BENGALURU: Tata Technologies, which is a subsidiary of Tata motors, has put nearly 400 employees on furloughs or leave without pay till December, 31, 2020 citing non-availability of projects, a complaint filed by the National IT employees Senate (NITES) with State Labour Department, Maharashtra last week said.
NITES, General Secretary, Harpreet Saluja told this publication that the decision essentially violates the guidelines issued by the Maharashtra government on March 31, directing companies to not layoff / deduct salaries during the ongoing COVID pandemic. “The labour commissioner office has called us and the aggrieved employees for hearing on July 28,” Saluja added.
An internal email sent by the HR team of the Tata Tech to the employees accessed by the TNIE states that “in the event there are no such projects/ assignments as far as your engagement or involvement is concerned as on December 31, 2020. The company shall reserve the right to terminate your employment with immediate effect in accordance with your employment agreement and order.”
“You are required to acknowledge that you understand and agree with the contents of the email before 6pm On July 22 of its receipt.” Failure to respond within the stipulated time will be understood as not agreed, according to the internal e-mail. NITES spokesperson added that the employees were told they will be on the payrolls of the company but will not be paid during that period.
A Tata Tech spokesperson has reportedly said that the exercise has been carried out for optimization of bench resources and that an overwhelming majority of the employees have opted to go on paid/ unpaid leaves as it allows them to be on payroll and avail mediclaim under the current circumstances. Last week, Tata Group, chairman Ratan Tata had said that retrenchment of employees in the ongoing COVID pandemic is not a solution and that “companies will have to change the way of doing business in the post coronavirus world”.