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Moonlighting Policy
Moonlighting Policy
Company Name
Effective Date
Policy Owner
Approved By
Approval Authority
1. Purpose & Scope
(a)This policy defines the Organization's position on employees engaging in secondary employment, freelance work, or outside business activities alongside their primary employment. It establishes the approval process and conditions under which moonlighting may be permitted.
(b)Moonlighting is defined as any paid or unpaid work, employment, consulting, freelancing, or business ownership activity undertaken by an employee outside their scheduled working hours with the Organization, including work performed during weekends, holidays, and leave periods.
2. Approval Process & Conditions
(a)Employees who wish to engage in moonlighting must submit a written request to their direct manager and the HR department at least 14 calendar days before commencing the outside activity. The request must include the nature of the work, the identity of the external entity, the expected time commitment, and an assessment of potential conflicts.
(b)Moonlighting shall not be approved where the outside activity competes directly with the Organization's business, involves a client, vendor, or competitor of the Organization, or requires the use of the Organization's resources, time, or confidential information.
(c)Approved moonlighting arrangements shall be reviewed every 6 months. Employees must promptly notify the HR department of any material changes to the nature, scope, or time commitment of an approved outside activity.
3. Employee Obligations
(a)Employees engaged in approved moonlighting must ensure that their primary job performance, attendance, and availability are not adversely affected. Moonlighting activities must be conducted entirely outside the Organization's working hours and without the use of Organization resources.
(b)Employees must not solicit the Organization's clients, colleagues, or vendors for any moonlighting activity. Any attempt to divert business opportunities from the Organization to a moonlighting venture shall be treated as a serious violation of this policy.
4. Revocation & Disciplinary Action
(a)The Organization reserves the right to revoke moonlighting approval at any time if the outside activity is found to conflict with the Organization's interests, adversely affect the employee's performance, or violate any condition of the approval.
(b)Engaging in unapproved moonlighting, failing to disclose an outside activity, or violating the conditions of an approved arrangement shall constitute a disciplinary offence. Consequences may include revocation of the approval, formal warnings, and termination of employment.
5. Policy Governance
(a)This policy shall be reviewed at least annually by the HR department in consultation with Legal Counsel. The HR department shall maintain a register of all approved moonlighting arrangements and shall report aggregate statistics to the senior leadership team semi-annually.
The guide
Everything you need to know about the moonlighting policy
What Is a Moonlighting Policy?
A moonlighting policy sets the rules for employees taking on secondary jobs, freelance work, or side businesses outside their primary role. It clarifies whether dual employment is permitted, prohibited, or allowed with disclosure and approval. The policy addresses conflicts of interest, use of company time and resources, and confidentiality, giving both employer and employee a clear understanding of what outside work is acceptable.
Why Companies Need a Moonlighting Policy
Side work has become common, and without a policy companies face conflicts of interest, productivity loss, and leakage of confidential information. A moonlighting policy protects business interests while respecting employees' right to earn. It defines acceptable boundaries, requires disclosure of potential conflicts, and gives HR a consistent basis to approve, restrict, or act on outside engagements rather than handling each case ad hoc.
What a Moonlighting Policy Should Include
State whether outside work requires prior disclosure or approval and who grants it. Prohibit work that competes with the company, uses its resources, or draws on confidential information. Set expectations that primary-role performance and working hours are not affected. Address use of company equipment and IP, and outline consequences for undisclosed conflicts. Reference exclusivity clauses in employment contracts and applicable local law.
In many jurisdictions employers can restrict moonlighting through exclusivity or conflict-of-interest clauses, especially where it competes with the business or harms performance. A blanket ban on all outside activity may be harder to enforce in regions that protect after-hours freedom. Base restrictions on legitimate business interests.
A disclosure-based approach is often the most practical. Requiring employees to declare outside work lets you assess conflicts of interest without banning legitimate side income. Make the disclosure process simple and clarify what will and will not be approved.
The biggest risks are conflicts of interest, leakage of confidential information, reduced productivity, and misuse of company resources or time. A clear policy plus confidentiality and IP clauses mitigates these. Focus enforcement on actual conflicts rather than harmless side pursuits.
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