‘IT firms lack transparency in layoffs’: Labour Minister Santosh Lad pulls up Infosys for sacking 350 freshers

In a meeting held with the recruitment team of Infosys Mysore campus at Vikasa Soudha, Lad criticised the lack of transparency in how IT firms handle layoffs and performance evaluations. He pointed out that many employees hesitate to file complaints fearing career repercussions. He questioned whether companies were ensuring fair and justified performance assessments before asking employees to resign.

“IT and BT companies do not follow uniform rules for hiring employees. Each company has its own policies, which should not be the case. There should be a standardized policy, and IT companies must coordinate with the Labour Department to establish a common framework,” the minister said.

In response, the Infosys management officials stated that the freshers were underperforming consistently and fared low marks in the internal assessments, which led to their termination. “If an employee underperforms for two consecutive years, they are placed on a Performance Improvement Plan (PIP) for 60 to 90 days. If they clear the PIP, they continue. Otherwise, they receive a show-cause notice, followed by a termination letter if no improvement is observed. However, in many cases, we offer employees an option to resign with additional months of salary to support their job search,” IT officials said.

Work pressure in IT companies

Lad, flagging the incidents of extreme work pressure in IT companies said, “There have been complaints of extreme work pressure on employees in the IT sector. Workers are forced to complete projects within strict deadlines, leading to constant stress. Employees are expected to be available to their companies 24/7, with no personal space. Regardless of the time, they are obligated to attend online meetings or respond to calls, causing mental stress.”

He challenged the industry’s practice of hiring aggressively while keeping thousands on the bench, only to reduce the workforce when projects decline. He argued that companies were focusing heavily on profitability rather than employee stability.

Strict instructions on women’s representation, safety

Lad asserted that the government has no clear data on how well women employees are represented in IT companies, “The challenges faced by women employees differ from those of men, and IT firms must ensure their safety and well-being. Additionally, there has been a rise in companies laying off women employees through “pink slips”. Before terminating them, IT companies must examine why their performance is declining instead of simply removing them,” he said.

Skilling gap

The minister questioned why IT companies were not taking the initiative in skilling workers, especially in rural areas. He argued that the government can provide infrastructure, but the industry should lead workforce training efforts. He pointed out that despite repeated invitations for collaboration, companies have remained unresponsive. The IT officials responded that, “We acknowledge the need for better skilling programmes and industry-government collaboration. However, the policy landscape needs clarity, and we would appreciate discussions with the government to align workforce strategies with industry needs.”

‘Prioritise local talent’

The minister noted that majority of the freshers who were fired were from outside Karnataka, while only 8-10 were natives of Karnataka. “Regional discrimination in IT and BT companies has become a common issue. The government needs to know how much priority is given to local talent in recruitment. The government is not against hiring talent from outside, but local professionals should be given some level of preference.” he said.