Moonlighting: Why People Practice it & how Employers can prevent it

For several websites, news outlets, and companies, moonlighting has recently occupied a central place. The idea of moonlighting is receiving polar opposing feedback concurrently. Hasn’t trust been a component of great management, transparency, and building an environment in which employees come first? There’s been a lengthy discussion over this topic. As a result of the epidemic, we now have permanent remote and hybrid jobs with much more advanced workspaces. Professionals now have the opportunity to concentrate on activities other than work thanks to a strong emphasis on flexible working schedules and improved work-life balance. Let’s read on to learn more about moonlighting. 

Introduction

In India, the practise of having a side job in addition to a normal 9 to 5 employment resulted in the phrase “moonlighting.” Employees have spare time beyond work time since the idea of working from home became popular during a global epidemic. Many people began engaging in their passion during their spare time, whereas others began looking for part-time jobs. Employees frequently worked two jobs at once and took full advantage of the working remotely approach, particularly in the IT sector. Moonlighting is the practice of working for multiple businesses and organizations simultaneously.

Currently, the term “moonlighting” is widely used. Strict standards are being developed by businesses, and also many prominent business leaders have voiced their opinions towards individuals who moonlight. It is becoming a major topic for debate among employees and employers. The $195 billion Indian IT sector is currently in a state of panic due to the expanding moonlighting (dual-employment) phenomenon, something that many people think is going to stay. Over the past several months, concerns about “cheating” or “two-timing” have erupted in the Indian IT firms that cope with a rising practice of “moonlighting” or employees engaging in multiple jobs.

Major Indian IT and software companies have recently started reprimanding their employees over working second jobs. Wipro terminated 300 employees on September 21 due to claims that they were working two jobs. Infosys reminded its staff that they would not be permitted to maintain dual jobs in an email delivered on September 16. This action has triggered a heated discussion about both the freedom of the workforce, their efficiency, and the legal and ethical repercussions of working a second job.

What Is Moonlighting?

Moonlighting by employees, as seen through the eyes of an HR professional, is the practice of a full-time employee of a firm taking on an additional job, typically without the knowledge of the company. The phrase is frequently used to describe people who are engrossed in two jobs. However, it can also describe people who put in extra time at various side jobs or do freelance work. Just after the global pandemic and the rise of the work-from-home model in India, more people were taking on side jobs, particularly in the IT industry. Moonlighting by IT company personnel is not subject to any legal restrictions. Dual employment by employees at a factory is prohibited by Indian labour rules. Employees in the IT sector are not, however, covered by workers. When starting employment at an IT firm, employees must accept the terms and conditions laid down by the companies in their offer letter, which binds them. Many companies have included in there of letters that employees working at their firm must not hold a second job or should refrain from doing so in the future while employed by them. In such legal circumstances, employees must strain themselves from taking up a second job. 

There are numerous justifications for choosing to moonlight. Some people use it as a method to make extra money to help them get by. Someone else might utilise it as a means of gaining knowledge in their chosen fields, pursuing their passions, or saving money for a particular objective, like a down payment. Whatever the motivation, moonlighting can be a difficult endeavour. Balancing two jobs at the same time is also difficult, and it can also be very difficult to find time for additional jobs. To ensure that both these tasks receive the required attention, it is crucial to be prepared and organised for both employers and employees.

Where does moonlighting originate?

In the Human Resource sector, moonlighting has caused a lot of controversies. Business organisations are split into two halves, one first those who vehemently oppose the practice of moonlighting and those that support it. However, neither of these parties wants their firm’s mission to be compromised by employees who practice it. As companies think this practice hinders employees’ productivity level, which further hampers the company.

The following are the reason why people practice it: 

Lack of Commitment from Employers: With the outbreak of the global pandemic, business organisations from many sectors drastically started reducing their workforces. Some companies use the financial crisis as an excuse to fire their staff. Would you like too many people to become unemployed for a very long time? According to an article published in Forbes India, this act led to mistrust among the workforce, who are now reluctant to settle on and fully commit to one regular job. 

Work from Home: Business organisations have started to notice a spike in the number of employers working multiple jobs during the lockdown. Remote jobs or working from home became an ideal situation for moonlighting workers in giving their bare minimum to their regular jobs and started investing their remaining time in freelance or part-time jobs to manage additional sources of income. In July, Kota institution equities started a study on 400 workers working in the IT and ITES industries; it was discovered that about 65% of individuals knew of people who were moonlighting. A report presented by the Times of India stated that “human resource experts have identified moonlighting to be one of the leading reasons why employees find it difficult to come back to their workplace.”

Influence of socio-economic culture: In today’s world, we are highly surrounded by so many influential people who enable us to envision a way of life that is only in our dreams. However, we now wish to live that lifestyle. Employees, therefore, plan on developing numerous sources of income to support their lifestyles. 

Demographics: Today’s generation, popularly known as Gen Alpha and Gen X, are heavily focused on performing gigs, making them at ease with moonlighting and the gig economy. 

How Can Employers prevent it?

Yes, there are numerous ways for companies to stop employees from moonlighting.

Make the proper inquiries: Notice if your employees are in the projects they are assigned to. Are they aware of investing in after-effects? Or do they work only as they must complete their assigned task for a higher wage? The way your employees behave is a reaction to what they encounter at work. You must ask your employees whether they find themselves to be a part of a team. Do they feel loved or taken care of? Have such discussions. Find the problem Attic area and make an effort to fix it. 

Regularly examine background information: conducting regular background examinations with the help of Digital EPFO^[1] inspections will assist you in keeping tabs on your employee’s activities. It helps you in analysing the provident fund database to see if your employee is working for another company at the same time or not. To avoid rising concerns related to moonlighting and other frauds, employers must undertake background checks as a regular activity. 

Consider timely feedback to see whether your staff members feel overworked or unhappy with their jobs: The majority of workers moonlight to meet their basic needs. Your workers are less likely to take up a second job if they are pleased with their current pay. Employers must then delicately address the mistrust that the pandemic has caused among their workers. The workforce is fearful as a result of widespread layoffs. Making your staff feel more confident in their work is crucial in this situation.

Is Moonlighting a Legal or Illegal Practice?

While there isn’t specific legislation that outright forbids the practice of moonlighting, whether it is lawful or unlawful relies on several different aspects, such as contractual arrangements with the relevant companies, workplace regulations and laws, etc. For instance, it can be viewed as unethical if a worker is currently employed full-time by some other company and has a contract with them. However, it may not be viewed as unethical if the person merely works a few hours every week for another business. Everything is based on the agreement that the individual has agreed to.

Professionals must carefully review the contract of employment when beginning a freelance business or establishing a new venture to ensure they are adhering to any moonlighting policies. Employees must abide by their employment agreements to prevent any legal issues, just as every chef needs to follow recipes to make a finger-licking meal. 

Conclusion

Some professional workers in India started moonlighting with a work-from-home working model, which has now created compliance issues within organisations along with sparked discussion about the future of the freelance or gig economy. We have covered all the crucial details about moonlighting in this post, and is it legal in India? What are the motivations behind it, and how can employers stop it? I hope you have got enough insights into Moonlighting and the factors related to it. We are publishing blogs on the Corphr website to familiarize you with different concepts of HR and recruitment. 

Read our Article: What is Moonlighting? Is it Legal and Ethical Practice or not?