Moonlighting: A need of this multifaceted world or unethical conduct?

Many people worked a second job or moonlighted during the COVID lockdowns as they had ample time that, otherwise, would have been wasted in travel and traffic. As things return to the new normal, people committed to these side jobs struggle to keep up, as many companies like Wipro and Infosys find it a breach of company policies and fire those who moonlight. Let’s understand what is so mysterious about moonlighting and why some companies are not ready to tolerate it whereas others, like Zomato and Mahindra, are coming out to support it.

Understanding moonlighting.

It all started in 2022 when Wipro fired 300 employees who were moonlighting for the competitors while being on the company’s payroll. Wipro’s executive chairman Rishad Premji took to Twitter to say: “There is much chatter about people moonlighting in the tech industry. This is cheating – plain and simple.” (Gautam 2022)

Moonlighting appears to have originated in the United States, when a worker, desperate for extra money, would take on a second job at night in addition to the one they worked during the day. The second job was completed “by moonlight”, thus the term moonlighting. In modern Britain, it simply implies doing a second job when you are not supposed to be on your employer’s premises, without informing your primary employer (and possibly without telling the taxman either).

When and where is it illegal to Moonlight?

Many attorneys and legal experts believe that IT workers are not subject to overly restrictive rules prohibiting them from holding two jobs simultaneously. However, they may be restricted from engaging in such activities in terms of confidentiality, single employment, or non-compete restrictions in their contracts. One possible interpretation is that moonlighting is unethical in such a situation.

It may not be considered cheating without such clauses, but that determination rests solely with the companies. Therefore, taking on a second job is dependent on legally binding agreements. Moonlighting can be a significant problem if companies have clauses where compliance is an issue.

Who is supporting it, and who is not?

If we note the following information, it is clear that certain companies support moonlighting, while others are against it.

Swiggy announced a moonlighting policy for its employees, allowing them to work on other projects under specific conditions after working hours.
Nova Benefits supports moonlighting and allows employees to try new options and pursue their interests or passion outside work hours.
The CEO of Tech Mahindra, C P Gurnani, stated that he might consider allowing moonlighting. He approved of employees being allowed to take extra work, but they should be open about it.
Wipro CEO Rishad Premji recently called moonlighting cheating and fired 300 employees after discovering they worked for competitors.
IBM has warned employees against moonlighting.
TCS has stated that moonlighting is an ethical issue and is against its values and culture.
Infosys has warned employees against moonlighting. However, it has allowed employees to take up gig work outside the company hours with prior approval from HR and industry executives.

Firing employees when found moonlighting on moral grounds.

If moonlighting for competitors is not moral conduct according to some companies, then firing hundreds of employees whose livelihood depends on the job also raises alarms about the moral compass these companies seem to be following. Actions like these also encourage other low-paying companies, which need only a few man hours a day, to fire people doing side hustles.

According to NS Rajan, Former Group CHRO, Tata Group. “If you want to take a moral high ground, should you be sacking them without giving them a chance? Should you keep compensation disparity at the levels at which they are? If you are worried about your bottom line, the individual is worried about his safety net.” (S 2022)

However, whether or not this is considered moral behaviour depends entirely on the organisation’s policies in which the employee is engaged. In any case, businesses need to be open to dialogue so that workers can freely share their perspectives on side jobs.

Understanding the employee perspective.

Companies also have to understand why employees are moonlighting. Do they like doing extra work after working for many hours already? The answer can vary as per the employees. Many employees working in 9-hour jobs in the private sector do it because the companies they work for are not paying them enough, and they do not see enough growth opportunities in their careers. Others work to enhance skills which they lack. There might also be cases where moonlighting is done with evil intentions like leak confidential data to competitors, or simply to earn a fast buck. There needs to be a middle path to reign in these kinds of problems so as to facilitate a win-win situation for both the companies and the employees.

Among all the possible solutions, one that seems reasonable is that all the companies not in favour of moonlighting should make it very clear in their agreements that such activities are not allowed and what actions will be taken against those who do it. This way, employees will be more vigilant about the prevailing rules and regulations in the company upon joining. They will also be able to make an informed decision as to whether moonlighting is really in their interest if they intend to earn some extra bucks.

Author: Ashutosh S. Tomar

About the Author: Student of MBA-08

References

Gautam, V. (2022, November 8). From TCS, HCL to Wipro: How India’s IT Giants Have Reacted to The Moonlighting Issue. India Times. https://www.indiatimes.com/worth/news/how-it-industry-is-reacting-to-moonlighting-584220.html
S, V. (2022, November 4). Moonlighting underscores employer-employee relationship rules are changing. Business Today. https://www.businesstoday.in/latest/corporate/story/moonlighting-underscores-employer-employee-relationship-rules-are-changing-351911-2022-11-04

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