Tata Consultancy Services (TCS) has formally assured the Ministry of Labour and Employment that it will proceed with the onboarding of over 600 lateral hires whose joining had been indefinitely delayed, according to media reports and union statements.
The development follows a complaint filed by the Nascent Information Technology Employees Senate (NITES), which urged the ministry to intervene after TCS reportedly postponed the joining of experienced professionals without sharing a revised timeline. The Labour Ministry convened a meeting on 1 August 2025 to address the issue.
While TCS did not send a representative to the meeting in person, the company responded via email communication, affirming that it has not cancelled any offer letters and remains committed to honouring them.
“The onboarding is deferred, not revoked. The company will proceed with the process,” TCS said, according to a report by The Economic Times on 2 August 2025.
Hundreds Affected Across Cities
The delay has impacted professionals with 2 to 18 years of experience, many of whom were hired for roles in major Indian cities including Bengaluru, Hyderabad, Pune, Kolkata, Mumbai, and Delhi. According to NITES, these candidates were informed of the indefinite delay only after reporting on their designated joining dates.
“No revised schedule or official communication has been shared since then,” wrote Harpreet Singh Saluja, President of NITES, in the union’s letter to the ministry dated 22 July 2025. Saluja noted that many of the affected candidates had already made personal and financial commitments, including relocation, based on their employment offer.
In its representation to the ministry, NITES urged the government to obtain a time-bound commitment from TCS to ensure transparency and accountability in the onboarding process.
Layoff Concerns Loom, But Deferred for Later Discussion
The issue of layoffs—reportedly involving around 12,000 employees, or roughly 2% of TCS's workforce—was not discussed during the 1 August meeting. According to LiveMint and Business Today, the layoffs are linked to an ongoing internal restructuring and are expected to be addressed in a separate round of discussions between the company and the ministry.
“While we welcome the assurance on lateral hiring, we remain concerned about the lack of transparency regarding planned layoffs,” said Saluja in a separate statement to the press.
The incident has sparked broader concerns about the growing unpredictability in IT hiring, especially for lateral roles, amid ongoing cost rationalisation efforts by major firms. TCS had earlier announced cautious hiring targets for FY26, attributing it to a dynamic demand environment and an emphasis on optimising internal talent pools.
The union has argued that delays of this nature affect not only individual livelihoods but also damage the credibility of offer letters issued by top employers.
Labour rights advocates have called for stronger regulations to ensure that companies are held accountable when hiring commitments are not honoured in a timely manner.
Government Watchdog Role Intensifies
The Labour Ministry’s involvement signals an increased willingness by the Indian government to monitor employment practices in the private sector, particularly within high-growth industries like IT and ITeS. While traditionally seen as a hands-off sector, the ministry has in recent years been approached by employees and unions in cases involving hiring freezes, wage delays, and mass retrenchments.
For now, TCS’s assurance marks a step forward for affected professionals, though many are awaiting official timelines and communication from the company to confirm when they can finally report to work.