Moonlighting: Is Moonlighting Legal and Ethical?

Hi guys, as I promised, I've come up with my opinion about moonlighting.?

In this article, I will be sharing with you about the meaning of moonlighting, along with the reasons employees do a second job (or moonlight). We will try to determine the benefits and disadvantages of moonlighting from both the employees and employer's perspectives. In addition, you will learn some recent cases, stats, and other queries that are trending? and related to moonlighting, or doing a second job.??

So, stay tuned with this post, and keep learning and gathering this research-based insight.??

What is Moonlighting?

Moonlighting is the practice of doing a side job, along with a full-time 9 to 5 job to make extra income. The term moonlighting is widely used for a side gig, part-time job, side job, side hustle, and an additional job that person carries on with their full-time job.??

Reasons Why Employees Moonlight or Do Second Job

I know many of you might already be aware of why employees do moonlight or a second job. But let's also discuss it a little, as it will help us get some foundational insights.??

1. Paying off Debt

The world is still recovering from the COVID-19 pandemic, but have you thought about employees who lost their job during COVID-19? That time was tough not only for companies to survive but also for employees who lost their jobs and faced pay cuts. As a result, they ended up getting a loan from banks or third parties and they are still repaying this. This is just a single case, where employees get loans and keep repaying by maximizing their earning sources.? Although you can even read my piece on how to pay off debt quickly.??

2. Earning More

Do you know almost 82 percent of employees have been underpaid at many points of time? According to PLFS, the unemployment rate for urban India touched 9.4% between January to March 2021, while the youth category stood at 22.9% in terms of the unemployment rate. Moreover, almost 57% of Indian employees think they overwork in their full-time job, where the pay is below average.?

If you ask me to share my personal opinion, Indian companies have many candidates to choose from, where candidates feel challenged to find the right job due to huge competition. This is why companies get little advantage and negotiate well at a lower salary package.??

3. Alternate Option

It's one of the popular reasons why employees moonlight. Employees prefer a second job when they are insecure about their primary full-time job. This situation is common when the company is understaffed, losing its market share, and seeing a massive drop in revenue.??

According to a report, employees older than 45 faced many difficulties during the pandemic. It's because it's a category of experienced workforce, which costs decent to any company that hires them; due to COVID, it was the most impacted category of the entire workforce.??

4. Career Change

Some employees also moonlight when they wish to make a career change. They prefer side jobs or freelancing to gain exposure to a new field. After working on some projects, they try to avail better employment opportunities. So, it's also a common reason for employees to do a second job or moonlight.??

5. Passion

For some employees, a second job is less about making money than spending more time on their passion. It helps them achieve the finest level of their skill set and acquire significant experience in their field. Following passion satisfies employees and benefits them in the long run to avail some great opportunities.??

What Stats Says on Underpaid or Unpaid Employment

Unpaid and underpaid employment also encourage employees to do second jobs or moonlight. Let's check out some stats explaining the same most simply.??

1. According to a study, 83% of employees are paid below average, 14% average and only 3% are paid above average.
2. Almost 60% of employees think they are underpaid and are more likely to leave their current company.?
3. The NACE survey for college students showed that over 40% of interns are still underpaid (unpaid mostly).?
4. Around 13 million US workers do the second job/s along with their full-time job.?
5. In 2020, around 5% of the American workforce was doing second jobs.?
6. Also, 70% of remote workers are involved in side hustle or moonlighting.??

Benefits of Moonlighting for Employees

Below are some benefits of moonlighting to give you a brief idea about the major benefits most employees seek from their second job.??

1. More Money

The biggest benefit of doing a second job, side hustle, or moonlighting is that it allows you to generate multiple sources of income. As a result, you witness more money in hand to fulfill your basic needs. Moreover, it also helps you make more savings to deal with financial crises.??

2. Security

We all know many startups to big companies do mass hiring and layoff, which often causes insecurity in employees' minds. So, if the employee thinks their current job is not safe, they will certainly look for a second job.?

3. Freedom

The second job also provides psychological benefits, such as employees having complete control over the remaining hours (time remaining after full-time working hours). And they think to utilize it in their way without expecting interruption of their primary company.??

Disadvantages of Moonlighting for Employees

There are many disadvantages of moonlighting for employees, such as mentioned below.

