Moonlighting policy

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. 

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

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Moonlighting's Global Genesis 

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

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

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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.

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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. 

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

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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.