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‘Moonlighting comes with a double edge’! You may face legal consequences if you do this

‘Moonlighting,’ according to experts, can be a double-edged sword for employees in India. Working on side jobs and part-time assignments while employed full-time with an organisation may provide some extra income and valuable experience, but if caught, it may be considered a breach of contract and may result in termination. ‘There’s a lot of talk about people moonlighting in the tech industry. ‘This is cheating, plain and simple,’ tweeted Wipro Executive Chairman Rishad Premji a few days ago.

According to Anshuman Das, CEO and Co-Founder of Careernet, the recent pandemic, an unstable job market, recession fears, and attrition woes have sparked an industry-wide panic in the IT sector. ‘ Given these circumstances, there are clear indications of moonlighting, and it is emerging as the last resort for remote employees seeking to secure income channels through any means’. This comes against a backdrop of startups laying off over 11,000 employees since January 2022, and some IT firms considering holding back variable pay to relieve pressure on their thin operating margins.

According to CIEL HR Services Managing Director and CEO Aditya Narayan Mishra, this trend began in the IT industry during the pandemic, when a few employees working remotely were juggling two or three jobs at the same time. ‘While moonlighting is an appealing option for employees because it benefits their career and growth while also allowing them to earn some extra money, it is a source of concern for employers because it puts the company’s confidential information at risk and employees may not give their all’.

According to Das of Careernet, the practise is common at both the top and bottom of the pyramid. ‘ Employees at the top of the pyramid typically supplement their income through consulting, whereas the gig economy allows for multiple jobs at the bottom. The additional income from moonlighting averages 10% of the employee’s primary income’.

Swiggy, a food ordering platform, recently announced a moonlighting policy that allows employees to work on external projects for free or for a financial consideration based on internal approvals. ‘ This could include activity outside of office hours or on weekends that does not impact their productivity on the full-time job or have a conflict of interest with Swiggy’s business in any way,’ the company stated.

According to CIEL’s Mishra, implementing this in the IT industry would necessitate carefully drafted rules and regulations that take into account all of the minute details of what kind of side jobs employees can take as well as conduct guidelines. Experts point out that if the company has not made it clear that such projects are permitted, the firm can take legal action against the employees based on the contract under which they work.

When it comes to moonlighting as employee cheating, it may be deemed so if their contract specifies non-compete, single employment,’ says Das. ‘However, if the employment contracts do not contain such a clause or have relaxations specified, it doesn’t amount to cheating’.

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