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TCS sends transfer letters to employees; can return to work lead to higher attrition?

Indian IT services company Tata Consultancy Services (TCS) has sent out transfer notices to over 2,000 employees across locations. These transfer letters instruct employees to join the assigned location within 15 days, according to IT employee union Nascent Information Technology Employees Senate (NITES). Business Today has reviewed these emails.

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The emails instruct the employees to move to newly assigned locations within two weeks. The email also noted that based on the company’s policies, employees will be able to reimburse travel and accommodation costs. 

Moreover, failing to adhere to this would lead to the employees facing “initiation of disciplinary actions,” the email further read.

Business Today has reached out to TCS for a response on this. The story will be updated as and when the company responds. 

Over 180 employees reached out to the employee union, NITES told Business Today. The employee union claims that employees are outraged as this is a sudden move and “without proper notice or consultation, causing immense hardship for them and their families.” 

The IT union said that they have filed a formal complaint with the Ministry of Labour and Employment against the IT company.

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Harpreet Singh Saluja, President, NITES explained that this sudden move has caused a lot of inconvenience to employees and might also become a problem for IT companies in the form of employee attrition.

“The company is ignoring all the financial hardship, family disruption, stress and anxiety that these forced transfers cause to employees… TCS is putting its employees through unnecessary hardship and is violating their rights. We have urged the Ministry of Labour and Employment to investigate TCS’s actions and take appropriate measures to protect IT workers from such unethical practices,” the President of the employees union said.

Indian IT companies faced high attrition during FY 2021-23, which has been moderated in FY 2023- 24. In the last quarter 2021-22 and the first quarter of the fiscal year 2022-23, attrition peaked for major IT players. Tata Consultancy Services’ (TCS) attrition rate for the quarter ending December 2022 was at 21.3 per cent. Infosys‘ attrition rate for the June ended quarter of FY 23 was at 28.4 per cent, the highest among Indian IT giants. Tech Mahindra’s attrition rate was around 22 per cent, while Wipro came in second with a rate of 23.3 per cent, for the same quarter.

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The transfer letters to employees were sent nearly a month after TCS made it mandatory for employees to work from the office five days a week.

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