Why Infosys Was Fined 175,000 Euros by French Labour Authorities Over Employee Time-Tracking Systems
French labour authority DRIEETS Île-de-France fined Infosys Euro 175,000 for shortcomings in its employee time-tracking system. Infosys stated the penalty has no material impact on its operations. According to a BSE filing submitted by Infosys, the communication regarding the fine collection was received on July 24 at 3:30 PM IST.
Infosys has been hit with a Euro 175,000 penalty by French regional labour authorities because its internal system for tracking employee work hours failed to meet local statutory requirements. The regulatory action was initiated to enforce strict European labour standards governing workweek limits and transparent hour-logging, prompting the IT major to review its compliance frameworks for specific personnel categories overseas.
Regulatory Findings and Fine Details
The penalty was issued by DRIEETS Île-de-France (Direction régionale et interdépartementale de l'économie, de l'emploi, du travail et des solidarités), the regional body overseeing employment and economic solidarity. According to a BSE filing submitted by Infosys, the communication regarding the fine collection was received on July 24, at 3:30 pm Indian Standard Time (IST). Infosys Fined EUR 1,75,000 by French Authority Over Working Time System.
The authority flagged specific structural deficiencies within the company's digital logs. As outlined in the regulatory disclosure: "The authority found that Infosys’ working time recording system did not fully comply with French legal requirements, citing shortcomings in its reliability, auditability, and monitoring capabilities for certain employee categories."
Business and Operational Impact
Despite the enforcement action, the Indian IT services major has assured investors that the development carries minimal commercial friction. "None, there is no material impact on financials, operations or other activities of the Company," the company said. The company also addressed the timeline of its public notification, explaining that it delayed immediate reporting to thoroughly check the veracity of the communication and determine the appropriate administrative next steps. While the exact employee brackets affected were not specified in public filings, the ruling highlights the rigid compliance landscape international firms navigate concerning European Union labour transparency laws.
(The above story first appeared on LatestLY on Jul 28, 2026 07:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
