TCS Ends Work From Home: Tata Consultancy Services Chief HR Says 70% of Employees Back in Office Due to New Variable Pay Policy

Mumbai, July 12: Tata Consultancy Services allowed its employees to work from home on certain projects until it decided to change its hybrid policy last year and introduced a new variable pay policy this year, which stated that employees working from home over 40% of the time would not be eligible for variable pay. In September 2023, TCS said it would end the hybrid work policy for its employees and even asked the employees to return to the office starting from October 1 last year. 

In April 2024, TCS introduced a new variable pay policy that stated the employees would have to comply with the new rules as the tech company would start implementing the "return-to-office" policy, mandating work from the office. According to a new report by Hindustan Times, TCS linked the variable payout to the employees with their attendance in the office in April, which led to 70% of the employees coming back to the office. TCS New Variable Pay Policy Now Linked to Work From Office Factor, Employees Who Work From Home for Over 40% of Time Won't Be Eligible.

The report mentioned that Milind Lakkad, Chief HR Officer at Tata Consultancy Services, said that the move was temporary and should be seen that way. The new TCS variable pay policy linked to the work-from-office factor stated that employees with less than 60% attendance in the office would not be awarded a quarterly bonus. Following this policy, the IT company mandated "work-from-office" for five days a week.

The employees were compelled to have minimum attendance to receive the quarterly variable bonus. As per a previous report, as per the new variable pay policy, the employees with 60-75% attendance were granted 50% variable pay, those with 75-85% were granted 75% variable pay, and those with over 85% attendance were allowed full variable pay. The policy said that the employees working from home 40% of the time would not be eligible for variable pay. The new update says employees below 60% would not be eligible. GE Appliances Layoffs: US-Based Home Appliances Manufacturer Will Lay Off Around 2,700 Employees Amid Challenges Faced by Appliance Industry.

TCS Chief HR Officer Milind Lakkad said that following this policy, 70% of the company's employees were back in the office. He said he was not worried about those few who were not coming back to the office and were affected by the policy. He said that the numbers had been increasing every week, and everyone took the new policy positively.

(The above story first appeared on LatestLY on Jul 12, 2024 06:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).