FIS fires staff across India; employees say layoffs unethical, violate Indian laws

Former employees and employee associations say that the mass layoffs at global fintech company Fidelity National Information Services (FIS) are in violation of the Industrial Disputes Act 1947.

Employee association NITES’ President Harpreet Singh Saluja told Business Today, “The company has violated provisions of the Industrial Disputes Act and is aiming to restore investor confidence by reducing headcount arbitrarily.
 
It is worth noting that the Industrial Disputes Act of 1947 regulates Indian labour laws for people employed on the Indian mainland. The act lays down the procedure for prior permission of the appropriate Government for laying off or retrenching the workers.

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An employment lawyer told Business Today, “If an establishment employs more than 300 employees, it must take prior approval of the proper government authority regarding approval for layoffs, retrenchment, and closure.”

A FIS spokesperson noted that the total strength of FIS is 60,000 globally and one third of those account for India headcount.

The employment lawyer also noted: “If an industrial establishment employs more than 50 persons, it needs to give a 60 days' notice to employees.”

 The terminated employees at FIS have got a 30-day notice period with pay. The document sent out to employees on December 1 says, “FIS has decided to terminate your employment with effect from December 30.”

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Business Today reached out to the company to check if they have sought the government’s permission to conduct the layoffs. The company did not reveal this information but a company spokesperson said, “During the FIS Q3 2022 earnings call, we introduced our plan to address current macro-economic challenges. Rightsizing our portfolio and our workforce have always been an important part of our growth strategy to serve our clients and meet market demand'.”

A person familiar with the matter told Business Today that the company has sacked employees not just in Pune but across India.
“The layoffs at FIS were not just isolated to Pune but were done across India. They have facilities in Bengaluru and Gurugram as well. They employed over 20,000 people in India,” the source said.

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Despite the mass layoffs, a FIS spokesperson noted that the company is committed to its operations in India. “FIS has had a presence in India for more than two decades and remains committed to this important market for its continued growth,” the spokesperson said.