Worker shall not resort to moonlighting as per rule; govt not conducting any study on this: Labour minister

In September, Wipro sacked around 300 employees while in October, Infosys said an unspecified number of their workers were sacked for moonlighting

At a time when "moonlighting" in the software sector has cost several people their jobs in recent times, the government on Monday made it clear that law does not allow any workman to take any type of work that goes against his employer's interest.

The government has "no specific information" available to indicate that layoffs are happening due to moonlighting, as employment and retrenchment, including lay-offs, are a regular phenomenon in industrial establishments.

It has also "not taken up any study" on moonlighting, which is defined as a full-time employee of a company taking up an extra job, usually without the employer's knowledge.

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Minister of State for Labour Rameshwar Teli made these assertions in a written reply in Lok Sabha to questions raised by independent MP Sumalatha Ambareesh. In September, around 300 employees were sacked by Wipro while in October, Infosys confirmed that an unspecified number of their workers were sacked for moonlighting.

"As per the Industrial Employment (Standing Orders) Act 1946, a workman shall not at any time work against the interest of the industrial establishment in which he is employed and shall not take any employment in addition to his job in the establishment, which may adversely affect the interest of his employer.

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Asked whether the government has instructed companies not to fire employees as a result of moonlighting and the actions taken by it to stop firing as a result of moonlighting, he said the jurisdiction in the matters with regard to multi-national and Indian companies in the IT, social media, edtech firms and related sectors lie with state governments.

However, he said that matters relating to lay-off and retrenchment in industrial establishments are governed by the provisions of the Industrial Disputes Act, 1947 (ID Act) which also regulates various aspects of lay-off and conditions precedent to retrenchment of workmen.

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According to the Act, establishments employing 100 persons or more are required to seek prior permission of the appropriate government before effecting closure, retrenchment or lay-off. Further, the Minister said, any retrenchment and lay-off are deemed to be illegal which is not carried out as per the provisions of ID Act.

The Act also provides for right of workmen laid off and retrenched for compensation and it also contains provision for re-employment of retrenched workmen, he added.