HCLTech faces complaint over changes to EPB policy, leading to salary reductions

The employee union, Nascent Information Technology Employees Senate (NITES), has filed a complaint against HCLTech, alleging that modifications to the company’s engagement performance bonus (EPB) policy have resulted in salary reductions for specific employees, according to sources from Business Today.

NITES president Harpreet Singh Saluja expressed concern over the unfair changes made by HCLTech and stated that the union has lodged a complaint with the labour ministry, urging appropriate action to protect the interests of IT employees.

The EPB policy modifications were communicated to employees via email, specifying that individuals on the bench would not be eligible for EPB payout during that period. Furthermore, if an employee resigns within a quarter, no EPB amount will be paid for that particular quarter.

The union president emphasised that, under the company’s new policy, employees on the bench will no longer receive any EPB payout at all. Consequently, this sudden change has led to significant financial losses for affected employees. The union argues that the decision to reduce salaries rather than providing increments goes against principles of equitable employment practices.

In response, HCLTech confirmed the changes in its HR policy, explaining that the policy had reverted to its original form, which was temporarily modified during the pandemic to support employees. The company clarified that during the pandemic it had made a policy exception irrespective of performance, by providing 100 per cent EPB payout. As the pandemic situation improved, HCLTech communicated the return to the original policy to its employees.

The complaint filed by NITES raises concerns about the impact of the EPB policy changes on the financial well-being of employees. It remains to be seen how the labour ministry will address the complaint and whether any actions will be taken to resolve the grievances brought forward by the employee union.