In a significant labour ruling, a Mumbai-based Tata Consultancy Services (TCS) employee was ordered full gratuity payment by the Mumbai Labour Office after being forced to resign in 2025. The employee, who had served seven years with TCS, was pressured to quit while on emergency leave to care for his critically ill father in the ICU.
Despite having a sufficient leave balance, TCS denied him gratuity, claiming the resignation was voluntary. Following a complaint, the Labour Office summoned TCS officials, reprimanded the company for unfair labour practices, and directed immediate release of gratuity dues for the employee’s entire tenure.
This ruling emphatically flags that forced resignations under duress, especially on medical grounds, cannot be considered voluntary and denied statutory benefits.
Details of the Case
The incident occurred in 2025 when the employee sought emergency leave for a family health crisis. Instead of granting support, TCS pushed the employee for resignation, withholding his retirement benefits.
The employee approached the Mumbai Labour Office with support from workers’ group Forum for IT Employees (FITE). Labour Commissioner officials reviewed the case and ordered TCS to pay full gratuity as mandated under labour laws. TCS has complied by releasing the full gratuity amount.
FITE highlighted this case as a reminder for employees that labour authorities have jurisdiction to counter coercive corporate policies relating to layoffs, resignations, and withheld dues. They urged workers to come forward and assert their rights through legal channels when faced with unfair workplace actions.
TCS and Frequent Disputes with Employees
This case is one of many raising concerns about TCS’s recent labour practices. Over 12,000 employees were laid off in 2025 amid corporate restructuring, with multiple reports alleging coercion into resignations, denial of policy benefits, and insufficient severance compensation.
Several employees reportedly faced ultimatums to accept reduced payouts or face termination while on medical or maternity leave. FITE and other advocacy groups have called for special investigations into these alleged unfair terminations and forced exits, pointing to a pattern of aggressive cost-cutting at the expense of employee welfare.
The recurrent conflicts highlight the urgent need for transparency, humane policies, and adherence to labour laws by large corporations like TCS.
The Logical Indian’s Perspective
This recent ruling underscores the indispensable role of fairness and empathy in employment practices. Corporates must value workers as people deserving dignity and justice, especially during personal crises.
The firm action by the Mumbai Labour Office demonstrates how legal frameworks can protect employees against exploitative practices. The Logical Indian urges a shift towards compassionate human resource policies that balance business realities with fundamental worker rights.
Dark side of #TCS – Part 07 ,,,,but here TCS lost 🙂#EmployeesVictory over TCS’ unfair policies.
— Forum For IT Employees – FITE (@FITEMaharashtra) November 19, 2025
A Mumbai-based TCS employee with 7 years of service was forced to resign last year while he was on emergency leave, attending to his father in the ICU.
Despite having sufficient…
