Latest news with #NITES
Time of India
3 hours ago
- Business
- Time of India
‘Halt all terminations…': TCS layoffs prompt NITES to write to Labour Minister; IT employee union wants stay on 12,000 job losses
TCS layoffs: NITES has written a letter to Union labour minister Mansukh Mandaviya, voicing concerns regarding the mass sackings. (AI image) The news of TCS layoffs has led to Nascent Information Technology Employees Senate (NITES) writing to Labour Minister Mansukh Mandaviya . India's biggest IT services firm, Tata Consultancy Services (TCS) on Sunday said it would be laying off around 12,000 employees over the course of the year, which means an approximate 2% cut in its workforce. With this TCS is set to implement its biggest workforce reduction ever. Previously, the company had terminated approximately 3,000 employees in 2015, which was around 1% of its total staff at that time. This is reportedly the biggest mass layoff that the Indian IT industry is set to witness. TCS Layoffs: NITES Wants Halt On Terminations NITES, an IT workers' union, has written a letter to Union labour minister Mansukh Mandaviya, voicing concerns regarding the mass sackings announced by Tata Consultancy Services. According to an ET report, the IT workers' organisation challenged the legality of these dismissals and requested official instructions be issued to TCS to "halt all terminations and reinstate affected employees." Also Read | TCS layoffs 'biggest ever' for Indian IT! Artificial Intelligence not to blame for 'difficult' decision? Top 10 things to know about mass sackings The union emphasised that permitting a corporation of TCS's magnitude to conduct large-scale layoffs and firings without proper procedures or accountability would establish the wrong standard for other organisations, leading to employment uncertainty, diminished worker protections, and reduced confidence in India's labour environment. NITES urged the Ministry to hold the company's senior leadership responsible, particularly given the CEO's salary increase during a period of widespread job cuts. According to TCS's annual report, CEO K Krithivasan received Rs 26.5 crore in FY25, representing a 4.6% increase from the previous financial year. The report indicated that his compensation was 329.8 times the median employee salary. Additionally, NITES called for an investigation into TCS's delayed onboarding practices. Earlier this month, the union had highlighted concerns regarding delays in the lateral recruitment of 600 professionals. Other Trade Unions Also Slam TCS IT sector employee unions have labelled the dismissals unlawful and encouraged TCS staff facing redundancy to resist resignation pressures. The Karnataka State IT/ITeS Employees Union has appealed to the technology major to withdraw its staff reduction strategy and restore positions of impacted workers. The Forum for IT Employees (FITE) has recommended that TCS should avoid applying direct pressure on employees to resign. Instead, they advised the company to provide notice period remuneration, severance packages and extend health insurance benefits for a 12-month period. Also Read | 'Don't resign under pressure….': TCS layoffs opposed by IT employee unions; IT giant to sack 12,000 employees Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
5 hours ago
- Business
- Time of India
What is TCS' bench policy whose first 35-day cycle ended this month
Thousands of Tata Consultancy Services ( TCS ) employees are grappling with heightened job insecurity as the IT giant's controversial bench policy completed its first 35-day cycle this week, coinciding with the company's announcement of 12,000 global job cuts. The policy, implemented on June 12, caps the maximum bench period—time without project allocation—at just 35 days annually, after which employees risk career degrowth or termination. New policy limits 'bench time' to 35 days per year TCS's revised deployment policy requires employees to be billable for at least 225 business days within a 12-month period, effectively limiting bench time to a maximum of 35 business days per year. During unallocated periods, employees must spend 4-6 hours daily on upskilling through internal platforms and are required to maintain office presence, with remote work generally prohibited. The policy places primary responsibility on employees to proactively seek new assignments through the Resource Management Group (RMG). Long periods without allocation can adversely impact compensation, career growth, overseas deployment opportunities, and employment continuity, according to internal company documents. Online forums like Reddit are flooded with posts from anxious TCS employees. "This is the first step towards employment rationalisation based on utilisation. Brace for layoffs," one user wrote. A fresher claimed being pressured into support projects unrelated to their Java training within weeks of joining. Employee union calls policy 'inhumane and exploitative' The Nascent Information Technology Employees Senate (NITES) filed a complaint with the Union Labour Ministry on Wednesday, calling the policy "inhumane" and "exploitative." Based on complaints from 78 employees, NITES alleged that TCS is coercing benched employees with termination threats and denial of experience letters. "These are not non-performing employees, but skilled professionals who find themselves temporarily without allocation," said NITES president Harpreet Singh Saluja. However, some employees support the move, arguing it could help remove long-term benchers who decline projects. TCS CEO K Krithivasan defended the policy as a "structured version of what's long been in practice," emphasizing that associates must take responsibility for their careers while HR supports placement efforts. TCS announces 12,000 job cuts amid skill mismatch concerns Separately, TCS plans to cut approximately 12,000 jobs globally—around 2% of its 613,000-strong workforce—through FY26, according to a Moneycontrol report. CEO Krithivasan clarified that the layoffs stem from skill mismatches rather than AI-driven productivity gains, primarily affecting mid-to-senior level employees and some junior staff on prolonged bench time. The IT sector faces reduced demand due to macroeconomic uncertainty and AI automation of routine tasks. Industry estimates suggest 15-18% of employees at major Indian IT firms are typically on the bench. TCS reported employee costs of ₹37,715 crore in Q1, constituting 59.45% of revenue, with attrition at 13.8%. The company's strict bench policy could influence other IT firms to tighten similar policies as the industry adapts to AI-led demand for advanced skill sets, experts told ET.
