An interim report by the Karnataka labour department has concluded that Infosys did not violate any labour laws in its recent terminations. The review, led by Additional Labour Commissioner (Industrial Relations) G Manjunath, was conducted on the directives of Labour Minister Santhosh Lad. The team inspected Infosys campuses in Mysuru and Bengaluru and examined documents related to the hiring process.
Trainees, Not Employees
A government official clarified that the individuals in question were trainees under an apprenticeship program, not employees. “There was no employer-employee relationship as they were never given appointment letters. They were trainees receiving stipends for three months,” the official stated. The government also reiterated that it does not intervene in a company’s hiring process.
Infosys Terminology Under Scrutiny
According to the inspection, 329 students failed to clear the required assessment, while over 600 from the 2022 batch progressed. The government noted that Infosys’ terminology regarding these terminations was misleading, as these individuals had not yet become full-time employees.
Higher Failure Rate Among 2022 Batch
In February, Infosys dismissed trainees hired off-campus over two years ago, citing failure in internal assessments. Typically, failure rates in such assessments are around 5%, but this time, it was 33%. Infosys attributed this increase to the 2022 batch, which faced academic disruptions during the COVID-19 period.
Dispute Over Layoff Numbers
While NITES, an IT employees’ welfare association, claims that nearly 700 trainees were dismissed, Infosys maintains the number is below 350. The Prime Minister’s Office has received over 100 complaints from affected individuals seeking reinstatement and protection against similar terminations.
Legal Perspective on Terminations
Legal experts note that employment contracts in IT firms usually include termination clauses. Unless terminations are based on arbitrary factors like discrimination, they remain legally valid. Infosys, in a statement, defended its process, emphasizing that its evaluation criteria were clearly outlined and communicated to all trainees.
Infosys Faces Backlash but Stands by Process
Industry experts believe that while Infosys’ handling of the situation has drawn attention, such terminations are common in the IT sector. The controversy has escalated primarily due to the way it unfolded on social media. Experts suggest that while Infosys could have managed the process better, the company is unlikely to have acted unfairly.
