Infosys has been fined €175,000 (around ₹2 crore) by a French labour authority over shortcomings in its employee working-time recording system. The penalty was imposed after regulators found that the company’s time-tracking mechanism did not fully comply with French labour laws governing the recording and monitoring of employees’ working hours.
While the development has drawn attention, Infosys has clarified that the fine will have no material impact on its business operations or financial performance.
Why Did French Authorities Impose The Fine?
The penalty was issued by DRIEETS Île-de-France, the regional labour authority responsible for enforcing employment regulations in France.
According to the findings, Infosys’ employee time-recording system had deficiencies in three critical areas:
- Reliability of working-hour records
- Auditability of recorded data
- Monitoring capabilities for certain categories of employees
French labour regulations require employers to maintain accurate, verifiable and transparent records of employee working hours to ensure compliance with rules related to overtime, rest periods and employee welfare.
Why Time Tracking Is Strictly Regulated In France
Unlike many countries where working hours are monitored primarily for payroll purposes, France has some of the world’s strictest labour protections.
Employers must maintain detailed records of employees’ working hours so authorities can verify compliance with limits on daily and weekly working hours, mandatory breaks and overtime regulations. These rules are designed to protect employee rights and prevent excessive workloads.
Failure to maintain compliant systems can result in financial penalties, even if there is no allegation of wage theft or employee exploitation.
Infosys Says Business Remains Unaffected
In its regulatory filing, Infosys stated that the penalty is not material and will not affect its financial position, operations or overall business activities.
The company also explained that it took some time to verify the communication received from the French authority before making the required disclosure to stock exchanges.
Infosys has not disclosed whether it plans to challenge the decision or make changes to its time-tracking system.
Part Of Global Compliance Requirements
Multinational companies operating across different countries must comply with local labour laws, which often vary significantly from one jurisdiction to another.
The French action highlights the importance of maintaining country-specific compliance systems, particularly in regions such as the European Union where employment regulations are among the most stringent in the world.
For global technology companies, ensuring that internal HR and workforce management systems meet local legal standards has become an increasingly important aspect of international operations.
Summary
Infosys has been fined €175,000 (around ₹2 crore) by France’s labour authority after its employee time-tracking system was found to have shortcomings in reliability, auditability and monitoring. The company has said the penalty will not materially affect its business, while the case highlights the importance of complying with strict labour regulations in international markets.
