Moonlighting: Staff can't take up work that's against company's interests, says govt
Dec 20, 2022
Synopsis
Moonlighting refers to a full-time employee of a company taking up an additional job, usually without the employer's knowledge. There have been multiple reports of IT professionals moonlighting during the pandemic when companies switched to full-time work from home.
The government said staff can't take on work that's against the interests of their employers in addition to their jobs, clarifying the law as a debate rages over moonlighting in India's tech industry.
"As per the Industrial Employment (Standing Orders) Act, 1946, a workman shall not at any time work against the interest of the industrial establishment in which he is employed and shall not take any employment in addition to his job in the establishment, which may adversely affect the interest of his employer," minister of state for labour Rameswar Teli said in a written reply in response to a question in the Lok Sabha on moonlighting on Monday.
He was replying to a question on whether the government considers moonlighting to be a valid reason for firing employees.
"No specific information is available to indicate that layoffs are happening due to moonlighting," the minister of state said.
IT Sector Red-flagged Cases
He added that the government had not conducted any study on moonlighting in the country.
Moonlighting refers to a full-time employee of a company taking up an additional job, usually without the employer's knowledge. There have been multiple reports of IT professionals moonlighting during the pandemic when companies switched to full-time work from home.
IT company Wipro sacked 300 employees for moonlighting, saying it was a violation of integrity.
Minister of state for IT Rajeev Chandrasekhar had earlier backed the idea of moonlighting, saying companies should not put a lid on employees' dreams but adding the caveat this should not violate contractual obligations.
"Employment and retrenchment including layoffs are a regular phenomenon in industrial establishments," Teli stated in response to a query on whether the government had observed that staff were being fired for moonlighting.
Legal Perspective
Replying to a question on whether the government had instructed companies not to fire employees for moonlighting, the minister stated that jurisdiction in such matters lay with the respective state governments.
However, he said layoffs and retrenchment are governed by the provisions of the Industrial Disputes (ID) Act, 1947, which also regulates various aspects such as conditions precedent to retrenchment. As per the ID Act, establishments employing 100 persons or more are required to seek prior permission of the appropriate government before effecting closure, retrenchment or layoff, he stated. Further, retrenchment and layoffs not carried out as per the provisions of the ID Act are illegal, he said.
The ID Act also provides for the right of workmen laid off and retrenched to compensation and it also contains a provision for the re-employment of retrenched workers. Based on their respective jurisdictions, as demarcated in the ID Act, central and state governments take actions to address the issues of workers and protect their interests as per the provisions of the law.
In establishments under the jurisdiction of the central government, the Central Industrial Relations Machinery (CIRM) is entrusted with the task of maintaining good industrial relations and protecting the interest of workers including on matters relating to layoffs and retrenchment and their prevention, he stated.
[The Economic Times]
