What is TCS' new bench policy that's making thousands of techies at India's biggest IT firm anxious about layoffs?

Time of India

3 days ago

Thousands of Tata Consultancy Services (
TCS
) employees are facing job uncertainty as the company's new bench policy, which limits time without project allocation to 35 days, completes its first cycle this week. The policy came into effect on June 12 and applies to all employees across the company. It sets a strict 35-day annual limit for remaining on the bench, a period when employees are not assigned to any billable project. Employees who fail to find a project within this period risk career stagnation or termination.
What are TCS employees saying online?
The new policy has triggered widespread anxiety among employees, many of whom have turned to social media platforms like Reddit to share their concerns. Some employees claim they are being forced into roles unrelated to their training, while others say they are struggling to find assignments near their home locations.
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'This is the first step towards employment rationalisation based on utilisation. Brace for layoffs,' a Reddit user wrote.
A fresher shared, 'I have recently joined TCS and training was conducted in Java. Now, it's not even a month on bench and RMG is pressuring me to join a *** support project, far from Java and Python.'
The Economic Times could not independently verify these claims.
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What is TCS's new 35‑Day Bench Limit and Deployment Policy
TCS's new deployment policy, effective June 12, 2025, requires each employee to be billed for at least 225 business days within a 12-month period. This effectively limits the bench time, periods without project assignment, to a maximum of 35 business days per year .
Consequences for TCS' Extended Bench Time
As outlined in internal policy, 'Long periods of remaining unallocated shall adversely impact associate compensation, career growth, avenues of overseas deployment in future, and continuity of employment with the organisation'.
Expectations During Bench Period
When unallocated, employees are expected to take the initiative in finding new assignments. A company document notes: 'In the event an associate is unallocated, it is the primary responsibility of the associate to proactively engage with the Unit/Regional RMG for seeking allocation and take initiative towards pursuing suitable opportunities provided by the organisation'.
Mandatory Upskilling and Office Presence
During any bench time, associates are required to spend 4–6 hours daily on upskilling through internal platforms such as iEvolve, Fresco Play, VLS, and external services like LinkedIn. Remote work during bench periods is generally not allowed, with office presence made the defaul.
TCS' New Deployment Policy
Element
Requirement
Minimum billable days
225 business days per year
Maximum bench time
35 business days per year
Penalties
Impacts on pay, promotions, overseas moves, employment continuity
Associate responsibility
Proactively seek projects via RMG
During bench time
4–6 hours/day upskilling; office attendance mandatory
TCS new Bench Policy: How many could be affected?
TCS has not provided figures, but industry estimates show that around 15–18 per cent of employees at major Indian IT firms are typically on the bench. TCS has a global workforce of around 613,000 people. On Wednesday, Nascent Information Technology Employees Senate (NITES) appealed to Union labour minister Mansukh Mandaviya to intervene. In its letter, NITES called the policy 'inhumane,' 'exploitative,' and harmful to the mental health of IT professionals.
'These are not non-performing employees, but skilled professionals who find themselves temporarily without allocation… Instead of support, they are met with suspicion, coercion, and threats,' NITES president Harpreet Singh Saluja stated in the letter.
The organisation accused TCS of pressuring employees with threats of termination and denial of experience letters if they miss unrealistic deployment deadlines.
Are some employees supporting the move?
Yes. Some employees have backed the policy, suggesting it may help the company remove long-term benchers who have declined projects or used the time for personal purposes. 'This may help TCS trimming some seriously underperforming resources, those stuck on TCS like a leech,' another Reddit post read.
What does TCS management say?
TCS CEO and MD K Krithivasan defended the move in an interview with TOI, calling it a structured approach to an already existing expectation. 'It's always been expected that associates take responsibility for their careers. While HR supports project placement, we also expect associates to proactively seek new assignments after completing existing ones. What you're seeing now is simply a more structured version of what's long been in practice. We aim to minimise bench time,' he said.
Krithivasan added, 'Once we've made that investment, we work to ensure associates are deployed. While preferences are considered, projects are driven by client needs, not personal choice. We deploy based on training, demand, and skill alignment. If gaps exist, we work to close them before deployment.'
He did not confirm whether salaries are being withheld for employees benched beyond the 35-day limit.
Why is the policy being introduced now?
The IT sector is facing reduced demand due to global economic uncertainty and the increased use of artificial intelligence (AI), which is automating many routine tasks.
'We expect IT companies to become stricter with their bench policies due to the soft business environment and AI-led demand for advanced skill sets,' said Pareekh Jain, founder and CEO of EIIRTrend. He added that employee costs are now heavily impacting margins.
Experts believe TCS' policy could lead other IT firms to tighten their own bench rules.
'Tech companies must continuously align their employees' skill sets with evolving client needs. By revisiting their bench policies, organisations are encouraging employees to reskill and stay relevant in high-demand areas such as AI, cybersecurity, and digital engineering,' said Nitin Bhatt, technology sector leader at EY India.
'Going forward, tenure and grade-based promotions and merit increases will likely be replaced by assessments of skills proficiency and competencies required to take on new roles,' he added.
What impact has this had on TCS?
TCS CFO Samir Seksaria recently said employee utilisation declined in the June quarter, affecting margins. The company's employee cost rose to Rs 37,715 crore, the highest ever, and now makes up 59.45 per cent of its revenue. Attrition during the period stood at 13.8 per cent.
HCL Technologies, another major Indian IT firm, also reported a similar drop in employee utilisation due to delays in project ramp-ups and mismatches in skills and locations.
'Utilisation dropped due to a delay in ramp up for a specific program, (while) we encountered ramp downs in specific areas, which resulted in a larger bench due to also productivity benefits that we brought about, and it was also due to demand supply mismatch between skills and locations,' said HCL Technologies MD and CEO C Vijayakumar.