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The Labour Ministry issued notice to Infosys to hold a joint discussion on April 28
regarding the enforcement of the non-compete agreement, which banned former employees
from working for the same customers in rival firms for six months.
This comes after the Nascent Information Technology Employees Senate (NITES),
an IT union, filed a complaint with the ministry on April 18 seeking removal
of the clause and alleged that enforcement of the clause was unethical and illegal
due to rising attrition.
Since then, the agreement has stirred a debate in the industry with some pointing out
that the clause is needed to protect employers given sensitive data that employees handle,
whereas others said it’s hardly practical when it comes to enforcement.
Mohandas Pai, the co-founder of Aarin Capital, said non-compete agreements are
hardly new and the restrictions are only fair considering that employees deal
with sensitive information.
“It is not like they are completely banned from joining other firms.
The restriction is only on the client accounts you need to join and the
restriction is only for six months, that too for five companies,” said Pai,
a former member of the Infosys board and its chief financial officer.
The Infosys stock is trading around (apr 27th) Rs 1556.This stock may weak below Rs 1446
and strong above Rs 1660 levels.Between these two levels this stock may perform back and forth
movement.
While talking about IT stocks,we used to recommend IT stocks when they are at penny stock levels in
our penny stock recommendation group named 'Superfans Penny'.
We recommended Sonata software at Rs 19 when it was a penny stock,then it reached to Rs 1000 level.Like wise we recommended Tataelxi at Rs 55 when it was a smaller priced stock,then it reached above Rs 9400 level.
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