IT Employees Union Files Complaint Against Infosys Over New Non-compete Clause

Yesterday, a Pune-based IT employee union named NITES reportedly filed a complaint against Infosys. The employee union is seeking the removal of the newly imposed non-compete clause by Infosys.?

What Does The Clause State?

The clause states that the employees cannot work for the competitor companies for six months after leaving the company.

That’s not all. The clause also restricts employees from joining the workforce of the clients they had worked for in the last 12 months before quitting, according to the letter to Bhupender Yadav, Minister of Labour and Employment.

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The clause reportedly includes these companies in their competitor list- Accenture, Tata Consultancy Services (TCS), IBM, Cognizant, and Wipro.

The Letter To Labour Minister

As per the letter sent to the minister, the clause says “For the period of six months after leaving Infosys, employees will not — accept any offer of employment from any customer, (with whom I worked) in the twelve months immediately preceding my termination or accept any offer of employment from a Named Competitor of Infosys, if my employment with such Named Competitor would involve me having to work with a Customer with whom I had worked in the twelve (12) months immediately preceding the termination of my employment with Infosys.”

The letter was written by the NITES union president, Harpreet Saluja, to the minister stating that the clause violates Section 27 of the Contract Act.

“They are likely to affect the employee’s means of procuring a livelihood for himself and his family. Hence the company should be stopped from enforcing it.” read the letter.

Infosys' Highest Attrition Rate

Recently, IT giant Infosys had also witnessed the highest level of attrition rate in the company, which worsened from 25.5% in the December 2021 quarter to 27.7% in the March 2022 quarter.

Infosys is reportedly looking to hire more than 50,000 employees in FY23 as against the 85,000 hired in FY22.

The company’s net profit for the March 2022 quarter rose about 12% to ?5,686 crore with revenue growth of 22.7% year-on-year at ?32,276 crore.

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