Highlights

  • The clause is not new but is seeing fresh enforcement by the firm
  • IT firms are witnessing record high attrition rates

Latest news

Dell Launches New Pro Precision AI Workstations In India, Introduces Deskside Agentic AI Platform

Dell Launches New Pro Precision AI Workstations In India, Introduces Deskside Agentic AI Platform

Oppo Enco Air5 Review: Incredible Value at ₹3,099

Oppo Enco Air5 Review: Incredible Value at ₹3,099

Samsung Galaxy A27 5G Goes On Sale In India With Cashback Offers, Zero Down Payment Schemes

Samsung Galaxy A27 5G Goes On Sale In India With Cashback Offers, Zero Down Payment Schemes

Nothing Phone (4b) First Impressions: A Strong Debut For The New 'b' Series 

Nothing Phone (4b) First Impressions: A Strong Debut For The New 'b' Series 

Samsung Galaxy A27 Review: A Dependable Mid-Ranger With Few Surprises

Samsung Galaxy A27 Review: A Dependable Mid-Ranger With Few Surprises

Union Finance Minister Nirmala Sitharaman Inaugurates Muzhiyan Kulam, Restored by Lumina Datamatics and Community Stakeholders in Puducherry

Union Finance Minister Nirmala Sitharaman Inaugurates Muzhiyan Kulam, Restored by Lumina Datamatics and Community Stakeholders in Puducherry

"Don't think anyone will be able to break his track record": Annu Kapoor hails Big B's unmatched legacy

"Don't think anyone will be able to break his track record": Annu Kapoor hails Big B's unmatched legacy

Rewriting the Rules of Business Education: Stride School of Business Unveils Its AI-First Campus Infrastructure

Rewriting the Rules of Business Education: Stride School of Business Unveils Its AI-First Campus Infrastructure

Trending: Infosys non-compete clause and why it is causing a stir

IT union said that the clause is now being enforced and it is “unduly harsh and oppressive” to the employee.

Trending: Infosys non-compete clause and why it is causing a stir

In a bid to arrest record high attrition India's second-largest software firm is enforcing an age old 'non-compete clause' which is causing a furore among workers. The clause which has been in place since 2007 restricts resigning employees to join 'named competitors' for 6 months. Named competitors include TCS, Wipro, Accenture, HCL Tech, Cognizant and IBM.

Raising a voice against this a Pune-based IT employees union has written to the labour ministry and stated that non-compete clauses in the employment agreements offered by IT major Infosys to its IT as well as BPO employees are “illegal”.

Also read/watch | Estee Lauder Salons near you soon, Nykaa partners with Aveda

Infosys, in its statement, said that it is a standard business practice in many parts of the world for employment contracts to include controls of reasonable scope, duration to protect the confidentiality of information, customer connection, other legitimate business interests.

Also read/watch | Ukraine war: Tata Steel takes a stand, stops business with Russia

So what does this non compete clause really comprise of, here is a look:
For the period of six months after leaving Infosys, employees will not

  • Accept any offer of employment from any customer, (with whom I worked) in the twelve months immediately preceding my termination.
  • Accept any offer of employment from a Named Competitor of Infosys, if my employment with such Named Competitor would involve me having to work with a Customer with whom I had worked in the twelve (12) months immediately preceding the termination of my employment with Infosys.

The Indian IT sector has been seeing record highs in attrition numbers, in the Jan-March months Infosys saw 27.7% voluntary attrition. The company plans to hire 50,000 freshers in the current year to combat the problem.

Also read/watch | Reliance shares at all time high; Morgan Stanley bets bigger

ADVERTISEMENT

Up Next

Trending: Infosys non-compete clause and why it is causing a stir

Trending: Infosys non-compete clause and why it is causing a stir

Step-by-step guide to apply for a mortgage loan online with minimal documentation

Step-by-step guide to apply for a mortgage loan online with minimal documentation

Honda Activa 6G: Everything You Need to Know Before Buying

Honda Activa 6G: Everything You Need to Know Before Buying

How much does a ULIP plan really cost? A break-down of all charges

How much does a ULIP plan really cost? A break-down of all charges

Centre plans to borrow Rs 8.20 lakh cr from market in first half of FY27

Centre plans to borrow Rs 8.20 lakh cr from market in first half of FY27

Reliance denies buying Iranian oil amid US sanctions waiver

Reliance denies buying Iranian oil amid US sanctions waiver

ADVERTISEMENT

editorji-whatsApp

More videos

Premium petrol price up Rs 2, industrial diesel up Rs 22; no change in normal petrol, diesel rates

Premium petrol price up Rs 2, industrial diesel up Rs 22; no change in normal petrol, diesel rates

India's GDP expected to register over 8 pc growth in Sep-Dec: Report

India's GDP expected to register over 8 pc growth in Sep-Dec: Report

Govt announces seven measures to help boost exports

Govt announces seven measures to help boost exports

RBI keeps interest rates on hold after US trade deal boosts outlook

RBI keeps interest rates on hold after US trade deal boosts outlook

RBI proposes to compensate customers up to Rs 25,000 loss due to fraud

RBI proposes to compensate customers up to Rs 25,000 loss due to fraud

RBI raises GDP growth projection of Q1, Q2 of FY27

RBI raises GDP growth projection of Q1, Q2 of FY27

RBI pauses rate cuts, retains interest rate at 5.25 pc

RBI pauses rate cuts, retains interest rate at 5.25 pc

Rupee jumps 122 paise to close at 90.27 against US dollar on India-US trade deal

Rupee jumps 122 paise to close at 90.27 against US dollar on India-US trade deal

Stock markets cheer India-US trade deal: Sensex, Nifty surge 2.5 pc

Stock markets cheer India-US trade deal: Sensex, Nifty surge 2.5 pc

UPI transactions hit record high of Rs 230 lakh crore in 2025-26 till Dec: Govt

UPI transactions hit record high of Rs 230 lakh crore in 2025-26 till Dec: Govt

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.