Labour Panel Urges IT, Labour Ministries to Act on TCS Layoffs

Singh characterized this as part of a broader trend where profit is prioritized at the expense of workers’ wellbeing, implying that the true number is considerably larger.

At order to stop what he termed “illegal lay-offs” at Tata Consultancy Services (TCS) and the larger Indian IT/ITES industry, Raja Ram Singh, a member of the Lok Sabha and the chair of the Standing Committee on Labour, Textiles, and Skill Development, has urgently asked for government involvement.

Concerning huge layoffs, Singh wrote to Ashwini Vaishnaw, Minister of Electronics and Information Technology, and Mansukh Mandaviya, Minister of Labor and Employment, on October 1, 2025.

In July 2025, Moneycontrol exclusively revealed that TCS will lay off more than 12,000 workers.

Singh characterized this as part of a broader trend where profit is prioritized at the expense of workers’ wellbeing, implying that the true number is considerably larger.

The ‘Skill Mismatch’ Narrative Is Under Attack

The MP immediately contested TCS’s claim that “skill mismatch” was the reason for the layoffs.

According to the company’s own FY 2024–2025 Annual Report, 91 percent of staff members underwent skill-upgradation training, he said.

According to Singh, these cutbacks are a result of a worldwide change in employment policy away from expansion at all costs and toward profit at all costs.

Claims of Violations of the Labor Law

Singh’s letter brought to light widespread violations of labor laws in the IT industry. He emphasized that “No IT business has cooperated” with the Industrial Disputes Act, 1947, which requires prior government approval for layoffs in bigger enterprises.

Additionally, he drew attention to the egregious abuse of Karnataka’s exemption of IT/ITES companies from the Industrial Employment (Standing Orders) Act, which resulted in the disregard for obligatory reporting and grievance redressal procedures.

According to the letter, more than 1.5 lakh people were laid off in 2024 alone—all completely against the law.

The MP also raised awareness of documented instances of victimization and harassment, such as employees being pressured into resigning under fear of termination without pay or letters of release, a tactic used by businesses to get around the law.

Union Support and Requirements

Supporting Singh’s concerns, the IT & ITES Democratic Employees Association (IIDEA) released a statement denouncing the mass layoffs as a flagrant and unlawful move that breaches the social compact of India’s IT industry.

IIDEA agreed with the MP that this is a deliberate international tactic to circumvent Indian labor rules by substituting a fragile, contract-based workforce for safe, permanent positions.

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