued a warning to its staff members. However, with the consent of HR and business leaders, it has permitted employees to take on gig work outside of regular business hours.
Against:
- In a warning to its workers, IBM has emphasized the dangers of taking on outside work.
- CEO Rishad Premji of Wipro recently spoke out against moonlighting, calling it “cheating,” and terminating 300 workers after learning they had been working for Wipro’s competitors.
- Moonlighting is against TCS‘s principles and culture, the company has said.
Read Your Contract!
- An employment contract is the single most crucial piece of paper here. You can only take on a second task if you agree to its rules. Two provisions specifically warrant your attention.
- One of these is a “single employment” provision. Your employment agreement can force you to commit to working for only one company.
- Non-competition provisions are the second. It forbids either the employer or employee from working for a competitor while or after the employment relationship has ended. You can legally moonlight in India if none of these provisions is included in your employment agreement.
Do We See This As The Way Of The Future Of The Workplace?
- It’s impossible to say what the future holds in these uncertain and crucial times. Workplace norms are shifting, the economy is unstable, costs are skyrocketing.
- Given the current state of the economy, it is only natural for people to want to diversify their income streams and have a backup plan for just about everything they do.
- As far as the law is concerned, courts may not support a severe punishment, such as termination of employment, unless an employer can establish that an employee acted against the interest of the firm.
- The court may side with the employee if it is not shown that the corporation suffered irreparable injury as a result of the breach.
YLCC would like to thank Pearl Narang for her valuable input to this article.
