Infosys is facing criticism from an Australian trade union over employment contracts offered to technology workers expected to move from Bendigo Bank to the Indian IT services company under a major outsourcing agreement.
The dispute centres on employment terms proposed for more than 100 Bendigo Bank technology employees who are expected to transition to Infosys as part of the bank's seven-year technology partnership. While the union has described the contracts as overly restrictive, Infosys has rejected the allegations and said it complies with all applicable laws and regulations in the jurisdictions where it operates.
Union raises concerns over employment conditions
The criticism comes from the Finance Sector Union (FSU), which represents workers across Australia's finance, insurance and superannuation sectors.
According to statements published by the union and reported by The Times of India, the FSU claims the proposed contracts could weaken employment protections for workers transferring to Infosys.
The union alleged that the contracts would allow the company to:
• Require employees to work wherever it considers reasonable
• Require employees to work hours deemed reasonable by the employer
• Reduce pay during events such as pandemics, recessions, calamities or changes in market conditions
• Avoid providing guaranteed wage increases or salary reviews
• Request sensitive medical information from employees when they are unwell
• Terminate employment on medical grounds
FSU National Assistant Secretary Nicole McPherson described the proposed conditions as "draconian" and said Australian workers had spent decades securing workplace protections.
The union's objections have brought fresh attention to employee transfer arrangements that often accompany large-scale technology outsourcing contracts.
Infosys defends the transition process
Infosys has strongly pushed back against the allegations and framed the workforce transition as part of a broader effort to improve Bendigo Bank's technology capabilities.
In a statement cited by The Times of India, Infosys said it is working with Bendigo Bank to strengthen capabilities across:
• Infrastructure services
• Cloud technologies
• Cybersecurity
• Data and analytics
The company added that the engagement is designed to simplify the bank's technology environment while improving support for the communities it serves.
Infosys said certain roles would move from Bendigo Bank to Infosys to ensure continuity of services, strengthen delivery capability and provide long-term operational stability.
The company also stated that it is an equal opportunities employer and operates in compliance with applicable laws and regulations across all jurisdictions where it conducts business.
Technology partnership underpins Bendigo Bank strategy
The workforce transition forms part of a broader technology modernisation initiative announced by Bendigo Bank.
The Australian lender recently unveiled the next phase of its Productivity Program, including a seven-year strategic technology services partnership with Infosys.
According to the bank, the partnership is intended to support its Strategy 2030 objectives and accelerate technology transformation efforts.
The agreement is expected to provide Bendigo Bank with access to Infosys' global capabilities in:
• Software engineering
• Cloud services
• Cybersecurity
• Data analytics
• Artificial intelligence
The bank believes the partnership will help strengthen internal technology service delivery while supporting innovation across its operations.
Employee transfers remain common in outsourcing deals
The movement of employees from a client organisation to a service provider is a well-established feature of many large IT outsourcing agreements, particularly where long-term operational responsibilities are transferred.
In this case, more than 100 technology employees are expected to move from Bendigo Bank to Infosys as the partnership takes effect.
Bendigo Bank serves approximately 2.9 million customers through a network of more than 400 branches across Australia, making the technology transformation programme one of the more significant outsourcing initiatives currently underway in the country's banking sector.
The disagreement between Infosys and the FSU now places additional scrutiny on how employee transitions are managed as financial institutions increasingly turn to external technology partners to modernise operations and accelerate digital transformation.