The union government has asked the Karnataka labour department to look into the recent employment termination of around 350 freshers by Infosys at its Mysuru campus. The complaint, raised by an IT employees’ union, claims these dismissals were unfair and unethical. The inquiry will determine whether Infosys followed proper rules and legal procedures.
Infosys let go of around 350 freshers after they failed internal assessments despite being given three chances. These tests, conducted at Infosys’ training centre in Mysuru, evaluated trainees on Java programming and database management systems (DBMS), with a required passing score of 65 per cent. The mass termination has raised concerns about how IT companies hire and fire employees, especially at a time when the global economic slowdown has led to cautious hiring practices.
There could be possible outcomes of the investigation the Karnataka labour department will conduct. One possibility could be the rehiring of terminated employees. Experts point out that if Infosys is found to have violated labour laws, the Karnataka labour department may ask the company to reinstate the terminated employees, possibly with compensation.
Another possibility could be to impose legal penalties on Infosys. “If the inquiry finds that Infosys did not follow fair termination policies, it could face fines, legal penalties, or other consequences under Indian labour laws. At the same time, there could be changes in company policies and the case might lead Infosys and other IT firms to rethink and improve their hiring and firing policies.
This could include clearer guidelines on assessment criteria, better communication with employees, and more training support before termination decisions are made,” remarked space and industry expert Girish Linganna.
A few experts also point out that the investigation might encourage IT companies to strengthen internal grievance redressal systems, ensuring that employees have a fair process to raise complaints and seek solutions.
Interestingly in previous cases, when IT employee unions have filed complaints, different outcomes have emerged. Some companies had to reinstate employees and provide compensation, while others were forced to change policies to make hiring and firing practices more transparent. Even when reinstatement wasn’t granted, such complaints increased scrutiny on IT firms, leading to better job security and fairer policies.
“A comparable incident occurred in early 2023 when Wipro terminated more than 400 freshers after they failed internal assessments. Wipro explained that these trainees were given multiple chances to improve but were ultimately let go for not meeting performance standards. This sparked criticism from employee unions, who questioned the fairness of hiring freshers, training them for months, and then dismissing them based on internal tests. The issue was brought to the Karnataka labour department, though no legal action was taken. The backlash, however, forced Wipro to reassess its training and termination policies, showing how public pressure can influence corporate decisions,” observed Linganna.
As per market analysts much like the current Infosys case, Wipro’s mass terminations highlighted concerns about job security for freshers in the IT industry. This example shows how similar complaints have led to policy changes and discussions on fair hiring practices.
HR experts point out that employees in the IT sector have several options to report unfair treatment and seek justice. Many IT companies have internal grievance committees where employees can report concerns and request investigations. These teams handle workplace issues and aim to resolve disputes fairly. Organizations like NITES (Nascent Information Technology Employees Senate) advocate for IT employees by filing complaints, negotiating with employers, and providing legal help. If internal systems fail, employees can approach labour courts, which have the authority to enforce fair workplace policies and resolve disputes legally.
Experts say that in serious cases, state and central labour departments step in to investigate companies and enforce compliance with labour laws. This ensures that companies treat employees fairly and follow legal guidelines. The Infosys termination case brings attention to the need for clear and transparent hiring and firing practices in India’s IT sector. The investigation could result in reinstatement of employees, penalties for Infosys, or changes in company policies.
“The investigation by the Karnataka labour ministry is expected to thoroughly examine Infosys HR policies and assess the circumstances surrounding the reported terminations. Typically, the department acts as a mediator between the organisation and employees, facilitating discussions to arrive at a resolution that is fair to both parties. This study could kick off a new practice influencing industry-wide practices around manpower planning, recruitment and managing the life cycle of employees,” remarked Aditya Narayan Mishra, MD and CEO of CIEL HR.