India’s Union Labour Ministry has acknowledged a complaint from the Nascent Information Technology Employees Senate (NITES) regarding Tata Consultancy Services’ (TCS) indefinite delay in onboarding over 600 lateral hires. These experienced professionals, with 2 to 18 years of work behind them, were reportedly left in limbo after receiving offer letters and planning their lives around their designated joining dates.
Relocations and Financial Losses Add to Frustration
In its letter to the ministry, NITES claimed many of the impacted professionals had relocated and made substantial financial commitments in preparation for their new roles. “Upon reporting to the company on their designated joining dates, they were informed of an indefinite delay. No revised schedule or formal assurance has been provided,” said Harpreet Singh Saluja, President of NITES.
The affected employees are from cities including Bengaluru, Hyderabad, Pune, Kolkata, Mumbai, and Delhi.
TCS Responds: Hiring Based on Business Demand
In response, a TCS spokesperson told Moneycontrol that the company intends to onboard all professionals who have received offers, but the timing depends on business requirements. “We remain in continuous touch with all candidates in these cases and look forward to them joining soon,” the statement added.
What the Law Says: Limits to Government Intervention
Legal experts confirm that while the labour ministry can investigate the matter, it lacks the authority to compel a private employer to complete onboarding unless a statutory or contractual violation is proven.
“Labour statutes apply post-employment, not to pre-employment delays,” said Ketan Mukhija, Senior Partner at Burgeon Law. However, if an offer letter constitutes a binding contract with a specific start date, prolonged or unexplained delays may qualify as a breach under the Indian Contract Act, 1872.
Possible Outcomes: Advisory, Not Action
Although penal action is unlikely, the government may initiate a fact-finding inquiry or advise TCS to resolve the matter transparently. Legal remedies could also be explored if candidates can demonstrate loss or bad faith, especially under the Industrial Disputes Act if they qualify as ‘workmen’.
The situation mirrors broader concerns across India’s IT industry as companies balance hiring promises with shifting business priorities.
