Here’s Everything You Need To Know About Moonlighting

What Is Moonlighting?

Moonlighting is the practice of having additional employment outside of business hours of primary employment and without the consent of the principal employer. 

Largely, companies have taken a restrictive approach towards moonlighting, terming such acts as ‘cheating’. However, some companies consider moonlighting a part of the changing employment landscape and are devising ways to deal with the same. 

Many things determine whether moonlighting is illegal or legal. These could range from work policies and laws to employment agreements.

Several IT companies in India provide flexible employment, such as dual employment or moonlighting. Employees must review their employment agreement carefully to understand moonlighting regulations.

Why Is Moonlighting Risky For Business?

Since an employee is working harder to satisfy two jobs simultaneously, they might not fully perform the duty of each job.

• Ineffective Time Management And Tiredness: Multitasking may lead to an inability to manage time and steady fatigue. Eventually, an employee may give up, making things worse.
• Employees Drifting Away: Employers worry that employees will be distracted from their jobs due to side projects, become less invested in their company’s goals and ultimately leave. Employers also fear that others may get influenced by moonlighters, bringing down the overall efficiency or effectiveness.  
• Liability, Confidentiality And Legal Issues: This could be a problem if an employee starts moonlighting for a competitor. Even working in a similar industry or project to that of the primary employer has the potential to jeopardise the confidentiality clause between the employee and the employer. 
• Data Breaches: Even if an employee does not willingly disclose confidential information, gadgets such as phones, tablets and laptops may end up exposing crucial data of companies.

How Can Businesses Deal With Moonlighting?

Preventive Approach

A clause in employment contracts prohibiting moonlighting is crucial if employers are trying to prevent moonlighting. It should be expressly stated that any violation of this clause would amount to misconduct, and the business would be free to take any remedial action, including termination. 

Businesses may also add liquidated damages for the breach of this clause in their contracts. The clause should be drafted to prohibit employees from getting dual employment during working hours and non-working hours (including holidays and weekends).

Accommodative Approach

An accommodative moonlighting policy may cover the following aspects:

1. Listing of competitors
2. Regulating the hours of work
3. Specifying the allowed sectors
4. Mandate to seek prior approval

What Are The Signs Of Moonlighting?

Here are some telltale signs of moonlighting could be as follows: 

• The Employee Is Often Tired: Moonlighting employees, even if they are working as freelancers, are working 14 hours at a minimum. Working relentlessly for so long takes a toll on a person. 
• Delayed Responses: Though once can be forgivable, repeated occurrences point to negligence. The employer must be on guard if an employee repeatedly responds late despite warnings.
• Fall In Quality Of Work: Moonlighting employees often can’t keep up with the duties of both jobs. If an employer notices a massive deterioration in the quality of work over time, it is time to have a chat.