As the debate on moonlighting continues, the Parliament was told on Monday, December 19 that workers shall not take any type of work against the interest of their employer in addition to their job as per legal framework. In a written reply to Lok Sabha, Minister of State for Labour & Employment Rameshwar Teli also said that the government has not undertaken any study on moonlighting in the country. Moonlighting refers to the practice of taking up extra work outside of a full-time job, usually without the employer's knowledge. The issue has been widely discussed lately especially among IT professionals, as many employees have reportedly taken up moonlighting since the COVID-19 pandemic for several reasons.
MP Sumalatha Ambareesh had asked in the Lok Sabha whether the Union government considers moonlighting to be an efficient reason for firing employees. In response, Minister of State Rameshwar Teli said: "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.”
In answer to a question on whether the government has observed that layoffs are happening as a result of moonlighting, Teli stated, "Employment and retrenchment including lay-offs are a regular phenomenon in industrial establishments. No specific information is available to indicate that layoffs are happening due to moonlighting." On a question that if the government has undertaken any study on moonlighting in the country, the minister replied in the negative.
Answering a question on whether the government has instructed companies not to fire employees due to moonlighting, the minister stated that 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 the respective state governments.
However, he told the House that matters relating to layoff and retrenchment in industrial establishments are governed by the provisions of the Industrial Disputes Act, 1947 (ID Act) which also regulates various aspects of layoff and conditions precedent to retrenchment of workmen. As per the ID Act, establishments employing 100 persons or more are required to seek prior permission of the appropriate government before effecting closure, retrenchment or layoff, he stated.
Further, he stated that any retrenchment and layoff are deemed to be illegal when not carried out as per the provisions of the ID Act. The ID Act also provides for the rights of workmen laid off and retrenched for compensation and it also contains the provision for the re-employment of retrenched workmen. Based on their respective jurisdictions as demarcated in the ID Act, the Union and state governments take actions to address the issues of the workmen and protect their interests as per the provision of the Act, the response said.
In the establishments that lie in the jurisdiction of the Union government, the Central Industrial Relations Machinery (CIRM) is entrusted with the task of maintaining good industrial relations and protecting the interest of workers including on matters relating to layoff and retrenchment and their prevention, the reply stated. The minister also told the House that employment and retrenchment including layoffs are a regular phenomenon in industrial establishments and no specific information is available to indicate that layoffs are happening due to moonlighting.
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