The majority of Indian IT companies are against moonlighting, and there is a lot of controversy around it, but recent advice from the GOI and advocacy for it will likely result in a shift in the present model of employment
Mr. Rajeev Chandrasekhar, Minister of State for Electronics and IT, argued that attempts by businesses to prohibit employees from working on their own startups or consulting for other companies "is a doomed-to-fail activity."
"This may be a new era for future employment."
In my own opinion, Mr. Chandrasekhar and those who are in favour of Moonlighting are reasonable. It's indeed acceptable as long as:
A service certificate is issued to an employee as per the Industrial Employment Standing Order Act, 1946 (covers the IT sector) It infers that such employee was gainfully employed with the employer from the start date of employment to the end date. Not eight hours in a day.
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Their side jobs don't go against the terms of their principal employer's contract. Losing expertise, data, and technology to competitors shouldn't be a danger to the primary employer.
Productivity is significantly influenced by one's mental and physical health. Moonlighting may have a detrimental effect on a worker's mental and physical health, leading to burnout and negating the very purpose of rest breaks, holidays, and leave.
Techies must dedicate themselves to their principal company during the work hours outlined in their contract, even if they are working extra hours for other organizations or on their own startup. They shouldn't be very much stressed that affect their work performance.
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Conclusion:
Companies may include a conflict-of-interest clause in the employment contract as well as an exclusive clause prohibiting moonlighting, but legal restrictions alone will not provide the desired results if there is no trust and no engagement