How bright is the Moonlight?
The concept of ‘moonlighting’, though recently popularised, is not a 21st century phenomenon. Often associated with the ‘hustle-culture’ in vogue with the current generation of millenials, there is no reason to believe that it hasn’t existed in the past. Be it teachers who in addition to their regular job ran successful private tuition classes, or doctors who ran thriving private practices by night , people working on multiple assignments alongside their primary job is nothing new.
In this week’s article, we bring to you in a nutshell everything you need to know about moonlighting, the recent controversy and the ongoing debate.
What is Moonlighting?
Moonlighting refers to pursuing multiple jobs at a time. People claim that it is a result of Work-from-Home culture. While new-age companies like Swiggy have created policies and guidelines around it, more traditional companies are slow to adjust or are arguably even resistant to the idea.
Why has it become a common day practice
The answer lies in Maslow’s Need Hierarchy Theory. People who are just starting out in their careers need more money, because quite simply put, the cash in hand for most entry-level jobs is a joke unless one is from top-tier colleges with resumes steeped in experience and studded with extracurricular activities.
In most cases, given the low salaries and relocation costs, the employee in effect, pays to work. Having a side gig, therefore, is both a financial and psychological necessity.
For people in mid stages of their careers, moonlighting can be an effective method to explore career options, build diverse skill sets, witness other work cultures or even transition between companies and industries. It also boosts their esteem. After all, gone are the days where employees could be confident of their place in the organisation , despite their association spanning over decades.
Even for individuals with well-established careers, the urge to look for opportunities which give them a sense of achievement and fulfilment has existed since time immemorial. We regularly witness industry leaders taking Board and Advisory positions, becoming mentors, etc. These assignments could help them have a concrete Plan B or a post-retirement venture.
Does any law prevent dual employment?
In terms of Indian employment laws, there is no specific definition of moonlighting. In addition, moonlighting doesn’t necessarily mean dual employment, which includes legal obligations such as minimum wage, provident fund, gratuity, etc. Side Hustles or freelancing are also possible, which can happen without the employer’s knowledge.
In fact, no law prohibits dual employment. This means that IT workers and other employees should be able to disconnect from their primary job after the committed work hours and pursue other projects for additional income, skill development, or interests that are outside of their work.
Why are companies against it?
On September 22, 2022 , Tech-giant Wipro fired 300 of it’s employees for Moonlighting for competitors. Rishad Premji, the Executive Chairman of Wipro said “Even if law doesn’t state anything, It is very simple. It is an act of integrity violation. We terminated the services of those people,”
Companies are worried about the loss of productivity at the primary job as moonlighting leads to overwork. They also have a problem with employees using company materials like laptops or software for their additional jobs.
Moonlighters pose a challenge specifically for IT companies in these times of remote work. It is estimated that many tech professionals are working on side projects in addition to their full-time jobs. Many companies worry that this is resulting in revenue and productivity losses.
Some of their major concerns are:
– Data and confidentiality breaches|
– Productivity loss due to physical and mental fatigue.
– Corporate espionage
– Misuse of company resources driving up the operational expenses.
Should Moonlighting be banned?
Like most cases, banning moonlighting would not prevent it, instead it would drive the activity underground. Besides, it is a means to unleash the economic potential of a vast majority of skilled and unskilled workers. By banning the practice, India stands to lose out, since it would considerably throttle its entrepreneurial and innovation ecosystem. Most Indian startups that achieved the coveted Unicorn status, are in fact, products of practices such as moonlighting. Besides, denying people the option to earn more to sustain themselves in the face of rising inflation and cost of living, is against the basic tenets of freedom which defeats the purpose of development itself.
Therefore, banning the practice should be off the table.
Instead, open discussions that take reality into account, inviting the participation of major stakeholders, including employees, would go a long way towards building a culture of trust. Afterall, companies too are dependent on their workforce and they too are fully aware of the consequences of widespread disenchantment. Besides, if companies want their employees to be exclusive they need to provide better, more remunerative packages. Unless a more humane approach is adopted, which is more in tune with the reality of the 21st century labour market, organisations will certainly encounter compliance challenges and high attrition rates, particularly for top personnel.
What does the future hold?
Earlier this month, Swiggy announced India’s first moonlighting policy, which recognises that employees may take up external work and get paid for it. The policy described as “inclusive” by the company’s human resources head Girish Menon, specifies that the external projects need to be outside of office hours or on weekends and not clash with Swiggy’s business.
In conclusion, given the broad consensus on what the future of work entails, moonlighting is an inevitable reality. The creation of the Knowledge Economy has only intensified the transition, wherein people with in-demand skills will have opportunities to engage in side gigs, or what is popularly known as side hustles. Companies have various legitimate ethical and material concerns. As an emerging economy India needs to foster a business friendly environment and cannot alienate industry leaders, who serve as massive employment providers and act as growth engines. Therefore, this is a sensitive issue that needs to be addressed in a time-bound and inclusive manner. Striking the balance between the rights and aspirations of workers on the one hand and the concerns of the business community is at the heart of the issue.
Curated By: Chirag Ladha
(Chirag Ladha is a 2nd year student pursuing B.Com(H) at St. Xavier’s College (Autonomous), Kolkata and a Research Analyst of the Xavier’s Finance Community.)