Pune Labour Office Issues Notice To Tech Mahindra On Alleged Pay Cuts

Tech Mahindra effected salary cuts to maintain “profitability” amid Covid-19 pandemic, an IT employees’ organisation alleges.

Employees at Tech Mahindra campus in Hyderabad. (Photographer: Dhiraj Singh/Bloomberg)
Employees at Tech Mahindra campus in Hyderabad. (Photographer: Dhiraj Singh/Bloomberg)

Pune's Labour Office has issued a notice to Tech Mahindra Ltd. on a complaint that the IT services firm had reduced salaries of its employees to maintain “profitability" amid the Covid-19 pandemic.

A similar notice was issued earlier this month to Wipro Ltd. on a complaint that said the firm was benching its employees.

National Information Technology Employees Senate, an organisation working for the welfare and benefits of employees in the IT industry, had approached the Labour Commissioner’s Office claiming they have received complaints from employees of Tech Mahindra in Pune regarding salary cuts to maintain the "profitability of the business" during the Covid-19 pandemic.

"The company had also notified its employees through an email on May 6 that the shift allowance, which is between Rs 5,000 to Rs 10,000 per employee, will be stopped from May 1," according to NITES' complaint letter.

The application further claimed that because of this decision, salaries of more than 13,000 Tech Mahindra employees stands reduced.

NITES has sought appropriate legal action against Tech Mahindra, stating that the firm has violated the Maharashtra government's directions, rules and regulations.

In a notice issued on the same date, officials in the Labour Commissioner's Office directed the firm to go through the state government's resolution dated March 31, 2020, and take appropriate steps and release the salaries for March and April and to inform the labour commissioner's office.

The notice, signed by Assistant Labour Commissioner Nikhil Walke, asked the firm not to terminate employees or reduce the salaries, adding that legal action would be taken otherwise.

A Tech Mahindra spokesperson said, “The shift allowance paid for hardship due to travel to work at odd hours and other out-of-pocket expenses, continues to be paid to all Tech Mahindra associates, who are coming to the office or are at client locations as per policy. Our focus remains to ensure the well-being of our associates, customers and partner ecosystem while maintaining business continuity.”