Employees have alleged that they are being coerced into resigning under the threat of termination, and warned that refusing to do so could damage their future career prospects.
Published Aug 02, 2025 | 9:00 AM ⚊ Updated Aug 20, 2025 | 9:44 PM
TCS told South First that the restructuring is being planned with due care to ensure there is no impact on service delivery to clients.
Synopsis: Over 100 Tata Consultancy Services employees in Bengaluru have approached labour unions alleging forced resignations and psychological pressure, following the company’s 30 July announcement of a global workforce reduction. The move, expected to affect over 12,000 employees by March 2026, has drawn also drawn legal scrutiny from the Karnataka Labour Department, which has issued a notice summoning TCS to a conciliation meeting.
More than 100 employees at Tata Consultancy Services (TCS) in Bengaluru have reached out to labour unions over the past week, fearing forced resignations and retrenchments after the company made a mass layoff announcement on 30 July.
The reduction is expected to take place over the coming months and continue until March 2026. It is part of the company’s broader “restructuring” initiative, will reduce its global workforce by two percent in the 2025–2026 financial year and result in over 12,000 people losing their jobs.
However, the announcement has triggered panic among TCS employees in Bengaluru, many of whom are now seeking support from groups such as the Karnataka IT/ITeS Employees Union (KITU).
KITU representatives submitting report against TCS to the labour department. (Supplied)
“So far, we have filed complaints with the Additional Labour Commissioner of Karnataka on behalf of 15 employees who were already let go. But another 100 have approached us after being put on the bench. They fear that they will be next,” KITU Secretary Lenil Babu told South First.
Following the complaint, a case has been registered against the company, and the Labour Department has issued it a notice to attend a conciliation meeting.
Pages and anonymous groups have been formed on social media platforms like Facebook and Reddit by aggrieved employees, where they share their experiences with each other.
“No hike, no appraisal, five days mandatory work from office, micromanagement, layoffs disguised as performance optimisation – is this the same TCS that once proudly spoke about employee-centric values?” an anonymous user posted on one such page.
Many of the TCS employees who spoke to South First were hesitant to detail their experiences due to fears of retaliation or impact on future employment. They agreed to speak only on the condition of anonymity.
One such mid-level employee said that they received an email – days before the public layoff announcement – stating that they had been “unallocated” from projects for a considerable period. “I was actively involved in the assignments that were given to me for almost a year. But I was still put on the bench in June,” the employee said.
In the IT sector, employees who are kept on the “bench” are not currently assigned to any ongoing client projects but remain employed by the company. These employees may be undergoing skills-related training or awaiting project allocation.
However, KITU representatives stated that many such employees who have been placed on the bench are being summoned to in-person meetings. The aforementioned employee also received an email asking them to attend such a meeting.
The email, which South First has seen, stated: “Your prolonged un-allocation without any productive assignment is a matter of concern to the company and the company views this matter very seriously. In this regard, you are required to attend an in-person meeting. During this meeting, we would like to discuss with you the reasons for un-allocation and based on the outcome of the discussion, the company may initiate further action as deemed fit.”
Employees alleged that during these meetings, they are coerced into resigning under the threat of termination and warned that refusing to do so could harm their future career prospects.
“Providing work to a permanent employee is the legal and ethical responsibility of the employer. Citing unallocation as a reason to force resignation is not only unjust but also a clear violation of employee rights under labour laws,” said Babu.
Adding to this atmosphere of uncertainty is TCS’s revised benching policy, which has been in effect since 12 June. Under the new policy, an employee can remain on the bench – without being allocated to any project – for a maximum of 35 days per year and must work for at least 225 billable business days annually.
If employees fail to meet these conditions, they may face consequences. Unions have criticised the policy as “deeply flawed”.
“The policy punishes unavailability and frames lack of allocation as a personal failure of the employee rather than a reflection of the company’s inability to manage workforce planning effectively,” the Nascent Information Technology Employees Senate (NITES) said in a press statement.
The union has reportedly received complaints that many employees are being asked to resign if they fail to find a project within 35 days of being on the bench.
It is not just those currently on the bench who are at risk. According to an employee who spoke to South First, the company has begun identifying individuals whose roles are deemed “non-critical” across various projects. These employees are often assigned low performance ratings – for example, a “C” band – during appraisals.
“I recently completed one year and was given the C band, basically that my performance only meets expectations and isn’t extraordinary. I have now been told that I am at risk,” one of the employees told South First.
Many such employees now live in a constant state of anxiety and uncertainty. “We might get a call or email at any moment. I am trying to find another job, but it will take me at least two to three months to secure one with decent pay. How am I supposed to support my family in the meantime?” the employee asked.
The psychological pressure on these employees has been immense. KITU, along with other unions such as the All India IT and ITeS Employees’ Union (AIITEU), has set up help desks with emergency contact numbers for aggrieved employees. They reportedly receive over 20 frantic calls each day.
“Most of them are under a lot of mental stress right now. They didn’t expect to be pushed out like this, so no one really has a clear plan yet. Some are worried about how they will manage their family and finances, and many are still trying to process what happened,” said Babu.
Even as this crisis unfolds, media reports indicate that the company has also reportedly delayed onboarding without providing any explanation, leaving over 600 experienced professionals in Bengaluru, Hyderabad, Pune, Kolkata, Mumbai, and Delhi in limbo, despite holding job offers from the company.
One woman employee from Bengaluru shared that she received an offer letter from TCS in April. She previously worked at an IT firm in the city but resigned and served a three-month notice period after being asked to join TCS in the first week of July.
“It was a dream come true for me to work for such a company,” she said. But her joining has now been postponed indefinitely without any reason. “I am the sole breadwinner in my family. I only resigned after receiving a formal offer with a confirmed joining date. Now, I have no source of income,” the employee said.
Meanwhile, TCS told South First that the restructuring is being planned with due care to ensure there is no impact on service delivery to clients.
“We understand that this is a challenging time for our colleagues likely to be affected. We thank them for their service and we will be making all efforts to provide appropriate benefits, outplacement, counselling, and support as they transition to new opportunities.”
Regarding delays in onboarding, the company had earlier stated that it remains committed to honouring the offer letters and will complete onboarding according to business demand. “Everyone who has received an offer from TCS will be onboarded,” it told MoneyControl.
Meanwhile, the Karnataka Labour Department issued a notice to TCS on 31 July, directing the company to attend a conciliation meeting with KITU representatives in the presence of the Additional Labour Commissioner.
The notice follows a meeting between KITU union representatives and Labour Department officials on 29 July, during which a case was filed against TCS alleging illegal mass retrenchment. The union demanded prosecution of the management for violating provisions of the Industrial Disputes Act, 1947.
The Act mandates that companies employing more than 100 workers must obtain prior approval from the government before carrying out any layoffs or retrenchments. Labour Minister Santosh Lad, speaking to reporters on 30 July, said that TCS had not provided any such intimation to the department regarding the layoffs.
“Such retrenchments are permitted only for specific reasons and under conditions clearly defined in the Act. This well-established and consistently upheld labour jurisprudence has been violated by the TCS management, which has resorted to the criminal practice of forcing employees to resign,” KITU said in a statement on 30 July.
(Edited by Dese Gowda)
