TCS ordered to pay full gratuity in forced resign case- Labour Office

A Mumbai-based TCS employee forced to resign while caring for his father in the ICU has secured a full gratuity payout after the Labour Commissioner intervened. Although he had sufficient leave, the employee was denied his dues, but the labour office ultimately ruled in his favour.

The incident, which took place last year, gained traction after the employee approached the Mumbai Labour Office to contest TCS’ refusal to release his gratuity, despite having completed seven years of service and maintaining a sufficient leave balance.

According to the Forum for IT Employees (FITE), the employee was allegedly pressured to resign during his emergency leave period, even though he had adequate earned leave available. His resignation, made under distress, resulted in TCS withholding his gratuity dues—prompting him to seek legal recourse.

FITE highlighted the case on social media, noting that the employee had been “pushed into resigning” despite meeting the criteria for leave and service benefits. This move sparked widespread discussions around how major IT companies handle employee emergencies and whether internal policies are being misused.

Labour Office Intervention and Directive

Upon receiving the complaint, the Mumbai Labour Office summoned TCS management to explain its actions. During the inquiry, the Labour Commissioner questioned the company’s rationale for denying gratuity and scrutinised whether the resignation had been voluntary or coerced.

The Commissioner reportedly warned TCS about engaging in unfair labour practices, reminding the company that statutory dues cannot be withheld based on internal policy interpretations or managerial pressure.

Following the formal hearing, the Labour Office issued a directive ordering TCS to pay the employee his full gratuity for the entire seven-year period of service.

The ruling underscored that gratuity is a legal entitlement under the Payment of Gratuity Act, and no employer can deny it unless the employee is dismissed for misconduct—a condition clearly not applicable in this case.

Broader Message for the Workforce

The employee has since received the full gratuity amount. FITE, while announcing the outcome, emphasised a crucial lesson for the wider workforce: employees must come forward and report wrongful practices for justice to be served.

The organisation stated that the Labour Office and Labour Ministry “have full authority to question and challenge any company’s internal policies—including forced resignations, layoffs, wrongful terminations, or withheld dues.”

This case stands as a powerful reminder that employees are not powerless, even when facing large corporations. Legal avenues exist, and raising one’s voice can result in a fair and rightful resolution.

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