The new rule of Infosys regarding employment contracts has caused huge controversy and now NITES has filed a complaint against this law as the company bans ex-employees
Infosys, one of India’s top five IT businesses, has instituted a new regulation for all of their ex-employees thatย they can’t work for ‘identified rivals’ for six months if their clients are the same as Infosys’.
Employees who have quit or are intending to leave Infosys are concerned about the new regulation since it limits their alternatives when they depart.
The NITES (Nascent Information Technology Employees Senate) has filed a complaint against this discriminatory rule.
Infosys Bans Ex-Employees From Working For Rival Companies
Infosys has included a new, highly strict conditionย to their offer letter for prospective employees, which states:
โIn consideration of the above, I agree that for a period of six (6) months following the termination of my employment with Infosys for any reason, I will not:
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accept any offer of employment from any Customer, where I had worked in a professional capacity with that Customer in the twelve (12) months immediately preceding the termination of my employment with Infosys;
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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.
Furthermore, the organisation has identified the five big IT firms as competitors and they are TCS, IBM, Cognizant, Wipro and Accenture.
In simpler terms, if an Infosys employee leaves the company, they are barred from working for TCS, IBM, Cognizant, Wipro, or Accenture for the next six months if they had the same clients as Infosys employees in the previous year.
Reason Behind The Implementation Of This New Rule Of Infosys
The whole IT sector is currently facing significant losses, and a skills competition is unfolding. More than 80,000 Infosys workers departed in the previous three months, according to reports, bringing the company’s turnover rate to 27%.
The same is true of other major IT organisations, and because Infosys is one of them, they want to put an end to it, and the introduction of the newย regulation demonstrates their desire to keep employees from quitting.
NITES Filed Complaint Against This Rule
NITES, or the Nascent Information Technology Employees Senate, has filed a complaint with the Ministry of Labour and Employment after getting complaints from Infosys employees.
Harpreet Saluja, President, Nascent Information Technology Employees Senate NITES, has filed a complaint, which states:
The restriction contained in the Employment letter which is mentioned above is clearly in restraint of trade and therefore illegal under section 27 of the Contract Act.
They further added,
It is not seeking to enforce the negative covenant during the term of employment of the employee but after the termination of his service. If the agreement on the part of the employee puts a restraint even though partial, it is void, and, therefore, the contract must be treated as one which cannot be enforced.
They went on to sayย that the employment law is capable of affecting the employee’s ability to provide for himself and his family.
As a result, NITES has filed an official complaint with the Ministry of Labour and the Ministry of Corporate Affairs, requesting that appropriate action be taken and that required directives be issued to Infosys Ltd. to remove such unlawful, immoral, and unfair clauses from employment contracts.
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