More trouble for Tech Mahindra, gets HC notice for layoffs

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Things are getting worse for Tech Mahindra after the recent firing fiasco, which brought negative publicity.

Before the huge noise around the insensitive manner of firing of one of its employees could die down, Tech Mahindra has encountered another issue. The company has received notice from the Hyderabad High Court alleging unlawful retrenchment of a huge number of employees in Hyderabad. The court has asked the state labour department and Tech Mahindra to respond to these allegations.

The notice comes in the wake of a writ petition filed by four retrenched Tech Mahindra employees.

Earlier, the employees had contacted the labour commission to resolve the issue and tried for a conciliation process between the two parties, but to no avail. Tech Mahindra actually terminated the petitioners’ employment, even while the reconciliation process was on.

The issues and concerns of similar employees, from the IT sector and call centres, are being taken forward by a body called the Forum of IT Employees (FITE). This body has already approached the labour commission in Bengaluru, Chennai and Hyderabad to file a petition alleging Cognizant of illegal terminations.

The layoff of employees in the IT sector has become common nowadays. Many IT companies are reducing their workforce to deal with the digital disruption, high cost of operation and slowing down of the market.

The main issue here is the manner in which employees are informed and compensated for the layoffs. Asking the employees to resign at short notice and using force to do so only brings negative publicity for the company.

Despite Anand Mahindra apologising for the rude behaviour of the HR manager, the incident has been condemned by the social media, causing irreparable damage to its image.

Companies today need to be more caring towards the staff and more employee-centric.

There are companies which inform the staff of layoffs in advance, give time and reason before termination and also place employees in new jobs, if possible. Great companies are those, which care for their employees right from the day they enter the rolls of the company to the last day of their service.

3 COMMENTS

  1. 1 communicate about the problem to employees… 2 manpower projection 2 to 3 years 3 conduct a meeting of groups 15 to 20 only. 4. seek suggestions.5 revise standing orders and service rules 6 arrange temporary outplacement.

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