Moonlighting Policy in India - Employee Moonlighting Policy for Organizations

What is moonlighting by employees?

From an unique HR perspective, moonlighting can be defined as the practice of engaging in a secondary job alongside a primary occupation. 

‍

Imagine an employee working a typical 9-to-5 and then pursuing another role post-working hours to boost their income.

‍

Moonlighting's Global Genesis 

‍

The concept shot to fame in America, with individuals taking on a secondary role in addition to their regular jobs. 

‍

Fast forward to the recent work-from-home boom during the pandemic; employees globally found themselves with extra hours post their primary jobs. 

‍

For many, especially in the IT sector, this translated into an opportunity to engage in simultaneous roles across two different organizations, capitalizing on the flexibility of the remote working model.

‍

Is Moonlighting legal in India?

Navigating the intricacies of moonlighting in the Indian context requires a discerning eye. While India doesn't possess comprehensive laws on moonlighting, there are specific cases that touch upon concerns like data confidentiality and potential conflicts of interest. 

‍

The alarm bells often ring louder when an individual opts to moonlight with businesses that could be seen as direct or even indirect competitors.

‍

‍

Employee moonlighting - How to identify the employees who have dual employment?

1. Access the UAN: Begin by accessing the Universal Account Number (UAN) of the Employees’ Provident Fund (EPF) associated with your employee.

2. Check for Multiple PF Contributions: Analyze the UAN to identify if contributions are being made by two distinct companies. Dual PF contributions are a telltale sign of an employee's moonlighting activities.

Example: Wipro, leveraging this method, identified and subsequently terminated 300 employees engaged in moonlighting.

3. Beware of Non-traditional Employment: Recognize that spotting moonlighting can be more challenging when an employee engages in roles like consulting, freelancing, or part-time jobs. These positions often don't involve PF contributions, making detection trickier.

4. Leverage New-Age Technology: Consider utilizing modern technology to monitor company-issued devices. Monitoring can alert you if an employee uses their official device for tasks outside of their primary role.

5. Third-Party Verification: As an added layer of scrutiny, think about hiring third-party agencies to conduct comprehensive background checks on employees. These checks can help unearth undisclosed moonlighting activities.

How to deal with moonlighting employees? Approaches by Indian organizations

To answer this question, we should understand that certain companies favor moonlighting, whereas others are against it. 

‍

Lets see a few examples who are in favor 🟢 of moonlighting - 

‍

👉Swiggy: Introduced a moonlighting policy, permitting employees to engage in other projects post-work hours, given certain conditions are met.

‍

👉Tech Mahindra: CEO C P Gurnani expressed potential support for moonlighting, emphasizing the need for transparency and openness from the employee's side.

‍

A few other Indian organizations are against 🔴 moonlighting, they are -

‍

👉Wipro: CEO Rishad Premji equated moonlighting to cheating. Resultantly, 300 employees were terminated for working with competitors.

‍

👉IBM: Issued official warnings to employees against engaging in moonlighting.

‍

👉TCS: Deems moonlighting as an ethical concern, stating it contradicts the company's core values and culture.

‍

👉Infosys: While cautioning against moonlighting, it does permit employees to engage in gig work outside of regular hours but only with HR and executive approval.

‍

What is a moonlighting policy for employees?

Moonlighting is gaining traction in India, with leading companies actively discussing its implications. And having a proper moonlighting policy would solve the confusion.

‍

A moonlighting policy outlines an organization's stance on employees engaging in secondary employment or taking on additional jobs outside their primary role with the company. 

‍

The policy can restrict employees from working with direct competitors or in roles that might compromise the company's interests.

‍

Here are the keypoints to mind while drafting a moonlighting policy -

👉Ethical & Legal Debate: The jury is still out on whether moonlighting is considered ethical or legal in the Indian corporate landscape.

‍

👉Company Responsibility: The onus is on individual companies and their HR departments to set clear moonlighting guidelines.

‍

👉Varied Policies: While some companies have established moonlighting policies, others are in the process of drafting theirs.

‍

👉Conflict of Interest: A prevalent stance avoids moonlighting with direct competitors to prevent potential conflicts of interest.

‍

👉Contract Clauses: In the absence of standalone moonlighting policies, many organizations address the issue by embedding specific clauses in their employment contracts, prohibiting dual employment.