How to Handle Employee moonlighting – Guidelines From The Employer’s Perspective

How to Handle Employee moonlighting

Table of Contents

Employee moonlighting is when an employee engages in moonlighting activities outside of the Employee’s regular work hours.

While it may seem like a great way to enjoy your free time, it can also have some negative consequences for both the Employee and the employer.

In this blog, we will discuss the benefits and drawbacks of Employee moonlighting and how the employer can manage it to ensure that both parties are happy.

Employee moonlighting, what is it? 

Employee moonlighting can be tricky for both the Employee and the employer. On the one hand, it can be a great way to get extra income.

On the other hand, it can lead to conflicts and disputes. Here are some guidelines that will help you navigate the waters:

1. Set reasonable boundaries on the amount and type of work that can be done during personal hours.

2. Ensure employees are paid for all work performed, even if it’s not directly related to their job responsibilities.

3. Always consult with HR about any issues or questions surrounding Employee moonlighting.

4. Stay calm and take things one step at a time – it will make things easier for everyone involved. 

Wipro Fires 300 Employees For Moonlighting 

Wipro recently fired 300 employees for moonlighting, which has caused a lot of backlash from employees and customers alike.

This incident happened when Wipro’s employees were caught moonlighting while on leave. Under the company policy, all employees must report any extra work they do, even if it’s off the clock.

This means that Wipro was aware of its employees’ mistreatment of leave and still proceeded with firing them without allowing them to explain themselves.

This move goes against trust and honesty between employer and Employee, as it undermines their job security and credibility in the eyes of others. 

Wipro fires 300 staff members found to be moonlighting for competitors

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Wipro fires 300 staff members found to be moonlighting for competitors

Wipro fires 300 staff members found to be moonlighting for competitors

Wipro chief Rishad Premji recently spoke against moonlighting, saying it harms the company’s interest.

employee moonlighting-Swiggy-What is moonlighting in business-written by content marketer Subir Goswami

Wipro Chairman Rishad Premji

Are You Moonlighting For Additional Income? Do Take Care Of Taxation 

Employee moonlighting is a common practice whereby employees work outside their regular working hours to earn additional income. While it can be a great way to supplement an existing income, it can also come with some risks and complications.

To avoid legal issues, employees should always consult with their employer before engaging in any extra work. Suppose the Employee moonlights to earn more money.

In that case, they must declare this on their tax return – following which employers have the right to restrict or prohibit such activity if it negatively affects business performance or morale. 

The benefits of Employee moonlighting to the company 

Employee moonlighting is an arrangement that has been growing in popularity over the years.

From an employer’s perspective, it has several benefits. These include increased productivity, reduced costs, and more creativity in the workplace.

However, some guidelines should be followed to ensure both parties are happy with the arrangement.

For example, ensuring that all agreements between the company and employees are clearly documented and communicated is essential.

Additionally, it is crucial to follow the moonlighting arrangement in a way that does not disrupt the work of the regular employees.

By following these guidelines, the company and employees will be satisfied with the arrangement and continue to flourish. 

How can the employer supervise Employee moonlighting? 

Employee moonlighting can significantly benefit both the Employee and the employer.

However, the employer must consider that some employees may be looking to make extra money in their spare time.

The company should adhere to a few rules to manage Employees moonlighting ethically and legally.

First and foremost, the employer should trust their employees. However, they are still responsible for ensuring proper working conditions are maintained.

Additionally, overtime and other violations, such as inappropriate use of company resources, must be monitored and addressed immediately.

There should be clear policies and procedures governing Employee moonlighting so both parties know what is expected of them.

Overall, Employee moonlighting can be a huge win-win for both parties involved. 

Benefits & Drawbacks of Permitting Moonlighting

Some of the many advantages for businesses that permit workers to hold multiple jobs simultaneously are as follows.

It can free up time for workers to engage in activities outside their regular jobs that bring them personal satisfaction.

As a result, it has the potential to serve as a method of information retention.

The best way to avoid legal trouble is to permit moonlighting.

Moonlighting bans may be contrary to state and local laws that restrict the amount of control an employer has over its workers’ personal time.

It may be difficult, legally speaking, to place too many constraints on how someone earns a living. (This is not to argue that having a policy against moonlighting is entirely forbidden; instead, it admonishes employers against being unduly restrictive without good reason.)

