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Labour unions in demand as layoffs rise in Indian IT sector

Source | : By Nilesh Christopher

BENGALURU: Information technology professionals, who claim they were coerced into resigning by employers looking to trim headcount in the midst of an industry slowdown, are flocking to unions in search of support for their demand for compensation.

These retrenched employees — of both local and multinational IT companies — claim their former employers pressured them to hand in resignations instead of firing them, thereby saving on the expense of severance pay.

Last week, a Bengaluru-based technology professional employed by a multinational IT services company received a phone call from the human resource executive asking her to quit voluntarily.

“I was given two days’ time to resign and with no compensation. I have a child and a home loan to pay, I need a severance to keep me going until I find my next job at least,” she said.

“I did not join the company over one phone call, right? Why should I accept resignation over a call?” the employee with a decade of industry experience told ET.

She reached out to Bengaluru-based IT/ITes Employee Centre (ITEC), which describes itself as a “welfare association for IT employees”.

The IT professional is one of nearly half a dozen mid-career professionals with over ten years of experience, interviewed by ET for this story, who claim they were asked to leave without being paid compensation by companies. Technology industry expert Siddharth Pai, however, didn’t think that the companies were being unfair to the employees.

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