Infosys Fined €175,000 by French Labour Authority
Infosys has been fined €175,000 by a French labour authority over deficiencies in its employee working-time recording system.
A French labour authority has penalised Infosys with a fine of €175,000 (around ₹2 crore) for deficiencies in its employee working-time recording system, according to a regulatory filing by the company.
The penalty was imposed by DRIEETS Île-de-France (Direction régionale et interdépartementale de l’économie, de l’emploi, du travail et des solidarités), the regional authority responsible for employment and workplace compliance issues in France.
The regulator ruled that Infosys' system for recording employee working hours was not fully compliant with French labour laws, according to the company. The authority found shortcomings in the system’s reliability, auditability and monitoring of certain categories of employees.
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Compliance Lapse:
The Bengaluru-headquartered IT services company said it received the communication on the penalty on July 24 and subsequently disclosed the matter in a filing to the stock exchange.
Infosys did not say which categories of employees the findings pertained to. The company also did not say whether French regulator had ordered it to change or replace its current time-recording system.
The company said the development would not have a material impact on its business even after the penalty.
"There is no material impact on financials, operations or other activities of the company," Infosys said in its filing.
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The case concerns France's strict labour rules which require employers to keep accurate, reliable and auditable systems for recording the working hours, overtime and mandatory rest periods of employees. Over the past few years, French authorities have increased their attentiveness to workplace monitoring and time-management systems to make sure they adhere to employment laws.
Infosys also explained the delay in disclosure of the matter saying it needed time to verify the communication received from the regulator and assess the appropriate course of action before the information could be made public.