Leading IT giant Infosys has made a sensational decision. Infosys, one of the top 5 Indian IT companies, has imposed a new rule on all employees who resign from their company. The tech firm’s new rule stipulates that resigned employees must not work for six months at well-known companies such as TCS, Accenture, IBM, Cognizant and Wipro, which are similar to Infosys.
However, the decision of Infosys has come as a shock to its employees. In the following suit, an IT employee union has filed a complaint with the Labour Ministry against Infosys seeking the removal of the non-compete clause, which bans employees from working for the same customer in rival firms.
The complaint filed by the IT employee union Nascent Information Technology Employees Senate (NITES) was based on multiple complaints from Infosys employees.
The complaint alleges that the provision brought by Infosys was illegal under Section 27 of the Contract Act. It was alleged that it was morally damaging the rights of the employees.
This comes at the back of increased attrition the companies are facing at the back of increased demand. Attrition rates are also high at Infosys. It is learned that more than 80,000 employees have resigned from Infosys in the last 3 months. The company’s attrition rate has risen significantly to 27 percent. It seems that the company has brought in this strict rule in order to stop the migration of employees from Infosys.