TCS' New Bench Policy And Why It's Sparking Layoff Fears Among Employees — Explained

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Thousands of employees at Tata Consultancy Services (TCS) are staring at job uncertainty as the tech giant's new bench policy; here's why
Thousands of employees at Tata Consultancy Services (TCS) are staring at job uncertainty as the tech giant's new bench policy completes its first full cycle this week. Introduced on June 12, the policy enforces a strict 35-day cap on the time employees can remain on the bench—i.e., without being assigned to a billable project.
Applicable to all staff across the company, the rule significantly tightens previous norms. Employees who fail to secure a project within this 35-day window may face career stagnation or even risk termination.
TCS Bench Policy Leaves Employees Concerned
Tata Consultancy Services' (TCS) new bench policy has sparked widespread anxiety among employees, many of whom have turned to social media platforms like Reddit to express concerns. Several posts suggest employees are being pressured to accept roles unrelated to their training, while others cite difficulty in finding assignments near their preferred locations.
'This is the first step towards employment rationalisation based on utilisation. Brace for layoffs," one Reddit user wrote.
A recent joiner shared, 'I was trained in Java, but within a month of being on the bench, I'm being pressured to join a support project that's far removed from Java or Python."
Effective from June 12, 2025, TCS' revised deployment policy mandates that employees must be billable for at least 225 business days in a 12-month period, effectively capping bench time to 35 business days annually. The policy applies to all employees and aims to improve project utilisation and reduce unallocated time.
Consequences of Extended Bench Time
Internal communications indicate that prolonged unallocation could impact an employee's compensation, career growth, opportunities for overseas deployment, and even continuity of employment.
Expectations from Employees on the Bench
TCS expects employees on the bench to take initiative in finding projects. A company document states: 'It is the primary responsibility of the associate to proactively engage with the Unit/Regional RMG for seeking allocation and pursue suitable opportunities provided by the organisation."
Mandatory Upskilling and Return-to-Office Mandate
Employees on the bench are required to dedicate 4–6 hours daily to upskilling through platforms like iEvolve, Fresco Play, VLS, and LinkedIn Learning. Remote work is largely restricted during this period, with physical presence in the office mandated.
How Many Employees Could Be Affected?
While TCS hasn't disclosed official numbers, industry estimates suggest that typically 15–18% of employees at large IT firms are on the bench at any given time. With TCS employing around 613,000 people globally, the number potentially affected could be significant.
On Wednesday, the Nascent Information Technology Employees Senate (NITES) urged Union Labour Minister Mansukh Mandaviya to intervene, labelling the policy 'inhumane" and harmful to employee mental health.
'These are not non-performing employees, but skilled professionals temporarily without allocation… Instead of support, they are met with suspicion, coercion, and threats," said NITES president Harpreet Singh Saluja.
The organisation also accused TCS of pressuring employees with threats of termination and denial of experience letters if they miss deployment deadlines.
Yes. Some employees have voiced support for the policy, arguing that it may help weed out long-term benchers who have declined assignments or misused bench time.
'This may help TCS trim seriously underperforming resources—those stuck on TCS like a leech," one Reddit comment read.
What Has TCS Management Said?
TCS CEO and MD K Krithivasan defended the move in an interview with The Times of India, stating that the policy formalises long-standing expectations.
'It's always been expected that associates take responsibility for their careers. HR supports project placement, but associates are expected to proactively seek assignments. What you see now is just a more structured version of that," he said.
He also noted that project allocation is driven by client demand, not employee preferences, though TCS does work to bridge skill gaps where needed. However, Krithivasan did not clarify whether salaries are being withheld for those benched beyond the 35-day limit.
Why Now?
The policy comes at a time when the IT industry is facing subdued demand due to global macroeconomic pressures and rising adoption of artificial intelligence (AI), which is automating many routine roles.
'We expect IT companies to tighten bench policies given the soft business outlook and increased demand for advanced skill sets," said Pareekh Jain, founder of EIIRTrend. He added that employee costs are weighing heavily on margins.
Could Other Companies Follow?
Experts believe TCS' move may prompt other IT firms to review their bench strategies.
'Tech firms must constantly align employee skills with evolving client demands. Revisiting bench policies encourages reskilling in high-demand areas like AI, cybersecurity, and digital engineering," said Nitin Bhatt, Technology Sector Leader at EY India.
'In the future, promotions and merit increases may depend more on skill proficiency than tenure or grade," he added.
About the Author
Aparna Deb
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a...Read More
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First Published:
July 18, 2025, 07:55 IST
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