IT Layoffs: 11 Tech Mahindra Employees Move Labour Court

Forum for IT Employees today said as many as 11 disputes over IT layoffs done by Tech Mahindra had been moved to the labour court after Maharashtra labour authorities failed to mediate between the contending parties.

The affected employees have filed petitions under section 2A of the Industrial Disputes Act, FITE Coordinator Elavarasan Raja told PTI. According to section 2A of the Act, any dismissal of an individual workman is to deemed to be an industrial dispute.

Responding to the development, Tech Mahindra said, "We don't comment on matters which are sub-judice."

Last month, Mahindra Groups' Chairman Anand Mahindra had tendered apology over the manner in which an employee of Tech Mahindra was asked to quit.

He apologised after an audio clip went viral, which purportedly involved a conversation of an HR executive of the company asking an employee to put in his papers by next morning, as part of corporate decision.

Tech Mahindra ranks fifth in the tally of Indian IT firms by revenues. At the end of December 2016, the company had over 1.17 lakh employees.

There have also been reports of mass layoffs by various companies even though the industry has consistently denied the allegations.

The companies have termed layoffs as part of normal business decisions, but many believe that these are directed more towards controlling costs.

US-based Cognizant had also rolled out a voluntary separation programme for directors, associate VPs and senior VPs, offering them 6-9 months of salary.

Wipro, too, had asked about 600 employees to leave as part of its annual "performance appraisal" earlier this year.

FITE Vice President Vasumathi said it is sad that the IT companies have been violating the laws under the Industrial Disputes Act and alleged that their key motive appeared to be just making profits.

"The termination and layoffs have not only affected the employees, but also their families," Vasumathi said.