Tata Consultancy Services Ltd. (TCS) has terminated the employment of 16 individuals and banned six vendors from engaging with the company in response to an alleged hiring irregularity that came to light in June this year.
Following an investigation initiated on June 23, the largest private employer in India identified 19 employees involved in a bribery scheme related to job placements within the resource management department.
TCS Fires 16 Employees And Bans 6 Vendors
TCS made an official statement in an exchange filing on Sunday, indicating that 16 employees were separated from the company due to violations of the code of conduct, and three employees were removed from their roles within the resource management function.
Furthermore, TCS has prohibited six vendors, including their proprietors and associates, from conducting business with the leading IT services firm in India.
The company is now implementing several measures to fortify its resource management function, which include routine personnel rotations, enhanced analytics pertaining to supplier management, periodic declarations from vendors regarding compliance with the Tata Code of Conduct, and regular audits of the vendor management process.
On June 23, it was reported a significant recruitment scam within TCS, impacted the hiring procedures of the Tata Group firm.
Whistleblower’s Complaint
A whistleblower communicated to TCS’ CEO and COO, alleging that a senior executive in the resource management group had been accepting bribes from staffing firms over an extended period. The scam participants may have earned commissions amounting to Rs 100 crore.
In response, TCS banned six employees and six business associates or subcontractors on June 29 concerning the alleged hiring misconduct. TCS emphasized in its exchange filing on Sunday that there was no financial impact and clarified that the issue was a breach of the company’s code of conduct, not a fraud. It further underscored that no key managerial personnel were found to be involved.
TCS reiterated its zero-tolerance policy towards unethical behavior, emphasizing the importance of adhering strictly to the Tata Code of Conduct for all stakeholders and employees.
With close to 600,000 employees spanning 55 countries, TCS operates two departments for its hiring process: HR & Talent Acquisition, responsible for permanent hires, and the Resource Allocation Group, which deploys available resources. The company collaborates with approximately a thousand business associate firms globally to acquire contractual employees in response to talent or skill shortages. Typically, about 2-3% of the workforce consists of contractual workers at any given time.
The whistleblower complaints focused on certain individuals in the company collaborating with specific business associate firms to favorably recruit contractual workers. Natarajan Chandrasekaran, Chairman of Tata Sons, emphasized the paramount importance of ethical conduct and integrity for every employee in a Tata Group company, reaffirming a commitment to take strong action against any violations of ethical conduct.
