Infosys non-compete clause issue: Working with respective authorities locally and centrally, says CEO

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26 Aug, 2025 12:21

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Infosys, which was summoned by the Central Labour Commissioner and later the Karnataka labour department over the non-compete clause in its employment agreements, said it is working with the respective authorities.

CEO and MD Salil Parekh said that HR leadership of Infosys is working with the respective authorities both locally and centrally.

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The company’s primary concern is related to client confidentiality being observed if and when an employee leaves the company, he added.

“We have no constraints on anything within the company, which precludes anyone from choosing what they want to do. We've had extensive discussions and meetings with the appropriate authorities,” Parekh said.

The Nascent Information Technology Employees Senate (NITES) had written to the Union Labour Ministry and the Ministry of Corporate Affairs in April over the non-compete clause, saying that such a clause was illegal and arbitrary. Following, both parties were summoned by the Chief Labour Commissioner on three occasions, which Infosys is said to have skipped.

ALSO READ: Infosys Q1 results| Overall pipeline strong, good demand outlook on large deals says CEO Salil Parekh

In a written response to the Union government, Infosys had said that employees handle critical and sensitive customer projects, and that the clause is only there for purposes of client confidentiality for “a very limited period only” which people voluntarily accept.

The grievance was then forwarded to the state labour departments in Karnataka, Haryana and Maharashtra. After this, Karnataka summoned the parties for a meeting, when Infosys sought more time to submit.

Following this, the Chief Labour Commissioner forwarded the grievance regarding the clause to the state labour departments of Karnataka, Haryana and Maharashtra, after which Karnataka summoned the parties for a meeting.

Infosys had previously, in a statement, said the clause was a standard business practice in many parts of the world. It said the clause does not “have the effect of preventing employees from joining other organisations for career growth and aspirations”.