TCS Offers Up To Two Years’ Salary As Severance To Long-Serving Employees: Report | Business News

TCS is also extending early retirement options for employees nearing retirement age.

Tata Consultancy Services (TCS), India’s largest IT services firm, is offering severance packages of up to two years’ salary for employees whose skills are no longer aligned with the company’s needs, as the IT giant undertakes one of its biggest workforce realignments in recent years.

In July, TCS announced to trim nearly 2 per cent of its workforce, or roughly 12,000 persons, over the next year as part of its efforts to stay agile in the face of rapid technological change and automation.

According to a Moneycontrol report citing people familiar with the matter, the restructuring largely impacts employees who have been unable to reskill or whose existing skillsets are now redundant.

What the Severance Packages Look Like

Under the current programme, affected employees are entitled to three months’ notice period pay, followed by severance ranging from six months to two years’ salary, depending on years of service.

“The lowest severance pay in this category is six months,” according to the Moneycontrol report citing a source.

Employees who have remained unallocated — or “on the bench” — for over eight months without being matched to any project are being offered a simpler package consisting only of the three-month notice pay.

In a statement, TCS has said, “In keeping with the values of our company, those affected by our recent initiative to realign skills have been provided care and support as is due to them in each of the individual circumstances.”

Who Gets What

Employees with 10-15 years of service: Can receive around 1.5 years’ worth of severance, according to sources.

Employees with over 15 years of service: Qualify for the highest severance, which may extend to two years’ pay.

Bench employees: Only those without active roles for over eight months are being let go.

Support Beyond Severance

TCS is also offering career transition support, including outplacement services with agency fees covered for at least three months. For some junior associates, the support period could be longer. In select cases, access to counselling and mental health therapy is being funded through TCS’s ‘Cares’ programme.

Early Retirement Route

According to the report, TCS is extending early retirement options for employees nearing retirement age, allowing them to receive all retirement-linked benefits such as insurance along with an additional severance of six months to two years’ salary, depending on tenure.