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Labour Ministry calls Infosys for joint discussion on non-compete clause

As per the clause, employees who have quit the firm are banned from working with the clients, with who they were associated for 12 months before they quit.

April 27, 2022 / 07:33 PM IST
 
 
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The Labour Ministry issued notice to Infosys to hold a joint discussion on April 28 regarding the enforcement of the non-compete agreement, which banned former employees from working for the same customers in rival firms for six months.

This comes after the Nascent Information Technology Employees Senate (NITES), an IT union, filed a complaint with the ministry on April 18 seeking removal of the clause and alleged that enforcement of the clause was unethical and illegal due to rising attrition.

Since then, the agreement has stirred a debate in the industry with some pointing out that the clause is needed to protect employers given sensitive data that employees handle, whereas others said it’s hardly practical when it comes to enforcement.

Notice to Infosys