August 1, 2025 | Location: Bengaluru, Karnataka
The Karnataka Labour Department has officially issued a notice to Tata Consultancy Services (TCS) following complaints of alleged forced resignations and unlawful layoffs. The action comes after the Karnataka State IT/ITeS Employees Union (KITU) filed a grievance on behalf of affected employees.
Conciliation Meeting on August 6
The Labour Department has scheduled a conciliation meeting on August 6, 2025, to bring both parties—TCS management and KITU representatives—to the table. The meeting aims to resolve the issue amicably and determine whether any labour laws were violated in the process.
KITU Alleges Forced Resignations
According to KITU, several employees at TCS’s Bengaluru office were allegedly asked to resign under pressure without due notice, severance benefits, or proper cause. The union has claimed this violates provisions under the Industrial Disputes Act, 1947.
TCS Yet to Release Official Statement
As of now, TCS has not issued an official response. Sources close to the company say internal reviews are ongoing. However, TCS previously maintained that all employee exits are handled in compliance with internal policy and national labour laws.
Labour Department’s Position
Officials from the Labour Department confirmed the notice and stated that the process is in line with Section 12 of the Industrial Disputes Act, which mandates conciliation in case of disputes. They have assured both parties a fair hearing and legal resolution.
Employees Seek Job Security
Affected employees have voiced concerns over lack of transparency, sudden termination, and career disruption. Many have requested reinstatement, fair severance, or extended notice periods. KITU emphasized that such practices erode job security and violate ethical standards in India’s IT sector.
Industry Context
The notice comes amid rising concerns in India’s IT industry about project ramp-downs, automation, and shrinking global contracts. Several firms have downsized in 2025, citing market conditions. However, labour unions argue that rights of employees must be protected regardless of economic pressures.
What Happens Next?
If the August 6 meeting fails to yield a settlement, the Labour Department may escalate the matter to a labour court or refer it for industrial adjudication. KITU has indicated it may seek legal remedy if forced resignations are proven.
Conclusion
This case underscores growing tensions between India’s IT workforce and corporate giants amid shifting industry dynamics. All eyes will be on the August 6 conciliation meeting to see if a resolution is reached between TCS and KITU, or if the matter proceeds to formal litigation.
