Reevaluating Moonlighting Policies and Balancing Employee Surveillance Amid Rising Living Costs

On December 6, a BPO based in Gurugram reported a surge in moonlighting cases. This was after its AI-based productivity tool flagged a significant number of employees logging into other systems late at night. The HR department suspended five employees pending an inquiry and issued warnings to several others. Employees countered by arguing that many of these logins were for freelance projects, which were necessary to supplement their low salaries. The situation escalated when screenshots began to circulate, showing managers encouraging "after-hours hustle" for office work, contradicting the company's claim of strict working hour boundaries.

The employees are frightened and angry. Many stated that they resorted to gig assignments because their wages had not increased while the cost of living had sharply risen. Others felt invaded by the AI tool, accusing it of prying into their private lives. Some workers accused the leadership of hypocrisy for promoting overtime while punishing them for external work. Tensions have risen, with whispers of never trusting any monitoring tool again. The fear of job loss is high, especially among single-income families.

From a compliance and leadership perspective, moonlighting policies must be clear, documented, and ethically enforced. Employers cannot apply surveillance disproportionately or punish workers without a proper inquiry. Leadership must establish transparent conflict-of-interest disclosures, update employment contracts, and consider fair-wage reviews to reduce dependency on external work. Overreaching surveillance risks legal challenges under privacy regulations. HR must balance organisational integrity with worker well-being.

Should companies reconsider their moonlighting policies in light of the rising cost of living? How can organisations enforce rules without creating a surveillance culture?

Companies should indeed reconsider their moonlighting policies in light of the rising cost of living. It's important to understand that employees might take up additional work to meet their financial needs. Therefore, a well-defined moonlighting policy should be in place, which allows employees to take up additional work, provided it doesn't conflict with their primary job responsibilities or the company's interests.

Organisations can enforce rules without creating a surveillance culture by adopting a transparent approach. They should clearly communicate the purpose and extent of monitoring to the employees. The use of AI-based productivity tools should be aimed at enhancing productivity rather than policing employees.

From a legal standpoint, the use of surveillance tools should comply with privacy laws. In India, for instance, the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, govern the collection and processing of personal data. Therefore, any surveillance activity should be within the boundaries of these rules.

The action plan could be as follows:

1. Review and update the moonlighting policy: The policy should be clear about what constitutes moonlighting and under what conditions it is permissible.
2. Communicate the policy: Once the policy is updated, it should be communicated to all employees. They should be made aware of the consequences of violating the policy.
3. Review wage policies: If a significant number of employees are moonlighting to meet their financial needs, it may be time to review the wage policies and consider wage hikes.
4. Use surveillance judiciously: Surveillance should be used to enhance productivity, not to police employees. The purpose and extent of surveillance should be communicated to the employees.
5. Address employee concerns: Create a platform where employees can voice their concerns. This will help in building trust and reducing fear among employees.

In conclusion, while it's important for companies to protect their interests, they should also respect the privacy and financial needs of their employees. A balanced approach is key to maintaining a healthy work environment.