Moonlighting and its Effects

Introduction

Since the global epidemic that occurred in 2020,  it has become obvious that the working culture has changed. Working professionals especially those in the IT field, were at the time of pandemic forced to take numerous jobs due to the work-from-home (WFH) trend, a collapsing economy, shutdowns, severe unemployment, and fear of losing their jobs with fewer employment opportunities, higher costs, and little demand, thriving industries with workplaces experiencing jerks. Dual employment or moonlighting is a novel phenomena that has become more common during the post-pandemic era.

Moonlight Effect[Image Source: Istock]

The term moonlighting got popular during the pandemic which means old a second job, particularly at night,” 1957 (implied in the verbal noun moonlighting), from moonlighter “one who takes a second job after hours”[1]. Moonlighting is working a second job after normal business hours. An individual may have a traditional 9 to 5 job as their primary source of income and work nights at some other employment to supplement their income.

Reasons for moonlighting

The rise in the price of essential commodities due to inflation and the starting salary range being the same for the past 10-12 years increased the difficulty to support the lifestyle with only one job. The pay and incentives given by the industries were not enough to support the living standards and during the pandemic several organisations declared significant layoffs, slowing down the hiring process. Due to the fear of being jobless, parallel income sources were needed to secure financial stability and independence; employees were compelled to take up side jobs during the lockdown. Employee dissatisfaction with their existing income results in moonlighting at work.

Concept of moonlighting: Conflict between employers and employees

Some corporations oppose the practice of moonlighting, claiming that employees’ productivity may suffer if they hold numerous jobs. Indian IT firms have conflicting views on moonlighting. While some consider it as immoral, others believe it to be reasonable and morally justifiable. By allowing employees to moonlight, businesses are divided into two categories: Traditional businesses, which prohibit employees from working for third parties for business purposes. While the present generation believes that morals should develop with time.

In the Information technology sector, the employers are concerned that working more than one job would decrease revenge and productivity of the firm. The key issues that corporations have with moonlighting are breach of confidentiality and data leakage as well as productivity loss. There’s a risk of trade secrets being shared by the employees if they have a second job in a related field. Due to physical exhaustion, working long hours may lead an employee to forget their duties, which will make them distracted and unproductive. Employees could work additional jobs using corporate resources, increasing the business’s operating costs.

While Companies like WIPRO, Infosys, IBM, TCS have criticized the working of two jobs, Swiggy framed a moonlighting policy where the employees are allowed to take up various activities outside working hours, without having conflict of interest and affecting Tech Mahindra also allows practice of working multiple jobs if it helps employees make extra money.

Laws regarding Moonlighting

The term moonlighting has not been defined in Indian Statues. On the other hand, Section 27 of the Indian Contract Act, 1872 forbids the agreement where any one is restrained from exercising a lawful profession or accepting a job offer from a rival by such a provision but there is an exception where the employee is prevented from competing with their company, leaking data, or doing either during or after the work time.

The non-compete provision in an employment contract is breached by dual employment. The stance of Indian law on this matter isn’t entirely clear, though. Dual employment is allowed under the Industrial Employment (Standing Orders) Act of 1946. The Factories Act of 1948, however, forbids multiple work. Section 60 of the Factories Act lays down that No adult worker shall be allowed to work in any factory on any day on which he has already been working in any other factory, save in such circumstances as may be prescribed.[2]

However, every state has its own set of rules and laws.IT firms have, however, been exempted from this rule in several jurisdictions. They are free to make their own policies regarding the employment of the employee.

Case Laws

In Wipro Limited v. Beckman Coulter International SA (2006), the Delhi High Court ruled that non-solicitation agreements that require employees not to reveal or solicit clients are acceptable. Dual employment is legal if there is no restriction in the employment contract or if the employer agrees.

Dual employment is acceptable if there is no restriction in the employment contract or if the employer consents, the Madras High Court said in Government of Tamil Nadu against Tamil Nadu Race Course General Employees Union (1993). Thus, it is necessary to review the employment contract in order to prevent an employee from engaging in moonlighting.

The Supreme Court affirmed the non-compete clause of an employment contract in the case of Niranjan Shankar Golikari v. The Century Spinning & Mfg. Co. (1967), forbidding an employee from working for their employer’s rival while the employment contract is in effect. The court also found that a negative covenant could only be upheld if it was fair and not overly strict or biased.

Conclusion

The concept of multiple jobs has gained popularity across the globe. This practice was in continuance long before covid, however, since the pandemic employees have been vigorously indulging into moonlighting. This new era generation believes that they are capable enough to handle multiple jobs and that the practice is ethical. Starting from working professionals like IT Sectors employees, Professors, Corporate employees have been seen taking up side jobs in their free time to earn more. This change in the working culture has contested employers and employees where one cannot say if this practice is entirely justified or not.

Author: Sneha Sethia is a final Year student pursuing LL.B. from Savitribai Phule Pune University, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at IIPRD.

Leave a Reply

Your email address will not be published.

fifteen − fourteen =

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • September 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010