Infy’s Non –compete clause: IT UNION MOVES Labour ministry                                                                                                                          

A Pune- based labour union has raised a complaint against Infosys with the central labour ministry and sought removal of a non-compete agreement clause in offer letter given by the country’s second largest software firm. The company’s employee agreement states that an employee shall not accept for six months an employment offer from “ named competitors “such as TCS, Wipro and HCL among others if the new job involves working with a customer with whom the employee has previously worked with in the preceding 12 months during their stint at Infosys, Nascent information  employee senate said in its complaint.                                                                        

It also says for six months they should not accept employment offer from a customer directly with whom they have worked within the preceding 12 months during their stint at infoys.ET has reviewed copies of the union’s complaint letter and the company’s employment agreement. Infosys did not respond to ET” S request for comments till press time Tuesday.

The IT industry has been battling with an acute talent crunch for the last few quarters. For Infosys, attrition rate hit record levels at 27.7%for the quarters ended march while for bigger rival TCS the metric stood at 17.4% “Attrition for the years is higher but in the march quarters it has stabilized and is down by 5% sequentially both in percent- age and absolute headcount, “ Nilanjan Roy, chief financial officer of Infosys, said during the post –earning conference last week. He said he expects “over a period of six months. Infosys has cited five companies for IT services’ employee agreements and nine companies in business process management employees’ agreements as ‘named competitors’. These companies are Tata consultancy services, cognizant technology solutions, IBM, Accenture and Wipro for it services employees, and tech Mahindra, Genpact, IBM, Cognizant Technology solutions, Wipro, and HCL Technologies for BPM workers, according to offer letters reviewed by ET.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *