Why IT Union Complained Against TCS' 35-Day Bench Rule

Nascent Information Technology Employees Senate (NITES), an IT workers union, on Wednesday filed a formal complaint against Tata Consultancy Services (TCS) for its new bench policy, which was first reported last month. The policy caps the maximum bench time for its employees at 35 business days each year and came into effect from June 12.

NITES, in its complaint to the Ministry of Labour and Employment, called the policy introduced by Chandrasekaran Ramkumar, Global Head of the Resource Management Group (RMG), "exploitative" and urged urgent regulatory intervention to safeguard employee dignity.

According to the new policy, employees must be billed for at least 225 business days annually, effectively capping bench time at a maximum of 35 business days. "Long periods of remaining unallocated shall adversely impact associate compensation, career growth, avenues for overseas deployment in the future, and continuity of employment with the organisation," the policy document reportedly said, as per Times of India.

"While on the surface it presents itself as a resource optimisation and engagement strategy, a closer and humane reading reveals that it institutionalises a culture of fear, pressure, and psychological burden on employees who are between projects," said NITES, adding that these are not non-performing employees, but skilled professionals who find themselves temporarily without allocation—often due to shifting business priorities, client project changes, or internal inefficiencies beyond their control.

"Instead of support, they are met with suspicion, coercion, and threats," the workers’ body alleged.

The complaint further added that employees are expected to always remain billable and allocated, and even before their current assignment ends, they are told to actively chase new projects.

"Those who are unable to secure allocation are sent repeated emails forcing them to resign. In several disturbing instances, employees have been openly threatened that if they raise grievances, they will not be issued experience letters," NITES claimed. The body said it went on to formally file the complaint after receiving grievances from around 78 employees.

The union further claimed that the company is hiring external employees with ₹40,000 to ₹60,000 joining bonuses, while long-serving employees are denied even their "rightful annual hikes".

What Happens If Employees Don't Comply?

In June, when the reports on the new bench policy came out, several workers’ unions protested against it. Under the new internal policy, it is primarily the associate’s responsibility to actively engage with the Unit or Regional RMG when unallocated and to pursue available opportunities. Associates who are released to the RMG and are awaiting new assignments are classified as unallocated.

TCS mandates that unallocated employees spend 4–6 hours daily on upskilling through platforms like iEvolve, Fresco Play, VLS, and LinkedIn. They must also complete all mandatory training, attend in-person sessions as advised, use tools like the Gen AI Interview Coach, and act on feedback from past interviews to remain job-ready.

To enable quicker deployment, physical presence in the office has also been made mandatory. Flexible work arrangements will be allowed only in exceptional cases and require prior RMG approval. TCS has also discouraged frequent short-term project assignments, cautioning that such practices could lead to HR scrutiny and disciplinary action.

The All India IT & ITeS Employees' Union (AIITEU) labelled the policy as "anti-worker" and a tactic to downsize teams, citing concerns about potential job losses and increased pressure on employees.

IT Companies Shorten Bench Times

This development comes as India’s top IT services companies — including Infosys, Wipro, HCLTech, and others — have also reduced bench time for their employees. According to a Moneycontrol report from March, average bench time at IT services firms has dropped to 35–45 days, compared to 45–60 days in FY21.

Citing TeamLease data, the report also notes that bench sizes have shrunk to 2–5% of overall headcount, down from 10–15% earlier. Employee utilisation rates have improved to around 80–85%, while attrition has come down to 11–13%.

In response to cost pressures and evolving business models, firms are now favouring leaner, project-specific hiring strategies. Tier-I firms like TCS maintain a lateral bench but are aiming for faster deployment amid slower deal closures and increasing AI-led disruption.

In an interview with Times of India last week, TCS Chief Executive and Managing Director K Krithivasan said, “It’s always been expected that associates take responsibility for their careers. While HR supports project placement, we also expect associates to proactively seek new assignments after completing existing ones. What you’re seeing now is simply a more structured version of what’s long been in practice. We aim to minimise bench time.”

Point to note: During the April–June period, TCS added 6,071 new employees, bringing its total workforce to 6,13,069 as of June 30, 2025.

Employee attrition ticked up slightly in Q1FY26, reaching 13.8% on a trailing 12-month basis, compared to 13.3% in the prior quarter and 13% in Q3FY25, according to the company’s earnings released on July 10.