Infosys says no-compete clause in offer letter to protect client confidentiality

Infosys defended its stance on no-compete rule in offer letters saying it is "common and standard business practice" in the sector and done to protect customer information that is "critical and sensitive". 

The company also informed the office of chief labour commissioner, that the clause is applicable for a limited period only.

Santhosh K Nair, associate vice president, Human Resource Department, Infosys had addressed the letter to the office of the chief labour commissioner in a letter dated 24 May. 

Since then there has been another joint discussion between the ministry and Infosys and labour union that complained about the no-compete clause. Mint has seen a copy of the letter.

On 2 June, the office of the chief labour commissioner in letters to Labour Commissioner of Haryana , Maharashtra and Karnataka said that in total three sets of discussions were held and the matter needs to be forwarded to state governments for "further necessary action".