NITES files complaint with Centre against Infosys over employment clause for staffers

by IANS |

Bengaluru, April 20 (IANS) Nascent Information Technology Employees Senate (NITES) has raised a complaint against IT giant Infosys with the Centre over the contract guidelines for restricting former employees from working with competitors TCS, Wipro, Cognizant, IBM and Accenture.

NITES, an NGO working for welfare and benefits of IT/ITES and its related sector employees and actions focused on various issues faced by IT/ITeS/BPO/KPO employees, has submitted an official complaint to the Ministry of Labour and Employment, Government of India and Ministry of Corporate Affairs against Infosys in this regard.

In its complaint NITES has urged for appropriate action against Infosys and demanded issuing necessary orders to Infosys Ltd for removing such illegal, unethical and arbitrary clauses from the employment agreements, according to a statement by NITES.

Infosys, one of the leading Indian IT companies of the world based in Bengaluru has issued a new guideline for resigned employees recently not to join work with specified competitors for 6 months. Infosys employees, who are planning for resignation and who have resigned, raised concerns about their career being affected with the new rule.

The rule added as a clause in the offer letter stated, "I agree that for a period of 6 months following the termination of my employment with Infosys for any reason, I will not; a. accept any offer of employment from any customer, where I had worked in a professional capacity with that Customer in 12 months immediately preceding the termination of my employment with Infosys.

b. 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 12 months immediately preceding the termination of my employment with Infosys," according to sources.

The sources further stated that the company has named five major IT firms as their competitors: TCS, IBM, Cognizant, Wipro and Accenture. It is said that Infosys has taken the decision to counter severe attrition rates.

Harpreet Saluja, President NITES, has lodged a complaint stating that the clause for Infosys employees is illegal under Section 27 of the Contract Act and urged that the company should be stopped from enforcing it.

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