Tamil Nadu: Illegal layoff by Syntel – 3000 employees sacked

May 6, 2015

Statement from IT Employees trade union, New Democratic Labour Front

After the layoff of thousands of employees by TCS last year, several IT companies have been resorting secret retrenchment of employees.

At present, US based Syntel is laying off employees. Syntel has planned and enforcing layoff of 3,000 employees. This has been going on for the past one month, and 1000s have already lost their jobs. But, this news is not released to any media outlet by the company. Company management is not even allowing our union posters about this issue in public places. They send their security personnel to tear off our posters.

Syntel does not even give the minimum 30 days notice period before termination. Employees are ordered to leave the office within 15 minutes. An employees is called into HR office and forced to sign their resignation letter. Unaware of their rights, the employees meekly sign and leave their employment. When an employee tried to question this practice, HR personnel respond coldly, saying “You took too many leave”. As far as the company is concerned even questioning them is a criminal offence.

Syntel is doing this entirely for their profit motive. A perusal of their financial statements reveal that the company’s revenues in 2004 increased by 11% compared to the previous year to reach $911.5 million. Net profits soared to $249 million from $219.9 million for the year ago period. Employees who made this growth possible are being sent off now.

NDLF – IT Employees Wing strongly condemns Syntel’s illegal and unethical layoff and its treatment of their employees like common criminals.

We call upon IT employees to refuse to sign resignation letters under compulsion and join hands with NDLF – IT Employees Wing to fight this corporate terror.

Corporate companies are showered with public funds in terms of cheap priced land and tax waivers when they start business in SIPCOT or SEZ. But they refuse to follow Indian labour laws. IT companies go further and argue that labour welfare laws do not apply to them.

Madras High Court issued an order to the Tamil Nadu government to take a policy decision on our petition demanding implementation of Industrial Disputes Act in IT sector. We demand that Tamil Nadu government should take immediate action this and bring IT companies under ID Act.