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Infosys has been fined nearly Rs 2 crore because its system for tracking employee working hours was found non-compliant with labour regulations. The country requires all companies to track the hours so that employees are not overworked without adequate overtime compensation.
France has fined Infosys after gaps were found in the company's system for tracking employee working hours. The company disclosed in a stock exchange filing that it was asked to pay €175,000 (Rs 1.91 crore) for not complying with local labour regulations. French labour laws state that employees will work 35 hours a week, which could be extended in some positions and roles to 48 hours. This requires all companies to monitor the working hours of all employees, including those hired on a contractual basis.
In a July 25 filing, Infosys said that its employee working time recording system was found to be non-compliant with local legal requirements. DRIEETS Île-de-France, the French labour authority, concluded that Infosys’ working time recording system did not fully comply with French labour laws. It found that the system’s reliability, auditability and monitoring capabilities had certain shortcomings for certain categories of employees, making it difficult for regulators or auditors to review and validate actual hours worked.
France's labour laws require all companies to follow a set of rules. They need to monitor the working hours to ensure employees do not work more than the said hours, and if that happens, they are paid overtime as mandated by law. For salaried employees on forfait jours (fixed number of days per year), employers have to track the number of days worked. Overtime is paid at 125 per cent for the first eight hours when total hours exceed 35 hours, and the compensation jumps to 150 per cent thereafter.
The filing does not specify which categories of Infosys employees were affected by the findings. Infosys said that it is reviewing the communication and that the fine would not impact its financials, operations or other business activities.
Meanwhile, Indians are talking about it on social media, especially since Narayana Murthy, Infosys founder, had called for a 70-hour work week in the country. One wrote, "Narayan Murthy crying somewhere in streets of India. This slavery mindset can only be applied to third world country like ours, but in Europe??" Another stated, "France's move is absolutely right. forcing employees to work excessive hours at the expense of their mental health and family life is completely unacceptable…"