Infosys fined €175,000 by French authority over employee time tracking system; says no material business impact
In an exchange filing dated July 25, 2026, the IT services major said it had received a communication from DRIEETS Île-de-France regarding the recovery of the monetary penalty.
- Jul 27, 2026,
- Updated Jul 27, 2026 1:04 PM IST
Infosys Ltd has been fined €175,000 (around Rs 2 crore) by a French labour authority after its employee working time recording system was found to be non-compliant with local legal requirements. The company, however, said the regulatory action will have no material impact on its financials, operations or overall business.
In an exchange filing dated July 25, 2026, the IT services major said it had received a communication from DRIEETS Île-de-France regarding the recovery of the monetary penalty.
According to the filing, the French authority concluded that Infosys' working time recording system did not fully comply with French labour laws. The regulator identified shortcomings related to the system's reliability, auditability and monitoring capabilities for certain categories of employees.
Based on its assessment, the authority passed orders imposing a total fine of €175,000 on the company.
Infosys said the penalty is not material and will not have any significant impact on its financial position, operations or other business activities.
The Bengaluru-headquartered company also explained the delay in disclosing the communication to stock exchanges. It said additional time was required to verify the information received and determine the appropriate course of action before making the disclosure.
Meanwhile, the company posted a 12.2 per cent year-on-year (YoY) increase in consolidated net profit for the quarter ended June 30, 2026. Net profit rose to Rs 7,769 crore from Rs 6,921 crore in the corresponding quarter last year, while revenue from operations grew 14 per cent YoY to Rs 48,211 crore from Rs 42,279 crore.
Infosys also announced a leadership transition, naming Ashiss Kumar Dash as Chief Executive Officer (CEO) Designate to eventually succeed Salil Parekh.
For FY27, the company maintained its revenue growth guidance at 1.5-3 per cent in constant currency (CC) terms.
On the stock-specific front, Infosys shares were trading 3.54 per cent higher at Rs 1,077.85 during Monday's session.
Infosys Ltd has been fined €175,000 (around Rs 2 crore) by a French labour authority after its employee working time recording system was found to be non-compliant with local legal requirements. The company, however, said the regulatory action will have no material impact on its financials, operations or overall business.
In an exchange filing dated July 25, 2026, the IT services major said it had received a communication from DRIEETS Île-de-France regarding the recovery of the monetary penalty.
According to the filing, the French authority concluded that Infosys' working time recording system did not fully comply with French labour laws. The regulator identified shortcomings related to the system's reliability, auditability and monitoring capabilities for certain categories of employees.
Based on its assessment, the authority passed orders imposing a total fine of €175,000 on the company.
Infosys said the penalty is not material and will not have any significant impact on its financial position, operations or other business activities.
The Bengaluru-headquartered company also explained the delay in disclosing the communication to stock exchanges. It said additional time was required to verify the information received and determine the appropriate course of action before making the disclosure.
Meanwhile, the company posted a 12.2 per cent year-on-year (YoY) increase in consolidated net profit for the quarter ended June 30, 2026. Net profit rose to Rs 7,769 crore from Rs 6,921 crore in the corresponding quarter last year, while revenue from operations grew 14 per cent YoY to Rs 48,211 crore from Rs 42,279 crore.
Infosys also announced a leadership transition, naming Ashiss Kumar Dash as Chief Executive Officer (CEO) Designate to eventually succeed Salil Parekh.
For FY27, the company maintained its revenue growth guidance at 1.5-3 per cent in constant currency (CC) terms.
On the stock-specific front, Infosys shares were trading 3.54 per cent higher at Rs 1,077.85 during Monday's session.