Arbitration in Employer-Employee Disputes: Lessons from Infosys and Wipro Cases

Arbitration in Employer-Employee Disputes: Lessons from Infosys and Wipro Cases

In India’s fast-evolving corporate landscape, disputes between senior executives and employers—especially around severance agreements, breach of confidentiality, and employment bonds—are becoming more visible. Online Dispute Resolution (ODR), especially online arbitration, is gaining traction as a faster, cost-effective, and more confidential alternative to traditional litigation. Two prominent cases—the Infosys–Rajiv Bansal arbitration and the ongoing Wipro–Jatin Dalal case—highlight how arbitration is being used to resolve such high-stakes conflicts.

The Rajiv Bansal–Infosys Arbitration

In 2015, Rajiv Bansal resigned as CFO of Infosys. As part of his exit, he was promised a severance package of ₹17.38 crore. However, Infosys halted payments after ₹5 crore, citing breach of confidentiality and data deletion. Bansal initiated arbitration proceedings, arguing for the balance to be paid.

The tribunal, led by former Supreme Court judge R.V. Raveendran, ruled in Bansal’s favor in 2018, ordering Infosys to pay ₹12.17 crore along with interest. It dismissed Infosys’s counterclaims, citing lack of sufficient evidence. This case showed how arbitration can efficiently resolve complex disputes while maintaining confidentiality, unlike public court trials that can affect reputations and brand value.

The Jatin Dalal–Wipro Conflict

More recently, Jatin Dalal, the former CFO of Wipro, joined Infosys after his resignation in 2023. Wipro filed a case alleging breach of a non-compete clause and employment bond, claiming Dalal joined a direct competitor within the restricted period and owed the company over ₹25 crore. The matter has been referred to arbitration, a move reflecting the growing trend among Indian corporations to handle sensitive disputes privately and efficiently.

Though the proceedings are still ongoing, the case is a classic example of how non-compete and bond-related disputes are increasingly being dealt with via arbitration rather than lengthy public court battles. Arbitration offers the advantage of specialized adjudicators familiar with employment and commercial contracts, making outcomes more predictable and business-focused.

Why Arbitration Works for Employment Disputes

These cases highlight the advantages of arbitration and ODR in employment matters:

  • Confidentiality: Arbitration proceedings are private, protecting sensitive internal policies, executive agreements, and personal reputations.
  • Speed and Efficiency: Disputes are resolved faster than in court, often within months, helping both parties move forward without prolonged disruption.
  • Cost-Effectiveness: Avoiding protracted legal battles means reduced legal fees, court costs, and loss of productivity.
  • Neutrality: Especially in ODR setups, the use of third-party, independent arbitrators provides a balanced platform for fair adjudication.

Conclusion

Cases like Rajiv Bansal vs Infosys and Jatin Dalal vs Wipro signal a broader shift in how Indian companies approach executive-level employment disputes. By leveraging arbitration, and increasingly, online arbitration platforms, organizations can handle such conflicts with discretion, efficiency, and legal rigor. As India’s employment laws evolve, arbitration stands out as a reliable and pragmatic tool for maintaining corporate integrity and protecting employee rights.