1. Job Loss?

As you have already seen, many companies like Wipro fired their employees due to moonlighting. If you also moonlight or have a second job, your employer can fire you. Therefore, checking out the employment terms before joining any company is a good idea.??

2. Employer Irritation

You might have noticed that many employers think they pay XX a year, even if it's PEANUTS, and some even hate the idea of doing a second job. So, if you try to do a second job, even if your company has allowed it, you may have to face the employer's irritation.??

3. Productivity Loss

It's something that most employers care about. They think if you work somewhere else, it will drain your productivity. However, when you do a second job, you must ensure your employer gets sufficient productivity from you. It's your responsibility to provide the best value to keep your primary employer happy.??

Recent Incident of Moonlighting

Recently, we have seen many incidents of moonlighting; let's look a little.?

• Due to the integrity debate, Wipro fired 300 employees in India.
• Tech Mahindra CEO Gurnani looked in support of moonlighting. He said the company would make a global policy, so employees could do more than one job.?
• Swiggy also allowed its employees to do a second job after working hours.?
• TCS COO N Ganapathy said it's an ethical issue that will not land good results in the long term.??

Should Companies Allow Employees to Do a Second job?

If you ask me, companies are free to allow or not allow their employees to do a second job or moonlight. However, they must give a clear interpretation before hiring the employees and mention such terms in the employment contract.??

Do Companies also do Moonlighting?

When the company launches its subsidiary company or focuses on new business. Should we also keep it under moonlighting? Isn't the case when senior management gets distracted or breaks the rules of ethics???

Well, I leave the interpretation to you, as you are a smart reader so leave your views on the same in the comment.??

Is Moonlighting Ethical and Good Practice?

Moonlighting can be considered cheating if the employer has prohibited it in the employment contract. However, it will also not be called a good practice if an employee leaks sensitive data from the company. However, some companies allow their employees to do other work, as long as they do it by maintaining productivity.?

Remember, if you do a second job, it's your responsibility to keep sensitive strategies and data of the company away from your second job. If your employer is allowing you to do moonlight or side hustle, it means they trust you, and they believe you will manage to do two job roles without harming any party.??

Is Moonlighting Legal in India?

Under Section 60 of the Factories Act, 1948, factory adult workers are prohibited from doing second or double jobs. However, if you belong to another industry, you do not have any legal restrictions. In short, if you work in any company other than a factory and your employment contract does not prohibit you from doing a second job, you can legally run a side hustle.??

Can an Employee be Fired just because of Moonlighting?

If contracts or policies are required exclusive attention and an employee is working in a factory. In that case, the employer can fire an employee for moonlighting.??

How do Companies Catch Employees Doing Moonlighting?

There can be several ways a company can catch employees moonlighting. Some of them can be decreased productivity, physical fatigue, employees willing to go home early, etc.?

How Employees and Employers Can Protect Themselves?

For companies, they can mention their moonlighting policies before the employees. So, if they are caught by an employee involved in moonlighting, they can fire.?

Employees can talk with managers and tell the reason for moonlighting. If their company allows it, they can proceed with moonlighting. However, if not, they should ask to increase their pay and keep doing their primary job.??

What should Employers do instead of firing Employees because of moonlighting?

If you are a hiring manager or possess a senior-level position in an organization. It's recommended to offer better pay to your employees. Most employees do the second job because they need more money. There can be many reasons, including paying debt and family obligations.??

In addition, you can frame a proper policy on moonlighting about what are the cases and job roles employees can consider as moonlighting. For example, you can allow them to generate a second source of income by selling self-created courses, blogging, YouTube, social media, and other job positions that do not affect productivity.?

My Personal Opinion on Moonlighting

In my opinion, moonlighting is the need of the current era. It is because most companies underpay their employees, do mass hiring, and lay off. Hence, for plan B, employees prefer being dependent on the second best alternatives to meet financial requirements.??

However, employees should not harm their primary company by sharing private data or strategies with other companies; it harms both parties.

(Please Note: The article is based on my personal research and opinion, I do not want to hurt anyone with my opinion, I just wanted to give you a brief on why people do the second jobs. Also, the article is not yet completed. I'm thinking of adding a few more stuff, so you can get more insights on moonlighting.)