The attrition rate at Infosys touched a record high of 27.7% in the March quarter on a last twelve months basis. It denied that the clause prevents employees from joining other organizations. Infosys, on its part, said that it is a “standard business practice” for employment contracts to include “controls of reasonable scope and duration to protect the confidentiality of information, customer connection and other legitimate business interests”
The courts have time and again trashed such clauses and held that post-termination non-compete clauses are not enforceable. Non-compete clauses are not valid in India as per Section 27 of the Indian Contract Act, which states that any agreement that restrains anyone from practising a lawful profession, trade or business is to that extent void. The non-compete clause bars employees from accepting offers from any of the named rival companies for a period of six months after leaving Infosys, if the new job involves working with a client with whom the employee had worked during the last 12 months of their stint with Infosys.įor the said duration, the employee also cannot accept a job offer from any customer with whom they had worked in the 12 months immediately preceding the termination of their employment with Infosys.Īccording to reports, Infosys has named five competitors including TCS, Accenture, IBM, Cognizant, and Wipro for IT services employees and nine companies including Tech Mahindra, Genpact, WNS, TCS, Accenture, IBM, Cognizant, Wipro and HCL for business processing management (BPM) staff. While Infosys has had the clause for a long time, the union claimed that the company is now enforcing it and that it has received 65-70 complaints from employees.
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