Infosys layoffs: Karnataka government gives clean chit to the company; says there was no ... relationship

The Karnataka Labour Department has officially given Infosys a clean chit regarding the recent layoffs of trainees at its Mysuru campus. Following an inquiry into allegations of labour law violations, the department concluded that the company had not breached any legal requirements, as the affected individuals were classified as trainees rather than employees.
“We have not found any violation of labour laws in our inspection at Infosys…There was no employee and employer relationship between them in the first place. They were not even given appointment letters for them to be called employees. They were trainees for three months who were paid stipends and were part of the apprenticeship program,” confirmed a government official.
The investigation was prompted by complaints from the Nascent Information Technology Employees Senate (NITES) and affected trainees, who claimed the layoffs were unethical and violated labour laws. Infosys had terminated approximately 350-400 trainees on February 7, citing their inability to clear internal assessments after three attempts. The company emphasised that performance evaluations are a standard part of its globally recognised training program.
In its interim report, the Karnataka Labour Department clarified that the state government cannot intervene in the selection or evaluation processes of private companies. The department also noted that Infosys had adhered to its policies by providing outplacement services, severance pay, and counselling to the trainees who were let go.
Labour Minister Santhosh Lad ordered an inspection of Infosys campuses in Mysuru and Bengaluru, conducted by a team led by G Manjunath. The review of hiring documents revealed that while more than 600 students from the 2022 batch moved forward, 329 failed a required test. Government officials also raised concerns about Infosys's terminology.
Despite the clean chit, NITES has expressed dissatisfaction with the findings and warned of potential protests. The union continues to advocate for stronger protections for trainees and employees in the IT sector, calling for greater transparency and fairness in hiring and evaluation practices.