Govt Issues Notice Against Tech Mahindra For Cutting Salaries Upto Rs 10,000 For 13,000 Employees During #Lockdown

Tech Mahindra, the flagship IT services company under Mahindra Group which churned out revenues of Rs 39,000 crore this fiscal ($5.2 billion), is now cutting down salaries of their 13,000 employees in Pune.

National Information Technology Employees Senate (NITES), which is a nonprofit organization dedicated to help IT employees has complained to the Maharashtra Labor Commissioner.

And based on the complaint by NITES, Labor Commissioner has issued a notice to Tech Mahindra.

Tech Mahindra Cutting Rs 10,000 From Salary Of 13,000 Employees

We have received concrete evidence of Tech Mahindra reducing upto Rs 10,000 from the salary of 13,000 employees across their Pune offices.

In an email to employees, Tech Mahindra informed that due to ‘transformational change’ in the way businesses are being conducted (read coronavirus impact), they are deducting shift allowance and holiday allowance from their salaries.

In general, these two contribute between Rs 5000 to Rs 10,000 in the overall salary of the employees.

Here is the email which was sent:

The employees were notified on May 6th, and the reduction in salary will be applicable from May 1st. There are few exceptions to this salary cut, which has been mentioned in the mail.

NITES File Complaint Against Tech Mahindra

After receiving complaints from the Tech Mahindra employees, NITES shot a letter to the Labor Commissioner, highlighting this issue.

In the letter, NITEs has clearly mentioned that as per Maharashtra Govt’s order in March, no employer can deduct any salary or fire any employee during the lockdown phase.

Speaking on this, Harpreet Saluja, General Secretary, National Information Technology Employees Senate (NITES) said,  “We received complaints from Tech Mahindra employees that the company has decided to suspend shift allowances from 01st may 2020 onwards due to covid 19 situation. This will have an impact on around 13000 employees of Tech Mahindra in Maharashtra and more than 131000 employees in India. The employees have to work in night shift, early morning shift and round the clock. They did get allowances based on this, priced at Rs 400 per night shift and 225 per other shifts, which accounts 5000 – 10000 rupees in hand in addition to our salaries. This deduction in salary will affect the employees quite a lot. Most of employees are working from their home towns but they are still paying rents of their pune flats/pg accommodation.

The employees were assured and lured by the management while joining the project stating that this extra amount employees will be getting if they agree for 24/5 shifts project.”

Mr. Vivek Mestri, Vice President, National Information Technology Employees Senate-NITES said, “I condem the act of TECH MAHINDRA for reduction of Employees salary to maintain PROFITABILITY of their business even under COVID-19 epidemic is underway. This illegal act has violated Maharashtra state Government’s and even central government regulations commucated to all companies. We, as National Information Employees Senate – NITES Maharashtra, has submitted complaint demanding prompt and strict action against this organization to Labour Commissioner, Pune and also related authorities to take strict measures against this TECH MAHINDRA and set an example to other organisations which will help to avoid insensitive behavior towards employees.”

Here is the letter from NITES to the Labor Commissioner:

Labor Commissioner Issues Notice Against Tech Mahindra

Taking due cognizance of the complaint filed by NITES, Asst Labour Commissioner Nikhil Walke has issued a notice to Tech Mahindra.

In the notice, Tech Mahindra has been asked to immiedietely release the deducted salaries to the employees, else they can face consequences for non compliance of the Government directions, which attracts punishment under IPC Section 188, 269, 270, 271 Disaster Management Act 51 (b) & epidemic disease act 3.

Harpreet further said, “In such difficult situation the companies should take decisions keeping welfare of it’s hardworking employees in mind who are the backbone of economy and any organization.”

Tech Mahindra Responds

In the reponse to this developement, a representative from Tech Mahindra issued this statement to PunekarNews:

This is a developing story. We will keep you updated, as more details come in.