A recent report from the Karnataka labour department has concluded that IT giant Infosys has not breached any labour laws in connection with the termination of trainees at its Mysuru campus. The report, which was submitted to the state government, states that the affected individuals were not employees but trainees who were part of an apprenticeship programme.
Infosys’ Chief Human Resources Officer (CHRO), Shaji Mathew, emphasized that the company had not employed coercive measures in terminating these trainees. He also clarified in an interview with PTI that the evaluation tests for trainees were not deliberately structured to ensure failure.
Government Review of Terminations
Following concerns over mass layoffs, Karnataka’s labour minister, Santhosh Lad, directed a team led by Additional Labour Commissioner (Industrial Relations) G. Manjunath to review the terminations. The team visited both the Mysuru and Bengaluru campuses of Infosys to assess whether the company had acted within legal boundaries.
According to an Economic Times report, the state labour department’s findings indicate that Infosys has not violated any existing labour laws. The final report is expected by March 4 or 5, and a copy will also be sent to the Union labour department for further assessment. HT.com has not independently verified the authenticity of this information.
No Employee-Employer Relationship
The labour department determined that the terminated individuals were never legally recognized as employees. They were engaged as trainees for a period of three months and were provided stipends as part of their apprenticeship programme. Since no formal appointment letters were issued to them, there was no contractual employee-employer relationship, making their termination legally permissible.
An unnamed government official cited in the report explained that the state has no authority to interfere in a company’s internal selection process. As a result, Infosys’ decision to discontinue these trainees falls within the company’s discretion.
Background of the Layoffs
The terminations in question involve hundreds of trainees whom Infosys had recruited both through on-campus and off-campus hiring processes approximately two-and-a-half years ago. However, their onboarding was only completed in October of the previous year. Despite their initial selection, a company-administered test led to the disqualification of 329 trainees. Meanwhile, more than 600 trainees from the same 2022 batch successfully progressed through the assessment.
Industry and Government Perspectives
While the Karnataka labour department has ruled out any legal violations, the issue highlights the ongoing concerns regarding employment stability in India’s IT sector. Industry experts suggest that apprenticeship programmes are typically structured to provide short-term learning opportunities rather than guarantee permanent employment.
Infosys has maintained that the terminations were part of a standard training evaluation process and that it adhered to all regulatory guidelines. The company’s stance is that the assessment mechanism ensures that only candidates who meet the required standards proceed to full-time roles.
Nevertheless, the mass termination of trainees raises questions about transparency in hiring practices and the expectations set for recruits. While companies have the right to evaluate and filter candidates based on merit, clarity in communication regarding selection criteria and job security remains crucial for maintaining trust between employers and potential employees.