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Are you moonlighting ? You should not! You could be in legal trouble! Work honestly at one place at one time. Serious legal issues are being enforced by companies nationwide.

In this modern era moonlighting clause can also be termed as ‘Negative Covenants’, ‘Restrictive covenants’ etc. Moonlighting clause is a clause in the agreement of service which contains negative covenants restricting the employee from working elsewhere during/after the period covered by the agreement.

Moonlighting term means to hold another job outside of normal working hours. Both the job may be identical or may not. Moonlighting clause is the clause which is added as a clause in the employment agreement with the consent of the employee when he joins the company/business. It is added by the consent of both the parties.

In India this clause is mostly used as ‘Negative Covenants.’ A negative covenant is that the employee would not engage himself in a trade or business or would not get employment under any other employer for whom the employee would perform similar or substantially similar duties, is not a restraint of trade unless the contract is harsh or unreasonable.

Another clause may be that the employee should not work for the competitor of the former employer after the termination of his employment from the former company. This clause is added to protect their confidential information and trade secrets.

In India this clause is enforceable and it can be enforced wherever necessary.

In India it is the settled position that agreement restraining the employee to work elsewhere during the period covered by the agreement is valid agreement and it can be enforced but sometimes even after the termination of the employment the employee can be restrained from working at the competitor of the former company.

Be careful to make sure you are not working anywhere else when you join any company especially if it becomes conflict of interest!