India, July 28 -- A €175,000 penalty will barely register on the financial statements of a company the size of Infosys. Yet the reason behind the fine deserves closer attention than the amount itself.

Infosys disclosed that DRIEETS Île-de-France, a French regional authority responsible for the economy, employment, labour, and social affairs, had found deficiencies in the company's employee working-time recording system.

According to the company's regulatory filing, the system did not fully comply with French legal requirements. The authority cited shortcomings in its reliability, auditability, and monitoring capabilities for certain categories of employees.

Infosys said the penalty would have no material impact on its financ...