11 Sep 2022  |   06:00am IST

Moonlighting, a new virus?

Recently Rishad Premji, Chairman of Wipro tweeted, ‘this is cheating – plain and simple’ while commenting on the issue of moonlighting in the services sector, particularly in the IT industry. This spawned a buzz of conversations/debate raising both legal and ethical questions.

When an employee works for one organisation while taking up additional jobs, typically without the employer's knowledge (aka side employment), it is called as moonlighting. 

In Indian Law, there is no restriction regarding moonlighting. However, Section 60 of the Factories Act, 1948 restricts factory employees from any second parallel employment. Some organisations have found ways to prevent moonlighting. Some of the organisations write a clause to this effect in their employment letter: "During the entire period of your employment with us, you are not permitted to undertake any other work - employment or business, honorary or otherwise, without our prior written permission."

There are mixed sides to the debate: Those who argue against, don’t want their employees to work anywhere else. Those more open, argue that the employment contract is purportedly for a certain time window daily and beyond those hours, the employees can do whatever they want. However, the authors argue that employees should not work on side employment during their core employer’s time and should not use their resources like company computer, internet connectivity, etc. It has also been observed that some while they moonlight, take holidays or claim medical emergencies while working on their parallel jobs whichis clearly unethical.

One aspect of multiple work priorities, is failing to stay committed and doing justice to the primary role. The challenges of fatigue and exhaustion are very real, and its resultant impact on productivity and creativity. Building a successful career requires commitment and one may end up sacrificing long-term goals for short term gains. Employers too need to ensure that they do not underpay, and as such pushing the employees to look for ‘quick bucks’ outside work. 

Other side of the argument is this: Employment is a contract between an employer who engages the employee for a certain time duration daily. Apart from that time window, the employee should be free to do what (s)he wants, as long it is not in conflict with the efforts of the business of the employer. Some of the new age digital companies have adopted this stand. 

New economy organisations like Swiggy have allowed employees a ‘side hussle’ provided that the work is not in conflict with the organisation. 

The gig economy is a free-market system in which businesses work with independent freelancers, instead of hiring full-time workers. India’s gig economy is estimated to reach 450 billion US dollars by 2024. A 2021 global study about millennials found that 64% of full-time Millennial workers, want to work in the gig workforce. The pandemic lockdown, remote working, understanding that many knowledge work is possible to be done with hybrid or remote work has effected consequent societal behavioural changes. The work from home for past two years has shifted expectations of the workforce. 

Covid was a large digital transformation enabler and the Indian IT companies have benefited from winning newer global clients post their pandemic. But this necessitates the need for increased talent pool. The industry concerns are also valid, have to be noted and addressed adequately. The worries about violation of any confidentiality of project being worked upon, data sensitivity and if data privacy would be maintained, any Intellectual Property rights being misused are those that the industry would have. Industry has to find ways to solve for these challenges, rather than a blanket denial. Despite these challenges, we opine industries will not be able to stop people from moonlighting. Even if they did stop a few people with threat of dismissal from their current job or blacklisting or any penalties,  talent market will be critical to be heard.

With more youngsters entering the Indian workforce, the Gig economy is also widening. It now has knowledge workers too in its fold. Corporate India, despite being the leaders in digital and technology services for their global clients, has to learn to use some of their global market learnings in terms of allowing for flexibility of workplace to their teams. India, more than any other country, has the highest youth demographics, which makes it essential to learn the ways of GEMZ (Gig Economy, Millennials & GenZ). To drive efficiency and productivity of human talent a higher engagement, including  nurturing aspirations is required, not just hierarchical controls. We need a newer response to this issue.

(Steve Correa is an Executive Coach and OD Consultant 

& Srinath Sridharan is a Corporate Advisor)

IDhar UDHAR

Iddhar Udhar