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The encyclopedia · People & Management · Legal decision · 2026

Infosys's time-tracking system broke French labor rules. France fined it €175,000.

France's labour authority found Infosys's working-time recording system unreliable and unauditable for some staff. Fine: €175,000. Infosys called it immaterial.

Infosys · 2026-07-25

What happened

Infosys, the Indian IT services group, employs thousands of people in France. French labour law sets strict rules on how employers must record working time — the basis for the 35-hour week, overtime and rest periods — and requires a system that is reliable and auditable. In 2026 the regional labour authority for the Paris region, DRIEETS Île-de-France, examined Infosys's time-recording system and found it did not meet those requirements.

The regulator cited reliability, auditability and monitoring gaps affecting some categories of employee. In other words, the system that was supposed to prove how long people worked could not be fully trusted to do so. On 25 July 2026 Infosys disclosed to the stock exchanges that it had been fined €175,000 — about ₹1.9 crore — for the non-compliance. The company said the penalty was limited in nature and would have no material impact on its business.

The fine is small for a company of Infosys's size; the lesson is not. A global employer that runs one time-tracking system across many jurisdictions has to meet the strictest local standard in each, and France's is among the strictest. A system that is good enough somewhere but leaves audit gaps in France is, there, a breach — and the failure was not the fine but the assumption that a single global tool would satisfy a high-regulation labour market without local adjustment.

Why it happened

  • One global system, many local laws. A time-recording tool built to a common standard left reliability and auditability gaps against France's working-time rules, falling on some staff categories.
  • Working-time records are evidence, not admin. In France they prove compliance with the 35-hour week, overtime and rest rules; a system that cannot be audited cannot prove the law is being kept.
  • The strictest jurisdiction sets the bar. Operating across many countries, the binding standard is the hardest one to meet; treating France like a lower-regulation market is where the breach began.
  • Compliance was checked after, not built in. The gaps surfaced when the regulator looked, not in an internal review, so the company learned of the non-compliance as a fine rather than a fix.
What it cost€175,000 labour-authority fine; exchange disclosureembarrassing

The lesson

One compliance system across many countries is only as strong as the strictest. Build to the hardest local standard and audit it yourself before a regulator does it for you — and sends the bill.

Aftermath

Infosys told investors the €175,000 penalty was limited in nature and would not affect its business — true at the level of the fine, which is rounding error against a multi-billion-dollar revenue base. The cost that matters is the signal: a high-regulation labour market will audit the systems that prove you are following its rules, and a global tool that was never adapted to them is a liability wherever it is deployed unchanged.

Sources

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