Karnataka IT workers' union initiates legal action against Cognizant over layoffs: Report

Cognizant's net profit declined 29 percent to $361 million in the June quarter due to COVID-19 pandemic (Image Courtesy: Wikimedia Commons)

Following complaints from employees of layoffs at IT major Cognizant, the Karnataka State IT/ITeS Employees union (KITU) said it had taken legal action in this regard, The Hindu reported.

According to KITU, several employees at Cognizant's offices in Bengaluru, Chennai and other cities had approached the union with complaints of having been forced to resign. The employees' body had accordingly resorted to legal action against the company and its management.

However, a Cognizant spokesperson called these allegations inaccurate, adding that performance management is a normal process across the IT sector.

KITU Secretary Sooraj Nidiyanga said companies that have over 100 workers on their roster need to seek the Labour Department's approval before laying off people. He added that forcing people to resign, and making the layoff look like a voluntary resignation by the employee, is against the law.

Last month, Chennai-based IT union All India Forum for IT/ITeS Employees had also written to the Chennai labour commission on June 12 and another letter to the Deputy Commission of Labour (Central), New Delhi on June 22.

In the letter, the union said the company is forcing employees to resign in the event that they were unable to secure the project or their rating was poor. This followed Cognizant's termination of its bench employees as its business has taken a hit on the back of COVID-19.