On October 15, 2025, during conciliation with Karnataka labour authorities, the Karnataka State IT/ITeS Employees Union (KITU) submitted records on two TCS cases—one termination and one alleged forced resignation—clarifying these do not amount to mass layoffs. While limited in number, the filings highlight how IT/ITeS separations remain under the labour department’s lens, especially where employees allege procedural lapses. The news follows recent reporting on alleged “forced resignations” across Bengaluru’s tech sector, with unions and lawyers urging stricter due-process adherence. For employers, the signal is clear: resignation vs retrenchment distinctions will be tested, and conciliation officers may probe evidence of voluntariness, notice, and statutory compliance.
The Economic Times
HR/compliance takeaways: for performance or redundancy exits, ensure documented due process, progressive discipline where applicable, and signed, informed consent for resignations. Map whether the role is a “workman” under the Industrial Disputes Act; if yes, follow retrenchment conditions (notice/pay, last-in-first-out where applicable, and reporting/conciliation where required). Avoid blanket “resign-or-else” scripts; they invite disputes and adverse inferences in conciliation. Establish an internal separation review board (HR+Legal+BU) to vet higher-risk exits, track disputes, and ensure timely responses to labour-department notices.
The Economic Times
Sources:
• “TCS job cuts: Karnataka union submits records of two cases, not mass layoffs” — The Economic Times — Oct 15, 2025.
The Economic Times
• “Forced to resign or lose pay: unions allege illegal layoffs in Bengaluru tech firms” — Deccan Herald — Oct 9, 2025.
Deccan Herald
Discussion questions:
Where do your exit SOPs risk being viewed as “constructive dismissal” rather than genuine resignation?
Do you classify roles correctly under the ID Act, and does your template pack (notice, compensation, filings) reflect that?
How are you monitoring and closing out conciliation notices to avoid escalation?
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5The Economic Times
HR/compliance takeaways: for performance or redundancy exits, ensure documented due process, progressive discipline where applicable, and signed, informed consent for resignations. Map whether the role is a “workman” under the Industrial Disputes Act; if yes, follow retrenchment conditions (notice/pay, last-in-first-out where applicable, and reporting/conciliation where required). Avoid blanket “resign-or-else” scripts; they invite disputes and adverse inferences in conciliation. Establish an internal separation review board (HR+Legal+BU) to vet higher-risk exits, track disputes, and ensure timely responses to labour-department notices.
The Economic Times
Sources:
• “TCS job cuts: Karnataka union submits records of two cases, not mass layoffs” — The Economic Times — Oct 15, 2025.
The Economic Times
• “Forced to resign or lose pay: unions allege illegal layoffs in Bengaluru tech firms” — Deccan Herald — Oct 9, 2025.
Deccan Herald
Discussion questions:
Where do your exit SOPs risk being viewed as “constructive dismissal” rather than genuine resignation?
Do you classify roles correctly under the ID Act, and does your template pack (notice, compensation, filings) reflect that?
How are you monitoring and closing out conciliation notices to avoid escalation?
Acknowledge(0)Amend(0)
It's crucial to ensure your exit SOPs are not viewed as "constructive dismissal". To avoid this, maintain transparency and fairness in the process. Document all performance-related issues and the steps taken to address them. Provide employees with an opportunity to improve, and ensure that any decision to terminate is based on objective criteria.
Classifying roles correctly under the Industrial Disputes Act is essential. This classification affects the rights and protections available to the employee upon termination. Ensure your templates for notice, compensation, and filings reflect the correct classification and comply with all statutory requirements.
Monitoring and closing out conciliation notices is a critical part of avoiding escalation. This involves responding promptly to all notices, cooperating fully with the conciliation process, and taking steps to address any identified issues. Establish a dedicated team or designate a specific person to handle these tasks. This team or person should have a clear understanding of the legal requirements and the potential implications of failing to comply.
Remember, a well-managed termination process can minimize the risk of disputes and legal issues. It's always advisable to seek legal advice when dealing with complex employment matters.
From India, Gurugram
Acknowledge(0)Amend(0)
Classifying roles correctly under the Industrial Disputes Act is essential. This classification affects the rights and protections available to the employee upon termination. Ensure your templates for notice, compensation, and filings reflect the correct classification and comply with all statutory requirements.
Monitoring and closing out conciliation notices is a critical part of avoiding escalation. This involves responding promptly to all notices, cooperating fully with the conciliation process, and taking steps to address any identified issues. Establish a dedicated team or designate a specific person to handle these tasks. This team or person should have a clear understanding of the legal requirements and the potential implications of failing to comply.
Remember, a well-managed termination process can minimize the risk of disputes and legal issues. It's always advisable to seek legal advice when dealing with complex employment matters.
From India, Gurugram
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1The Karnataka Labour Welfare Fund (Amendment) Act, 2017.pdf
KARNATAKA LABOUR LAWS and its Applicability in Establishments. docx