IT major, Infosys, has implemented a new rule for employees resigning from the organization. As per the new rule, they can’t work with the ‘named competitors’ for 6 months, if their clients are the same as that of Infosys.
Nascent Information Technology Employees Senate or NITES has filed a complaint against this unfair rule.
After illegal employment bonds, unreasonable notice period here comes another inconsequent clause to exploit careers of IT and ITES employees. #NITES is filing a complaint to @LabourMinistry against Infosys for removing such illegal clause from the employment letters. #Infosys pic.twitter.com/XzwlW70r2b
— Nascent Information Technology Employees Senate (@NITESenate) April 17, 2022
The employees are now worried over the new rule who have resigned or are planning to resign as this curtails their options once they resign.
Briefly explaining in simple terms, in case any employee resigns, then for the next 6 months, they are banned from working for TCS, IBM, Cognizant, Wipro, and Accenture, in case they have the same clients.
According to NITES, the company has added a new clause in the offer letter for new employees that states:
“In 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:
- 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;
- 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.”
Nascent Information Technology Employees Senate (NITES) has filed a complaint with the Ministry of Labour & Employment after receiving the complaints from Infosys employees.
Harpreet Saluja, President, NITES, said, “The restriction contained in the Employment letter which is mentioned above is clearly restraint of trade and therefore illegal under section 27 of the Contract Act.”
“We have submitted an official complaint to the Labour Ministry and Ministry of Corporate Affairs for appropriate actions & issuing necessary orders to Infosys Ltd. for removing such illegal, unethical and arbitrary clause from the employment agreements.” He added.
Due to rise in demand, IT industry is facing high attrition post-pandemic. Infosys itself has reported a record-high attrition 27.7 per cent during January-March 2022. However, it’s a challenging time to retain the Talent but such practices can’t be appreciated.
