‘Profit at any cost’:Lok Sabha MP urges govt to ban illegal lay-offs after TCS terminates over 12,000 workers

Throwing light upon the mass retrenchments in the IT, ITES sectors, Lok Sabha MP Raja Ram Singh has urged the union government to ban all illegal lay-offs, ensure justice for affected workers and provide health benefits, job transition support for trenched employees.

Singh also asked the government to direct companies to explore alternative options such as reskilling and redevelopment instead of lay-offs.

The issue, raised by the Lok Sabha MP, comes after TCS, an international technology service provider company, terminated over 12,000 employees. However, the actual figure appears much higher, claims Singh.

“This is not an isolated case but part of a wider sectoral trend where profit is prioritised at the cost of workers' livelihoods. Global Transition, Not Skill Mismatch: While TCS claims these retrenchments are due to skill mismatch, its own annual report for FY 2024-25 shows 91% employees received skill-upgradation training,” Singh said in his letter to the government.

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Industrial Disputes Act, 1947

Blaming the global shift in employment policy from “growth at any cost” to “profit at any cost”, Singh also said that there should be applicability of labour laws to IT, ITES establishments and suo motu actions should be taken against violations.

Furthermore, he stated that exemptions should be withdrawn that give preferential treatment to IT employers under Industry Employment (Standing Orders) Act.

“The Industrial Disputes Act, 1947 requires prior government permission before retrenchment in larger establishments. No IT company has complied,” he added.

“Mandating trilateral consultations (government, employers, and employee unions) before any restructuring. The IT/ITES sector has been built on the hard work of Indian employees. It is now the duty of the government to step in and protect their rights, dignity, and livelihoods from illegal and exploitative practices,” he further said.

More than 1.5 workers were retrenched in 2024, which is an entirely violation of law, Singh said. He also claims that Karnataka's exemption of IT, ITES firms from the industrial employment (standing orders) Act has been misused, with mandatory grievance redressal and reporting requirements ignored.

“Workers report coerced resignations under threat of termination without compensation or relieving letters. Many fear blacklisting. Some cases even involve physical intimidation,” he added.