Tata Consultancy Services (TCS) is currently facing allegations of engaging in unethical transfer practices, as reported by the Nascent Information Technology Employees Senate (NITES), a union advocating for IT workers. The controversy arose on January 1, 2024, triggering widespread concern within the IT community. NITES has officially lodged a complaint with the Ministry of Labour and Employment, accusing TCS of orchestrating the forced relocation of more than 2,000 employees across different cities without proper notice or consultation.
In response to these allegations, Harpreet Singh Saluja, the President of NITES, issued a statement urging the Ministry of Labour and Employment to thoroughly investigate TCS’s actions. The aim is to ensure the protection of IT workers from what is perceived as unethical employment practices.
The accusations against TCS include claims from over 300 employees who allege being subjected to these forced transfers. According to NITES, TCS provided inadequate notice and consideration for individual circumstances, causing substantial distress for the affected employees and their families. The situation was compounded by the alleged use of disciplinary threats against those who resisted compliance. Additionally, NITES asserted that TCS resorted to unethical tactics by withholding the salaries of employees who opposed the transfers, intensifying the financial strain on individuals who were essentially left with the difficult choice of accepting the transfer or risking their livelihoods.
NITES has put forth specific requests to the Ministry of Labour and Employment, seeking a comprehensive investigation into TCS’s transfer practices to determine potential violations of labor laws. They are also urging the Ministry to take appropriate action against TCS if any violations are identified. Furthermore, NITES is advocating for the formulation of new policies and regulations designed to safeguard IT workers from experiencing such unethical transfer practices in the future.
This recent controversy is not the first instance of TCS facing scrutiny. In October 2023, it was reported that TCS had terminated 16 employees and blacklisted six staffing firms. E.S. Chakravarthy, the former head of TCS’s resource management group, was accused of misconduct in hiring contract workers and was subsequently dismissed by the company. TCS stated that its internal investigation led to actions against 19 employees, including the separation of 16 for code of conduct violations and the removal of three from the resource management function. Additionally, six vendor entities, their owners, and affiliates were barred from conducting any business with TCS. The company pledged to enhance its governance measures, including regular personnel rotation, improved analytics on supplier management, periodic declarations by vendors on compliance with the Tata Code of Conduct, and vendor management process audits.