Moneycontrol Masterclass: Time for companies to rethink employer-employee relationship, lay down policy for ethical moonlighting

(Illustration by Suneesh K)

After the Covid-19 pandemic made working from home the norm, moonlighting has become a hot topic of debate in the IT industry.

Several IT firms have come down heavily on moonlighting and have threatened employees with termination if they are caught moonlighting. It will also be considered cheating. But is it?

Speaking to Moneycontrol’s Chandra R Srikanth in the Masterclass episode, Aarin Capital cofounder and chairman Mohandas Pai said "you can't work for a direct competitor, that is very unethical."

"You can't work (for a different company) at the time you are giving to your employer for the period you are paid compensation," said Pai.

Pai's comments come against the backdrop of Wipro sacking 300 employees it found working with its competitors.

Similarly, earlier this month, its cross-town rival IT behemoth, Infosys, warned its employees against dual employment, stating that it is not permitted under the company's code of conduct.

He, however, said that we must look at a situation where people will be able to work somewhere during their free time, with some caveats.

Also Read | Infosys banned it, Wipro chief called it cheating. What's moonlighting? 

Artha School of Entrepreneurship cofounder T.N. Hari said as long as restrictions on moonlighting are about not doing multiple jobs, it is ok, but stating what one should do in their free time is completely unfair.

"Norms can be laid down stating that one cannot do two full-time jobs, but it is not necessary to stop people from doing a side job at a firm which is not a competitor,” he said.

"The expectation of giving unlimited hours to the company, over weekends at any time of the day is completely unfair and unreasonable, he added.

Many employees believe that they are not bound by the company's rules on what they do after work hours and can use those hours to earn additional income.

"During work, there are times when there is slack. If companies expect you to not do other work at that time, how can they expect their work to be done on your premises?" asks Hari.

Hari suggests that businesses start considering the reasons why people moonlight.

Cofounder of Diamondpick Sriram Rajagopal thinks that employees who work two jobs have violated some level of trust, which is why many IT companies are now cracking down on moonlighting.

However, Rajagopal noted that it is a problem if moonlighting is interpreted as multiple employment.

"Employees can take on other jobs in their spare time, but not for competitors, and definitely with some restrictions," Rajagopal said.

The panel's experts advocated for a new employee engagement policy that outlined the guidelines for ethical moonlighting that benefits both the employee and the employer.

Rajagopal noted that flexible employment contracts can be set up similar to those in the US, where there are no restrictions, but they shouldn't conflict with each other.

Earlier, Swiggy introduced a policy that permitted its staff to work additional jobs.

"It is easy to define what you cannot do in moonlighting and if anyone wants to make money post-work hours it is okay and beneficial to both parties," according to Rajagopal.

Also Read | Moonlight on the high street: Can India Inc. swing it like Swiggy?

Aditya Mishra, the CEO and managing director of CIEL HR, asserts that once a policy is established, companies can adjust and restructure their employment contracts, adding that managers should take cognizance of the fact that an employee is looking for a certain stimulation and challenging work.

“The world of work comprises of multiple kinds of employment. Industries should now take up newer structures apart from full-time and contractual employment,” Mishra said.

Missed Moneycontrol Masterclass? Watch the full episode here.