The union labour and employment ministry has asked the Karnataka government to take “appropriate action” following complaints of delay in onboarding freshers by information technology (IT) major Infosys.
The ministry directed the Karnataka State Labour Commissioner’s Office to look into the matter and act under the relevant labour laws.
“...it has been requested for intervention in the matter to protect these young graduates from exploitative practices carried out by the companies. Since the appropriate government for action under respective Labour Law in this matter is the State Government, you are requested to look into the matter and take suitable action under intimation to the applicant and this office,” the ministry’s letter dated September 3 said. Moneycontrol has reviewed a copy of the letter.
Moneycontrol has sought Infosys' comments on the Centre's letter and will add the response when it comes in.
Moneycontrol has been writing about how students who were issued offer letters in 2022 were waiting to hear from the Bengaluru-based firm.
On August 20, Pune-based IT union Nascent Information Technology Employees Senate (NITES) submitted a complaint against Infosys for the “ongoing exploitation and unprofessional treatment” of over 2,000 young engineering graduates who were selected for System Engineer (SE) and Digital Specialist Engineer (DSE) roles during the 2022-23 recruitment drive.
These graduates, after being issued offer letters as early as April 2022, were being subjected to “continuous delays in the onboarding process, unpaid pre-training programs, and unexpected additional assessments”.
“This is a major step towards ensuring the protection of employee rights in the IT sector, particularly for new graduates entering the industry. We are thankful towards the government's commitment to safeguarding the welfare of young professionals in the IT sector, who have been subjected to delayed onboarding and other unfair practices,” NITES president Harpreet Singh Saluja said.
On September 3, NITES also claimed that following its complaint, Infosys issued offer letters to 2,000 remaining freshers from 2022 campus hires. According to Saluja, the Bengaluru-based company issued over 1,000 offer letters from the 2022 campus hires after a delay of more than two and half years.
While more than 2,000 freshers from the 2022 batch received their final offer letters from Infosys, around 700 campus hires are still waiting for their joining dates, Moneycontrol reported on September 3.
The company sent offer letters back in 2022 but did not on-board the candidates after the IT industry faced a slump. Fears of a looming recession in IT companies' major markets and the absence of discretionary spending led companies to pause hiring, leading to a multi-decadal decline in headcount.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.