Pune: Labour office issues notice to KPIT Technologies for cutting salary of employees for six months
Sumit Singh
Pune, May 14, 2020: The Pune Labour Commissioner Office has issued a notice to IT company KPIT Technologies Ltd, located in Rajiv Gandhi Infotech Park Phase 3 in Hinjawadi, for cutting the salary of employees at the rate of 20% and 30%. The commission has directed to the company to not cut salary as per state government direction else legal action will be initiated against the company.
The notice was issued on May 12 after IT union National Information Technology Employees Senate (NITES) received distress messages from KPIT Technologies employees. “The employees of KPIT Technologies reached out to NITES after they received an email from Co-Founder and CEO Kishor Patil regarding the reduction in salaries to maintain the profitability under COVID19 pandemic. KPIT employs more than 6,000 employees and because of lockdown company has started a reduction in salary of all the employees as per their grades (min 20%) and this reduction applies from April 2020 to September 2020 approx 6 months”, said NITES General Secretary Harpreet Saluja.
He added, “The Company has forced more than 200 employees to go on part-time work and their salaries are further reduced by 50%. The action of the company violates Maharashtra State Government’s GR dated 31 March 2020 which clearly states that companies cannot terminate the employees and cannot reduce their wages. We submitted a complaint letter demanding strict actions to the Labour Commissioner Office Pune.”
Assistant Labour Commissioner Nikhil Walke has issued a notice to the company. “KPIT Technologies must follow the guidelines of the government and submit action taken report on email [email protected] No employee should be removed from the job. Also, there should not be any reduction in salary. If there is a violation of the rules, then legal action will be taken against the company”, the notice states.
Saluja further added, “The companies instead of rendering support to employees are taking undue advantage of the miserable situation for increasing profitability. We have filed public interest litigation (PIL) in the Supreme Court of India against illegal layoffs and salary cuts by IT, ITES, BPO and KPO companies. The PIL is scheduled to be heard on 15 May 2020.”
National Information Technology Employees Senate-NITES Founder President Vivek Mestri said, “I condemn the act of KPIT Technologies, Hinjewadi for reduction of in employees salary to maintain PROFITABILITY of their business even under COVID-19 epidemic is underway. This illegal act has violated the Maharashtra State Government and even Central Government regulations communicated to all companies. We have submitted complaint demanding prompt and strict action against this organization to Labour Commissioner, Pune and also related authorities to take strict measures against this KPIT Technologies and set an example to all other Information Technology organisations which will help to avoid insensitive behaviour towards its sincere employees.”
Punekarnews.in has reached out to KPIT Technologies to know their side. However, even after repeated reminders, there is no response from the company. This report will be updated after getting the company statement.
