Labour Commissioner’s office issues notice to Tech Mahindra for reducing salaries

The employees have complained that their shift allowance, in the range of Rs 5000 to Rs 10,000, has been discontinued by the Company w.e.f May 1.

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Following complaints from several employees, the National Information Technology Employees Senate (NITES) filed a formal complaint with the Labour Commissioner, alleging that Tech Mahindra has reduced salaries in a bid to maintain profitability.

The IT services company has apparently informed its employees that the payment of shift allowance — Rs 5000 to Rs 10,000 — will be stopped starting this month. The move has apparently impacted the salaries of about 13,000 employees. The employees were reportedly informed of this deduction via an e-mail last week.

Tech Mahindra has been accused of violating the regulations of the Maharashtra government, which prohibits companies from deducting salaries or terminating employees during the lockdown. As per NITES, the Company has failed to comply with fundamental human rights policies, and therefore, invites strict action.

However, Tech Mahindra maintains that the shift allowance, which is paid to employees for the effort involved and the difficulties endured in travelling to work at odd hours is being paid to all employees commuting to office, in keeping with the organisation’s policy. This allowance also covers the out-of-pocket (OOP) expenses of employees travelling to office, even at client locations. The organisation claims that the well-being of its workforce, associates, partners and customers remains a priority, along with business continuity.

The Company had conveyed to some of its clients during the fourth-quarter results, that it will reduce discretionary expenditure, given the adverse impact on the BPO businesses, resulting from delays in obtaining approvals to work from home during the lockdown.