Explainer: Moonlighting not illegal for most Singapore workers, but watch for potential breach of contract terms

SINGAPORE — A recent study found that moonlighting is set to continue as one of the fast-growing work trends in 2024 in Singapore, but it begs the question: Is it allowed?

On Tuesday (Jan 23), online jobs site Indeed.com said that in a survey of 1,211 Singapore workers, 18 per cent of the respondents indicated that they were likely to moonlight this year. 

Speaking to TODAY previously, a handful of Singaporean full-time employed workers talked about why they juggled another job and their experience of it, with two saying that they had their employers' permission to do so. 

However, manpower and legal experts said that moonlighting can be frowned upon because of concerns that such employees will not properly fulfil their contractual obligations, such as time dedicated to work, and that holding another job with another company without disclosure may be grounds for termination.

TODAY explains how moonlighting works, whether it is legal in Singapore, and what are some of the official processes needed for a worker to engage in secondary employment.

WHAT IS MOONLIGHTING?

Career coach Adrian Choo, chief executive officer of consulting firm Career Agility International, defined moonlighting as seeking employment with another company while already working for one company. 

Mr Choo separated moonlighting from “having a side hustle” because it involves having two employers. 

Moonlighting, defined as taking up a second job or multiple other work assignments apart from one’s full-time job, was found to be the second-highest workplace trend last year by the Indeed survey, with 13 per cent of respondents saying that they had done it “extensively”.

Mr Richard Bradshaw, Ethos BeathChapman Asia chief executive officer, said companies should make an effort to differentiate between moonlighting, which refers to the "shadowy" and unsubstantiated version of a second job where one's employer is unaware, and having an above-board second job the employer knows of. 

"The best employers may even be supportive in such cases.

"Appropriately communicated second roles that hit key stipulated criteria, such as not affecting the primary job and aligning with ethical considerations, should be included in any large company's employee handbook or out-of-work covenants," he told TODAY. 

For 2024, moonlighting is forecast to continue being a popular trend, based on responses from 18 per cent of employees surveyed. 

IS MOONLIGHTING ILLEGAL?

The Ministry of Manpower (MOM) generally does not intervene in contractual disputes between employers and employees.

Ms Elaine Low, associate director of law firm Peter Low Chambers LLC, said, though, that foreigners on employment passes or work permits are bound by the conditions of their pass or permit, which may restrict moonlighting.

MOM specifies that foreign domestic workers and work-pass holders are not allowed to be self-employed, participate in any business or hold a second job to earn extra money. 

Any foreigner found guilty of being self-employed without a valid work pass may be penalised with a fine of up to S$20,000 or be jailed for up to two years, or both. 

In 2017, national daily The Straits Times reported that the Singapore Armed Forces meted out a fine of S$2,000 to a staff sergeant for giving 140 rides on GrabHitch, a carpooling function on ride-hailing application Grab. He was doing this as a private-hire car driver without seeking prior approval. 

The Public Service Division was quoted then as saying that to ensure no conflict of interest, civil servants need to apply for permission to perform extra trade or work that draws income. This would then be reviewed on a case-by-case basis.

Manpower and legal experts interviewed by TODAY said that moonlighting is generally not illegal, but many companies have a clause preventing workers who are under full-time employment from seeking to work with another company.

“If it’s not stated in the contract, moonlighting is okay. But it is a standard. I’ve not seen a contract without that statement before,” Mr Choo from Career Agility International said.

Mr Joshua Yim, chief executive officer of human resources consultancy Achieve Group, said that multinational corporations (MNCs) and medium-sized enterprises tend to have clearer policies governing moonlighting, whereas smaller companies may have “gaps in practices” with “not as watertight” regulations. 

Clauses in one’s employee handbook or employment contract would state the employee’s working hours or “impose a duty” on an employee to devote the whole of their time, attention and ability to their employment, Ms Low from Peter Low Chambers said. 

Ms Angela Kuek, director of recruitment firm Meyer Consulting Group, said most companies tend to be silent about their moonlighting policies unless there is a moonlighting policy stated in the employment contract.

"Companies with moonlighting policies tend to be the MNCs where human resource practices are more robust," Ms Kuek said.

Moonlighting is fine for freelancers, which include those who are not under an employment contract but are contracted for services with a company. Their freelance agreements generally do not state that each party will exclusively contract with the other.

WHY IS MOONLIGHTING NOT ENCOURAGED? 

The experts said that moonlighting is commonly restricted because of conflicts of interest and fears of employees neglecting their main job, for example.

“You’re being paid for full-time employment, on the basis that you dedicate your time and effort to the job. If you take on a second job, you may not perform as well in your first job, because you’ll be tired and exhausted,” Mr Choo said. 

Some companies may make exceptions under specific circumstances. For example, if the secondary work is done on the weekends, complements the employee's full-time employment, is not for profit or has been officially declared, he added. 

Should employees breach any clause in their contracts, for example, by moonlighting or not giving their primary job their undivided attention during work hours, their companies will have the right to terminate them, Ms Low said. 

An employee would then bear the burden of proving that he carried his personal business outside of office hours. 

“Even if the employment contract does not state it expressly, employees are under an implied duty to exercise reasonable care and skill to perform their duties under their employment contract,” Ms Low added. 

“If the employee undertakes any business or employment that inhibits him from performing his duties with reasonable care and skill, it is likely that the employer may also elect to terminate his employment contract for a breach of this duty.”

Mr Mohammed Shakirin, managing director of Adel Law, said if an employee disputes the termination, they can file a claim with the Employment Claims Tribunal (ECT) from the Ministry of Manpower.

The person will have to attend a mediation session with the Tripartite Alliance for Dispute Management (TADM), but the case will only be heard if the claims do not exceed S$20,000.

In cases where a worker moonlights in a separate field, some companies may disapprove of it due to reputational concerns. 

Mr Choo said: “I know this senior lawyer who helps his wife… sell food at a pasar malam (night market) stall. Even though he wasn’t paid for it, the other partners of the law firm disagreed with him appearing to sell satay on the weekends because it was not congruent with the company’s branding.” 

However, Mr Yim from Achieve Group said that moonlighting is very rarely the main reason why an employee is terminated. There would usually be more common reasons for dismissal, such as employee misconduct and insubordination. 

Mr Bradshaw from Ethos BeathChapman Asia said some industries and roles tolerate moonlighting more than others.

"Highly regulated sectors, such as finance or government, may have stricter policies, while creative fields or certain tech roles may be more lenient. Ultimately, it depends on company culture, policies and the potential impact on job performance," he said. 

WHAT TO NOTE IF EMPLOYER APPROVES MOONLIGHTING 

Even if an employer approves of a worker being hired to do another job elsewhere, the worker has to be cautious and mindful of some matters. These would include fulfilling one’s income tax obligations and not violating other contractual obligations, such as clauses involving business competitors.  

Since all income earned or derived from Singapore is chargeable to income tax, anyone who fails to declare any side income that should be computed for personal income tax may be subject to late penalty interest, fines or a jail term. 

Although non-competition and non-solicitation clauses generally apply after an employee exits a company, these clauses may cover situations during one’s employment, if “worded broadly enough”, Ms Low said. 

Many employment contracts also have confidentiality clauses that protect the employer’s trade secrets and client information, so moonlighting employees should be careful not to leak any confidential information, she cautioned.