Infosys has been fined €175,000 (approximately Rs 2 crore) by French labour authority DRIEETS Île-de-France over non-compliance in its employee working-time recording system, according to a regulatory filing submitted to the stock exchanges.
In its filing with the BSE and NSE, the Bengaluru-headquartered IT services company said it received a communication from the French authority regarding the recovery of the monetary penalty. The regulator concluded that Infosys’ system for recording employee working hours did not fully comply with French legal requirements.
According to the filing, the authority identified deficiencies in the system’s reliability, auditability and monitoring capabilities for certain categories of employees, following which it imposed a total fine of €175,000.
Infosys clarified that the development is not expected to have any material impact on its financial position, operations or other business activities. The company also stated that there is no significant effect on its overall business as a result of the penalty.
The company further explained why the disclosure was not made immediately after receiving the communication. According to the exchange filing, Infosys required time to assess the information internally and determine the appropriate course of action before making the disclosure to the stock exchanges.
The order underscores the strict compliance requirements governing employee working-time records in France, where employers are required to maintain reliable systems to accurately record employees’ working hours in accordance with labour laws.
