No moonlight shadows: How tech's trust-based culture opened the door to hidden dual employment
At the same time, some take advantage of the speed, informality and trust-based culture that defines many tech organisations to engage in dual employment, putting companies at risk of financial losses, data breaches, operational disruption and reputational harm. In sectors where Indian tech firms work in the US or European markets - especially in SaaS, fintech or healthtech - moonlighting raises serious concerns over data confidentiality, GDPR compliance and IP protection.
In India, the legal position on moonlighting remains fragmented. For most tech companies, the decision hinges on employment contracts that may include exclusivity clauses, confidentiality agreements and non-compete provisions. However, many organisations - particularly those in growth phases - tend to lack robust or standardised employment contracts. This often results in informal, or loosely-structured, employment terms, especially when hires are made quickly through networks and referrals. Absence of clear contractual terms creates ambiguity, which can be exploited to engage in dual employment without consequence. Even when such clauses exist, enforcement remains a challenge, especially in today's environment of remote work and a growing sentiment among employees regarding desirability of multiple gigs to expand their income sources.So, how can fast-growing or evolving tech companies strengthen their defences against such incidents, while safeguarding sensitive data, upholding client trust and maintaining productivity? The following steps could help:
Screen behaviour, not just skills Hiring processes should move beyond technical assessments to include behavioural evaluations and ethical judgement tests to reduce risk of bringing in individuals with questionable integrity. Robust employment background checks can also help verify credentials, past employment history and flag potential risks. Employment terms at the offer state Cutting corners in employment contracts can leave the door wide open for ethical grey zones, moonlighting risks and legal disputes. Key employment terms - policies on moonlighting, conflicts of interest, confidentiality, permissible external work, etc - should be defined from the outset, along with the consequences of violations such as termination, legal action or financial penalties. This contractual clarity minimises misunderstandings or manipulative behaviour down the line. Strike a balance Consider whether certain critical or sensitive roles benefit from in-person presence. While remote work offers flexibility, it can sometimes make it harder to spot early warning signs of dual employment or misrepresentation. A thoughtful balance between remote and in-office roles can help strengthen oversight where it matters most.
Protect IP and data For tech companies, data and IP are lifeblood of the business, often their most valuable assets. Prioritising robust data privacy protocols and IP protection measures that go beyond just IT security are critical, including strong confidentiality clauses, controlled data access and clear expectations for ethical conduct. Tech-governance in real time Digital tools and advanced verification technologies can help flag unusual patterns, overlapping employment or undisclosed affiliations, often before they escalate into larger risks. Continuous, discreet monitoring not only strengthens internal controls, but also serves as an early warning system for potential conflicts of interest or ethical breaches. In cases where it's permitted, monitoring should be clearly defined in the organisation's policies, balancing respect for employee privacy and compliance with local employment laws. Draw the line before it's crossed Mandatory declarations and disclosures, clearly articulated in contracts and policies, should define what's permissible and what constitutes a breach of trust. This is where global standards like ISO 37009:2021 on conflict of interest can play a vital role in establishing appropriate guard rails.Moonlighting can lead to loss of revenue, conflicts of interest, and integrity, compliance and reputational risks for organisations. Along with having clearly defined policies and procedures, companies need to implement robust internal controls and sanctions frameworks to prevent and detect unwarranted moonlighting activities.
Singh is global markets & India leader, EY Forensic & Integrity Services, and Bhatt is technology sector leader, EY
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.) Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Markets need to see more than profits from Oyo
Can Grasim's anti-competition charge against Asian Paints stand amid intense war
Engine fuel switches or something else? One month on, still no word on what crashed AI 171
Delhivery survived the Meesho curveball. Can it keep on delivering profits?
