Infosys Gets Clean Chit from Karnataka Labour Department Over Trainee Layoffs

The Karnataka Labour Department has absolved Infosys of any wrongdoing concerning the exit of trainees, stating that the layoffs do not fall under labour law purview. The clean chit was issued based on documentary evidence collected during the department’s inquiry.

A senior labour department official confirmed that a final report might be submitted to the government by March 4. Officials emphasised that the affected individuals were not regular employees but apprenticeship trainees, making labour laws inapplicable in this case.

Nature of the Layoffs: No Employer-Employee Relationship

On February 7, 2025, Infosys reportedly laid off approximately 350-400 trainees at its Mysuru campus after they failed assessment tests three consecutive times. This number represents nearly half of the trainees onboarded in October 2024.

Clarifying the legal stance, a department source stated, “They were all only trainees, with some undergoing training for three months. This cannot be classified as a layoff under labour laws since those laws apply solely to regular employment. There was no employer-employee relationship.”

Labour Department’s Investigation and Government Involvement

Following media reports of the mass trainee layoffs, Karnataka’s Labour Department conducted inspections at Infosys campuses in Bengaluru and Mysuru on 13th February. This probe was initiated after receiving directives from the Union Labour Ministry, which urged state officials to assess the situation and take appropriate action.

Infosys maintained that the company was following its existing policies, which stipulate that freshers unable to clear mandatory assessments cannot continue with the organisation.

Infosys’ Response and IT Employee Union’s Protest Plans

While Infosys has yet to issue an official statement on the latest development, company representatives have previously justified the decision, stating that maintaining high performance standards necessitates weeding out underperforming candidates. The company also asserted that it had provided transport, counselling, and accommodation support for affected trainees.

However, the Pune-based IT employee union, Nascent Information Technology Employees Senate (NITES), remains dissatisfied. On February 26, NITES held a press conference where impacted trainees shared their experiences. The union’s president warned that protests would be organised outside Infosys’ Mysuru campus if the government failed to intervene.

Impact on Infosys Share Price

Infosys share price declined by over 3% in early trading on February 28, 2025.

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