TCS Bench Policy Fallout: Forced Resignations, Fear & Industry Wake-Up Call

In June 2025, Tata Consultancy Services (TCS) introduced a contentious bench policy, limiting the time employees could remain unassigned to projects to just 35 business days per year. This change, implemented just weeks before announcing layoffs of over 12,000 employees, triggered widespread panic across the workforce

Forced Resignations and Coercion Tactics

Multiple employee accounts detail how individuals at all levels, including freshers, mid-level, and senior staff were reportedly coerced into quitting. Tactics ranged from offering three months’ salary “as an incentive” to resign, but if workers refuse, they face threats of termination without compensation or critical documents. Some workers are summoned to HR meetings, where they are pressured to resign and reportedly denied communication outside the room until they comply. Many, especially those from less privileged backgrounds, have felt compelled to accept the resignation offer due to immediate financial needs. Employees note that even some who were actively working on projects, not just those “on the bench” were targeted. Internal memos labeled certain roles “non-critical,” furthering anxiety about job security among those who believed they were safe.

The New 'Bench Policy': Shorter Window, More Pressure

At the heart of the current layoffs is TCS’s newly introduced Bench Policy. Traditionally, the “bench” period is a buffer for employees awaiting deployment to client projects. TCS dramatically cut this duration to just 35 days per year. The onus is now on employees to find new assignments rapidly, after which they're pressured to resign if no position is found. This new policy has led to a drastic reduction of “breathing room” for employees, with some reporting that up to 300 people at the Bengaluru campus alone were forced to resign within a week. Almost 50 resignations per day.

Impacted Demographics: Not Just the Benchers

Notably, these forced resignations are not limited to employees on the bench. Even those engaged in active projects have received warnings that their roles are “non-critical.” There are growing concerns that experienced professionals, especially those in higher wage brackets, are being systematically targeted. Freshers and junior-level staff often face placement in high-pressure environments, and if they do not demonstrate “in-demand” skills, they may face firing after warnings and poor appraisal cycles.

Legal and Ethical Challenges

The Karnataka State IT/ITeS Employees Union (KITU) and the IT & ITES Democratic Employees Association (IIDEA) have condemned TCS’s actions, labelling the process as illegal and in violation of both the Industrial Disputes Act’s requirements and mandated employment conditions. Employee unions have filed industrial disputes, calling for criminal proceedings against TCS for alleged unlawful tactics to avoid government scrutiny. Conciliation meetings with labor officials remain ongoing, with unions demanding transparent, lawful layoffs and genuine reskilling opportunities. Not cost-cutting disguised as automation.

The Aftermath: Financial Uncertainty and Salary Hikes

Ironically, just days after the layoffs, TCS announced annual salary hikes for junior to mid-senior staff, with increments ranging from 2-8% for employees outside India. Some former employees allege the layoffs were timed to save the company salary costs ahead of increases. Meanwhile, the attrition rate hit a two-year high of 13.8% in June 2025, and onboarding of new staff has slowed, leaving many in limbo.

This episode raises urgent questions about transparency, fairness, and the future of job security in Indian IT.
As employees and unions push for accountability, the larger sector watches, wary of becoming the next target for “future-readiness” policies that come at a human cost. At Ksepiyas, we believe job-seekers deserve transparency. Our platform (Kriti) helps you assess roles not just by title, but by culture fit, career impact, and personal well-being.