The legal implication of moonlighting

Moonlighting refers to when a person takes up a job while they are already working a full-time job for an organisation. The employee does this to attain additional income. Is this wrong? Well, it depends on each organisation.

Certain companies have permitted moonlighting, but with limitations. The Industrial Employment (Standing Orders) Act 1946 permits dual employment. This phenomenon increased during the COVID-19 pandemic when people were unsure when they would lose their jobs and started having another job as a backup for income. The work–from–home setup plays a significant role in moonlighting. Does the right to profession get hit here? In most of the employee contracts, there is an exclusivity clause. Therefore, it actively prohibits the employee from taking up another job. If they do so, then they can be fired immediately. Moonlighting caused misusing of one company’s resources for working in another company. According to Section 60 of the Factories Act,1948, “No adult worker shall be required or allowed to work in any factory on any day on which he has already been working in any other factory, save in such circumstances as may be prescribed”.

Similarly, the Delhi Shops and Establishments Act of 1954, the Bombay Shops and Establishment Act of 1948, and the Punjab Shops and Commercial Establishments Act of 1958 also have provisions against dual employment. In Government of Tamil Nadu v. Tamil Nadu Race Course General Employees Union [(1993) ILLJ977MAD], it was held that there may not be any prohibitions on having dual employees if explicit consent is obtained from the employer. Therefore, it cannot be concluded that moonlighting is a villain as such. Again, IT DEPENDS.

Done By: Anoushka Samyuktha, B.A LL.B (Hons), LLM (Criminal Law), Junior Legal Consultant
For Origin Law Labs

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