Infosys is an Indian multinational Information Technology company that offers business consulting, information technology, and outsourcing services. Recently, the company has inflicted a new mandate on all employees who quit the company. The company demanded the resigned employees that they must not provide their services at prominent companies like Accenture, Cognizant, IBM, TCS, and Wipro for 6 months.
Seeking the withdrawal of the restrictive covenant, an IT employee union has filed a complaint with the Labour Ministry against Infosys. The complaint filed by the IT employee union Nascent Information Technology Employees Senate (NITES) was based on multiple grumbles from employees of the company.
The employees’ complaint reads that the specification brought by Infosys was unlawful under Section 27 of the Contract Act, as it was playing havoc with the rights of the employees. According to the reports, more than 80,000 employees have walked down from the company.
A restrictive covenant is an agreement that employees have to sign that prohibits them from joining rival companies that are in competition for a specified period. The Indian IT sector has been witnessing high records in attrition numbers and for the 4th quarter of FY22, Infosys viewed 27.7% voluntary attrition. The company plans to hire 50,000 freshers in FY23 to combat the problem. Infosys hired 85,000 freshers in FY22.