Wipro recently fired 300 employees in India, saying they were moonlighting. The firm's action brings to the fore the question of where we stand in relation to laws governing dual employment.
Though moonlighting isn't totally prohibited in India, there are several acts that talk about dual employment. Section 60 of the Factories Act, 1948, prohibits the double employment of adult workers in factories.
However, its provisions on double employment do not apply to organisations that don't run factories.
Besides the Factories Act, the state-wise Shops and Establishment Acts lay down provisions related to organisations not covered under the Factories Act.
The Shops and Establishment Act is a state legislature and may change from one domain to another. However, it may bar employment in the same institutions or organisations after work hours.
The Bombay Shops & Establishments Act states that no employee shall work in any establishment, nor shall any employer knowingly permit an employee to extend services to another establishment on an off day.
The Delhi Shops and Establishments Act states that no person shall work for the business of an establishment or two or more establishments or an establishment and a factory for a period in excess of which he may lawfully be employed under the act.
Industrial Employment (Standing Orders) Central Rules, 1946, state that a workman cannot by doing dual employment work against the interest of an industrial establishment.
It is to be noted...
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