Pune:Labour office notice to Tech Mahindra on alleged pay cuts

Pune, May 10 () IT Services firm Tech Mahindra hasbeen issued a notice by the office of the Labour Commissioner,Pune, in Maharashtra on a complaint that the company hadreduced salaries of its employees to maintain "profitability'in the midst of the COVID-19 pandemic.

A similar notice was issued earlier this month toanother IT firm, Wipro Technologies Ltd, on a complaintalleging that the firm was benching its employees.

National Information Technology Employees Senate(NITES), an organisation working for the welfare and benefitsof employees in IT industry, had approached the LabourCommissioner's Office, claiming that they have receivedcomplaints from employees of Tech Mahindra, Pune, regardingthe reduction in salaries to maintain the "profitability ofthe business" under the COVID-19 pandemic.

"The company had also notified its employees throughan email on May 6 that the shift allowance, which is betweenRs 5,000 to Rs 10,000 per employee, will be stopped from May1," the complaint letter from NITES reads.

The application further claimed that because of thisdecision, payment of over 13,000 employees of Tech Mahindra isreduced.

The NITES sought appropriate legal action against TechMahindra stating that the firm has violated the Maharashtragovernment's directions, rules and regulations.

In a notice issued on the same date, officials in theLabour Commissioner's Office directed the firm to go throughthe state government's resolution dated March 31, 2020, andtake appropriate steps and release the salaries for March andApril and to inform the labour commissioner's office.

The notice, signed by Nikhil Walke, Assistant LabourCommissioner, asked the firm not to terminate employees orreduce the salaries, and further stated that otherwise legalaction will be taken.

Tech Mahindra Spokesperson said, "The shift allowancepaid for hardship due to travel to work at odd hours and otherout of pocket expenses, continues to be paid to all TechMahindra associates, who are coming to the office or are atclient locations as per policy.

"Our focus remains to ensure the well-being of ourassociates, customers and partner eco-system while maintainingbusiness continuity".

Meanwhile, in its notice dated May 1 to WiproTechnologies Ltd on an NITES complaint that the company wasbenching its employees, the Pune Labour Commissioner Officeasked the IT firm to respond and not terminate any employees.

Harpreet Saluja, general secretary, NITES, said theyhad approached the labour commissioner's office after theyreceived complaints from employees of WIPRO BPO, located inHinjewadi regarding employees being put on the bench tomaintain profitability.

"The company also notified the employees on April 23that they are on the bench with immediate effect. Because ofthis (the decision of the company) the pay and jobs of morethan 300 employees are at risk," the complaint reads.

A statement from Wipro Limited stated that thespeculation related to the workforce is unfounded and has nobasis.

"Wipro categorically denies these rumours. There areno salary cuts for employees who are in between projects andare awaiting new assignments. Also, the company wants toreiterate that there are no retrenchment plans. Wipro haswell-defined policies and people practices in place to takecare of its employees," the statement reads.

It further stated that Wipro is yet to receive anycommunication from the Labour Department.

The company will present the facts before thedepartment, as and when required. SPK SR AANSK NSK