A formal complaint has been filed against Infosys with the Ministry of Labour & Employment by the Nascent Information Technology Employees Senate (NITES), alleging the unlawful termination of trainees at its Mysuru Campus. The IT employee association has labelled the move as a violation of labour laws, calling for immediate government intervention.
The issue highlights key concerns for HR professionals, including workforce planning, compliance with employment regulations, and ethical considerations in employee exits—particularly in cases involving fresh graduates transitioning into the corporate workforce.
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According to NITES, Infosys recently asked around 700 trainees to resign, citing performance-based terminations. These employees were recruited over two years ago but were only onboarded in October 2023. NITES argues that the terminations violate provisions of the Industrial Disputes Act, 1947, and raise concerns about corporate accountability in hiring commitments.
In a letter to Union Minister Mansukh Mandaviya, NITES President Harpreet Singh Saluja urged the ministry to:
- Conduct an immediate investigation into the terminations.
- Issue a restraining order to prevent further dismissals without due process.
- Reinstate the affected employees with appropriate compensation for wrongful termination.
For HR leaders, this situation underscores the risks associated with delayed onboarding, contractual obligations, and employee engagement strategies—all of which impact employer branding and workforce trust.
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Infosys’ Response: A Matter of Performance or Policy?
Infosys, however, has contested the claims, stating that the actual number of affected employees is fewer than 350 and that the departures were part of a longstanding internal assessment process.
“All freshers undergo foundational training at our Mysuru campus and receive three attempts to clear the internal assessments. Those who fail are unable to continue with the organization, as per their contractual terms,” Infosys stated. The company asserts that this performance evaluation system has been in place for over two decades to maintain a high standard of talent for its clients.
While Infosys has framed these exits as mutual separations, NITES argues that the process lacked transparency and fairness. This raises critical questions for HR leaders about how performance assessments, training programs, and exit strategies should be structured to align with both business goals and ethical employment practices.
Key Takeaways for HR Professionals
This case serves as a reminder of the importance of:
- Ethical Hiring Practices – Long onboarding delays can impact employer reputation and candidate experience.
- Compliance with Labor Laws – Termination policies should be reviewed for adherence to labour laws to mitigate legal risks.
- Transparent Performance Management – Clarity in training, evaluation criteria, and communication is crucial for managing employee expectations.
- Employee Engagement Strategies – Ensuring support mechanisms for struggling employees can help avoid large-scale exits and negative employer branding.
As regulatory scrutiny increases, HR leaders must navigate the balance between performance-driven decision-making and fair employment practices. The response from the labour ministry will set a precedent for how organisations handle similar workforce transitions in the future.
