Infosys has been fined €175,000 ($200,000) by French labour authorities after its employee working time recording system was found to be non-compliant with local legal requirements for certain categories of employees.
The penalty was imposed by DRIEETS Île-de-France, the regional authority responsible for labour, employment. and economic affairs in the Paris region, according to a stock exchange filing.
The French authority concluded 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.
The Bengaluru-headquartered IT services company said the order would have no material impact on its financials, operations, or other business activities.
Infosys also explained the delay in disclosing the development, saying it was "in the process of checking the veracity and determining further steps" after receiving the communication from the French authority.
The company reported a 12.2% year-on-year rise in consolidated net profit to ₹7,769 crore for the June quarter (Q1 FY27), even as it trimmed the upper end of its full-year revenue growth guidance. Revenue from operations came in at ₹48,211 crore, up 14% YoY and only 3.9% quarter-on-quarter.
In 2013, Infosys received a penalty over allegations of systemic visa fraud and misuse of B-1 business visitor visas. It paid a record $34 million civil settlement.
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