Infosys On Backfoot After NITES Complaint; Justifies Stopping Employees From Working For Competitors

In a twist of events, Infosys has found themselves on a backfoot, after NITES complained to the Labour Ministry about their move to stop employees from working for their competitors.

We had first reported this development, and we have received a very strong response from our readers over this unfair decision by Infosys.

Interestingly, Infosys has completely defended their decision.

This is what happened..

Infosys: This Is A Standard Business Practice!

Infosys has told MoneyControl that stopping employees from working for competitors is a standard business practice, and there is nothing unfair in this.

Infosys said, “It is a standard business practice in many parts of the world for employment contracts”, adding that such non-compete clauses are added “to include controls of reasonable scope and duration to protect the confidentiality of information, customer connection, and other legitimate business interests”.

Infosys gave these statements and justifications after Nascent Information Technology Employees Senate (NITES) complained to the Labour Ministry over this move.

Infosys To Ex-Employees: Sorry, You Can’t Work For Competitors!

Entire IT industry was in shock, after Infosys imposed a new clause, often called non-compete clause in their offer letter for new employees, which banned them for working with their 5 main competitors, in case they have worked for the same clients in the last 12 months.

This ban is for 6 months.

NITES or Nascent Information Technology Employees Senate received complaints from several Infosys employees, and they filed a complaint with the Labour Ministry over this issue.

Speaking on this issue, Harpreet Saluja, President, Nascent Information Technology Employees Senate NITES said, “It seems that for the IT Companies, the welfare of employees are their least priority. By stopping them from working for other IT firms, they are not only destroying their career paths, but also conducting unfair business practice. Govt should come up with reformed labour laws, that stops this practice, and help the employees to nurture their careers. In case Infosys believes that their unfair clause of non-compete has no impact on the employees’ career, then why don’t they remove it? We will leave no stone unturned to ensure that the interests of all IT employees are protected and they are not subjected to exploitation. The fight is on.”

It would be interesting to see if other IT firms too follow this practice.

We will keep you updated, as more details come in.