Labour ministry examining delayed onboarding of 600 lateral hires by TCS, says official

TCS has indefinitely delayed the onboarding of over 600 lateral hires.

The Union labour ministry is examining the delayed onboarding of 600 lateral hires by TCS after receiving a letter from IT employees’ union NITES, a senior government official told Moneycontrol.

"We’ve received a letter, but it’s too early to comment on the matter…we’re looking into it," the official confirmed.

On July 22, IT employees’ union Nascent Information Technology Employees Senate (NITES) wrote to the ministry and asked it to direct TCS to provide an official and time-bound commitment regarding the onboarding of the affected lateral hires.

‘Indefinite delay in onboarding’

“Many have relocated or made substantial personal and financial arrangements in anticipation of joining TCS. Unfortunately, upon reporting to the company on their designated joining dates, they were informed of an indefinite delay in onboarding. No official communication, revised schedule, or assurance has been provided since,” said Harpreet Singh Saluja, President, NITES, in the letter.

TCS has indefinitely delayed the onboarding of over 600 lateral hires, professionals with experience ranging from 2 to 18 years, NITES said. These professionals are from cities such as Bengaluru, Hyderabad, Pune, Kolkata, Mumbai, and Delhi.

A spokesperson of TCS, however, told Moneycontrol that the company will onboard all professionals. "Everyone who has received an offer from TCS will be onboarded. The joining dates are decided as per business demand, and in some cases, they do get adjusted to meet our business needs. We remain in continuous touch with all candidates in these cases and look forward to them joining our company soon," the spokesperson added.

‘Govt cannot compel onboarding’

Experts say that although the labour ministry may examine the issue and speak to TCS, it cannot compel them to onboard the professionals.

"The labour ministry lacks statutory authority to compel a private employer to onboard unless a clear legal violation is established," said Ketan Mukhija, Senior Partner, Burgeon Law.

Indian labour laws do not mandate specific timelines for onboarding post offer acceptance. However, if a candidate resigns based on a confirmed offer, prolonged delays may raise contractual concerns, potentially amounting to a breach under civil law, explained Mukhija. "Labour statutes are primarily triggered post-employment, relating to wages, termination, or working conditions, not pre-employment delays," he said.

Under the present labour laws, if the offer letter issued by the employer constitutes a binding contract — containing specific terms such as start date and compensation — a wilful or unexplained delay in onboarding may amount to a breach of contract under the Indian Contract Act, 1872.

In cases where candidates qualify as 'workmen' under the Industrial Disputes Act, 1947, such delays could potentially be challenged as unfair labour practices, especially if the offer was made in bad faith or induced reliance resulting in financial or professional loss, explained experts.

"While the central government does not have the authority to mandatorily direct a private employer such as TCS to complete the onboarding process, it may act upon representations received — such as from NITES — by initiating a fact-finding inquiry or conciliation proceedings through the Chief or Regional Labour Commissioner," said Rohitaashv Sinha, Partner, King Stubb & Kasiva, Advocates and Attorneys.

Sinha said that although penal action is unlikely unless there is a demonstrable violation of labour statutes (such as wrongful termination or wage denial post-joining), the ministry may issue advisories or seek formal commitments from the employer to ensure fair and transparent resolution.

In February, the Karnataka Labour Department had cleared software major Infosys of any labour law violations related to the exit of trainees, based on the documentary evidence collected.

On February 7, software major Infosys laid off around 350-400 trainees at its Mysuru campus after they failed evaluation tests in three consecutive attempts. This is approximately half of the trainees onboarded in October 2024.

But, the department gave a clean chit to Infosys based on the documentary evidence collected, as reported by Moneycontrol earlier.