Why are IT giants warning employees against ‘moonlighting’? Is it illegal in India?

The concept of ‘moonlighting’ is in the news again with Infosys the latest IT giant to issue a word of caution to its employees against the practice. ‘Moonlighting’ or ‘two timing’ as Infosys referred to the concept, is when employees take up a side job apart from their primary full-time job, in most cases to earn extra or simply to make ends meet. The word ‘moonlighting’ is said to have originated from the fact that industrial workers would opt for such jobs in the night after completing their day shifts in the primary job, working under the “moonlight”.

Leading IT firms against moonlighting

Infosys’ mailer to employees issuing a clear stance that moonlighting is not permitted has created significant buzz. The country’s second largest IT services firm has warned its employees that any violation of its non-moonlighting code will trigger disciplinary action as per contract clauses "which could even lead to termination of employment".

"No two timing - no moonlighting!" Infosys issued a stern warning, saying that "dual employment is not permitted as per...Employee Handbook and Code of Conduct". The company has also asked employees to immediately report any such moonlighting instances. 

This is not the first time that a major IT company has expressed an issue with the practice. Earlier, Wipro chairman Rishad Premji had highlighted the issue and equated it to “cheating”.

With the issue gaining limelight, companies might also be mulling extra safeguards to protect proprietary information and operating models, especially where employees are working remotely, industry watchers believe. Employers may also take a tougher stance on exclusivity clauses in employment contracts.

Mixed views on moonlighting

The IT industry has recently seen a debate ignite around moonlighting with polarising views and questions around legality. Not all IT industry top names are against the concept. Former Infosys director Mohandas Pai disagreed with the categorisation of moonlighting as cheating, saying that employees have a contract with companies to work for a specific number of hours in a day. What they do after this specific duration is up to them and employees have freedom to do what they want. 

Pune-based union Nascent Information Technology Employees Senate (NITES) has condemned the employee communication by Infosys, terming it as "illegal and unethical" saying that related clauses are arbitrary. “What the employees do outside working hours is their prerogative,” NITES asserted.

Is moonlighting illegal in India?

In India, dual employment is restricted for some types of employees like factory workers, employees of some shops and commercial establishments governed by state-wise laws. However, most laws regarding pursuing a second line of work along with the primary job are for workmen. There are no specific laws in India regarding dual jobs for IT professionals or people working in positions that are administrative or supervisory.

As per legal analysts and lawyers, employees in the IT sector are not bound by any overreaching laws restricting dual employment. However, they might be bound by their contracts with employers with regard to confidentiality violation, single employment clauses, or non-compete clauses. In such cases, moonlighting may be considered cheating.

Without such clauses, it cannot be considered cheating. Hence, going for a second job is based on the specific contracts and if they have clauses where compliance can become an issue. 

In fact, several tech companies have even started to encourage such practices. Swiggy launched an industry-first 'Moonlighting policy' for its employees last month. Fintech unicorn Cred was reported to have said that it encourages if employees desire to have "sidehustles".

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(With inputs from agencies)