Infosys has been fined €175,000 (approximately ₹2 crore) by French labour authorities after its employee working time recording system was found to be non-compliant with local labour regulations. The penalty was imposed by DRIEETS Île-de-France (Direction régionale et interdépartementale de l’économie, de l’emploi, du travail et des solidarités), which concluded that the company’s system failed to meet French legal standards for recording employee working hours. Infosys, however, said the fine would have no material impact on its financials, operations, or business activities.
The regulatory action highlights the strict labour compliance requirements applicable to employers operating in France, where companies are legally required to maintain reliable and auditable systems to track working hours, overtime, and rest periods. Infosys disclosed the development in a filing with Indian stock exchanges after receiving the communication from the French authority on July 24, 2026.
French Labour Authority Imposes €175,000 Fine
According to Infosys’ regulatory filing, the French authority found shortcomings in the company’s employee time-recording system.
The regulator cited deficiencies in:
- Reliability of the time-recording system.
- Auditability of employee work-hour records.
- Monitoring capabilities for certain categories of employees.
These shortcomings meant the system did not fully comply with French legal requirements governing the recording of employee working hours.
Penalty Snapshot
| Item | Details |
|---|---|
| Company | Infosys |
| Regulator | DRIEETS Île-de-France |
| Fine | €175,000 |
| Approximate Value | Around ₹2 crore |
| Issue | Non-compliant employee working time recording system |
What Was Wrong With the Time-Tracking System?
French labour authorities determined that Infosys’ internal working time recording system did not adequately satisfy statutory requirements.
The regulator specifically pointed to:
- Insufficient reliability.
- Limited auditability.
- Inadequate monitoring functionality for certain employee categories.
Infosys did not disclose which categories of employees were affected, nor whether the regulator had ordered changes to the system beyond imposing the monetary penalty.
Infosys Says Business Remains Unaffected
In its stock exchange filing, Infosys emphasized that the regulatory action would not materially affect the company.
According to the company:
- There is no material financial impact.
- Day-to-day business operations remain unchanged.
- The penalty does not affect its overall business activities.
Infosys also explained that it did not immediately disclose the communication because it first needed time to verify the information and determine the appropriate regulatory response before making a public filing.
Company Response
| Aspect | Infosys’ Position |
|---|---|
| Financial Impact | No material impact |
| Operational Impact | None |
| Business Impact | None |
| Disclosure Timing | Delayed pending internal verification |
Why France Has Strict Time-Tracking Rules
France maintains some of Europe’s most comprehensive labour protections regarding working hours.
Employers are generally required to maintain accurate and verifiable records to ensure compliance with:
- Statutory working-hour limits.
- Overtime regulations.
- Mandatory rest periods.
- Employee labour protections.
The regulatory framework is designed to ensure employers can demonstrate compliance during labour inspections through reliable and auditable time-recording systems.
Compliance Matters for Global Companies
The case underscores the challenges multinational companies face in complying with differing employment regulations across jurisdictions.
While many global organizations use standardized HR and workforce management systems, countries such as France impose highly specific legal requirements regarding employee time recording, documentation, and labour compliance. Failure to meet those standards can result in financial penalties even when there is no allegation of wage theft or employee misconduct.
Looking Ahead
The €175,000 penalty represents a relatively minor financial cost for Infosys, but it serves as a reminder of the importance of complying with country-specific labour regulations in global operations. Although the company has stated that the fine will not materially affect its financial performance or business, the incident highlights the increasing scrutiny multinational employers face over workplace compliance, record-keeping, and employee monitoring systems across European jurisdictions.
Looking ahead, Infosys is expected to review its working time recording processes in France to ensure alignment with local legal requirements. More broadly, the case illustrates how multinational technology companies must continuously adapt internal HR and compliance systems to meet evolving labour standards across the markets in which they operate.
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