The Culture of Moonlighting

IN NEWS:

• Recently, Wipro has fired nearly 300 employees for moonlighting, and the company is getting subjected to a lot of criticism due to this move.

MORE ON NEWS:

• Wipro had fired the employees after finding out that they were working with one of its competitors at the same time.
• Wipro Chairman Rishad Premji said that their employment had been terminated for 'act of integrity violation'.
• On the other hand, Swiggy earlier (August 2022) announced an "industry first" policy that allowed moonlighting for its employees.

WHAT IS MOONLIGHTING?

• Moonlighting is the act of working at an extra job beyond regular working hours, usually without the knowledge of the employer.
• Usually the extra job is done after working hours, ie, at night, which is why it is colloquially called ‘moonlighting’.
• The term ‘Moonlighting’ gained popularity when workers in the US started seeking a second job beyond their regular 9-to-5 work for additional income.

WHY IS MOONLIGHTING INCREASING AMONG THE WORKFORCE?

• COVID-19 impact:
  • In the year 2020, with the onset of COVID-19 leading to lockdown, the economy started stalling and hence thousands of employees were laid off.
  • This also led to employees searching and/or working for multiple jobs to maintain job security and a steady flow of income with as many as 70% of remote workers working on second jobs.
• Work from home culture:
  • The pandemic has resulted in a work-from-home culture for the majority of the population, and it has resulted in a surge in the number of moonlighting cases as it has become easier for employees to work on a second job or business without their primary employer’s knowledge.
• Additional source of income:
  • Employees may opt for a second job for additional income if they have low pay at their primary jobs and need additional source of income to meet their needs or the primary income may not be sufficient to take care of the demands of their lavish lifestyle.
• To gain additional skills and to utilize the free time :
  • Employees may consider a second job to gain additional skills, indulge in work profiles they are more passionate about, or to utilize the free time at hand when employees do not have enough work to keep them occupied at their primary jobs or to keep themselves busy throughout the day.
• Work Experience:
  • Many employees want to gain more experience in their field. This is especially true for new entrants who want maximum exposure in a limited amount of time.
  • Doing two jobs at the same time gives them an opportunity to get maximum experience in a short span of time
• Setting up their own Business:
  • Many employees want to set up their own business.
  • Since the initial stage of any business requires investment and the returns come later, they stay on the job and treat the job as a shock absorber. The job also teaches them the skills which will be needed to set up a successful business.

ADVANTAGES OF MOONLIGHTING:

• Job mobility:
  • Moonlighting helps an employee to move from one job to another, thereby providing mobility.
  • It increases the chances of getting a new job or a new business while minimizing the chances of being unemployed.
• Builds a strong network:
  • Being exposed to more people expands the network base of employees. If the employee works in an industry which acts as a supplier or distributor for the first employer, both the organisations stand to gain from it.
• Improved Skill Set:
  • Since the employees are able to gain expertise and hone their skills, the employer also enjoys the benefit of the increased skill set of employees.
  • The employee is able to perform better due to the improved knowledge and skills thereby benefitting the employer.
• Low employee turnover:
  • Since employees are economically satisfied, there are lower chances of employee turnover, especially when employees engage in persistent moonlighting.

CONCERNS ASSOCIATED WITH MOONLIGHTING:

• Over worked employees and poor health:
  • If the employees are engaged in two jobs, they tend to exhaust themselves. Owing to the physical and mental demands of two jobs, they face stress and exhaustion.
  • Such employees are not able to give their best in any of the jobs.
  • Due to excessive work, they may face several health related problems.
• Data and confidentiality breaches:
  • The primary concerns companies have against moonlighting is data and confidentiality breaches.
  • Moonlighting may give employees the opportunity to divulge trade secrets if they are working in a similar industry and job.
• Ethical Dilemma:
  • Moonlighting poses an ethical dilemma for the employees. A major problem arises when an employee works for two employers who are from the same industry.
  • If employees start using the information from one employer for the other, it may lead to major problems.
  • Also, if employees use the resources, physical as well as intellectual, from the employer for their own business or the other job, it will cause ethical problems. The employer may even consider it stealing.

WHAT DOES THE LAW SAY ON MOONLIGHTING?

• In India, a person may take up one more job without breaking any law.
• A majority of companies include the single employment clauses in the employee contracts. In such a situation, moonlight can be considered as cheating.
• In India, dual employment is prohibited as per the Factories Act. But in some states, IT firms are exempted from that rule.
• The employees should carefully check their employment contract before taking up multiple jobs.

WAY FORWARD:

• Ensure compliance with employment contract:
  • Employees should always check their employment contract with their primary job to ensure compliance with moonlighting policies if any before seeking out secondary jobs or businesses.
• Clarity on company’s stance around moonlighting:
  • Employers should ensure that their employment and other policies such as IT and the employment contract are clear about the company’s stance around moonlighting.
• Revision of Minimum Wages:
  • Employers must ensure that employees receive the minimum wage which is essential for their basic needs.
  • Wages and salaries may be augmented by certain incentives.
  • If the economic needs of employees are fulfilled in the present job, it will greatly reduce the need of taking up a second job.
• Utilizing techniques and tools to detect moonlighting:
  • Many companies deploy tools and techniques to detect and prevent risks associated with moonlighting such as data leakage and day lighting.
  • These techniques result in a day red flags report that highlights employees that may be exhibiting behaviours of moonlighting and show indication of data leakage or abuse of intellectual property of the company.

PRACTICE QUESTION:

Q. “In order to maintain harmonious relationship between employer and employee, a well-crafted moonlighting policy will go a long way”. Discuss the statement with reference to the prospects and challenges associated with moonlighting culture among workforce.