2 months ago, news by Wipro company created a buzz around “moonlighting”. They fired 300 employees who were working for other companies after office hours while they were on Wipro payrolls. Another tech giant company, IBM also supported this step taken by Wipro and even warned against this trend.
So, what is this “Moonlighting” and how it became a part of office-going people?
Is it ethical or illegal? Why these IT companies are against it and most importantly, how sustainable is moonlighting for you?
Well, read this article till the end to discover everything about it and then decide on your own.
What is Moonlighting?
Moonlighting is the practice of having a second job after work hours. This second job is taken without the employer’s knowledge. It is usually the side jobs done at night to earn extra income.
This term is derived from working at night or working in the moonlight and not the daylight. This term was determined when working from the office was the conventional practice. People who are involved in this are often referred to as “Moon-lighters.”
Moonlighting emerged during the covid 19 pandemic and it is said that the WFH model has propelled moonlighting.
According to a survey in 2021, nearly 40% of the workers admitted to having two full-time jobs in the USA.
But how does it work? How a person can have two jobs?
Suppose a person is working for Company A from 9 AM to 5 PM and the same person is working for Company B between 8 PM to 2 AM. A person working for company B has usually a contractual type of work where he gets paid for completing a project or task.
This process requires lots of work and this is why it is also referred to as a “side hustle” job.
Why Companies Are Against It?
Moonlighting is already a common practice in the west and now due to the covid-19 outbreak, it has got popularity in India where working from home has become a norm. However, many firms especially in the IT sector are against it.
Infosys strictly discourages dual employment. Companies are worried about losing productivity at their primary job as it will lead to conflicts of interest and data breaches.
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Many companies contractually bound employees not to work for any other company and if they will, strict action could be taken against them. Rishad Premji (Chairman of WIPRO) considers moonlighting as cheating with the company on his Twitter.
So, what are the reasons behind companies not allowing moonlighting culture in their company?
Well, there are a few reasons mentioned below:
1. Conflict of interest
Companies believe that you cannot work for two same types of companies as there will be credibility and trust issues. This could compromise his or her judgment, decisions, or actions in the workplace.
For instance, if anyone who is working for UpGrad (Ed-tech) cannot work for Unacademy or Byju’s. This may lead to biased decision making and your actions could be questioned.
2. Misuse of company resources
Misuse of laptops, software, or even information can be there when one works for two companies. Employees may take advantage of their access to both the company’s resources and may share sensitive data with the rival companies.
3. Productivity
Moonlighting may also slower the productivity of the employees as they will hustle with multiple jobs and may not give their 100%.
4. Violation of integrity and breaches
As per Law Insider, it means any act which violates the Anticorruption Policy including corrupt and fraudulent practice, coercive practice, collusive practice, and/or obstructive practice; or threatening, harassing, or intimidating any party.
Companies consider employees working for other companies as a “violation of integrity”.They also fear that will be confidential breaches or loss of important data.
Important point: There are some tax complexities also because if moonlighting income is received as a salary, both employers will consider a standard deduction to calculate the tax liability and this process may take extra effort by the companies.
Is Moonlighting Illegal?
There is no overarching law against moonlighting but different companies have different policies. Moonlighting is not defined in any of the statutes in India but certain enactments deal with double employment.
As per Section 60 of the Factories Act, no adult worker shall be allowed to work in any factory on any day on which he has already been working in any other factory.
- This enactment applies only to employees working in factories.
- There are State enactments that deal with the employment of persons working in offices, banks, shops, etc. but there is no provision dealing with dual employment.
Therefore, moonlighting may not be considered an “ideal form of employment” but not as illegal. Many companies are also favoring this and even allowing their employees to take up second jobs following certain guidelines.
For instance, companies like Swiggy openly promote moonlighting. It even launched an industry-first moonlighting policy in August. It encourages its employees to undertake second jobs.
Tech Mahindra is also supporting employees in earning a second income but they have to take approval first. According to them, it is a digital company, not a legacy firm.
Employees should always check their contracts and their capabilities before taking up multiple jobs. It’s not illegal but can be difficult for you if you haven’t planned properly and informed your employer.
How Moonlighting Can Be Good For You?
Moonlighting is not entirely new to the work culture. We have teachers in our schools who gave tuition after their working hours. Few doctors also run their dispensaries even being employed at any hospital owned by the Government or any private entity.
Moonlighters are considering this due to the several benefits they get. Some of them are mentioned below:
1. Increase investments and safeguard their finances
People can increase their investments by taking up multiple projects and expecting a good income from them. A person can work full-time and can open his/her online/offline store to increase his side profit. They also invest in various properties with the money earned through side hustles.
2. To pay-off debt
Moonlighters take up multiple jobs to pay off their loans, EMIs, or pending dues. They also consider this to make high purchasing or investing in a new asset.
3. To gain more experience or focus on a different skillset
This can also help people to gain more knowledge through their expertise. They can also develop new skills to increase their capabilities and improve their learning.
4. Pursue a career in passion
People take side jobs as a hobby or to follow their passion. For instance, a full-time software designer also works as an animator during the nighttime to fulfill his passion.
Likewise, people start working in different job profiles to pursue their dream jobs as they consider investing in full-time risky. Sometimes people cannot rely financially on anyone else except themselves
5. Out of boredom
30% of people have admitted taking side jobs because they have free time and instead of wasting it on meaningless things, they prefer this. Some do it to kill their free time and earn a decent amount of money also.
These were the reasons why full-time employees are considering this. Therefore, assess your time and responsibility and you may consider it. However, you should follow your employer’s guidelines.
How Moonlighting Can Be Bad For You?
There are questions in people’s minds is moonlighting sustainable or is it good for the long run?
Well, certainly this can be a good option to earn some extra bucks. However, it can also have some side effects on your existing full-time jobs and health as well.
Some other issues are mentioned below:
1. Lose focus and make costly mistakes
Moonlighting requires lots of concentration as you cannot afford to make mistakes while working for two companies. Sometimes working continuously without breaks may reduce your focus.
2. No work-life balance
This process will take up a maximum of your time. Sometimes 18-20 hours a day which will leave no time to spend on yourself. Your social life will be comprised.
3. Cause burnout
If you are considering moonlighting, then you should prepare yourself to work long hours. This can also lead to fatigue and may disturb your health.
4. Stressed and toxic on health
Working without taking breaks may affect your health. Stress, anxiety, and depression are some of the common symptoms mentioned by moonlighters.
These were the side effects of being a moonlighter. If you think, you can manage it consider taking extra jobs. Few jobs take 2-3 hours of work only but deliver good results.
Current Updates in Moonlighting in India
The debate on moonlighting is still open with people having conflicting opinions on it. There has been a request submitted by the moonlighters to receive tax exemption on their second income. They want it to be seen as a professional income and they can file TDS on it.
Another recent update on moonlighting is that a few Indian and multinational companies including banking, insurance, call centers, and organizations engaged in customer relations, product development, and marketing – are reviewing their existing policies to explore the scope of moonlighting as long as it does not lead to a conflict of interest.
A Final Word
Moonlighting can be proven as a way to earn some extra income as well as make you financially secure during hard economic times. People choose affiliate marketing, personal coaching, blogging, content writing jobs, and data entry jobs as side hustle jobs.
Companies oppose this practice and believe that employees doing multiple jobs can impact their productivity and may leak sensitive data to their rival companies. But if there are proper guidelines issued while allowing moonlighting then it will help employees in fulfilling their responsibilities while broadening their skill level too.
