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Moonlighting is the colloquial term used to refer to the practice of employees working a second job, in addition to their primary job. The last few weeks saw myriad news reports on this practice in start-ups and the information technology/information technology-enabled services industry.
Most companies have released statements opposing the practice and some have even taken action against moonlighting employees. Some companies have, however, indicated that they are open to allowing employees to moonlight within a defined framework.
The discussion on moonlighting has brought to the forefront the question of whether it is permissible under law. In this article, we have attempted to throw light on the labour and employment laws applicable to moonlighting, and the contractual protections that companies should build in to either prevent or regulate such actions.
The concept of ‘double employment’ or ‘dual employment’ has not been expressly defined under Indian laws.
However, the Supreme Court in the case of Manager, Pyarchand Kesarimal Ponwal Bidi Factory vs. Omkar Laxman Thange and Ors. (AIR 1970 SC 823), which dealt with the transfer of an employee from a factory to the head office, observed, “The general rule in respect of relationship of master and servant is that a subsisting contract of service with one master is a bar to service with other master unless the contract otherwise provides or the master consents.”
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