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Labour Department has issued notice to TCS for delay in onboarding

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Ministry of Labour and Employment of Maharashtra has issued a notice to Tata Consultancy Services (TCS) for a delay in onboarding, as a complaint filed by a Pune-based IT union.

As per the letter issued by Ministry of Labour and Employment of Maharashtra, a joint meeting of management has been called on November 2, 2023.

Earlier in July, it was reported that NITES had asked the Minister for Labour and Employment Bhupender Yadav to intervene in the matter.

According to media reports, Tata Consultancy Services (TCS) has delayed the onboarding of over 200 lateral hires. These include new hires across Bangalore, Pune, Kochi, Bhubaneswar, Delhi NCR, and Indore, with experiences ranging from 1.8 years to 15 years.

The IT union alleged that the employees were informed about the delay in their onboarding when they reached TCS offices on their joining date. 

Now, Economic Times has reported that Maharashtra’s Labour Department has issued a notice to TCS on delay in onboarding. However, The company still has to comment on the number of affected employees.

However, Tata Consultancy Services (TCS) is on track to hire 40,000 freshers in FY2024.

N Ganapathy Subramaniam, COO, TCS said “We usually hire between 35,000 to 40,000 people and those plans are intact”.

“There are no large-scale layoffs. The way we’ve calibrated this is we’re working towards improving our own utilization because we have a decent bench,” N Ganapathy added.

He also emphasized TCS generally recruits between 35,000 and 40,000 people and that these plans will remain the same.

N Ganapathy Subramaniam, Chief Operating Officer, and Executive Director said, “We continue to make investments in our people and new technologies.”

“We now have a 100,000-strong pool of Gen-AI Ready consultants and prompt engineers who are engaged in hundreds of Gen-AI projects for our clients across segments”, N Ganapathy added.

Milind Lakkad, Chief HR Officer, said, “Our strategy of proactively hiring bright freshers and investing in training them with the right skills is paying off.”

“With that talent coming on stream and with reduced attrition, we were able to recalibrate our gross additions, keeping it below the departures during the quarter, driving up productivity and enhancing project outcomes”, Milind Lakkad added.

In financial results for Q1FY24 the quarter ending June 30, 2023, TCS LTM IT Services attrition rate this quarter is 17.8% with a workforce strength of 615,318. The company’s net headcount addition of 523 and the contribution of women in the workforce is 35.8%.

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Sheenu Pradhan
Sheenu Pradhanhttps://sightsinplus.com/
Sheenu Pradhan, Editor Content, SightsIn Plus. She has over 8 years of experience in human resources. Prior to this, she has been associated with Wictor Chemicals India, Wipro, and Shakti Plas Industry.