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Labour commissioner issues notice to Tech Mahindra for deducting shift allowance, Co. rebuts

On the basis of the complaint filed by National Information Technology Employees Senate (NITES), Maharashtra Labour Commissioner against Tech Mahindra, the flagship IT services company under Mahindra Group for cutting down salary upto Rs.10K of their employees in pune which are around 13 thousand,Labor Commissioner has issued a notice to Tech Mahindra but company has rebutted and said that shift allowance to all elligible associates continues to be paid

In an email to employees notified on 6th may, Tech Mahindra informed that due to ‘transformational change’ in the way businesses are being conducted they are deducting shift allowance and holiday allowance from their salaries.In general, these two contribute between Rs 5000 to Rs 10,000 in the overall salary of the employees with few exceptions to be applicable from may 1st.


 The shift allowance amount ranges from Rs.400 for night shift to Rs. 225 for other shifts. This deduction in salary will affect the employees quite a lot. Most of employees are working from their home towns but they are still paying rents of their pune flats/pg accommodation alleged in the NITES complaint.


The employees were assured and lured by the management while joining the project stating that this extra amount employees will be getting if they agree for 24/5 shifts project.”


In the notice, Tech Mahindra has been asked to immediately release the deducted salaries to the employees, else they can face consequences for non compliance of the Government directions, which attracts punishment under IPC Section 188, 269, 270, 271 Disaster Management Act 51 (b) & epidemic disease act .


However, in a statement issued from tech Mahindra published in media reports, it is said that the shift allowance paid for hardship due to travel to work at odd hours and other out of pocket expenses continues to be paid to all tech Mahindra associates who are coming to office or are at client locations as per policy.