IT union NITES condemns demand of NASSCOM to layoff surplus employees, relaxation in labour laws

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Pune, May 31, 2020: The National Information Technology Employees Senate (NITES) has strongly condemned the action of National Association of Software and Service Companies (NASSCOM), a trade association of Indian Information Technology and Business Process Outsourcing industry, and urged the State Governments not to amend the existing labour laws. The demand of NASSCOM to the Maharashtra Government that IT-ITeS sector should be allowed to temporarily lay off surplus workforce with payment of 50% compensation or minimum wages, whichever is less, during the layoff period, without compromising on the employee’s statutory entitlements, is unethical and doesn’t hold humanitarian grounds, said NITES General Secretary Harpreet Saluja.


He added, “NITES has already urged Chief Minister Uddhav Thackeray and Labour Minister Dilip Walse Patil through a letter on 26 May 2020 for their intervention to stop illegal layoffs and salary cuts by IT/ITeS/BPO/KPO companies. Also, multiple complaints have been made to the State Government against various IT firms for violating directions of Maharashtra State Government’s GR dated 31 March 2020 under COVID19 pandemic. In such difficult times, employees are unable to appear for interviews and join any other organizations. The employees have various financial obligations and due to salary deductions they already are unable to support their families.


The companies should take decisions keeping the welfare of its hardworking employees in mind who are the backbone of the economy and any organization. A lot of IT Companies have generously donated to the PM care fund but when it comes to their own employees these companies to maintain the profitability are not supporting their own people. This is a highly shameful and condemnable act by a reputed association like NASSCOM which under such testing times is not thinking anything beyond the profits of capitalists. If Government approves such unethical requests of association of employers a mass protest will be started by the white-collared IT, ITES, BPO and KPO employees very soon.


The employers who are in a dominant position are taking harsh decisions and unconscionable bargains with the employees. The employees are in no way responsible for the present pandemic lockdown situation and are at the receiving end. In the absence of issuance of any binding orders to private companies, thousands of employees are losing their jobs & income daily. Also, no procedure like notice period, intimation to government authorities, payment of retrenchment compensation, payment of gratuity, Leave encashment, etc. has been undertaken by the companies leading to a lot of unfair labour practices.”