The Karnataka State IT/ITES Employees Union (KITU) has condemned the mass layoffs by IT company DXC Technology (EIT Services India Pvt Ltd, formerly known as Hewlett-Packard Globalsoft) at its Bengaluru office. KITU, which is buoyed by a recent favourable verdict against industry major Wipro over a similar matter, has called the sackings “illegal”.
According to the union, many DXC Technology employees, to the tune of 100, have reached out to them since April saying they have been forced to resign against their will. KITU has started a campaign to support employees working in the company and is urging them to refuse forced resignations. TNM has learnt most of these staff members are senior and mid-career professionals. Those who refused to resign were reportedly handed out termination letters with a two-month pay compensation.
Ullas Chumalaparambil, KITU General Secretary, said companies in Karnataka that have more than 300 employees need to obtain approval from the government in order to execute layoffs. “Layoffs are permitted only for specific reasons and under certain regulations defined in the Industrial Disputes Act. DXC is in the news infamously for their unethical and inhuman method of layoffs. Affected employees spoke to KITU about their ordeal and victims were still in a state of shock. Many employees unwillingly signed the separation and no dues letters fearing humiliation and termination,” he said.
He added, “KITU warns DXC Technology that as per the Industrial Disputes Act 1947 section 2(ra), Unfair labour practices, it is an offense on the part of an employer to force an employee to resign. Employee has all the legal right to refuse to sign the resignation.” He further said that the recent order in the Wipro case underlines the illegality of forced resignations, and said KITU would take legal action against DXC Technology if the company does not reinstate the terminated staff.
TNM had reported how KITU won a case in favour of an employee who was forced to resign from Wipro in 2018. In its order on June 25, the 3rd Additional Labour Court had observed that forced resignation “obtained under duress, coercion and without free will and consent” is unsustainable. In its order, the court asked Wipro to pay the employee his full wages from the day of resignation till date and reinstate him.
The company has denied any wrongdoing. Their statement is carried in full below:
The union's claim regarding unfair labour practices is unfounded. DXC is governed by principles such as meritocracy, transparency, and equal opportunity, and we endeavour to hire, train and retain high performers to become an integral part of our journey. Our people management processes respect local legal frameworks and follow industry benchmarks along with business requirements, and adhere to the highest standards of honesty and respect for all.
DXC continues to hire across levels in India and worldwide. In fact, we have made offers to 7,000 campus graduates last year and have on-boarded 1,300 women hires last month. This is a testament to the fact that DXC is committed to hiring the right, diverse talent for building a strong workforce that best serves the ever-evolving customer demands and the new-age requirements. And we continue to invest heavily in upskilling and reskilling our employees to drive global transformation from our GIDC in India.