Former employees and employee unions say the massive layoffs at global fintech company Fidelity National Information Services (FIS) are in violation of the Industrial Disputes Act 1947.
Harpreet Singh Saluja, president of employees’ union NITES, told Business Today, “The company has violated provisions of the Industrial Disputes Act and aims to restore investor confidence by curtailing the arbitrariness of the employees.
It is worth noting that the Industrial Disputes Act of 1947 governs Indian labor laws for those employed on the Indian mainland. The Act lays down the procedure for retrenchment or retrenchment of workers with prior permission of the appropriate government.
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An employment lawyer told Business Today, “If an establishment employs more than 300 workers, it must take prior approval of the appropriate government authority for layoffs, layoffs and closures.”
A FIS spokesperson said that the total strength of FIS is 60,000 globally and one-third of them are Indian workforce.
The employment lawyer also said: “If an industrial establishment employs more than 50 persons, it has to give 60 days’ notice to the employees.”
Terminated employees in FIS received a 30-day notice period with pay. “The FIS has decided to terminate your employment with effect from December 30,” said a document sent to employees on December 1.
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Business Today contacted the company to find out if they have sought government permission to carry out the layoffs. The company did not disclose the details, but a company spokesperson said, “During the 2022 FIS Q3 earnings call, we presented our plan to address the current macro-economic challenges. Right-sizing our portfolio and our workforce to serve our customers and meet market demand has always been an important part of our growth strategy.
A person aware of the matter told Business Today that the company has sacked employees not only in Pune but across India.
“The retrenchment in FIS was not only isolated in Pune, but was done across India. They also have facilities in Bengaluru and Gurugram. He gave employment to more than 20,000 people in India.
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Despite the massive layoffs, a FIS spokesperson said the company remains committed to its operations in India. “FIS has been present in India for over two decades and is committed to the continued growth of this important market,” the spokesperson said.