MUMBAI : IT services company Tech Mahindra has been issued a notice by the Pune Labour Commisioner’s office after an IT employee welfare organisation filed a complaint alleging that the company had reduced salaries to maintain profitability.
According to the complaint filed by National Information Technology Employees Senate(NITES), the organisation received complaints from employees of Tech Mahindra. The employees received emails last week informing that payment between Rs5,000 to Rs10,000 shift allowance per employee will be discontinued from 1 May. According to NITES over 13,000 employees of the company have been affected due to this move. Another company Wipro had been issued a similar complaint last month by the organisation.
“ NITES demands strict action against Tech Mahindra Pune, as the organisation has failed to follow the basic policies of human rights and violates Maharashtra State government’s regulations," said the organisation in the letter.
In response, a notice issued by Nikhil Walke, Assistant Labour Commissioner informed Tech Mahindra not to violate rules laid down by the state and central governments. As per Maharashtra Govt’s order in March ahead of the lockdown, no employer can deduct any salary or fire any employee during the lockdown phase.
A 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 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."
During Q4 results the company had informed that some of its clients were cutting down discretionary spending and that during the quarter BPO business was impacted due to delays in getting approvals for work from home during the lockdown. Analysts noted that the revenues from BPO business were severely impacted due to the same.
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