India’s largest IT services firm, Tata Consultancy Services (TCS), is under scrutiny after reports surfaced that the company asked 2,500 employees in Pune to resign, prompting a government probe into possible labour law violations.
NITES Flags Violation of Labour Laws
The Nascent Information Technology Employees Senate (NITES) filed a complaint with the government, accusing TCS of violating the Industrial Disputes Act, 1947 by terminating employees without prior notification.
According to NITES president Harpreet Singh Saluja, the union has requested urgent government intervention to safeguard employee rights. Acting on the complaint, the Union Labour Ministry has directed the Maharashtra Labour Secretary to take necessary action.
Mid- and Senior-Level Staff Hit Hardest
The affected employees are mostly mid- to senior-level professionals, many of whom are over 40 years old and have spent 10–20 years with the company.
“These employees carry significant financial burdens, including EMIs, school fees, and medical expenses, and finding new jobs in the current market is extremely difficult,” NITES said.
The union urged Maharashtra Chief Minister Devendra Fadnavis to:
- Ensure affected employees receive their legal entitlements under the Industrial Disputes Act.
- Halt further terminations until due legal process is followed.
- Hold TCS’s top management accountable for alleged labour law violations.
TCS Denies Allegations, Calls Claims “Misinformation”
TCS has dismissed the allegations as misinformation, saying that only a small number of employees were impacted by its ongoing workforce realignment. The company added that all affected workers received severance benefits and support.
Layoffs Part of a Larger Restructuring Plan
In July 2025, TCS announced that it would cut about 12,000 jobs — around 2% of its global workforce — as part of a major restructuring strategy.
The company said the move aims to build a “future-ready organisation”, focusing on reskilling, redeployment, and realignment in response to evolving client demands and emerging technologies like AI.
As the government begins its investigation, the outcome could have significant implications for how Indian IT giants handle large-scale workforce restructuring in the future.
