Gap in Outlooks between Firms and Employees over Moonlighting

According to the findings of a nationwide survey addressed to 5,000 firms, conducted in 2004 by the Japan Institute for Labour Policy and Training (JILPT), as many as 50.4 percent of the firms surveyed prohibited their regular employees from having a second job; the proportion was substantially larger than the figure of 38.6% marked in the previous survey in 1995.

The reasons given for such prohibitive measures (multiple answers) included "hinders concentration on company work" (78.1%); "negatively affects the work of the company" (49.3%); "disrupts the solidarity of the workplace" (40.9%); "endangers confidentiality" (27.8%); and so on. At the same time, the survey found that firms in general viewed moonlighting critically, with 78.5 percent saying that it had no particular advantages. Among unfavourable opinions, 90.5 percent replied that it would make workers tired and lead to a drop in efficiency in their primary job; 49.7 percent replied that it made it impossible for firms to ask employees to do overtime or work on holidays when necessary; and 34.9 percent replied that it could lead to leaks of important internal information. In addition, the survey revealed that firms were starting to stiffen penalties for violation of corporate rules on moonlighting; a mere 16.4 percent of the firms surveyed had no punitive clause in their corporate rules, whereas 43.7 percent may resort to dismissal (including punitive dismissal); 33.5 percent may officially reprimand violators (demand them to submit a letter of apology); 15.1 percent may demote or degrade violators; and so on. The proportion of firms prepared to take such punitive measures is increasing. In general, these prohibitive and controlling measures seemed to be taken in accordance with corporate regulations (78.0 percent).

On the other hand, with regard to the outlook of employees, the proportion of employed workers who wish to have additional employment has been increasing since the 1990s. Although the actual proportion of those moonlighting is a mere 4.5 percent, the proportion of those wishing to do so is as high as 26 percent (according to a survey of Works Institute, Recruit Corp.); against the backdrop of a deteriorating economic situation and downward trends in wage levels, among other things, an increasing number of employed workers are wishing to get hold of an extra job for the purpose of, for example, securing a secondary income source or preparing for job-switching.

Under such circumstances, the JILPT forecasts in its survey that, with employment patterns diversifying, even if the proportion of workers having a second job remains at a few percent for the time being, moonlighting will become a common practice in the future. The survey report also cites the possibility that the tendency among firms to stiffen regulations on extra employment may fail to satisfy the needs of employees, and suggests the necessity of discussion between firms and employees to forge a broad consensus about management of working hours and employment itself. Furthermore, the report recommends that choices of employment patterns, including second jobs for employed workers, should be increased within a reasonable range, and that appropriate administrative measures should be designed for the purpose of preventing overwork.

The gap in outlooks between firms and employees on having second jobs may perhaps usher in a new era in which the traditional Japanese-style labor-management practice based on employment security and workers' loyalty to firms is beginning to break down and individual workers are obliged to construct their own safety nets.