Infosys has been fined €175,000 (approximately ₹2 crore) by a French labour authority after its employee working time recording system was found to be non-compliant with local labour regulations. The Indian IT services company, however, has said the regulatory action will have no material impact on its financials, operations or business.
In an exchange filing dated 25 July 2026, Infosys disclosed that it had received a communication from DRIEETS Île-de-France regarding the collection of the penalty.
French regulator flags compliance gaps
According to the exchange filing, the French authority concluded that Infosys' working time recording system did not fully meet legal requirements applicable in France.
The regulator identified shortcomings in several areas of the system for certain categories of employees, including:
- Reliability of working time records
- Auditability of the recorded data
- Monitoring capabilities for specific employee groups
Following its assessment, the authority imposed a €175,000 fine, equivalent to roughly ₹2 crore.
Infosys did not specify which categories of employees were covered by the findings. The company also did not disclose whether the regulator had instructed it to modify or replace its existing time recording system.
Company says business remains unaffected
Despite the penalty, Infosys has maintained that the development is not material to its business.
In its filing, the company said the fine would have no material impact on its financial position, operations or other business activities.
Infosys also explained why the disclosure was not made immediately after receiving the communication. According to the filing, the company first needed time to verify the information and determine the appropriate course of action before making the disclosure.
Compliance issue centres on labour regulations
The action relates specifically to compliance with French working time recording requirements, which require employers to maintain systems capable of accurately recording employees' working hours.
According to Infosys' filing, the regulator's findings focused on the effectiveness of the company's time recording mechanism rather than its broader business operations. Key details include:
- Penalty imposed: €175,000 (approximately ₹2 crore)
- Authority: DRIEETS Île-de-France
- Issue identified: Non-compliance of the employee working time recording system with French legal requirements
- Areas highlighted: Reliability, auditability and monitoring capabilities for certain employee categories
- Company's position: No material impact on financials, operations or business activities
Focus shifts to regulatory compliance
The development highlights the growing importance of workforce compliance as multinational employers navigate country-specific labour regulations.
While Infosys has stated the penalty will not materially affect its business, the case underscores how employee time recording systems are increasingly subject to regulatory scrutiny in overseas markets. Any future action by the French authority or changes to the company's compliance processes are expected to emerge through subsequent regulatory disclosures.