Non-Compete Clause For IT Employees: Labour Ministry Sends Notice To Infosys, Asks For A Joint Meeting

Some interesting development happening right now, that can change the future of entire IT industry in India.

Labour Ministry has now sent a notice to Infosys, and have asked them to hold a joint meeting with NITES on the non-compete clause that they have imposed on the ex-employees.

This literally changes everything.

Labour Ministry To Infosys: Let’s Talk

In a notice to Infosys sent by the Labour Ministry, they have asked Infosys and NITES to hold a joint meeting over the non-compete clause.

This way, it’s clear that the Govt of India has taken notice of this issue, based on the complaint filed by NITES, and they are looking for a long-term solution here.

Commenting on this development, Harpreet Singh Saluja, President, Nascent Information Technology Employees Senate NITES said, “Taking cognizance of Nascent Information Technology Employees Senate NITES complaint, Ministry of Labour & Employment has issued a notice to Infosys for joint discussion regarding illegal non compete agreement. We are highly thankful to Hon’ble  Minister of Labour and Employment Shri Bhupendra Yadav ji, for taking prompt action to safeguard the interests of IT Employees. All the Infosys & IT sector employees are hopeful & looking forward for favorable Government’s decision.”

What Exactly Happened Here?

As we reported few days back, several ex-employees from Infosys approached NITES, and complained about the clause that Infosys had added in the offer-letter for new employees.

In the clause, called non-compete clause, Infosys had stopped ex-employees from working for their top 5 competitors, in case they have worked with the same client in the last 12 months. 

This non-compete clause is applicable for 6 months.

Based on the complaint, NITES filed a complaint with the Labour Ministry, and today, the Labour Ministry has issued the notice for a joint meeting.

Infisys has already justified this non-compete clause, claiming that this has been the norm for several years. It’s a fact that all major IT companies do impose non-compete clauses, and not just Infosys.

But maybe, it’s time to change this.

We will keep you updated as more details come in.