Time of India
6 hours ago
- Business
- Time of India
TCS layoffs: Techies seek stay on 12,000 job cuts in letter to labour minister
IT employee union, Nascent Information Technology Employees Senate (NITES), has written to Union labour minister Mansukh Mandaviya protesting against the massive job cuts announced by Tata Consultancy Services . The largest Indian IT software exporter announced plans to lay off 12,000 employees, or 2% of its global the retrenchment illegal, the IT employees' body sought directions issued to TCS to "halt all terminations and reinstate affected employees."To be updated
&w=3840&q=100)
Business Standard
2 days ago
- Business
- Business Standard
Labour ministry asks TCS to meet CLC next week to discuss onboarding delay
The labour and employment ministry has asked Tata Consultancy Services (TCS) to attend a meeting with the chief labour commissioner (CLC) in New Delhi next week to discuss the delay in onboarding of more than 600 experienced professionals in the company. According to the letter sent by the ministry addressing the chairman and managing director of TCS, the meeting will be held on August 1. The move comes days after Nascent Information Technology Employees Senate (NITES) sent a letter to the ministry saying that TCS delayed onboarding, even though commitments were made by the company through offer letters and formal communication. "You are, therefore, requested to please attend the discussion either personally or through an authorised representative not below the rank of head of the department, who should be well conversed with the matter and take decision. Written submission, if any in this regard, may be submitted in advance to this office," according to the letter, signed by regional labour commissioner OP Singh, and seen by Business Standard. An email sent to TCS regarding the matter did not elicit a response till the time of publishing the story. NITES had requested the ministry to intervene and ensure that TCS provides an official and time-bound commitment regarding the onboarding of the affected lateral hires, offer compensation for the duration during which onboarding has been delayed, and explore alternate suitable positions for these professionals within the organisation. It also demanded that TCS provide the affected people with its Employee Assistance Program (EAP) to support those people's mental health. TCS has a workforce of about 613,000 people as of June 30. The letter from NITES said that many of these people, with experience ranging from two to 18 years, have relocated or made substantial personal and financial arrangements in anticipation of joining TCS. "Unfortunately, upon reporting to the company on their designated joining dates, they were informed of an indefinite delay in onboarding. No official communication, revised schedule, or assurance has been provided since,' it said.
India.com
5 days ago
- Business
- India.com
Bad news for TCS employees! Ratan Tata's company issues another strict rule, defaulters to face action; it is about..., these people to be hit hardest
Bad news for TCS employees! Ratan Tata's company issues another strict rule, defaulters to face action; it is about..., these people to be hit hardest Tata Consultancy Services (TCS), one of India's largest IT firms, is experiencing criticism on several fronts. From its newly enforced bench policy that has sparked panic among employees, to the indefinite delay in onboarding over 600 lateral hires, the company is facing intense scrutiny. Compounding the fury, IT employee union NITES has sent a letter to the Ministry of Labour and Employment requesting government support and intervention in the ongoing issues affecting professionals from TCS. What is the new strict rule introduced by TCS? Now, another report has come out, indicating that the IT firm has issued an instant five-day return-to-work requirement for its employees in the United States. Employees must comply with the directive. Furthermore, IT giant has even warned that staff will be monitored and called out if they don't comply, reported The Register. Who will be affected by this immediate office return order? A TCS employee based in the US told The Register that they had received an internal email from HR requiring a full return to office 'to enrich our workplace experience, effective immediately.' The email directed all employees, except those working on client sites or previously approved for remote work, to return to the office. In their 2023 press release, TCS had over 45,000 employees working across US-based companies, making the sudden policy shift significant in scale and impact. 'We can confirm that as a part of our ongoing plan to return to office globally, our US operations have also resumed full week working from the office, like many other regions,' TCS told us, reported The Register. Who are the employees most affected by this policy? The worker, who asked to remain anonymous, also stated that speculation is loaded in TCS's offices in North America, with internal chatter indicating that job cuts could be as high as 30 per cent. As to these claims, a spokesperson from TCS commented, 'While we don't comment on rumors and speculation, we can confirm we have not announced any layoffs in the US,' reported The Register. In a letter, NITES has called on the Ministry of Labour and Employment to intervene and ensure that TCS provides a clear timeline for bringing on board the impacted lateral hires. The employee group also sought compensation for the delay and asked TCS to consider alternative appropriate roles in the company for the impacted professionals.
