Raja Ram Singh, Member of Parliament (Lok Sabha) and a member of the Standing Committee on Labour, Textiles and Skill Development, has called for urgent government intervention to stop what he described as “illegal layoffs” across Tata Consultancy Services (TCS) and the wider Indian IT/ITES sector.
In a letter dated October 1, 2025, addressed to Mansukh Mandaviya, Minister of Labour and Employment, and Ashwini Vaishnaw, Minister of Electronics and Information Technology, Singh raised serious concerns over large-scale retrenchments taking place in violation of labour laws.
Earlier reports indicated that TCS planned to terminate over 12,000 employees, though Singh claimed the actual number could be significantly higher, describing it as part of a “profit-at-any-cost” approach that sacrifices job security.
Disputing the ‘Skill Mismatch’ Justification
Singh challenged TCS’s claim that the layoffs were due to “skill mismatch”, citing the company’s FY 2024–25 Annual Report, which states that 91% of its workforce received skill-upgradation training. He argued that this undermines the company’s rationale and reflects a broader global trend of prioritizing profits over people.
Alleged Violations of Labour Laws
The MP’s letter alleged widespread non-compliance with the Industrial Disputes Act, 1947, which mandates government approval before retrenchment in large establishments — a requirement he claims “no IT company has adhered to.”
He also highlighted misuse of Karnataka’s exemption for IT/ITES firms under the Industrial Employment (Standing Orders) Act, saying it has enabled companies to bypass grievance redressal and reporting obligations.
According to Singh, over 1.5 lakh IT employees were retrenched in 2024, many under coercion. He cited cases where workers were allegedly forced to resign under threat of termination without compensation or relieving letters, allowing firms to sidestep legal procedures.
Union Support
The IT & ITES Democratic Employees Association (IIDEA) backed Singh’s stance, condemning the mass layoffs as illegal and unethical. The union alleged that these retrenchments form part of a larger global strategy to replace permanent jobs with contract-based employment, eroding workers’ rights and protections under Indian labour law.
