EXPLAINED. What Is Moonlighting? The Big Talking Point In The Indian Corporate Culture

Wipro had fired 300 employees last month after finding out that they were working with one of its rivals, while Infosys said it has sacked employees who were into dual employment in the past 12 months

Moonlighting has been a hot topic in the Indian job sector nowadays. Recently, some major Indian IT and tech firms have been cracking the whip on their employees for moonlighting. Last month, Wipro had fired 300 employees after finding out that they were working with one of its rivals at the same time. This move has sparked a major debate about freedom of the employees and their productivity, while raising some questions on the legal and moral aspects of moonlighting.

The issue of moonlighting has emerged as a big talking point after Wipro Chairman Rishad Premji flagged the issue on Twitter. "There is a lot of chatter about people moonlighting in the tech industry. This is cheating - plain and simple,” he tweeted.

Apart from Wipro, other IT majors have also expressed their views on moonlighting. Infosys last month sent an official email to its employees, asserting that dual employment or moonlighting is not allowed. In a strong and firm message to employees, India's second-largest IT services firm said, "No two-timing - no moonlighting!" The company had also issued a warning saying that any violation of contract clauses will trigger disciplinary action "which could even lead to termination of employment". On Thursday, Infosys made it clear that the company does not support moonlighting and said it has fired employees who were into dual employment over the past 12 months. However, the IT services firm didn't diclose the actual number of employees it has sacked due to moonlighting. 

US-based tech giant IBM in September made it clear that moonlighting is not ethical and the company does not promote such behaviour at the workplace.

Sandip Patel, managing director, IBM India, said that the company's position is exactly that of the overall industry in the country. “All of our workers when they are employed, they sign an agreement which says that they are going to be working full-time for IBM. So moonlighting is not ethically right for them to get into,” he said, while adding, “That’s our position now and you’ve already heard the industry position.”

Tech Mahindra CEO C P Gurnani in a tweet recently said that it is necessary to keep changing with the times, while adding, "I welcome disruption in the ways we work”.

While Tata Consultancy Services' (TCS) Chief Operating Officer (CFO) N G Subramaniam has termed moonlighting an ethical issue.

Barring a few IT heads, experts and analysts have also voiced their concerns over the issue. According to analysts, companies could also turn tougher on exclusivity clauses in employment contracts.

What is moonlighting?

Moonlighting refers to employees taking up side gigs to work on more than one job at a time. This trend is a common concept in the Indian job sector. Recently it is making headlines for wrong reasons after severe backlash from several IT firms. Companies have always opposed this practice, saying that employees doing multiple jobs can impact their productivity. An employee usually works for 8-9 hours in his primary job, while he takes another 4-5 hours for moonlighting. 

What does the IT employees union say?

Pune-based union Nascent Information Technology Employees Senate (NITES) has argued that moonlighting "is not feasible" for a number of reasons. "Aadhaar card and PAN card are now mandatory for joining any company. The government has also linked the Aadhaar card to the Employees Provident Fund account and each employee has a unique Universal Account Number (UAN) for the provident fund," Harpreet Singh Saluja, president of NITES, said, adding it is not possible for two companies to submit an employee’s provident fund contribution in one month.

Is it legal in India?

Indian laws do not define moonlighting. According to media reports, the laws stated below regulate dual or double employment to a certain extent. The Factories Act, 1948, 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.

Expert views

Dr Arvind Singhatiya, founder and CEO, LegalKart.com, said moonlighting is legally wrong from confidentiality and professional liability perspective. It breaches confidentiality and liability of the employer. An employee during the time of joining signs on dotted lines to maintain confidentiality of company data and resources. Moonlighting invites unintended liability for his employer that poses a serious risk. Hence, it is illegal for any employee.  

However, the moot question is whether moonlighting should be allowed for better opportunities for the employees who can utilise their skills for their own benefit? In my view, till you are an employee of a company and signed an agreement of employment, you should not indulge in any kind of moonlighting endeavour for two simple reasons.

First, the legal one as it is a blatant breach of confidentiality and liability agreement with the company, and second it is a moral breach of trust where a company is trusting you with its resources to provide exposure to new ideas and skills and moonlighting is siphoning this trust off.

As a resource, an employer may accept his role as consultant or a freelancer to provide his service to multiple options. As a freelancer or consultant his legal engagement with the firm will be transparent and would not pose any legal or moral dilemma. Always read your freelancer agreement carefully to check that your act is not violating any of its clauses.

Amandeep Kaur, founder and CEO, Phoenix TalentX Branding, said that moonlighting has been a perennial trend in the industry and cannot be ignored. It has more pros than cons for both talent and employers if executed properly.

Kaur said remote work is the biggest reason for moonlighting and it has opened up new vistas for talent to engage with multiple employers at the same time. Companies just need to devise formal policies and modes to enable ethical moonlighting. Like some roles in the company (where confidentiality is not an issue) can become eligible for moonlighting so that special permissions are not needed by talent to pick up more work. These roles or skills can be designed on the lines of gig working. Companies, if they are open to talent who are moonlighting, open up new sources of untapped and skilled talent. In this current world of rapid hiring and low-skilled talent availability moonlighting is more a boon than a bane. 

It’s also a secure way of retaining talent if you cannot promise growth or promotions or higher compensation for certain roles in your company. Firms can align work with output as opposed to time spent on the job to enable moonlighting. While it also benefits the talent as their skill set and exposure grows tremendously. They are also able to increase their earning capacity and meet their financial needs during periods of high inflation.