American IT service provider Cognizant Technology Solutions Corp. laid-off thousands of employees on bench, who were not actively involved in client projects.
IT employee unions in Karnataka and Chennai have alleged that Cognizant is executing mass layoffs after benching nearly 18,000 employees across India.
Condemning the company, the Karnataka State IT/ITES Employees Union (KITU) has initiated legal proceedings against the management of Cognizant.
The company has justified the large scale layoffs as ‘normal performance management’.
As per labour laws, companies that employ more than 100 employees should first obtain approval from the Labour Department to execute layoffs, the statement further read.
The KITU told the media that the company said that the employees voluntarily resigned, where in fact, they were forced to resign, which is also against the law.
A legal notice has been issued to the company, and 14 days from now, if they do not receive an acceptable response from Cognizant, the unions will approach the Labour Department to escalate the same.