Karnataka Labour Department Clears Infosys Of Legal Violations In Layoffs: Report

The official further clarified that the state government cannot intervene in the selection process of any private company, according to the report

The investigation was led by Additional Labour Commissioner (Industrial Relations) G Manjunath

Source : Glassdoor

The Karnataka labour department has found no violation of labour laws in Infosys' recent terminations, according to an interim report submitted to the state government. The department clarified that the affected individuals were trainees, not employees, and as such, the company had not violated any legal requirements, as reported by The Economic Times.

The final report is expected to be submitted within a week, and a copy will also be sent to the Union Labour Department for further review. A senior government official involved in the investigation confirmed that the layoffs did not violate any laws, states the report.

No Violation Found

"We have not found any violation of labour laws in our inspection at Infosys. There was no employee-employer relationship between them in the first place. They were not even given appointment letters to be called employees. They were trainees for three months, receiving stipends as part of an apprenticeship programme," the official said as quoted by ET.

The official further clarified that the state government cannot intervene in the selection process of any private company. However, all required information has been collected from Infosys, and a final report will be submitted by March 4 or 5.

The investigation was led by Additional Labour Commissioner (Industrial Relations) G Manjunath. Following instructions from Karnataka Labour Minister Santhosh Lad, the team visited Infosys campuses in Mysuru and Bengaluru, reveals the report.

Incorrect Terminology

According to the government’s inspection, 329 trainees did not pass the assessment test, while over 600 trainees from the 2022 batch advanced to the next stage. The labour department pointed out that Infosys had used incorrect terminology to describe the situation. The official clarified, "These are not really terminations, as they were only trainees for a few months. To become employees on probation, they had to clear the tests,” states the report.

On February 7, Infosys let go of hundreds of trainees hired off-campus two-and-a-half years ago, who had only been onboarded in October 2023. The company stated that these trainees failed to pass an internal assessment program, which was required for continued employment.