TCS Under Fire: IT Union Slams Controversial 35-Day Bench Policy as “Exploitative”

India’s largest IT services provider, Tata Consultancy Services (TCS), finds itself embroiled in a heated controversy over its newly implemented bench policy. The Nascent Information Technology Employees Senate (NITES) has formally complained to the Ministry of Labour and Employment, calling the policy “inhumane, exploitative, and harmful to the mental health of IT professionals.”

The Policy That’s Shaking India’s IT Sector

Effective from June 12, 2025, TCS introduced a strict rule requiring every employee to be billed for at least 225 business days per year, effectively capping bench time (non-billable, unallocated period) to 35 business days annually. This dramatic shift from the traditional IT industry practice has sent shockwaves through the sector.

Key Details of TCS’s New Bench Policy

Union’s Fierce Opposition

NITES filed the complaint after receiving grievances from around 78 employees, highlighting the widespread concern among TCS’s workforce. The union has made serious allegations against the company’s implementation tactics.

Alarming Claims by NITES

The union’s complaint reveals disturbing practices:

• Threat Tactics: “In several disturbing instances, employees have been openly threatened that if they raise grievances, they will not be issued experience letters,” NITES claimed.
• Forced Exits: The union has accused TCS managers and HR managers of demanding salary repayments from benched employees.
• Mental Health Impact: NITES has flagged the policy as “inhumane” in a letter to the Union Labour Ministry, describing the pressure tactics as exploitative.

TCS’s Defense: A Different Perspective

TCS chief executive K Krithivasan defended the policy last week, saying employees are expected to take responsibility for their careers. “While HR supports project placement, we also expect associates to proactively seek new assignments after completing existing ones.”

The company presents this as a resource optimization strategy, but critics argue it’s a veiled workforce reduction tactic. “While on the surface it presents itself as a resource optimisation” strategy, the policy has deeper implications for employee welfare.

The Broader Industry Context

This policy shift comes at a crucial time for India’s IT sector. With AI disrupting traditional roles and global economic uncertainties affecting demand, IT companies are under pressure to optimize costs. However, the human cost of such policies cannot be ignored.

The Ministry of Labour and Employment typically handles such workplace disputes, and their intervention could set a precedent for the entire IT industry. NITES has urged the Ministry of Labour and Employment to direct TCS to suspend its 35-day bench policy, and set up a tripartite committee to ensure all IT companies comply with labor laws.

Employee Concerns and Real-World Impact

The policy has created significant anxiety among TCS employees. “Long periods of remaining unallocated shall adversely impact associate compensation, career growth, avenues for overseas deployment” according to the new policy guidelines.

What This Means for IT Professionals

For employees, this policy represents a fundamental shift in the IT industry’s work culture:

1. Increased Pressure: Constant pressure to find new projects within 35 days
2. Skill Mismatch: Potential forced deployment to unsuitable roles
3. Career Uncertainty: Threat of termination looms over extended bench periods
4. Work-Life Balance: Mandatory office attendance disrupts flexible working arrangements

Legal and Regulatory Implications

The complaint to the Ministry of Labour and Employment could trigger broader regulatory scrutiny of IT industry practices. The Industrial Relations Code, 2020 provides frameworks for addressing such workplace disputes.

Industry experts suggest that if the government intervenes, it could lead to standardized regulations governing bench policies across all IT companies, potentially reshaping how the sector manages its workforce.

The Human Side of Corporate Policies

Behind the corporate jargon and policy documents are real people facing genuine concerns about job security and career growth. The IT sector, which has been the backbone of India’s economic growth, now faces questions about its treatment of the very professionals who built its success.

Many employees who chose TCS for its reputation and stability now find themselves in an uncertain position, highlighting the human cost of aggressive corporate policies.

What’s Next?

The controversy surrounding TCS’s bench policy is far from over. With NITES citing psychological stress on affected employees and demanding immediate redressal, the pressure on both TCS and regulatory authorities is mounting.

The outcome of this dispute could significantly impact how India’s IT industry manages its workforce in the future. It’s a test case for balancing corporate efficiency with employee welfare in an increasingly competitive global market.

Conclusion

TCS’s 35-day bench policy has opened a Pandora’s box of questions about employee rights, corporate responsibility, and the future of work in India’s IT sector. While the company argues for efficiency and employee responsibility, the union’s allegations of exploitation and mental health concerns cannot be dismissed.

As this controversy unfolds, it serves as a crucial reminder that behind every corporate policy are real people whose lives and careers hang in the balance. The resolution of this dispute will likely set important precedents for the entire Indian IT industry.

Stay updated with the latest developments in India’s IT sector and workplace policies at Techno Sports for comprehensive coverage of technology and business news.

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