Moonlighting Policy: Set Clear Boundaries

Empower employees to pursue side opportunities while protecting productivity, performance, and company interests with a well-defined moonlighting policy.

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What is a Moonlighting Policy?

A moonlighting policy outlines the rules and expectations for employees who wish to take on additional work or freelance opportunities outside their current role within the organization. Its primary purpose is to ensure these external engagements do not interfere with the employee’s responsibilities or create any conflicts of interest with the company’s operations.

Such policies typically cover the process for disclosing and seeking approval for external work, usage restrictions on company resources, and the importance of confidentiality. While some companies allow moonlighting with minimal oversight, others may require strict compliance and formal approvals.

In essence, the goal of a moonlighting policy is to strike a balance between allowing employees to pursue side opportunities and ensuring their primary role remains uncompromised.

Moonlighting Policy Template

At XYZ Company, we believe in supporting employees’ personal development—even beyond the workplace. However, any external work must not affect job performance or company interests. That’s why prior approval from your manager is required before engaging in outside employment.

This policy applies company-wide, regardless of role, rank, or department.

Disclosure & Approval Process

Employees planning to take up additional work must submit details in writing to their supervisor, including:

  • A description of the work

  • Estimated weekly hours

  • Name and address of the other employer/business

The HR team will provide a Moonlighting Activity Disclosure Form for this process.

Supervisors will assess whether the outside job may affect your duties or present a conflict of interest. Factors considered include:

  • Similarity to your role at XYZ Company

  • Number of hours dedicated weekly

  • Your current workload and capacity

  • Competitive or conflicting nature of the outside work

Employee Guidelines

  • Seek Written Approval First
    Moonlighting is strictly prohibited without prior written consent. Violating this can lead to disciplinary action, including termination.

  • No Use of Company Assets
    Company tools—like laptops, software, office supplies, and communication platforms—must not be used for any external work.

  • Respect Confidentiality
    Sharing company information or leveraging your position for side income is strictly forbidden. Using company contacts for outside gains is a breach of trust.

  • Own Your Responsibilities
    All taxes, insurance, and legal obligations related to moonlighting are solely the employee’s responsibility.

  • Follow All Laws
    Employees must ensure their external work complies with employment laws including labor standards, minimum wage rules, and safety regulations.

  • Violations Carry Consequences
    Any breach of this policy—whether intentional or not—can lead to suspension, salary deductions, or even dismissal.


Final Note

XYZ Company encourages employees to grow and explore opportunities—but never at the cost of performance, ethics, or company interests.

If you’re considering outside employment, have a conversation with your supervisor first. Transparency and approval are key to making it work—for you and the company.

For any doubts or further guidance, reach out to your manager or the HR team.

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