Statement from ITEC on TCS 'involuntary attritions'

In the backdrop Madras High Court restraining Tata Consultancy Services (TCS) from retrenching/terminating an employee, IT/ITeS Employees Centre (ITEC) asks TCS to stop all its processes of ‘involuntary attritions’ from being carried out. TCS and IT industry do come under the ambit of Indian law and are supposed to abide by the law. TCS terminations/lay-offs are illegal on account of various aspects. As mentioned in the Madras High Court litigation, TCS has flouted many of the sections of Industrial Dispute Act.

  • Section 25 F (b) tells a compensation of 15 days average pay for every year of service need to provided
  • Section 25 F (c) clearly tells that any terminations are illegal without giving notice to appropriate government authority.
  • Section 25 G tells ‘last in first out’ should be the policy for terminations/retrenchments
  • Section 25 H tells terminated employees should be given preference in case of new recruitment

    All the above rules are contemptuously neglected by TCS.

    TCS has been terminating employees with 'C' rating, which stands for 'met expectations'. Nonetheless TCS is shamelessly trying to reduce this mass termination just to a case of performance related issue. Even the employees who got lowest rating, if they are not given chance for improvement (PIP) this action from TCS would not stand the test of law.

    IT employees would never have thought of 'bell curve' being so dangerous. This 'force fitting', whose effectiveness has been questioned even by some sections of industry themselves, fails in a very diverse environment in which employees work. It varies from industry to domain to clients, by which many skilled professionals are forced to be “under performers”.

    Inside news tells of stories of compulsory roll-off from projects and denial of approval from higher authorities to join new projects, which in turn leads to exit process after being in 'bench' for a period of time. While employees are terminated for “skill mismatch”, TCS goes on recruiting new employees for the same skill. Its high time IT employees be courageous enough to challenge these unethical and illegal practices by companies.

    ITEC asks the respective governments to intervene in the issue immediately to protect the right of employees to work and also to ensure transparent processes in IT industry in the long run.

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