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SC dismisses plea seeking protection of IT employees against layoffs, pay cuts

The petition was filed in the wake of termination of employees and pay cuts despite the advisories issued by the Centre and state governments.

May 15, 2020 / 19:41 IST
     
     
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    The Supreme Court on May 15 dismissed a public interest litigation seeking protection of IT employees against termination and salary cuts in the wake of the COVID-19 pandemic.

    The bench, headed by Justice L Nageswara Rao, Sanjay Kishan Kaul and BR Gavai, turned down the plea. The PIL was filed by the National Information Technology Employees Senate (NITES), a Maharashtra-based IT union.

    The order, dismissing the petition, read, “We are not inclined to entertain this petition under Article 32 of the Constitution of India. The writ petition is accordingly dismissed.”

    Article 32 provides the right to Constitutional remedies which means that a person has the right to move the Supreme Court (and high courts also) for getting his fundamental rights protected.

    The petition aimed to ensure that employees working in private companies are protected and not illegally sacked against their rights guaranteed under Articles 14, 19(1)(g) and 21.

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    The petition comes in the wake of termination of employees and employers withholding salaries despite the advisories issued by the Centre and state governments.

    “Various IT companies in the country have initiated a drive of illegal mass termination of the employees, withholding of the salaries or illegal deduction of salaries,” the petition stated.

    Industries across the world have been adversely impacted by the coronavirus pandemic. This has affected IT firms as well, which suspended wage hikes and promotions as they expect their businesses to take a hit. There have been reports about furloughs and benching of employees has already begun.

    Experts estimate that close to 1.5 lakh IT/ITeS employees could lose jobs due to the COVID-19 impact.

    Companies such as Tech Mahindra and KPIT Technologies have suspended shift allowance and implemented pay cuts respectively. Firms including Cognizant and Infosys have deferred joining dates of lateral hires.

    In smaller IT firms such as Fareportal, more than 300 employees have been laid off. The company caters to the airlines and travel industry and its clients include major airlines and hospitality companies. In an email response to Moneycontrol, the company said the decision was made as the demand came down dramatically after the virus outbreak.

    Swathi Moorthy
    first published: May 15, 2020 07:39 pm

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