Working a second job can help people make ends meet if they’re having trouble getting by on their current salary.

Some side jobs can actually help the principal employer. For instance, having an employee act as a trainer or teacher might bolster the company’s image as an organization that only hires the best in its profession.

An additional benefit of moonlighting is the opportunity to develop talents that can be used in one’s day job.

Maintaining staff who might otherwise depart is possible, especially if they need extra work to meet ends. If this was forbidden, the worker would likely look for another position that would allow them to keep working two jobs.

Someone who can effectively juggle multiple responsibilities is likely an advantage to any company where they find themselves employed.

An employee’s first employer might benefit from a second job due to the expanded professional network the individual would get.

If an employee has more contacts, that might mean they are better able to refer new clients to the business or know people who could assist the organization in solving a future problem.

Permitting moonlighting and establishing guidelines for it might boost confidence. The constant distraction of having to cover up a second job can hurt an employee’s productivity, which this policy helps alleviate.

Employers can gain access to a new resource when they permit an employee to have a second job: the individual’s coworkers at the other employment.

Some of them may be looking for more work. By utilizing this talent pool, the hiring firm may reduce the overtime required of its current personnel by filling some roles with part-timers.


Employee moonlighting can be a very beneficial arrangement for both the Employee and the employer.

However, it’s essential to be aware of specific guidelines that should be followed to maintain a healthy working relationship. When it comes to Employee moonlighting, it’s vital to be clear about expectations from the get-go.

This way, both the Employee and the employer know where they stand and can work together productively. It’s also important to set boundaries and have a system for recording and documenting everything that happens.

In the end, both parties need to clearly understand each other’s position to ensure a smooth-running operation. 

Frequently Asked Questions

What are the benefits and drawbacks of allowing employees to moonlight? 

There are a few benefits and drawbacks to allowing employees to moonlight. On the plus side, it will enable them to supplement their income while flexible with their work schedule.

However, there are a few caveats that the employer should be aware of before giving the green light.

For example, if an employee moonlights without the consent or knowledge of their boss, they may face disciplinary action.

Additionally, moonlight employees must follow all workplace policies and procedures, including hours worked, overtime rates, etc. 

How can I ensure that my employees follow the proper work-from-home guidelines? 

Having a clear and concise policy regarding Employee moonlighting is always essential. This means you define the rules and guidelines for employees who want to work from home and ensure everyone knows what is expected of them.

You could, for instance, limit the hour’s employees can work from home, outline the types of work they are permitted to do,

For example, allowing email checking only during particular times mandates that they use corporate hardware and software. You also want to ensure that employees do not share confidential information while on calls or working remotely. 

What should I do if I find out that an employee works on their own time outside of their regular job duties? 

When it comes to employees moonlighting, the employer has several rights and obligations. The employer should inform the Employee in writing about their right to moonlight and what will happen if they refuse to stop working on their own time.

The employer may also require that the employee hand over all work-related documents, including any contracts or agreements made with clients during this unofficial time.

In extreme cases where an employee is neglecting their duties or causing significant disruption at work, the employer can fire them for Moonlighting without warning. 

Should I fire an employee for moonlighting inappropriately? 

If you believe an employee is moonlighting without your permission, it is best to speak to them formally. This way, you can clarify the consequences of their behavior and find a resolution that works for everyone involved.

Most employers think that employees shouldn’t work extra hours outside their regular schedule unless it’s written down for a specific reason, like sick leave or vacation time.

Suppose an employee works extra hours without your approval. In that case, it may be considered unethical and could lead to disciplinary action or termination. 

Is it legal for me to ask my employees about their moonlighting activities? 

It is legal for an employer to ask their employees about any moonlighting activities they may be involved in.

However, the critical factor to consider when asking your employees about moonlighting is whether or not the movement directly impacts the work they are doing. I

f you feel an employee’s moonlighting is affecting their work performance, you should take action accordingly. 


Employee moonlighting can be an excellent way for employees to supplement their income.

Still, it can also be a potential liability for the company. By following the guidelines in this blog, the employer can manage Employee moonlighting responsibly while still benefiting from its benefits.

Thank you for reading, and we hope this information will help you make an informed decision about Employee moonlighting.


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