Moon lighting Policy

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Hello,

Need few insights about Moonlighting and need to draft a policy. Any suggestions from your expertise would be appreciated.

Best regards
Nidhin CK

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Hello Nidhin,

Moonlighting policy is a policy through which an organization allows an employee to have dual employment outside its work hours or on weekends that does not affect its productivity or conflicts with its interests.

In India there is no legislation to stop dual employment. The Indian Labour/employment laws specify the work hours.

In India, organizations stipulate a covenant to prevent dual employment in its employment contract / appointment letter, and such dual employment is allowed on a case-to-case basis. It is a sole discretion of the organization and so far the majority did not come up with any blanket policy as such.

There are some organizations that permit dual employment.

Employees having reasonable necessity negotiate the dual employment term with their employers and go for it. It is solely on the free consent and trust between the employer and employees.

Post pandemic, organizations focus more on the employee engagement and wellness amidst the attrition challenges it is facing. Organizations had similar policies letting the employees to work for limited phases during the pandemic enabling employees to have some source of income.

Challenges an employer may face on a blanket moonlighting policy

  • Work-Life balance
  • Employee productivity, performance
  • May not be practically feasible to keep it a blanket policy considering the nature of job of certain employees
  • Assessment of a genuine dual employment requirement
  • Terms on employment contract to protect its interests, confidentiality, and productivity
  • Documentation and statutory compliances - Occupational health hazards, claims, social security benefits, insurances, etc.

Here are a few examples of statutory regulations under various State Shops and Establishments Act:

Andhra Pradesh Shops and Establishment Act, 1988

Section 69. Restriction on double employment on a Holiday or during leave - No employee shall work in any establishment nor shall any employer knowingly permit an employee to work in any establishment on a day or part of a day on which the employee is given a holiday or is on leave in accordance with the provisions of this Act.

Telangana Shops and Establishment Act, 1988
Section 69. Restriction on double employment on a holiday or during leave :- No employee shall work in any establishment nor shall any employer knowingly permit an employee to work in any establishment on a day or part of a day on which the employee is given a holiday or is on leave in accordance with the provisions of this Act.

Bombay Shops and Establishment Act (Repealed)
Section 65. Restriction on double employment on a holiday or during leave.-No employee shall work in any establishment, nor shall any employer knowingly permit an employee to work in any establishment, on a day on which the employee is given a holiday or is on leave in accordance with the provisions of this Act.

Madhya Pradesh Shops and Establishment Act, 1958
Section 57. Restriction of double employment on a holiday or during leave — No employee shall work in any establishment nor shall any employer engage an employee to work in any establishment on a day on which such employee is given a holiday or is on leave in accordance with the provisions of this Act.

Delhi Shops and Establishment Act, 1954
Section 9. Restriction on double employment.—No person shall work about the business of an establishment or two or more establishments or an establishment and a factory in excess of the period during which he may be lawfully employed under this Act.

Moonlighting was widely discussed in the social and print media by various corporate entities.

The above are a few pointers to consider; there may be many more aspects to add. Employer have to assess the pros and cons of moonlighting and draft the policy.

Hope this helps.

Regards,
Bhuvana Anand

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Hello Nidhin,

There is no legal framework around moonlighting by employees of IT companies. The labour laws in India prohibit dual employment by workers of a factory. But, workers do not cover the IT sector employees. Employees in the IT industry are bound by their offer letters which they accept before joining work.

Regards,
Suraj singh

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