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Moonlighting on rise, IT cos tighten checks

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BENGALURU: Amid low single-digit salary hikes and growing job market unpredictability, the IT industry is witnessing a sharp rise in moonlighting-related verifications.

Companies now scan for overlapping employment - clear indicators of concurrent roles or undisclosed prior engagements.

Such discrepancies are automatically flagged and escalated for client review. The final determination of risk or policy breach rests with the client, guided by their internal policies, risk tolerance, and candidate discussions.

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Background verification firm OnGrid reported a surge in screening activity. In the first six months of the current year, it processed 23,000 employment verifications-already 87% of the total 26,000 conducted last year. A key driver is employment history checks, often used to detect moonlighting . These checks flagged 2,900 cases in the first half of this year, up from 2,201 in all of last year. OnGrid tracks Universal Account Numbers (UANs), employment timelines, and personal records to spot overlapping jobs and undisclosed roles.

Manav Jain, chief business officer at OnGrid, said that post-pandemic, with the rise of remote, hybrid, and freelance models, moonlighting cases increased. The flexibility of these arrangements made it easier for some to take on secondary jobs. Economic factors also push professionals to seek backup income or job security. During the pandemic, many employees were not fully engaged during typical work hours, and without robust monitoring tools, some used the extra time to take on additional work, which over time became habitual for some.

Rahul Maheshwari, former Google employee and founder of edtech platform Linux Socials, said many professionals are turning to teaching as a side gig to cope with job uncertainty. "Several work as freelancers, taking teaching assignments without going through the PF route. I currently have around 20 professionals from top MNCs who double up as instructors on the platform-many are here to cope with the current instability," he said.

Maheshwari himself was asked to stop sharing tutorials on YouTube and LinkedIn after HR classified it as moonlighting. Though he insisted teaching wasn't moonlighting, he resigned to avoid friction-even though it didn't interfere with his day job.

Background verification firm AuthBridge reports that 5 out of every 100 candidates engage in dual employment. Nearly 90% of these cases come from the IT services sector, mainly in Telangana, Karnataka, and Tamil Nadu. In one case, a developer was simultaneously employed at five companies, including two direct competitors. AuthBridge uncovered this overlap through PF records and Form 26AS.

The shift to remote work during Covid also sparked a surge in multi-employment cases. OnGrid found one candidate joined 50 companies in a single year, worked seven years with 141 employers on record. In 2021, she added 21 more employers and was simultaneously on payroll at 10 companies. This included full-time roles at big names, startups, and established MNCs-not just freelance or contract work. In 2022, Wipro chairman Rishad Premji said the company fired 300 employees for working for direct competitors while being on Wipro's rolls.

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