Pune: Tech Mahindra cuts shift allowance, Labour Commission issues notice

Tech Mahindra message to employees about suspension of shift allowance

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Sumit Singh

Pune, May 8, 2020: Taking cognizance of a complaint lodged by National Information Technology Employees Senate (NITES), Maharashtra Labour Commission has issued notice to the company instructing it not to violate rules laid down by the central and state governments.

This is what Tech Mahindra HR wrote to employees
“We are living in unprecedented times and our ways of working continue to evolve rapidly. The concept of the workplace as we used to know it, is undergoing a transformational change with all of you being a witness to the rapid transition that we have made to Working from Home. In order to adjust our policies to these new ways of working, we are suspending the payment of Shift Allowance & Holiday allowance for all India based Associates with effect from 1st May 2020.


Please note 1. Associates working from Tech M offices (having in-out swipe records) & Client locations will continue to be eligible for Shift allowance as per policy 2. In case of Holiday allowance, any Statutory allowance / Comp off as per legislation will continue to be provided as applicable 3. Any unsettled Shift / Holiday allowance payouts for the period up to 30th April 2020, will be processed as per policy for all the requests raised and approved on or before 9th June 2020.”


NITES : 13,000 employees in Maharashtra, 131000 employees across India affected

NITES General Secretary Harpreet Saluja told Punekarnews.in, “We received complaints from Tech Mahindra employees that the company has decided to suspend shift allowances from 1st May 2020 onwards due to COVID 19 situation. This will have an impact on around 13000 employees of Tech Mahindra in Maharashtra and more than 131000 employees in India. The employees have to work in night shift, early morning shift and round the clock. They did get allowances based on this, priced at Rs 400 per night shift and Rs 225 per other shifts, which accounts Rs 5000 to Rs 10000 in hand in addition to salaries. This deduction in salary will affect the employees quite a lot. Most of the employees are working from their home towns but they are still paying rents of their Pune flats/PG accommodation.”


He further added, “The employees were assured and lured by the management while joining the project stating that this extra amount employee will be getting if they agree for 24/5 shifts project. We urge the IT, ITES, BPO, KPO and Telecom companies to abide by government directions. In such a difficult situation the companies should take decisions keeping the welfare of its hardworking employees in mind who are the backbone of the economy and any organization.”


Labour office notice to Tech Mahindra
Based on a complaint from NITES, Assistant Labour Commissioner Nikhil Walke today issued a notice to Tech Mahindra for neither terminating an employee’s job nor reducing salary. The company should immediately pay the salaries and send a report immediately.


The companies which are not abiding by the directions mentioned in the Government Circular even after the notice from Labour Commissioner Office will have to face legal action as non-compliance of the Government directions attracts punishment under IPC Section 188, 269, 270, 271 and other sections of the Disaster Management Act and Epidemic Diseases Act.


Tech Mahindra statement on the suspension of shift allowance
When contacted by Punekarnews.in Tech Mahindra Spokesperson said, “The shift allowance paid for hardship due to travel to work at odd hours and other out of pocket expenses, continues to be paid to all Tech Mahindra associates, who are coming to the office or are at client locations as per policy. Our focus remains to ensure the well-being of our associates, customers and partner ecosystem; while maintaining business continuity.”

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