Infosys gets clean chit from Karnataka Labour department in trainee layoffs; “no employer-employee relationship at all”

A source said layoff law applies only when there is regular employment.

The Karnataka Labour Department on February 27 cleared software major Infosys of any labour law violations related to the exit of trainees, based on the documentary evidence collected.

Sources told Moneycontrol that the department has given a clean chit to Infosys based on the documentary evidence collected.

"We may submit a final report to the government on March 4," said a senior labour department official.

"They were all only trainees, and some underwent training for three months. We cannot call it a layoff, so these labour laws are not applicable in such cases. A layoff applies only when there is regular employment. There is no employer-employee relationship at all. They were all apprenticeship trainees, not employees," a source said.

On February 7, software major Infosys laid off around 350-400 trainees at its Mysuru campus after they failed evaluation tests in three consecutive attempts. This is approximately half of the trainees onboarded in October 2024.

On February 13, Moneycontrol reported that Karnataka’s Labour Department officials visited Infosys’ campuses in Bengaluru and Mysuru to assess the situation following reports of trainee layoffs. This was preceded by a mail from the Union Labour Ministry, directing the Karnataka Labour Commissioner and Labour Secretary to examine the matter and take urgent necessary actions to resolve the dispute.

Infosys has, so far, maintained that the company has followed existing policy as per which the freshers will not be able to continue with the organisation if they fail the assessment.

No Infosys representative was immediately available for comment on the development.

Infosys officials have also said that weeding out poor performers was necessary to maintain high quality in its ranks, adding that they facilitated transport, counselling and accommodation for trainees who were impacted.

On February 26, the Pune-based IT employee union Nascent Information Technology Employees Senate (NITES) held a press conference, where several affected employees shared their experiences. Moneycontrol could not independently verify their identity.

NITES president Harpreet Singh Saluja had said that if the government fails to take appropriate action, protests will be organised outside the Infosys Mysuru campus.