The Union Ministry of Labour and Employment has urged the Karnataka government to take action on Infosys’s delays in onboarding recent graduates.
The Karnataka State Labour Commissioner’s Office was given instructions by the government to handle the situation and guarantee adherence to pertinent labor regulations.
Karnataka Centre asks Karnataka to Take Appropriate Action Against Onboarding Delay By Infosys
In a letter dated September 3, the ministry asked for the Karnataka government to look into the matter and provide updates to both the ministry and the applicants in order to safeguard these graduates from possibly exploitative corporate practices.
This action comes after rumors surfaced that Infosys has delayed the onboarding of 2,000 engineering graduates from the class of 2022.
Despite the fact that the initial dates had been adjusted, Infosys CEO Salil Parekh promised that all offers made to recent graduates will be honored.
According to Parekh, in spite of occasional date adjustments, every offer made to a fresh graduate would result in the candidate joining the company.
With 315,000 employees as of June 2024, Infosys was a significant force in the IT sector.
Infosys’s Tardy Onboarding System
The Ministry of Labour and Employment received a complaint from the Nascent Information Technology Employees Senate (NITES), which is the union for IT and ITES employees, over Infosys’s tardy onboarding of the 2,000 graduates.
During the 2022–2023 hiring campaign, these graduates were chosen for positions as system engineers and digital specialists, with yearly compensation packages ranging from Rs 3.2 lakh to Rs 3.7 lakh.
According to reports that appeared earlier this week, Infosys has begun sending confirmation emails to some of the graduates who were ready to be onboarded. Their scheduled joining date was October 7, 2024, in Mysore.
Approximately 2,000 engineering graduates have experienced delays in their onboarding process since April 2022, even though they have been offered positions as system engineers and digital specialists.
Additionally, Infosys is dealing with a tax demand from Indian authorities that exceeds Rs 32,000 crore ($4 billion) for services rendered from its abroad offices between July 2017 and the fiscal year 2021–2022.
Although Infosys claims to have paid all legally required dues, the tax demand is equal to 85% of the company’s revenue for the quarter that ended on June 30.
Although the tax notice was issued in accordance with current legislation, reports indicate that the Union Finance Ministry believes it goes against India’s policy of exempting services exports from taxation. Despite this, investors are still optimistic that Infosys does not need to make provisions for this responsibility.
