TCS new policy triggers layoff concerns, IT union demands Labour Ministry probe

India’s largest IT services company, Tata Consultancy Services (TCS), is facing mounting backlash over its newly introduced bench policy. The Nascent Information Technology Employees Senate (NITES) has submitted a formal complaint to the Ministry of Labour and Employment, citing concerns about employee well-being, forced resignations, and alleged workplace coercion.

The complaint, confirmed by NITES President Harpreet Singh Saluja, follows reports from around 78 TCS employees regarding the revised bench rules. “It is deeply concerning and disheartening to review the contents of this policy,” Saluja said in a public statement. “It institutionalises a culture of fear, surveillance and pressure during one of the most vulnerable phases of an employee’s professional life.”

What the Policy States

According to internal communication shared by Chandrasekaran Ramkumar, Global Head of TCS’s Resource Management Group (RMG), and reported by The Economic Times (ET), the new policy—effective from 12 June 2025—requires associates to be billable for a minimum of 225 days per year, allowing for only 35 days of bench time annually. Employees who fail to find a project within this window may face disciplinary action, performance improvement plans, or even termination.

The Economic Times, citing internal emails and employee testimonies, reported that some staff have been asked to resign, with warnings that refusal could lead to denial of experience letters—critical documentation for future employment. NITES’s letter to the Labour Ministry alleges that this tactic is being used to “pressure employees on the bench” into compliance.

Online Reactions and Alleged Coercion

The policy has also sparked widespread concern on social media platforms like Reddit, where affected employees have anonymously shared their anxieties. Several Reddit posts referenced in ET’s coverage described difficulties in securing projects aligned with their skills, being assigned unsuitable roles, or facing repeated client interview rejections.

One post read: “I have been on the bench for 25 days, still no clarity. They say if I don’t get deployed soon, I’ll be asked to resign.”

NITES argues that the policy disproportionately penalises employees who may be between projects through no fault of their own. “This isn’t about performance or productivity—it’s about control,” said Saluja. “The policy dehumanises and penalises employees instead of supporting them.”

Restrictions on Remote Work

Adding to employee concerns, The Times of India reported earlier this year that TCS also revised its work-from-office (WFO) norms. Under the updated rules, Indian employees are allowed to cite personal emergencies for only six remote work exceptions per quarter, with unused exceptions lapsing at the end of each cycle. Physical office presence has also been made mandatory during bench periods, as per internal company communication cited by ET.

NITES claims that this tightening of workplace flexibility—coupled with rigid deployment expectations—further contributes to psychological stress among staff.

TCS Yet to Respond

As of this report’s publication, TCS has not issued an official statement. According to ETHRWorld, the publication reached out to the company for comment, but no response has been received. The silence has only deepened employee unease, especially as the first 35-day bench cycle nears its end for many associates.

In its letter to the Labour Ministry, NITES has called for immediate regulatory intervention to investigate what it describes as a “systematic and unethical exploitation” of the workforce. “We are hopeful that authorities will initiate an inquiry and act to safeguard the dignity of IT professionals,” said Saluja.

The issue has reignited debates around fair employment practices, resource utilisation, and employee rights in India’s fast-evolving IT sector.