Stock Radar: Page Industries breaks out from Cup & Handle formation; stock hits fresh 52-week high
For risk-takers with ability to stay invested for the long term: 5 small-caps from different sectors with upside potential of 5 to 32%
Multibagger or IBC - Part 14: This auto ancillary with double-digit net margins is now getting EV-focused
These mid-cap stocks with 'Strong Buy' & 'Buy' recos can rally over 25%, according to analysts
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
21 minutes ago
- Mint
Video: IIT Hyderabad tests AI-based software to operate driverless buses within its campus
The Indian Institute of Technology (IIT) Hyderabad's Technology Innovation Hub on Autonomous Navigation (TiHAN) has created artificial intelligence-based software to operate driverless buses within its campus. The system is being used to transport students and faculty members between various locations inside the institute. According to TiHAN officials, the autonomous vehicle currently operates only within campus limits and not on public roads. Since its deployment, the bus has transported more than 10,000 passengers. Around 90 per cent of users have provided positive feedback, the team said. The technology relies on an array of sensors and can be adapted to different types of vehicles, ranging from electric to internal combustion engine models. The service has drawn interest from other educational institutions and the Telangana state government, which are exploring potential applications. Developers noted that the technology may be suitable for deployment at airports, large educational campuses, or industrial sites, where traffic conditions are relatively predictable. In an effort to adapt the system for Indian road conditions, TiHAN has undertaken extensive data collection. This includes trials with a specially equipped sport utility vehicle (SUV) travelling from Hyderabad to Jammu. The project, called 'Safari', covered approximately 4,000 kilometres in one direction, with the return trip bringing the total to about 8,000 kilometres. During the journey, the team passed through nearly 35 cities, gathering information on different road types, traffic patterns, and environmental conditions. The collected data is being used to train and fine-tune the autonomous navigation algorithms, with the aim of improving performance in diverse weather and traffic situations. TiHAN engineers stated that the system has been tested successfully in controlled environments, but further evaluation in uncontrolled, real-world conditions is necessary before any broader commercial roll-out can be considered. Officials involved in the project also highlighted the potential safety benefits of autonomous technology, particularly in reducing road accidents and fatalities. However, they emphasised that rigorous trials and regulatory approvals will be required before the technology can be introduced for general use beyond controlled premises.
Mint
21 minutes ago
- Mint
Orsted Fails to Convince Investors It's Through The Worst
(Bloomberg) -- Management of Orsted A/S failed to convince analysts and investors that the company is at a turning point after losing nearly one third of its value from announcing it would sell shares. The offshore wind farm developer plunged the most on record as investors digested a planned rights issue that's effectively a handout by the Danish government. The state plans to buy just above half of the securities. The offshore wind pioneer was briefly more valuable than British oil major BP Plc at the height of the green investing boom just a few years ago. After a series of writedowns, cancellations of three major projects, the replacement of its top executives and two turnaround plans, the company announced the biggest rights issue for a European energy company in more than 15 years. It aims to raise 60 billion Danish kroner ($9.3 billion). It's the latest example in a years-long effort by the company to convince investors that it has its finances under control after soaring costs and rising interest rates upended its business model. It first announced impairments on its US projects in 2023, the start of a series of bad news that it assured investors each time would be contained. On top of that, there's the impact of US President Donald Trump and his dislike for wind turbines that's creating negative sentiment. So far, investors appear unconvinced that this is a buying opportunity. While the Danish government has agreed to purchase shares, it's unclear what appetite other existing investors will have. And there's not yet a fixed price for the underwritten shares, the company's Chief Financial Officer Trond Westlie said Monday. 'The analyst call did little to provide incremental comfort around the risk-reward skew,'Ahmed Farman, analyst at Jefferies International Ltd., said in a note. 