Infosys Layoffs: Centre intervenes again after NITES’ latest claims, company dismisses allegations

The letter, issued by the Office of the Chief Labour Commissioner (C), comes in response to multiple complaints addressed to the Prime Minister’s Office (PMO).

The Union Ministry of Labour and Employment has issued a second letter to the Karnataka Labour Commissioner, urging intervention in the layoffs of trainees at Infosys' Mysuru campus.

“You are requested to look into the matter and take necessary action, keeping both the applicant and this office informed,” according to the letter dated February 25, seen by Moneycontrol.

The applicants are Pune-based IT employee union Nascent Information Technology Employees Senate (NITES), along with over 100 affected former Infosys trainees who were terminated.

The Union Labour Ministry also directed the Karnataka Labour Commissioner to submit a detailed report on the actions taken in this matter.

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.

Then, company officials had 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 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.

As it happens, the trainees were onboarded after a two-and-a-half-year-long wait, necessitated by a macroeconomic slowdown triggering clients of IT companies to halt spending on projects.

The letter, issued by the Office of the Chief Labour Commissioner (C), comes in response to multiple complaints addressed to the Prime Minister’s Office (PMO).

Infosys dismisses claims 

NITES held a press conference on February 26, where several affected employees shared their experiences. Moneycontrol could not independently verify their identity.

“Infosys takes great pride in the quality of its employees and provides one of the finest training programs that has been globally recognized as a leading foundation program in the industry. Every trainee joins with the clear understanding that performance evaluations are an integral part of their development and progress", the software services firm said in a statement on February 26, 2025.

"While we understand the disappointment of individuals who have not been able to clear the assessment, it is important to understand facts surrounding this situation", the statement further said.

"Each trainee that joins Infosys, fills an Apprenticeship Registration Form accepting their apprenticeship with Infosys, where the training cost is borne entirely by Infosys. Our testing processes are articulated in the evaluation policy document and also communicated proactively to all trainees. Also, as part of the evaluation process, negative marking is across all the three attempts where Multiple-Choice Questions formats are followed."

"This is part of the evaluation policy document and also communicated proactively at the time of induction of our trainees. Furthermore, all eligible trainees (over 98%) have received their relieving letter upon separation, along with outplacement services, severance pay, counselling among other measures, as shared earlier", the company added.

Issues Raised

NITES president Harpreet Singh Saluja alleged that in 2024, the Karnataka State Labour Ministry attempted to shield Infosys by citing the absence of employee names in the complaints. “This time, we escalated the issue to the Central Labour Ministry as well... Every affected employee has submitted their personal grievances to both the state and central governments,” he said.

A former trainee alleged that the company enrolled all trainees in the central government’s National Apprenticeship Training Scheme, which grants Rs 9,000 per trainee for 12 months. However, the tech giant did not pay the full amount, as they were asked to leave after about four months following multiple rounds of assessments.

Trainees, in the conference, also accused Infosys of failing to inform them that incorrect answers in their assessments would result in negative markings.

Moreover, some trainees also alleged that they had not received their relieving letter upon separation.

Also, read: Dreams shattered, careers in limbo after two and a half years' wait: Inside Infosys trainee layoffs

For now, Saluja has said he will ensure a thorough investigation by the authorities. He added that if the government fails to take appropriate action, massive protests will be organised outside the Infosys Mysuru campus.