KITU Accuses TCS of Illegal Mass Retrenchment, Demands Criminal Action Against Management

Union Alleges Forced Resignations, Violations of Labour Laws

Bengaluru, July 31, 2025 – The Karnataka State IT/ITeS Employees Union (KITU) has escalated its fight against Tata Consultancy Services (TCS), accusing the IT giant of illegal mass retrenchment and coercing employees into resigning—a move that blatantly violates India’s labour laws. In a formal complaint filed with the Additional Labour Commissioner, KITU has demanded criminal prosecution of TCS management for flouting the Industrial Disputes Act (IDA), 1947, and disregarding state government regulations on employment termination.

The dispute has intensified as the Labour Department issued a notice to TCS, scheduling a conciliation meeting on August 6 between union representatives and company officials in the presence of Additional Labour Commissioner G. Manjunath.

Forced Resignations & Legal Violations

KITU’s complaint stems from numerous employee grievances alleging that TCS management has been systematically pressuring workers to resign instead of following due legal process for layoffs. Under Section 25N of the Industrial Disputes Act, companies with over 100 employees must seek government approval before any retrenchment, ensuring workers are protected against arbitrary termination.

However, TCS stands accused of circumventing the law by coercing resignations—a tactic that denies employees their rightful severance benefits and legal safeguards.

“This is not just unethical but outright illegal,” a KITU spokesperson stated. “Forcing employees to resign under duress is a criminal act, and those responsible must face prosecution. The management’s actions show a blatant disregard for labour rights and established legal procedures.”

The union has urged the Labour Commissioner to initiate criminal proceedings against TCS officials involved in the alleged coercion, citing violations of both the ID Act and Karnataka’s labour compliance mandates.

Labour Department Steps In, Conciliation Meeting Scheduled

With tensions rising, the Labour Department has intervened, summoning TCS for a conciliation meeting on August 6. The session, to be mediated by Additional Labour Commissioner G. Manjunath, will determine whether the retrenchments were lawful or if the company must reinstate affected employees.

KITU has pressed for urgent action, emphasizing that thousands of livelihoods are at stake. “The Labour Department must ensure justice for employees who have been wrongfully terminated,” the union asserted. “TCS cannot be allowed to bypass legal requirements simply because it is a corporate giant.”

Broader Implications for India’s IT Sector

The controversy raises serious concerns about labour rights in India’s IT sector, where layoffs are often disguised as voluntary exits to avoid regulatory scrutiny. Legal experts warn that if TCS is found guilty, it could set a precedent for stricter enforcement of labour laws across the industry.

“Companies cannot treat employees as disposable resources,” said a labour rights advocate. “The Industrial Disputes Act exists precisely to prevent such exploitation. If TCS has indeed forced resignations, this constitutes a severe breach of trust and law.”

What Next?

As the August 6 conciliation meeting approaches, all eyes are on whether TCS will justify its actions or face legal repercussions. Meanwhile, affected employees await justice, hoping the Labour Department’s intervention will compel the company to halt illegal terminations and adhere to statutory obligations.

For now, KITU remains resolute. “We will not back down until every wrongfully terminated employee gets justice,” the union declared. “No corporation is above the law.”

Key Takeaways:

• KITU files industrial dispute against TCS for illegal mass retrenchment.

• Alleges forced resignations in violation of the Industrial Disputes Act, 1947.

• Demands criminal prosecution of TCS management.

• Labour Department schedules conciliation meeting for August 6.

• Case could set a legal precedent for labour rights in India’s IT sector.

The outcome of this dispute could have far-reaching consequences, not just for TCS but for corporate accountability in India’s rapidly evolving employment landscape.