Mumbai: Tata Consultancy Services (TCS), India’s largest IT services company, has received a notice from the Ministry of Labour & Employment of the Maharashtra government due to a delay in onboarding lateral recruits. This complaint was lodged by Nascent Information Technology Employees Senate (NITES), a Pune-based IT employees’ union, in July 2023.
The exact number of lateral employees affected by this delay remains unconfirmed, the NITES complaint from July suggested that over 200 employees were impacted.
According to media sources, the notice from the labor ministry schedules a joint meeting between the company and the complainant on November 2, 2023, at noon, and it specifies the requirement for a company representative with valid documents to be present at the meeting venue.
Harpreet Saluja, the president of NITES, in a statement said, “NITES has drawn attention to the plight of these employees who, in good faith, resigned from their previous positions after receiving employment offers and joining dates from TCS. These professionals, with varying experience levels ranging from 1.8 to 15 years, now find themselves without a source of income, facing financial distress, and unable to meet family responsibilities.”
The number affected is reportedly over 2,000, although this has not been independently verified, he added.
Additionally, hundreds of other IT employees who were interviewed by TCS and informed of their selection, but did not receive an offer letter, are still waiting for the final offer letter. Many of these candidates resigned from their previous positions, assuming that the offer letter from TCS was forthcoming.
TCS, along with other IT firms, is dealing with uncertain macroeconomic challenges that have impacted deal ramp-ups, resulted in a pause in decisions regarding discretionary spending, and provided no clarity on when these issues will be resolved. This uncertainty has also affected the campus hiring targets of these companies.
TCS intends to hire 40,000 freshers, but they have indicated potential delays in onboarding these new recruits. Meanwhile, Infosys and Wipro have decided not to conduct campus recruitment this year.
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