Parliamentary showdown over moonlighting: Government seeks answers in 1947 Industrial Disputes Act!

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The debate over moonlighting has reached the Indian parliament. The government clarified in a written response to the Lok Sabha that it is illegal for a worker to take on any work that goes against the interests of their employer, in addition to their primary job. Minister of State for Labour & Employment Rameshwar Teli stated that the government is not currently conducting any studies on the issue.

The topic of moonlighting, or taking on a second job without the knowledge of one’s primary employer, has caused a rift in India’s IT industry. Many sectoral leaders have conflicting views on the practice. Several companies, including TCS, Wipro, and Infosys, have been discussing the issue of employees taking on side jobs for several weeks. Some companies have reported that their employees have taken on moonlighting roles since the onset of the Covid-19 pandemic for various reasons.

In response to MP Sumalatha Ambareesh, Teli stated: “According to the Industrial Employment (Standing Orders) Act 1946, a worker is not allowed to work against the interests of the industrial establishment they are employed in or take on any additional employment that could potentially harm the interests of their employer.”

When asked if the government has instructed companies not to terminate employees for moonlighting, Teli stated that the jurisdiction in matters concerning multinational and Indian companies in the IT, social media, edtech, and related sectors lies with the respective state governments. He also stated that layoffs and retrenchment in industrial establishments are governed by the Industrial Disputes Act, 1947 (ID Act), which regulates various aspects of layoff and the conditions required for retrenchment of workers.