IT Sector Slow Down: TCS Says It Will Onboard 600 Professionals Amid Labour Ministry Scrutiny

Tata Consultancy Services (TCS), India’s largest IT services company, has reiterated its commitment to onboarding over 600 experienced professionals, following concerns raised by the Ministry of Labour and Employment over delays in their joining process.

The company, however, did not attend a scheduled meeting with the Chief Labour Commissioner (CLC) on August 1, 2025, in New Delhi, stating that such deferments are not uncommon and are aligned with business needs.

The issue came to light after the Nascent Information Technology Employees Senate (NITES), an IT employees’ union, lodged a formal complaint with the Labour Ministry on July 22, 2025.

The complaint highlighted that over 600 lateral hires, with experience ranging from 2 to 18 years, faced indefinite onboarding delays after resigning from their previous jobs based on confirmed offer letters from TCS. These professionals, from cities such as Bengaluru, Hyderabad, Pune, Kolkata, Mumbai, and Delhi, reported financial distress and uncertainty due to the lack of revised joining timelines.

The company clarified that joining dates are adjusted based on business demand and that it remains in continuous contact with the affected candidates. A senior government official confirmed to the press that TCS described the onboarding postponement as a standard practice and not a cancellation of offers.

The Labour Ministry had summoned TCS for a joint discussion to address the grievances, following NITES’ allegations of a “criminal breach of trust.” The union demanded time-bound onboarding commitments, financial compensation for the delay period, and access to TCS’s Employee Assistance Program for mental health support.

The absence of TCS representatives at the meeting drew criticism from NITES, with its president, Harpreet Singh Saluja, emphasizing the urgency of resolving the issue. The ministry’s intervention reflects growing concerns over employment practices in the IT sector.

While TCS maintains that it will honor all job offers, no specific timeline for onboarding the affected professionals was provided. The situation remains under scrutiny, with further discussions expected to address both the onboarding delays and broader concerns, including TCS’s reported plan to reduce its workforce by 2%, affecting around 12,000 employees.