Is Dual Employment Legal in India

There is no straight answer as to whether dual employment is legal or not in India. It depends on the rules in your employment contract and other factors that may interact with your primary job.

Some employees prefer to work in two companies simultaneously for additional income, to utilize free time, lack of job security, and to gain work experience. Working in a second job in addition to the main job is called Moonlighting.

As moonlighting or double employment is not illegal in India, however, all companies don’t allow their employees to work in a second job, for the following 3 reasons

Why Companies Don’t Like Dual Employment

  1. Due to Conflict of Interest: When an employee’s second job requires the primary company’s confidential information, it is considered a conflict of interest. In that case, the primary company can terminate the employees from the job.
  2. Working for Competitors: No company wants their employees to work for competitors simultaneously, it causes data leakage such as project details, company secrets, etc.
  3. When Affects Employee Productivity: Employees who do double employment will suffer from a lack of mental and physical energy. If your main employer finds that your second job affects your productivity, they may not allow you to work for the second company.

So as an employee, when you want to do a second job make sure the second job doesn’t affect the above factors.

Laws Regarding Dual Employment in India

1. Section 60 of the Factories Act 1948

Section 60 of the Factories Act 1948 talks about restrictions on double employment.

Link: https://labour.gov.in/sites/default/files/factories_act_1948.pdf

“No adult worker shall be required or allowed to work in any factory on any day on which he has already been working in any other factory, save in such circumstances as may be prescribed.”

2. Section 8 of Industrial Employment (Standing Orders) Act 1946

Link: https://labour.gov.in/sites/default/files/industrialemploymentstandingorders1centralrules1946.pdf

“Exclusive Service: 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.”

3. I also advise you to study your state’s Shops and Commercial Establishment Act rules before working for a second job.

What is the Punishment for Dual Employment in India?

Dual employment can lead to termination or legal action if the employee violates the employment contract. If your primary company strictly restricts the employees to dual employment, then it is better to not work in a second job.

Whenever you want to work for a second job always carefully read your employment contract and check any specific clauses related to dual employment.

If your primary employer is not very strict about dual employment, you can work in a second job until that doesn’t affect your productivity and the first company’s conflict of interest.

It is also important to focus on health because working two jobs at the same time can hurt your health in the long run.

FAQs

1. What happens to my EPF if I work for two companies?

As per EPFO, every employee should have only one UAN, and no multiple contributions to PF and pension will be allowed at the same time.
To avoid PF-related problems in dual employment you should join a second company where PF is not compulsory.

2. Can I do freelance work along with my main job?

If your employment contract doesn’t have any restrictions on freelance work, you can do the freelance jobs.

3. Is dual employment allowed in IT MNCs in India?

Most IT and MNC companies dont’ allow their employees for dual employment.

4. Can I do dual employment for shorter periods like 15 days to 1 month?

It depends on your employment contract. If your company has any strict clauses about dual employment then even short periods are also not allowed. If they become aware of it, it may lead to legal or disciplinary action.

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