MP Slams ‘Illegal’ IT Lay-offs, Demands Federal Intervention Against TCS and Sector-Wide Retrenchments
Parliamentarian highlights ‘alarming’ situation of 1.5 lakh retrenchments in 2024; accuses firms of violating labour laws and coercing resignations to meet ‘profit at any cost’ targets.
Mass Lay-offs Spark Call for Government Action
New Delhi, October 1, 2025 — An Indian Member of Parliament (MP), Raja Ram Singh, has raised an urgent alarm regarding mass retrenchments across the Indian IT and ITeS sector, urging the Union Government to intervene immediately to halt what he describes as “illegal lay-offs” and “exploitative practices.” In a sharply worded letter addressed to Labour Minister Mansukh Mandaviya and IT Minister Ashwini Vaishnaw, the MP specifically cited the termination of over 12,000 employees by Tata Consultancy Services (TCS) in July 2025, claiming the actual figure is likely much higher and reflects a sector-wide trend.
The letter warns of an “alarming situation of mass retrenchments,” noting that the issue is not an isolated case but part of a broader shift where “profit is prioritised at the cost of workers’ livelihoods.”
The ‘Skill Mismatch’ vs. ‘Profit at Any Cost’ Debate
The core of the MP’s complaint focuses on the disparity between company justifications and documented facts. While IT firms often attribute mass retrenchments to a “Global Transition” and “Skill Mismatch,” the Parliamentarian challenged this narrative, particularly regarding TCS.
He highlighted that TCS’s own report for the financial year 2024-25 shows that 91% of its employees received skill-upgradation training.
“Clearly, these cuts are part of a global shift in employment policy from ‘growth at any cost’ to ‘profit at any cost,’” the letter states, arguing that the terminations are not a result of an employee’s lack of skills but a strategic move to cut costs. The MP further accused the firm, which boasts over $30 billion in annual revenue and six lakh employees, of treating its “long-serving workforce as disposable.”
Allegations of Widespread Labour Law Violations
MP Singh’s letter contends that the scale of retrenchments constitutes a gross violation of Indian labour laws. He specifically pointed to the Industrial Disputes Act, 1947, which mandates prior government permission for retrenchment in larger establishments.
The letter claims that “no IT company has complied” with this requirement.
Further compounding the legal issue, the MP detailed the alleged misuse of regulatory exemptions. He claimed that Karnataka’s exemption of IT/ITeS firms from the Industrial Employment (Standing Orders) Act has been “grossly misused,” with mandatory grievance redressal and reporting requirements being ignored. The letter estimates that over 1.5 lakh workers were retrenched in 2024 alone, many “entirely in violation of law.”
Coerced Resignations and Worker Victimisation
A significant portion of the complaint is dedicated to what the MP calls “Harassment & Victimisation.” The letter details reports from workers facing coerced resignations under the threat of termination without compensation or relieving letters.
To bypass legal scrutiny, companies allegedly use tactics like physical intimidation and the threat of blacklisting to compel employees to resign, thereby escaping retrenchment liabilities. The MP noted that an increasing reliance on performance management systems has only “deepened insecurity, harming workers’ health, morale, and professional engagement.”
Demands for Immediate Government Intervention
In conclusion, MP Raja Ram Singh outlined seven specific actions the Government must take immediately to protect IT workers, stating that the sector was built on the “hard work of Indian employees.”
The key demands are:
- Halt all illegal retrenchments and direct companies to explore alternatives like reskilling and redeployment.
- Reiterate the full applicability of labour laws to IT/ITeS establishments and initiate suo motu (on its own motion) action against violations.
- Withdraw preferential exemptions granted to IT employers under the Industrial Employment (Standing Orders) Act.
- Create a grievance redressal mechanism to ensure justice for employees affected by coerced resignations.
- Guarantee comprehensive compensation, including severance packages, extended health benefits, and job transition support for retrenched employees.
- Mandate trilateral consultations—involving the government, employers, and employee unions—before any restructuring.
The letter concluded with a strong appeal: “It is now the duty of the government to step in and protect their rights, dignity, and livelihoods from illegal and exploitative practices.”
