The Union Labour Ministry has intervened in the ongoing dispute between Infosys and an independent IT-sector union over the recent layoffs of freshers. The ministry has directed the Karnataka Labour Department to take necessary actions to address the situation.
Infosys recently admitted to terminating over 300 freshers who had undergone training at its Mysuru campus. However, the Nascent Information Technology Employees Senate (NITES) argues that the actual number is 700 and has raised a formal complaint with the Ministry of Labour and Employment.
NITES Claims Violation of Labour Laws
According to NITES, these freshers had already faced a two-year delay in joining Infosys after receiving their offer letters. The union alleges that Infosys forced them to sign “mutual separation” agreements, making the layoffs appear voluntary.
The complaint demands the following actions:
- A formal investigation into Infosys hiring and termination policies
- A restraining order to prevent further layoffs
- Reinstatement of terminated employees
- Penal action against Infosys for violating the Industrial Disputes Act, 1947
Following this complaint, Karnataka Labour Department officials visited Infosys offices in Bengaluru and Mysuru to investigate the matter.
Infosys Denies Forced Termination
Infosys has defended its decision, stating that the company follows a rigorous hiring and training process. Freshers are required to clear internal assessments within three attempts after training. Those who fail are not allowed to continue. Infosys claims that this policy has existed for over two decades and was not implemented arbitrarily.
However, former employees dispute this claim, asserting that such large-scale terminations have never occurred before. They fear that Infosys may continue this practice, affecting more freshers in the future.
What Happens Next?
With government intervention now in progress, it remains to be seen how Infosys will respond. If violations of labour laws are confirmed, Infosys could face penalties or be forced to reinstate terminated employees. The outcome of this investigation will set a precedent for how IT companies handle large-scale layoffs in India.
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