A Pune-based IT employees union had sought the Union Labour Minister’s intervention to remove the non-compete clause, which it termed as 'illegal and arbitrary’.

Infosys signboard
Atom Infosys Wednesday, April 27, 2022 - 18:17

Taking note of the complaint by a Pune-based IT employees union, the Ministry of Labour & Employment has issued a notice to Infosys for joint discussion regarding its non-compete agreement. The Nascent Information Technology Employees Senate (NITES) had last week written to Union Labour Minister Bhupender Yadav seeking his intervention to remove the non-compete clause in the employment agreements offered by Infosys to its IT as well as BPO employees, which it termed as “illegal and arbitrary”. It had also complained to the Ministry of Corporate Affairs. 

“We are highly thankful to Hon'ble Minister of Labour and Employment Shri Bhupendra Yadav, for taking prompt action to safeguard the interests of IT Employees. All the Infosys & IT sector employees are hopeful & looking forward for favourable Government's decision” a statement issued by NITES said.  

A non-compete agreement has to be signed by Infosys employees, which forbids them from joining rival companies that are in competition for a specified period. NITES President Harpreet Saluja had said that the matter was being taken up for consideration now as employees of Infosys have complained to it regarding the clauses.

The non-compete agreement reads:
“For the period of six months after leaving Infosys, employees will not
> Accept any offer of employment from any customer, (with whom I worked) in the twelve months immediately preceding my termination.
> 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.”

TCS, Accenture, Cognizant, IBM and Wipro are among the named competitors. Infosys BPM (Business Process Management) workers have also received a similar non-compete agreement, which specifies nine competitors viz. TCS, IBM, Wipro, HCL, Accenture, Cognizant, WNS, Tech Mahindra and Genpact. 

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