Hellooo {{First Name| there}},
A question came up in our senior HR circle this week that really made me pause — and I suspect it will do the same for you.
A junior employee in a top-tier company pursued a certification and took up one or two small coaching assignments, earning around ₹3,000–₹4,000 per assignment. She did not declare this to her employer. It was reported. An ombudsman committee was formed.
The outcome? Termination.
So here’s the real question:
Is the punishment disproportionate to the offence?
And more importantly — what should we, as HR leaders, actually do in situations like this?
Let’s unpack it.
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📌First, What Are We Really Dealing With?
We often use the terms loosely, but there is a distinction:
👉Moonlighting – Taking up paid work outside primary employment hours, usually freelance or consulting.
👉Dual employment – Simultaneously working for two employers under formal contracts, sometimes with overlapping obligations.
Indian law doesn’t explicitly ban moonlighting. There is no statute that says, “moonlighting is illegal.”
But employment contracts, confidentiality clauses, conflict-of-interest provisions, and prior approval requirements absolutely do matter.
In most cases like this, it isn’t about ₹3,000.
It’s about non-disclosure.
📌The Employer Lens vs The Human Lens
👉From a governance standpoint:
Breach of contract is breach of contract.
Precedent matters.
Selective leniency creates compliance risk.
👉From a human standpoint:
Junior employee.
Small earnings.
No evidence of competing business.
Possibly poor judgment, not malice.
This is where HR judgment becomes critical.
Are we responding to risk — or reacting to optics?
📌Let’s See What Jane Harper Says
In an article from The HR Digest, HR writer Jane Harper discusses how moonlighting issues can quickly spiral into office gossip and reputational drama if not handled thoughtfully.
Her core advice?
Address concerns early.
Focus on clarity over punishment.
Reinforce transparency instead of fear.
Create safe channels for disclosure.
And that’s powerful.
Because often, what escalates these cases isn’t the side work — it’s the silence around it.
📌So What Should HRs Actually Do?
Here’s a practical, balanced approach:
1️⃣ Separate Intent from Impact
Was there competition? Client diversion? Data misuse?
Or was it skill-building and minor supplemental income?
Proportionality should reflect actual risk.
2️⃣ Review the Contract — Not Emotion
If prior approval was required and not obtained, there is technically a breach.
But HR still retains discretion in disciplinary calibration.
Termination should not be the automatic default response.
3️⃣ Consider Corrective vs Punitive Action
Options could include:
Written warning
Mandatory disclosure declaration
Conflict-of-interest training
Undertaking for future compliance
Conversion to resignation instead of termination
The goal: preserve governance and fairness.
4️⃣ Strengthen Policy Clarity Going Forward
If employees are confused about what requires disclosure, that’s a systems issue.
Ask:
Are policies clearly written?
Is approval accessible?
Do managers understand how to guide employees?
Is moonlighting automatically treated as betrayal?
Prevention beats discipline every time.
📌 The Bigger HR Question
As workplaces evolve, we have to ask ourselves:
Are we treating moonlighting as
– A loyalty breach?
– A productivity risk?
– Or simply a workforce reality?
Does zero tolerance truly build compliance — or does it quietly build silence?
Should minor, non-competing, disclosed activity be regulated rather than prohibited?
And most importantly: Are we distinguishing between misconduct and misjudgment?
And This Is Exactly Why Better Conversations Matter
These are not policy questions.
They are leadership questions.
If these are the kinds of nuanced, real-world HR conversations you value, join us at HR Playbook 6.0 – The Shape of Work on February 25.
Let’s move beyond louder opinions — and build better thinking together.
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I’d love to hear your views:
Was termination justified here?
Would you have handled it differently?
What precedent would you set in your organization?
