Union Labour Ministry has once again intervened in the ongoing dispute between Infosys and the Nascent Information Technology Employees Senate (NITES) over the recent layoffs of trainees at Infosys’ Mysuru campus.
The intervention comes after NITES raised fresh claims against the IT giant, alleging unfair termination practices.
Infosys, however, has dismissed these allegations, maintaining that the layoffs were conducted in accordance with their established evaluation policies.
The controversy began when Infosys laid off approximately 350-400 trainees at its Mysuru campus on February 7, 2025.
These trainees, who were onboarded in October 2024 after a two-and-a-half-year wait due to a macroeconomic slowdown, failed to clear evaluation tests in three consecutive attempts.
The layoffs affected nearly half of the trainees who had joined the company during this period.
NITES’ Allegations on Infosys and Government Intervention
NITES, a Pune-based IT employee union, has been at the forefront of the protests against Infosys’ actions.
The union, along with over 100 affected former trainees, lodged multiple complaints with the Prime Minister’s Office (PMO) and the Union Ministry of Labour and Employment.
NITES alleged that the layoffs were conducted without proper communication and that the trainees were not informed about the negative marking system in their assessments.
The union also claimed that Infosys enrolled the trainees in the National Apprenticeship Training Scheme.
However, Infosys did not pay the full amount of the stipend, as the trainees were asked to leave after about four months.
In response to the complaints, the Union Labour Ministry issued a second letter to the Karnataka Labour Commissioner on February 25, 2025, urging intervention in the matter.
The ministry directed the Karnataka Labour Commissioner to submit a detailed report on the actions taken to address the situation.
This was not the first time the government had intervened.
Earlier, on February 13, Karnataka’s Labour Department officials visited Infosys’ campuses in Bengaluru and Mysuru to assess the situation following reports of trainee layoffs.
Infosys’ Response
Infosys has consistently defended its decision to lay off the trainees. The company states that it follows a rigorous hiring and training process.
According to Infosys, the trainees were aware that performance evaluations were an integral part of their development and progress.
The company asserted that the evaluation process was clearly communicated to all trainees at the time of induction. This included information about negative marking.
Infosys also emphasized that the training cost was borne entirely by the company. The company stated that all eligible trainees received their relieving letters upon separation.
In a statement issued on February 26, 2025, Infosys reiterated its commitment to maintaining high-quality standards among its employees.
The company stated that weeding out poor performers was necessary to ensure the overall quality of its workforce.
Infosys also highlighted the support provided to the affected trainees, including transport, counselling, and accommodation.
Press Conference and Public Reaction
On February 26, 2025, NITES held a press conference where several affected employees shared their experiences.
The union’s president, Harpreet Singh Saluja, alleged that the Karnataka State Labour Ministry had previously attempted to shield Infosys.
They did this by citing the absence of employee names in the complaints.
Harpreet emphasized the need for immediate action to address the grievances of the affected trainees. He also called for their reinstatement with compensation.
The outcome of the government’s investigation will likely have significant implications for the IT industry in India.
It will particularly impact how companies handle large-scale layoffs.
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