'We see execution risks on aspects of the new plan, as well as limited medium-term growth prospects.' Shares in the company fell as much as 32% on Monday, revealing skepticism that the capital raise will be enough to fix the company for good and return it to a pathway of predictability, profitability and growth. Orsted said on Monday that financing costs for one site - Sunrise Wind, off the coast of New York's Montauk Point - had climbed significantly due to uncertainty for the sector created by Trump. The company halted the process for a partial sale on Monday saying that full ownership of the project was one of the key reasons it needs capital. The company typically funds growth by selling stakes in wind farms that are close to completion. The impact of canceling the stake sale in Sunrise was estimated at 40 billion Danish kroner, a sum that appears high, according to Deepa Venkateswaran, analyst at Bernstein. This leaves open the possibility that the figure could be masking impacts on other projects like a wind farm sale in the UK or further political risk in the US, Venkateswaran said in a note. 'We therefore wonder if there are other risks that the company is being less open about,' she said. Orsted management cited the move by the Trump administration to halt an already-permitted offshore wind farm that was being developed by Norway's Equinor ASA, as a tipping point. It was an unprecedented move that underscored the risks of investing in offshore wind in the US while President Trump is in office. While the decision was ultimately reversed, it derailed plans Orsted was carrying out to finance and sell a stake in its Sunrise Wind farm. Equinor is the second-largest shareholder in Orsted and the value of its stake has already dropped by over $1 billion since the deal was announced last year. 'The perceived risks of the US offshore wind market among investors and banks increased significantly,' Orsted's Chief Executive Officer Rasmus Errboe said on a call with analysts. 'Investors involved in the equity process substantially increased their required risk protections and return requirements and the banks involved on project financing ultimately were not able to continue the process under current market conditions without material risk protections.' Ultimately the share sale will be a test of Orsted's continued bet on offshore wind. The company built its first wind farm at sea off the coast of Denmark more than 30 years ago and has been instrumental in the sector's growth from niche to one of Europe's most important sources of new renewable power generation. 'Despite the headwinds that offshore wind has an industry has faced in recent years, we continue to see a very strong outlook for the technology, particularly in Europe where electricity demand is projected to more than double by 2050,' Errboe said. 'We remain 100% committed to the continued construction of our program.' Many of Orsted's biggest competitors in offshore wind have refocused on other parts of their businesses. Iberdrola SA and SSE Plc are ramping up spending on electric grids. Meanwhile oil majors Shell Plc and BP Plc have pulled back from the sector to focus on the oil and gas businesses that drive their profits. But Orsted doesn't have much else besides offshore wind. It announced plans to sell its European onshore wind business Monday and while it also has some biomass plants in Denmark and an onshore renewables business in the US, those are insignificant compared to offshore wind, which makes up the vast majority of its profit and investments. And it's not clear how steady the outlook for offshore wind will remain in Europe. Rising costs have led to a series of failed auctions, most recently in Germany. The response from industry has been to urge governments to provide subsidies that guarantee wind farm owners fixed prices for power. And with high energy prices still stinging Europe's economy, government appetite to pay up may shrink. --With assistance from Eamon Akil Farhat. More stories like this are available on
Time of India
35 minutes ago
- Time of India
Panel set up to study capping of movie ticket prices: Govt to Kerala high court
Kochi: A committee has been constituted to consider matters related to regulating movie ticket prices in theatres, including multiplexes, the state govt informed high court on Monday. Tired of too many ads? go ad free now The submission was in response to a PIL by Manu G Nair of Thiruvarppu in Kottayam, seeking judicial intervention to regulate alleged profiteering by multiplex operators through excessive ticket pricing. The govt stated it aims to resolve the issue through a policy decision involving multi-level discussions with various stakeholders in the industry. Considering the state's submissions, the bench of Chief Justice Nitin Jamdar and Justice Basant Balaji directed the state govt to file a memo, along with the order constituting the committee, by Thursday. Accordingly, the petition has been adjourned to that date. In his petition, Nair alleged that multiplex chains routinely inflate ticket prices based on factors like demand, time slot and release status, leading to exorbitant rates, particularly during the first week of screening. He also noted that several Indian states have introduced legal mechanisms to cap cinema ticket prices and ensure affordability.
