Infosys has dismissed an additional 195 trainees from a batch of 680 following internal assessment failures, according to company emails dated April 29, reviewed by Moneycontrol.
This represents the fourth round of exits at the Bengaluru-based software giant, bringing the total number of affected trainees to approximately 800 since February. Of those impacted, around 250 have enrolled in upskilling programmes through UpGrad and NIIT, while about 150 have registered for outplacement services.
Infosys has tied up with UpGrad for BPM training and with NIIT for IT training.
While India’s second-largest IT services company terminated about 240 on April 18, the Indian IT services firm let go of more than 300 trainees under similar circumstances in February, followed by 30-35 in March. Infosys is offering those affected free upskilling programs through NIIT and UpGrad.
The layoffs come as Infosys navigates a subdued demand environment. The company has forecast revenue growth of just 0 percent to 3 percent for the current fiscal year, underscoring continued uncertainty in its core markets.
“Further to the announcement of the results of your final assessment attempt, please be informed that you have not met the qualifying criteria in the ‘Generic foundation training program’ despite the additional preparation time, doubt-clearing sessions, several mock assessments and three attempts. As a result, you will not be able to continue your journey for the apprenticeship program,” the email sent on April 29 read, similar to the one received earlier in the month.
The software major is offering alternative career path to the affected trainees, including 12 weeks of training for potential roles in Infosys Business Process Management (BPM), who were on-boarded after a delay of over 2.5 years.
Additionally, Infosys said it will sponsor the training for those who opt for the BPM course. Company is also offering a one-month ex-gratia payment along with a relieving letter for the affected trainees.
For those unwilling to take the BPM career path, the company will arrange transport from Mysuru to Bangalore and a standard travel allowance to their hometown. If required, trainees can avail of accommodation at the Employee Care Centre in Mysore until their departure date.
Clean chit
On February 27, the Karnataka Labour Department cleared Infosys of any labour law violations related to the exit of trainees, based on the documentary evidence collected.
"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.
Earlier, 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.
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