Moonlighting Explained: Is Doing More Than One Job Ethical? Rules In India And Abroad

Moonlighting instances are becoming increasingly common in the corporate world. Under this culture, professionals are seeking additional income streams or pursuing their personal interests outside their primary jobs.

According to the Cambridge Dictionary, moonlighting refers to the act of working at an extra job, especially without informing one’s primary employer. The trend has grown amid flexible work arrangements and freelancing opportunities. Many professionals are also taking up a second or even a third job due to the rising cost of living.

However, most employers do not see moonlighting favourably. This is mainly because they are concerned about employee productivity, confidentiality and a potential conflict of interest. Companies fear that divided attention and fatigue may affect an employee’s performance in the primary job. This is why many companies have strict employment policies, with contracts clearly addressing moonlighting prospects. They have clear clauses that restrict or require disclosure of secondary jobs.

Whether moonlighting is ethical or not depends on a few factors. These may include transparency with the primary employer, the nature of the secondary job and conflict of interest with the nature of business of business of the concerned job provider. If employees take on additional work outside office hours without affecting performance or breaching confidentiality, it may be considered acceptable in many countries. However, working for competitors can raise serious ethical and professional concerns.

In the United States, having a second job is quite common. According to the Bureau of Labour Statistics, at least 8.4 million people in the US aged 16 or above had more than one job in 2024.  

In the US, the prohibition mainly exists for government workers, who cannot have more than one source of federal income. However, the case for private companies can vary among employers. The employment regulations about moonlighting may differ from state to state.

Similarly, there are no specific restrictions on moonlighting in Europe as well. Employees primarily need to ensure they maintain work integrity and that their secondary job does not conflict with their primary employment. The European Directive on Transparent and Predictable Working Conditions lays out the framework for employment regulations. As per the Directive, adopted in 2019, employers are prohibited from banning their employees from working for other companies outside of the scheduled work hours.

In Singapore, civil servants are prohibited from moonlighting. Similarly, foreign employees holding a Work Permit or S Pass are completely barred from taking up other jobs outside their primary employment.

Part-time work in China is less common than in Western countries and legal regulations are limited. However, certain sectors face strict rules. For instance, private tutoring is heavily regulated. 

Moonlighting may be picking up fast in India, particularly with the growing trend of remote jobs. However, this culture is yet to penetrate the Indian corporate sector as deeply as in Western countries. Most Indian employers have clear work agreements that often include clauses restricting or regulating secondary employment.

The concept of ‘double employment’ or ‘dual employment’ is not explicitly defined under Indian labour laws. However, the Supreme Court, in Manager, Pyarchand Kesarimal Ponwal Bidi Factory vs Omkar Laxman Thange (AIR 1970 SC 823), noted that an existing employment contract with one employer generally bars service with another unless permitted by the contract or with employer consent, according to leading law firm Cyril Amarchand Mangaldas.

The Madras High Court, in Government of Tamil Nadu vs Tamil Nadu Race Course General Employees Union (1993 I LLJ 977), also upheld this principle, stating that dual employment may be allowed if the employer consents.