Infosys mass layoffs: Centre orders Karnataka to take ‘urgent action’

The Ministry of Labour and Employment has directed Karnataka’s state labour department to take urgent action regarding Infosys’s termination of employees at its Mysuru campus, following complaints from an IT employees’ association. In a letter from the office of the chief labour commissioner, as viewed by the Times of India, the central ministry instructed state officials to investigate the matter and report back to both the association and the Labour Ministry.

The intervention comes after the Nascent Information Technology Employees Senate (NITES), a registered IT workers’ body, lodged a formal complaint, labelling the terminations as “illegal, unethical, and in violation of labour laws.”

Infosys defends terminations, NITES disputes claims

Infosys claims that fewer than 350 employees resigned through “mutual separation”, stating that they had failed three attempts at an internal assessment following foundational training. However, NITES disputes this figure, arguing that the actual number of affected employees is closer to 700.

“All freshers get three attempts to clear the assessment, failing which they will not be able to continue with the organisation, as is also mentioned in their contract. This process has been in existence for over two decades and ensures a high quality of talent availability for our clients,” the company said in a statement last week.

Infosys under fire for ousting trainees

The dispute gained attention after reports emerged that trainees were given only three hours to resign, with instructions to vacate the Mysuru campus by 6 pm on February 7. Many of these employees, hired as system engineers with monthly salaries below Rs 17,000, were left stranded without accommodation.

Many trainees also claimed that the test syllabus and criteria were later changed, making it harder to pass, according to a report by The Economic Times. NITES in response condemned the move as “shocking and unethical”.

“It has come to our attention, through numerous complaints, that Infosys Ltd. has resorted to forcibly terminating recently onboarded recruits, who had already suffered a two-year delay in their joining after being issued offer letters,” NITES said in its complaint.

Labour ministry steps in

NITES has demanded an immediate investigation, along with the reinstatement of terminated employees with compensation. The association warned that Infosys’s actions could “set a dangerous precedent for the IT industry”, potentially encouraging other companies to adopt similar cost-cutting measures under the guise of performance assessments.

Infosys’s decision to fire the Mysuru trainees has drawn scrutiny from employee unions and industry analysts. Some accuse the company of using internal assessments as a cost-cutting strategy.