Quiet quitting and moonlighting are real - workplaces need to adapt

IT major Wipro sacking 300 employees for moonlighting is making headlines in India. Globally, social media is abuzz with two trends in workplace: ‘Quiet quitting’ and moonlighting. ‘Quiet quitting’ is about keeping one’s job, just doing bare minimum work to be employed and meeting performance expectations. The idea is to use the after-work hours to earn money by moonlighting. Moonlighting is defined as having a second job, typically secretly, while keeping the primary job. The name moonlighting was coined in the US to depict work after regular office hours.

While the terms have gained popularity now, both moonlighting and quiet quitting have been followed as ‘side hustle’ and ‘checked out’ respectively in the past. For example, professionals like doctors, lawyers, and teachers holding primary jobs along with a personal practice has been long accepted. Corporate employees involved in multi-level marketing is also well known.

Is moonlighting or dual employment, a problem? Yes, especially if the second job is related to the primary job. Dual employment is an offence due to confidentiality breach. For example, A Bengaluru-based IT company has found that an employee was illegally employed in more than two of its competitors. Several such cases were found over the past 30 months and almost all the employees have been terminated.

Reports suggest that only one-third of employees consider themselves ‘highly engaged’ at work. Lack of engagement among the rest may be because of job insecurity, lack of job satisfaction, lack of respect/recognition or rewards/remuneration or poor work-life balance.

Since the pandemic, both quiet quitting and moonlighting have become easy as people find themselves productive working from anywhere and saving 2-3 hours of commute time every day.

A recent news report states that a survey of 400 IT professionals in India revealed that 65% engaged in moonlighting while working from home. Another report states that 70% of those surveyed said that side-hustles are the real shot to fame and 69% shared that they would want to earn from their hobbies.

Moonlighting clauses are added to employment agreements; violation of these clauses amounts to confidentiality breach and conflict of interest. They could use the IP, tools, and processes from their primary job in the second job, which is legally, and ethically, wrong. The other ethical question is does moonlighting deny opportunity for the unemployed or underemployed?

A recent report states that 34% of the working population in the US have a ‘side hustle’. Though dual employment is not banned in the US, Australia and other countries, many workers hide their second job from the primary employer. A recent Mckinsey report in the US shows a rise in independent workers from 27% in 2016 to 36% in 2022. The key reason citied is the autonomy and flexibility of freelancing.

European Union has adopted a directive in 2019 that requires EU member states to ensure that an employer can no longer prohibit an employee from working for another employer or for themselves outside of agreed working hours. The goal is to lower the threshold for workers to engage in other work, on a payroll or as self-employed persons, in addition to their existing work. The Directive allows the member states to set conditions under which an employer can continue to place restrictions on an employee having multiple jobs.

The Netherlands has recently implemented rules that would stop employers from banning their employees from taking up a second employment or doing voluntary work, with the aim of making it easier to combine different jobs.

While Indian companies are in a dilemma over moonlighting, IT major Infosys has warned its employees that moonlighting could lead to termination. On the other hand, online food delivery company Swiggy announced a moonlighting policy allowing its employees to take up projects outside of their regular work. In general, are organisations ready to accept and respond to the shift towards side-hustling?

Firstly, companies should address quiet quitting through a positive work culture that enables right job fitment and work-life balance. Providing a career roadmap and helping individuals cross-skill or upskill will help motivate workers and improve productivity.

Conventionally, moonlighting is considered a breach of trust. Going forward, there is a need for a framework for ethical moonlighting with representation from all stakeholders including labour department, industry bodies, companies and employee representatives. Companies should consider categorising employees who will be allowed/disallowed to moonlight depending on their role and type of work. Differentiated perquisites between the two category could be used. Moonlighting policies and awareness campaigns should be created. The policy framework must allow flexibility for employees and set clear performance goals, while clarifying on the confidentiality aspects. This would foster a healthy environment and a win-win for all concerned.

The present labour laws need a relook. For example, Shops and Establishment Act (S&E) in India does not allow dual employment. It is also unclear how PF, gratuity and employee insurance would be handled in cases of dual employment. How will a ‘background check’ be conducted in case of multiple employment?

Sooner or later, moonlighting needs to be accepted as a reality. For enabling a smooth transition, all stakeholders need to accept and demonstrate maturity, build a transparent, robust policy that works to everybody’s advantage.

(The writer is an ICT Professional and columnist based in Bengaluru)