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France Fines Infosys: Why French Labor Authorities Issued a ₹2 Crore Penalty

French regular authorities reviewing Infosys employee time tracking which was used for employees. During the inspection French labor authorities found that Infosys’ employee time tracking was not fully compliant with French labor laws that is why they took action.

Infosys France Labor Law Violation

Which French Authority Issued the Fine?

The penalty was issued by DRIEETS Île-de-France and this regional authority which monitors employment and related social solidarity and the penalty was around €175,000. in INR around 2 crore rupees.
News source –Infosys fined around ₹2 crore in France over employee time tracking system

What Was Wrong With Infosys’ Employee Time Tracking System?

According to the regulators’ findings the issues with Infosys’ system were

Lack of reliability – The system did not capture employee working hours accurately

Poor auditability– The records could not be properly verified and failing to maintain auditable records required by law

Inadequate Monitoring– The system failed to provide sufficient tracking and monitoring for certain categories of employees

French labor laws are very strict and employers must record employee working hours and ensure compliance with statutory 35 hours per week. This record must be reliable so that authorities can check them easily.

Infosys clearly explained in stock exchange filing that the fine would not have a material impact on its overall financials or business activities.

What Did Infosys Say in Its Regulatory Filing?

Company’s Official Response

Infosys officially disclosed the penalty in a BSE filing on 26 July 2026. The company said it received the notice on 24 July 2026.

According to the company the information was shared later with the stock exchange because it wanted to verify the notice and decide the next steps.

Did Infosys Accept the Findings?

Infosys said in its filing that the French regulator raised concerns about the reliability and accuracy of its employee time tracking system. The company did not explain which category of employees was affected or what changes it would make. At the moment, Infosys is reviewing the notice.

Impact on Business Operations

Infosys assured its stakeholders and investors that the €175,000 fine is limited. The company said the penalty will not have a major impact on its financial results, business operations or daily activities.

Understanding France’s Employee Working-Time Recording Laws

  • Employer Responsibilities

It is the responsibility of employers in France to prove employee working hour limits under legal. so, employer must have reliable time tracking system like easy to access and record employee daily working hours

  • Legal standard for time recording

A time recording system captures employee start time, end time, breaks and total working hours, it should be secure no one can change it manually to avoid overtime payment and break working hours rules

  • Record Keeping Requirements

Employers must maintain employee working hours records for required period. If requested, they must provide these records immediately to labor inspectors like DRIEETS during an audit

Why France Has Strict Rules for Employee Time Tracking

Protecting Employee Rights

France gives importance to employee welfare that is why has a strong legal framework around 35 hours per week so employees maintain a balance their professional life and personal life.

Ensuring Fair Working Hours

The monitoring system ensures employees can take daily or weekly rest period because this reduces burnout, exhaustion, overworking and long-term related health issues.

What Can Employers Learn from the Infosys France Fine?

Compliance before technology

Using advanced digital time tracking is not enough companies should ensure the system is configured according to local labor laws

Importance of Accurate Time Tracking

This case shows that regulators do not look at only employee records, they give importance to transparency and auditability. If system is not reliable then it may be considered as non-compliant with legal requirements

Regular Compliance Audits

Multinational companies should audit their internal systems and ensure they meet local legal requirements; this helps to identify compliance gaps before regional authority inspections.

How Can Companies Avoid Similar Penalties?

Create a compliant time tracking system

Use time tracking software that follow all legal and workplace rules for recording accurate working hours and keep records safe that nobody can change or manipulate working hours.

Maintain Reliable Working-Time Records

Develop a system that automatically backs up employee working hours records, allows employers to easily export the data when needed and keeps the records transparent

Follow Local Labor Laws in Every Country

A single global policy does not work for every country. HR systems should be adapted to follow each country’s labor laws, required rest breaks and overtime rules.

Does This Affect Companies Operating Outside France?

Global Businesses and Local Labor Laws

This penalty applies only to Infosys but this is a reminder for all companies which provide time tracking applications and they must follow local labor laws of every country.

Many countries in the European Union also require employers to use reliable and accurate time-recording systems that meet local legal requirements

Compliance Challenges for Multinational Companies

Companies that manage a global workforce must follow local labor laws of every country where they operate and this can be challenging because they need one common technology platform.

Conclusion

French Labor Authorities fined Infosys approx. 2 crore because Infosys’ employee time tracking did not meet France’s labor law. Requirements like the software could not provide accurate data of some employee categories that is why the French labor authority fined Infosys.

Infosys mentioned that the fine will not impact their financial performance and business operations and this incident is important lesson for other companies also.

For multinational companies it is important to do regular audits that match countries labor laws, this case show that employee time tracking is not only important but also protecting employee rights and meeting legal requirements.

Frequently Asked Questions
Why was Infosys fined in France?
France fines Infosys because its employee time tracking system did not meet French legal requirements.
Which authority fined Infosys?
Infosys was fined by the French labor authority, DRIEETS.
Is employee time tracking mandatory in France?
Yes, employers because companies in France need to follow labor laws
Can other companies face similar penalties?
Yes, if any company not following local labor laws, can be face similar penalties
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