Moonlighting [UPSC Notes]

Moonlighting or side hustles have gained popularity over the past several months due to the rise in
demand for talent. Many have expressed worries about it, including companies like TCS. While some
companies, such as Tech Mahindra, have said they're fine with it, others, such as Wipro, have taken
action and suspended over 300 employees. The topic is important for UPSC Mains General studies 1
and General studies 2.

What is Moonlighting?

Moonlighting is the practice of taking up a second job or multiple other work assignments apart
from one’s full-time job and typically without the primary employer's knowledge.

• As side employment, the second job is typically performed at night or on weekends, so it is

referred to as Moonlighting.
• Indian IT firms are divided over the moonlighting concept, some calling it unethical while others
deeming it a necessity.
• They were apprehensive of the fact that it could promote a culture of unresponsiveness and
outflow of critical information on the projects that could possibly dent their competitiveness.
• Swiggy has recently announced a policy that allows moonlighting for its employees, while
Wipro and TCS are strictly against the practice of moonlighting.
• There is no law that prevents dual employment in India. Moonlighting is not defined under
any statute in India.

Reasons for Moonlighting

Some of the major reasons for moonlighting are mentioned below:

• Low entry-level salaries and high costs of living in cities.

• There is a dearth of employable talent in the country.
• Lack of upskilling among the employers.
• Moonlighting is done as a backup plan when one is insecure about their present job.

Advantages of Moonlighting Disadvantages of Moonlighting

• Ensure financial stability • No work-life balance

• Multiple sources of income • Increase in stress levels

• Acquiring new skills • Conflict of interest with the full-time job

 • Problems with performance due to poor sleep and divided
• Can help in change of career
attention

Is Moonlighting Ethical?

• When it comes to moonlighting, the IT industry is divided. Some people think it's unethical,
while others think it's necessary at the moment.
• If an employee has a non-compete clause and a single employment clause in their contract,
moonlighting might be regarded as cheating.
o If the employment contracts do not contain this clause or offer exceptions, it is not
considered cheating.
• Moonlighting discourages the employees from giving their best to one organisation and thus
affects the efficient functioning of the company.
• It also affects the commitment of the employees towards one company.
• Trade practices and unique working styles of the organisation get passed to their competitors and
thus reduce their earning prospects.

Law related to Moonlighting in India

Moonlighting is not defined in any law of the land. But, Section 60 of the Factory Act, restricts the
scope of double employment, iterating that, “No adult worker shall be required or allowed to work in
any factory on any day on which he has already been working in any other factory”.

• However, this enactment is applicable only to employees working in a factory.

• The apex court in the case of Glaxo Laboratories (I) Limited vs Labour Court, Meerut and
others stated that, "The employer has hardly any extraterritorial jurisdiction. If the employers
start regulating the behaviour of the employees after the working hours then the service would be
reduced to slavery."
• This case was not in reference to moonlighting, but can be referred to understand the law of the
land.

Way Forward

• First of all, it is important for the organisation to provide adequate salary to the employee so that
they do not moonlight primarily due to income paucity.
• There is a need to frame a law regarding moonlighting at the national level.
• All the stakeholders must be consulted before drawing such a plan keeping in mind the pros and
cons and the interests of all concerned.