Infosys Fined €175,000 In France Over Working Time Recording Issues

Infosys has been fined €175,000 (around ₹2 crore) by a French labour authority after its system for recording employees' working hours was found to fall short of the country's legal requirements.

In a stock exchange filing, the IT services company said it had received communication from DRIEETS Ile-de-France, the French labour authority, informing it of the penalty. The regulator said Infosys' working time recording system did not fully meet legal requirements, citing shortcomings in its reliability, its ability to maintain auditable records, and its monitoring capabilities for certain categories of employees.

What French Rules Require

French labour law requires employers to track working hours, including compliance with the statutory 35-hour workweek, overtime and mandatory rest periods. These records must also be reliable and available for audit whenever required.

The filing did not specify which categories of Infosys employees were affected by the findings, nor did it state whether the company has been asked to make specific changes to its time-recording system.

Infosys said the penalty is not material and is unlikely to have any significant impact on its financial position, business operations or overall activities.

The Bengaluru-based company also explained why its disclosure to stock exchanges was delayed, saying it needed additional time to verify the communication and assess the appropriate course of action before informing the exchanges.

Separately, Infosys reported a 12.2% year-on-year rise in consolidated net profit for the June quarter of FY27. Net profit rose to ₹7,769 crore, up from ₹6,921 crore a year earlier.

Revenue from operations climbed 14% to ₹48,211 crore, compared with ₹42,279 crore in the same quarter last year. In dollar terms, revenue grew 2.8% year-on-year and 2.4% in constant currency terms. On a quarter-on-quarter basis, revenue rose 1%.

Last week, Infosys also announced a leadership transition, appointing Ashiss Kumar Dash as chief executive officer designate. He is set to succeed Salil Parekh after Parekh completes his second term as CEO.

Acting on the recommendation of the Board's Nomination and Remuneration Committee, Infosys said Dash will take over as CEO on April 1, 2027, for a five-year term. Parekh's current tenure ends on March 31, 2027, by which time he will have led the company for nine years.