[Software] Moonlighting is latest headache for software companies

[FazzNoth]

The covid-19 pandemic has given sleepless nights to IT employees as many companies have announced mass layoffs and hiring freezes during the lockdown. Therefore, the stress of losing a job forced employees to take up secondary jobs during the lockdown. This practice of taking up secondary employment (also called moonlighting) has triggered a discussion about its legality in India.

Work from home model helped employees to hide their dual employment from their employers, but now with companies calling back their employees to offices, the concern is expected to ease soon. The pandemic has opened doors to gig work opportunities as everything moved online. So there was a huge demand for gig workers in different sectors, especially in the information technology, financial, and e-commerce sectors.

 

Recently, Infosys and IBM warned their employees against moonlighting. In the last month, Wipro Chairman Azim Premji also described moonlighting as cheating in a tweet. However, Swiggy’s recent policy is in contrast with the statements made by the IT giants as it made clear that its employees can take up the secondary jobs.

What is moonlighting?
It is a practice of taking up a second job in addition to a regular job, especially during nights and weekends. According to industry experts, it is one of the main reasons behind people not being willing to return to the offices.

In the last two years, Moonlighting has become a thorn in the flesh for IT companies. An IT employee in Bengaluru was found working for seven companies simultaneously. In another incident, an employee of a reputed IT company refused to return to the office, which forced the employer to order a forensic probe. The inquiry found that he was working for another company without resigning from the present company and sharing crucial data through email.

Is it legal in India to take up multiple jobs at the same time? 
There is a difference of opinion between companies and white-collar employees on this issue. Human Resource legal experts say a company can restrict an employee from taking up a second job.

Software companies previously raised concerns about the possibility of employees sharing valuable and confidential information with other companies, especially with their competitors. The other concerns include the exploitation of company resources and a drop in the performance of an employee.

According to Factories Act, Section 60, there is a restriction on dual employment in India. The same is also mentioned in the Shops and Establishments Act. However, each state has its own acts and rules which may change from state to state. In most cases, IT firms have been exempted from some sections of the acts, including dual employment. They are allowed to exercise their own initiatives as far as employment is concerned.

An employee must read clauses mentioned in the employment contract and comply with companies’ policies and procedures. An employee may get terminated if a clause in his contract restricts him from taking up a second job. The question of legality completely depends on the terms of employment, agreed upon by the employer and employee.

https://telanganatoday.com/moonlighting-is-latest-headache-for-software-companies