IT workers’ union nascent Information Technology Employees Senate (NITES) has reportedly written a letter to Labor and Employment Minister Bhupendra Yadav against software major Infosys. The employees alleged that Infosys has an ‘illegal’ clause in its contracts that bar them from working for similar customers, even if the employee quits and works in a rival IT company.
According to the allegations, Infosys has asked its employees to sign a non-compete clause that bars employees from working for the same client in rival firms such as TCS, Accenture, IBM, Cognizant and Wipro etc. The clause is allegedly illegal as it violates Section 27 of the Contract Act, NITES President Harpreet Saluja said in a letter.
In the letter addressed to the Minister of Labor and Employment, Bhupendra Yadav, it has been said that Infosys has imposed a non-compete clause which barred employees from working for the same customers with whom they had worked in the company for the last 12 months. They cannot work with those clients in the above rival firms for six months after leaving Infosys. Furthermore, it prevents them from working only for those customers.
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For a period of six months after leaving Infosys, the employee shall not accept any offer of employment from any customer (with whom the employee has worked) in the 12 months immediately preceding the termination, in accordance with clause.
The letter states that these clauses are unnecessarily harsh and oppressive and are likely to affect the livelihood of the employee. “Therefore the company should be prevented from implementing this,” the letter said.
Infosys has claimed that this is a standard practice and is fully disclosed to employees before joining the company. “It is standard business practice in many parts of the world to include appropriate scope and duration controls in employment contracts to protect confidentiality of information, customer connections and other legitimate business interests. All before deciding to join Infosys These are fully disclosed to the job seekers, and have no effect to deter employees from joining other organizations for career growth and aspirations,” Infosys said in a statement.
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Meanwhile, Infosys has announced its fourth quarter earnings where the company reported a profit of Rs 5,686 crore as on March 31. the company had hired Total 54,396 employees in the previous year, The target is to hire more than 50,000 freshers this year. This comes at a time when the workforce for Infosys has swelled amid a surprising new war for tech talent in the country. Infosys CEO Salil Parekh said attrition stood at 27.7 per cent.
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