Amidst reports of software major TCS preparing to retrench 25000 employees to cut costs, Madras High Court injuncts it from retrenching woman employee

In a case having potentially far-reaching significance, the Madras High Court on Tuesday restrained a private company- software major Tata Consultancy Services (TCS) from retrenching an employee whose service had been terminated by the company.

 

Madras High Court

The employee Rekha, who is pregnant at present, was issued termination orders on December 22, 2014. She was informed that she would be relieved from duty on January 21, 2015.

She immediately moved the Madras High Court contending that the retrenchment move was illegal and in gross violation of the Industrial Disputes Act, 1947.

In her petition,  setting forth the facts leading up to the passage of the termination order Rekha said she joined TCS in Chennai in March 2011 as an IT analyst.

She claimed that she is a 'workman' coming within the meaning of Section 2(s) of the Industrial Disputes Act, 1947, as her main duties and responsibilities are technical and clerical in nature. Explaining the nature of her job, the petitioner, Rekha averred in her petition that her job involves receiving and collating information about software/application to be developed, analyzing requirements and designing and developing appropriate software or application based on client company's needs, said Rekha in her petition. Noting that she was honest, sincere and dedicated worker and that her performance had always been very good, Rekha said she had been given the rating 'C' (meets expectations) thrice during her service in TCS.

She said the company reportedly had taken an unfair decision to terminate the services of 25,000 workers holding designation of assistant consultant and above, and to recruit 55,000 persons, predominately freshers on the basis of campus interviews, and other less experienced persons with a view to cut costs. She was issued termination orders on December 22, 2014, stating that she would be relieved from service on January 21, 2015.

She contended that TCS has not published any seniority list as required under the rules framed under the Industrial Disputes Act and it has not given any notice of retrenchment as required under the Act.

TCS has not complied with the provision in the Act which enjoins the employer to  pay 15 days of wages for every completed year of service as compensation to the retrenched employee which too is mandatory under the Act, she said, adding, "in any event, termination is not valid or justifiable."

On Tuesday, admitting her writ petition to file, Justice M Duraiswamy granted an order of interim injunction restraining the company from retrenching her. The order would remain in force for a period of four weeks.