Introduction
Moonlighting (holding down a full-time job while running a side hustle) is fast becoming the norm in the global tech space. For employees, the perks are obvious: extra income and a safety net. For employers? It is dealing with employee’ burnout, slipping performance, conflicts of interest, and even misuse of company resources and confidential information. What looks like a smart move for employees can quickly turn into a nightmare for employers.
In this edition of our Tech Brief by TALP, we explore moonlighting under Nigerian law as well as key consideration for both employers and employees.
Moonlighting and the Law
In Nigeria, as in many other countries, the law doesn’t explicitly address moonlighting, and this is no surprise. The employer–employee relationship is largely contractual, and labour/employment laws would only step in mainly to address unfair practices. So, whether you can juggle side gigs with full time employment depends on the law that governs your contract, the terms of your contract and company’s policies.
Global Approach to Moonlighting
Around the world, employers are split on moonlighting. Some companies, like IBM and Wipro, take a hard line. Wipro even fired about 300 employees for moonlighting. Others, like Swiggy, take a more flexible view, permitting moonlighting under conditions such as full disclosure and approval.
Courts have chimed in too. In South Africa’s Bakenrug Meat (Pty) Ltd t/a Joostenberg Meat v Commission for Conciliation & others case, the Labour Appeal Court backed the dismissal of an employee who failed to disclose her side business, which happened to be in a closely related line of work as her employer’s. It didn’t matter that she could still do her day job just fine. The real issue was that hiding the side gig breached her duty of good faith.
Potential Considerations for Employers
When it comes to moonlighting, employers have two options:
- Play it tough – Ban it outright and have the prohibition stated clearly in the employment contract and internal policies
- Play it smart – Allow moonlighting (considering economic realities and talent retention) but set clear guardrails.
If you are open to moonlighting, you don’t have to leave your business exposed. The trick is to build smart clauses into the employment contract:
- Disclosure Clause – Requiring full disclosure gives you the chance to decide if that “little project” is really
- Conflict of Interest Clause – This clause makes sure employees don’t take gigs that clash with their duty, commitment, and performance.
- Non-Compete Clause – A non-compete clause keeps employees from working with or for competitors during employment and sometimes for a short while after. It helps ensure that your trade secrets and business know-how don’t end up fuelling a competitor’s growth.
- Confidentiality Clause – Using sensitive data, trade secrets, or IP for side gigs should be off-limits. A confidentiality clause prevents employees from sharing or misusing insider knowledge, no matter where they work.
Pro Tip for Employers: Consider engaging lawyers to draft or review your employment contracts and moonlighting policies. It is the best way to protect your business, stay compliant, and avoid nasty surprises down the road.
Considerations for Employees
Thinking of moonlighting? First, read your employment contract. Many employment contracts include clauses on exclusivity, conflicts of interest, non-compete, and confidentiality, any of which could limit your ability to take on a side hustle. Overlooking these could cost you your job or trigger disciplinary action.
Even where your employer adopts a flexible approach, what is an “acceptable” side gig is not always clear-cut. What counts as “competition” or a “conflict of interest” can be interpreted broadly depending on your industry, role, and how sensitive your employer is. The smart move? Get legal advice before taking on that side gig.
Pro Tip for Employees: If you do take on a side gig and same is permitted under your contract, keep it transparent, avoid working with competitors, never use company time or resources, and protect confidential information. These simple safeguards can help you enjoy the benefits of moonlighting without putting your main job on the line.
Conclusion
Moonlighting can be a good opportunity to earn additional income and pursue personal interests. However, it also carries certain risks. It is important to carefully review the terms of your employment contract and ensure that any outside work complies with company policies and obligations. For employers, set clear rules and guardrails to protect your business. At the end of the day, transparency, trust, and legal guidance go a long way in keeping both sides happy.
