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Remote work has made life easier for many, but it has also created a quiet HR challenge: employees taking up second jobs without informing their employers. A recent TeamLease report found that nearly 43% of Indian IT professionals admitted to working on side projects during or after work hours. This trend has left many companies concerned about productivity loss, data security, and divided attention.
A similar situation occurred in 2022 with a leading IT firm, which terminated around 300 employees for moonlighting. The move sparked nationwide debate and controversy, which we will discuss later in the blog.
In this post, we’ll break down dual employment laws in India, explain what dual employment means, how it differs from moonlighting, whether it is legal, what punishments exist, and how employers can handle such cases effectively.
Dual employment means an employee is working for more than one employer at the same time. It can be two full-time jobs or a mix of full-time and part-time work.
While this may seem harmless at first, dual employment can raise serious issues for companies such as conflict of interest, data misuse, or reduced productivity. Employers must define what dual employment means in their employment contracts and HR policies to avoid confusion as this clarity helps both sides know their boundaries.
Now, let us look at how dual employment differs from moonlighting, which is often misunderstood.
Dual employment in India is governed by a mix of labour laws, state regulations, and employment contracts. There is no single national law that clearly bans or allows it for all employees.
Here are the main laws and provisions employers should know about:
There are no concrete rules on dual employment in India. It’s neither completely illegal nor fully allowed. Its legality depends on the terms of the employment contract and the relevant laws mentioned above.
If your employment contract includes a clause prohibiting secondary employment, taking another job can be treated as misconduct. However, if an employee is engaged in freelance work unrelated to their primary job, and it does not violate any company rules, it may not count as dual employment in the strict legal sense.
For companies, the best way to handle this is by including a clear “outside work” or “dual employment” clause in every employment contract as this will give you a strong legal base to act fairly and confidently.
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Dual employment is becoming increasingly common as work becomes more flexible. However, without the right policies, it can quickly lead to legal disputes and employee mistrust. Understanding what dual employment means, the laws that govern it, and how to apply them fairly can save your organisation from future risks.
If your company is struggling with unclear HR policies or cases of employees working elsewhere, Vishaal Consultancy Services can help. Our virtual HR experts ensure your contracts, policies, and procedures are compliant and fair, protecting your business and your people at the same time.
Dual employment means when an employee works for two employers at the same time, often without disclosure. While on the other hand, moonlighting usually refers to freelance or part-time work outside regular hours for extra income or to follow passion.
Dual employment is not completely illegal, nor fully allowed. Its legality depends on the employment contract and relevant labour laws. If a contract prohibits outside work, taking another job can be treated as misconduct by the employer.
Consequences vary depending on company policy and contract terms. Employees may face termination, loss of benefits, or damage to future opportunities. Employers acting unfairly can face legal challenges, reputational harm, and compliance issues.
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