Tata Consultancy Services (TCS) is reportedly providing laid-off employees with generous severance packages ranging from six months to a full two years' salary. This comes after several TCS employees report of severance disputes, with one even claiming 'physical assault' by the TCS HR team. The company is reported to offer severance based on experience and tenure within the company.
The payouts, tailored to an employee's tenure and role relevance, mark a significant gesture as the IT giant trims about 2 percent of its workforce—roughly 12,000 roles—over the next year to sharpen its competitive edge. A source close to TCS told Moneycontrol the lowest severance pay for benched employees is 3 months.
Here's How Much TCS Is Paying As Severance To Laid Off Employees
The report says that employees with 10-15 years of service can anticipate around 1.5 years' worth of severance pay, while veterans clocking over 15 years, particularly those whose skills have become redundant, stand to receive the maximum of two years' salary. For staff unallocated to projects for more than eight months, a streamlined option offers three months' notice pay. The initiative largely targets middle and senior-level professionals, as noted by TCS CEO K Krithivasan in July, sparing most junior ranks.
For employees whose skills have become redundant, TCS willl look at their tenure and decide the severance pay between 6 months to 3 years. This is beyond and above their three-months notice pay. TCS is cushioning the blow with extras like outplacement services covering agency fees for up to three months (or longer for juniors), and in some cases, mental health support via the 'TCS Cares' program. The company notes that not all benched employees are being laid off, but only those unallocated for over 8 months without suitable roles are affected.
Early retirement schemes are also on the table for those nearing pension age, bundling similar severance tiers with the standard package. TCS also claims that majority of the layoffs have been completed in August and September and now only the remaining unallocated employees will be reviewed.
