IT Union challenges TCS layoffs; calls for government intervention

TCS recently confirmed plans to lay off approximately 12,000 employees, representing about 2% of its global workforce, over the course of the current financial year. The company stated these job cuts are part of a larger strategy to become a "future-ready organisation" and adapt to changing technology trends and economic uncertainties. The layoffs are expected to primarily impact middle and senior-level staff.

In response to the situation, Nascent Information Technology Employees Senate (NITES), an IT workers' union, has called for an immediate halt to the mass layoffs announced by Tata Consultancy Services (TCS). NITES has formally appealed to Union Labour Minister Mansukh Mandaviya, urging the government to intervene and direct TCS to cease all terminations and reinstate affected employees.

NITES has strongly condemned the move, labelling it "unethical, inhumane, and outright illegal." The union alleges that TCS has failed to comply with statutory labour laws, which mandate a one-month notice period or wages in lieu, along with statutory retrenchment compensation, for employees who have served for over a year. NITES also claims TCS has not provided prior intimation to the government regarding these mass terminations.

Broader Concerns and Demands

The union's complaint to the Labour Ministry is the latest in a series of grievances raised against TCS. NITES had previously raised concerns about the company's new "bench policy," which limits an employee's time without a project to 35 days annually, and also highlighted indefinite delays in onboarding over 600 lateral hires with prior work experience.

NITES has urged the Ministry to initiate an inquiry into what it describes as a "systemic pattern of forced exits, delayed onboarding, and unlawful retrenchments" by TCS. The union has also appealed to the government to hold TCS's senior leadership accountable, particularly noting the reported salary increase of CEO K Krithivasan during a period of widespread job cuts.

Other IT employee unions, including the Karnataka State IT/ITeS Employees Union and the Forum for IT Employees (FITE), have also voiced strong opposition to the TCS layoffs. They have advised affected employees not to resign under pressure and to seek legal assistance if coerced.

TCS, on its part, has stated it will provide appropriate benefits, outplacement services, counselling, and support to impacted employees as they transition to new opportunities. The company maintains that the process will be gradual and will not affect client service delivery.

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