Bengaluru: IT services major Infosys has been fined €175,000 (around ₹2 crore) by the French labour authority DRIEETS Île-de-France over deficiencies in its employee working time recording system. The regulator found that the company’s mechanism for tracking employees’ working hours did not fully comply with French labour laws relating to reliability, auditability and monitoring. Infosys disclosed the development in a regulatory filing, stating that the penalty is not expected to have any material impact on its financial position or operations.

The company said it received the communication from the French authority on 24 July 2026 and is reviewing the findings before deciding on its next course of action.

Why was Infosys fined?

According to the French labour authority, Infosys’ employee time-recording system failed to meet certain legal requirements governing the monitoring of working hours.

The regulator identified shortcomings in three key areas:

  • Reliability of the working time recording system.
  • Ability to maintain auditable records.
  • Monitoring capabilities for certain categories of employees.

French labour laws require employers to maintain accurate and verifiable records of employees’ working hours, overtime and mandatory rest periods. The filing did not specify which categories of employees were affected or how many workers were covered by the findings.

Infosys’ response

In its stock exchange filing, Infosys said it is examining the communication received from the French authority and determining the appropriate next steps.

The company also clarified that the financial penalty would not materially affect its business, financial condition or operations, indicating that the issue is limited to regulatory compliance in France rather than its broader global business.

Why employee time tracking matters in France

France has some of the strictest labour regulations in Europe, including detailed rules governing employee working hours.

Employers are required to maintain dependable systems that accurately record working time, enabling authorities to verify compliance with regulations on maximum working hours, overtime compensation and mandatory rest periods. Failure to comply can result in administrative penalties, even if there is no allegation of wage theft or employee exploitation.

No impact on global operations

Infosys has stated that the fine relates specifically to its operations in France and does not affect its wider international business.

The company continues to serve clients across multiple countries and has indicated that it is evaluating the regulator’s findings while ensuring compliance with local labour regulations.

Conclusion

Infosys has been fined approximately ₹2 crore by French labour authorities after its employee time-recording system was found to fall short of local legal requirements. While the company is reviewing the regulator’s observations, it has maintained that the penalty will have no material impact on its business or financial performance.