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Infosys says ‘non-compete’ clause will not impact employees from switching jobs


Bengaluru: The ‘non-compete’ clause in employment contracts of Infosys employees is a standard business practice to protect confidential information and will not prevent employees from joining other organisations.


“It is a standard business practice in many parts of the world for employment contracts to include controls of reasonable scope and duration to protect confidentiality of information, customer connection and other legitimate business interests,” said the IT services major in an emailed statement to ET.

The conditions are fully disclosed to all job aspirants before they decide to join Infosys, and do not have the effect of preventing employees from joining other organisations for career growth and aspirations, the statement added.

This comes as a Pune-based
labour union raised a complaint against Infosys with the central labour ministry and sought removal of a non-compete agreement clause in offer letters given by the country’s second largest software firm.

The company’s employee agreement stated that an employee shall not accept for six months an employment offer from “named competitors” such as Tata Consultancy Services (TCS), Wipro and HCL Technologies among others if the new job involves working with a customer with whom the employee has previously worked with in the preceding 12 months during their stint at Infosys.

It also said for six months they should not accept employment offer from a customer directly with whom they have worked within the preceding 12 months during their stint at Infosys. Infosys has cited five companies for IT services’ employee agreements and nine companies in business process management employees’ agreements as “named competitors”.

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