New Delhi: On the face of a high attrition rate in the IT sector, Infosys has raised the exit barrier for its staff, making it mandatory for them to sign a non-compete agreement letter alongside this year's annual hike letters.
The new clause has been added to the employment terms as a part of the company's strategy to retain employees and control attrition, media reports said on Wednesday.
What this means is that the employees will now need to give an undertaking that they will not join any of its competitors for a period of six months after their job termination at Infosys.
According to the reports, the non-compete agreement specifies Infosys' competitors as Tata Consultancy Services (TCS), Accenture, IBM Global Services, Cognizant Technology Solutions and Wipro.
The agreement letter also mentions that the employees cannot accept job offers even from its clients (which they have serviced in the last 12 months) for a period of six months.
The clause will make it difficult, if not impossible, for employees to find employment with its customers and some of its competition.
Infosys head (HR), Bikramjit Maitra, confirmed the move to The Economic Times, saying the reason behind including only a few firms in the “named competition” was to keep the terms reasonable and not restrict employment opportunities available to individuals.
Asking employees to sign non-compete clause isn't that unusual. Almost all major IT firms like Accenture, Wipro supposedly do it. In fact, the newspaper quoted a senior Infosys executive as saying that his company may be one of the last few to initiate this on a formal basis.
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