Is 'Moonlighting' ethical?

Let me first clarify my interpretation of the term moonlighting, as used by Indian IT majors recently and highlighted in the news as unethical.

I interpret that the term is being used for anyone working on any side gig (either as a contract, part-time role, or even a full-time second job), and potentially making some money while they do.

There are multiple parts to this comment:

1. Employees are working outside work hours, potentially for profit.
2. Employees are working on competitor products outside work hours and hence leaking IP.
3. Employees are working during work hours on things other than what they are paid for.

My assumptions:

• The full-time employer has only paid for 8 or 9 hours a day and the working days specified in the employee handbook.
• Employees are not bonded labor who are answerable to the employer for everything they do outside work hours.

In my opinion, point (1) by itself should not be a problem. But if it conflicts with (2) or (3), then it is.

Also, things that the employer should note:

• Employees can bring back experience from work they would otherwise not be paid for.
• Only the entrepreneur kind will typically pursue these things. Most average employees are busy with their lives and do not have time for anything extra.

If you agree with the above, then you may also agree that these entrepreneur-minded people are often the ones who bring fire-in-the-belly energy to teams.

In the parent community, it is also commonly known that some children have more energy than the formal education system can absorb. They are often enrolled in hobby classes to stay balanced. The same pattern appears in workplaces.

These entrepreneurs within an organization strive to do more. They want quality of life improvements. They want to grow faster than a single organization can provide opportunities for. They want to earn more than their current employer is willing to value their time at. They want to learn more than one environment can offer.

If companies want people who think this way, policy must account for that reality. If not, they should avoid hiring such profiles. Over time, that choice can degrade the quality of energy within the organization.

So in summary, companies should educate employees about ethical boundaries rather than trying to suppress this behavior entirely. That is better for everyone in the ecosystem.