First & foremost
In today’s fast-paced and ever-evolving IT industry, moonlighting, or taking on side jobs outside of regular working hours, has become increasingly common among tech professionals. While it can be tempting for Information Technology (IT) employees to explore additional income streams or gain diverse experiences, HR professionals in the IT sector face unique challenges in managing moonlighting practices. In this article, we delve into the HR perspective on moonlighting in the IT industry, examining the potential impacts on employees, employers, and the delicate balance between fostering personal growth and maintaining organizational integrity. Indian judiciary does not have a straitjacket formula in matters related to dual employment, and the decisions of courts depend upon the facts and circumstances of each case.
The Rise of Moonlighting in the IT Sector
In the dynamic landscape of the IT industry, moonlighting has gained popularity for several reasons. Freelancing platforms and gig economy opportunities offer tech professionals chances to work on exciting projects, build niche skills, and expand their professional networks. The allure of financial independence and the prospect of creating a diversified portfolio of work can be especially attractive for IT employees, prompting them to explore moonlighting opportunities.
Navigating Ethical Concerns and Intellectual Property Issues
For HR professionals in the IT industry, moonlighting raises ethical concerns and potential intellectual property (IP) conflicts. Employees working on external projects might inadvertently use knowledge or code from their primary employer, leading to IP disputes. HR must communicate the organization’s expectations regarding IP ownership and the need to avoid any potential conflicts that could compromise the company’s interests.
Performance and Work Quality Implications
The IT industry is notorious for demanding long working hours and intense projects. Adding a moonlighting job on top of these commitments may disrupt an individual’s work-life balance, leading to stress and burnout. HR professionals must be proactive in promoting work-life balance and providing resources for employees to manage their time effectively.
Moonlighting Policies and Communication
Indian laws, at present, do not prohibit the practice of moonlighting or dual employment. The Indian Contract Act, 1872 (the ‘Contract Act’) deals with dual employment. Section 27 of the Contract Act prohibits agreements in restraint of trade. Moonlighting is an arrangement wherein the employees provide services to a second employer. Such services are not provided during the course of an employee’s primary employment. Indian courts, in a plethora of judgements, have held that restrictions which operate on an employee during the course of employment and are reasonable are valid. A reasonable restriction during the course of employment typically falls outside the purview of Section 27, unless the contract is unconscionable.
The Factories Act, 1948 places a restriction on the dual employment of workers. The Industrial Employment (Standing Orders) Act, 1946, and the rules made thereunder provide that workers should not take up any employment in addition to their job in the present establishment which can adversely affect the interest of their present employer.
Opportunities for Upskilling and Internal Growth
Rather than viewing moonlighting solely as a challenge, HR can leverage it as an opportunity for upskilling and internal growth. By offering employees in-house training and development programs that align with their career aspirations, organizations can retain talent and foster a sense of loyalty among IT professionals.
Further, companies that intend to take a slightly flexible approach to moonlighting may permit some employees to take up secondary employment on a case-to-case basis. However, they should specify the sectors and roles in which their employees may work in addition to their primary employment. Such sectors and roles must be decided to keep in mind the business interest of the primary employers and the threats and risks, as highlighted above.
“We have to creat a hybrid workforce that includes part timers. Abuses happen cause you put people in a straightjacket and they are not able to get out. If you put them in a place with different security controls and requirements, it’s possible to accomodate them in a hybrid structure!”
