'Unethical And Illegal': IT Union Doubles Down On TCS Layoffs Charge
The union has also accused TCS of practising “crony capitalism,” cutting experienced mid-level staff to replace them with cheaper recruits while portraying this as restructuring.
The Nascent Information Technology Employees Senate (NITES) has accused Tata Consultancy Services (TCS) of forcing over 2,500 employees to resign, calling the move unethical and illegal. Harpreet Singh Saluja, President of NITES argued that the company’s actions amount not to a layoff but to retrenchment, as defined by the Industrial Disputes Act.
“Layoff is a temporary measure,” he explained. “When employees are permanently removed, it becomes retrenchment, and this requires government approval along with a detailed justification. Has the company sought such permission from the Maharashtra government?”
"This is not restructuring. This is unethical and illegal layoffs and retrenchment," he told NDTV Profit. For those not aware of retrenchment, it is a process of reducing the workforce in a company, often due to economic reasons or organisational restructuring.
The controversy began when TCS abruptly informed employees on a Sunday evening that nearly 12,000 jobs were at risk. According to Saluja, the union immediately approached the Union Labour Ministry, given the pan-India scale of the layoffs. Although a meeting was scheduled, TCS failed to attend, sending only an informal letter to the chief labour commissioner, who in turn referred the matter to the Maharashtra Labour Ministry.
A formal letter was then sent to the Principal Secretary of the Maharashtra government on Aug. 18. However, NITES claims that despite continuous follow-ups, no official response has been received, leaving the union with no choice but to escalate the matter directly to the state’s chief minister.
NITES wrote to the Maharashtra chief minister seeking urgent intervention after TCS allegedly bypassed due process under Indian labour laws.
The union has also accused TCS of practising “crony capitalism,” cutting experienced mid-level staff to replace them with cheaper recruits while portraying this as restructuring. Saluja pointed to similar concerns raised in the United States, where senators questioned why TCS was dismissing employees even as it remained one of the largest applicants for H-1B visas.
“This is a clear case of cost reduction presented as restructuring,” Saluja said. “Long-serving employees are being abruptly targeted, and this is neither ethical nor legal. Investors may see profit margins improving, but it comes at the cost of livelihoods.”
NITES has demanded immediate intervention from the Maharashtra government to safeguard employees’ rights and ensure compliance with labour laws. The union insists that unless addressed, such practices could set a dangerous precedent for the wider Indian IT industry.
However, when PTI reached out to TCS it said, "The misinformation shared here is inaccurate and purposefully mischievous. Only a limited number of employees have been affected by our recent initiative to realign skills in our organisation."
