What is TCS' bench policy whose first 35-day cycle ended this month

Thousands of

Tata Consultancy Services

(TCS) employees are grappling with heightened job insecurity as the IT giant's controversial bench policy completed its first 35-day cycle this week, coinciding with the company's announcement of 12,000 global job cuts. The policy, implemented on June 12, caps the maximum bench period—time without project allocation—at just 35 days annually, after which employees risk career degrowth or termination.

New policy limits 'bench time' to 35 days per year

TCS's revised deployment policy requires employees to be billable for at least 225 business days within a 12-month period, effectively limiting bench time to a maximum of 35 business days per year. During unallocated periods, employees must spend 4-6 hours daily on upskilling through internal platforms and are required to maintain office presence, with remote work generally prohibited.The policy places primary responsibility on employees to proactively seek new assignments through the Resource Management Group (RMG). Long periods without allocation can adversely impact compensation, career growth, overseas deployment opportunities, and employment continuity, according to internal company documents.

Online forums like Reddit are flooded with posts from anxious TCS employees. "This is the first step towards employment rationalisation based on utilisation. Brace for layoffs," one user wrote. A fresher claimed being pressured into support projects unrelated to their Java training within weeks of joining.

Employee union calls policy 'inhumane and exploitative'

The Nascent Information Technology Employees Senate (NITES) filed a complaint with the Union Labour Ministry on Wednesday, calling the policy "inhumane" and "exploitative." Based on complaints from 78 employees, NITES alleged that TCS is coercing benched employees with termination threats and denial of experience letters."These are not non-performing employees, but skilled professionals who find themselves temporarily without allocation," said NITES president Harpreet Singh Saluja. However, some employees support the move, arguing it could help remove long-term benchers who decline projects.TCS CEO K Krithivasan defended the policy as a "structured version of what's long been in practice," emphasizing that associates must take responsibility for their careers while HR supports placement efforts.

TCS announces 12,000 job cuts amid skill mismatch concerns

Separately, TCS plans to cut approximately 12,000 jobs globally—around 2% of its 613,000-strong workforce—through FY26, according to a Moneycontrol report. CEO Krithivasan clarified that the layoffs stem from skill mismatches rather than AI-driven productivity gains, primarily affecting mid-to-senior level employees and some junior staff on prolonged bench time.The IT sector faces reduced demand due to macroeconomic uncertainty and AI automation of routine tasks. Industry estimates suggest 15-18% of employees at major Indian IT firms are typically on the bench. TCS reported employee costs of ₹37,715 crore in Q1, constituting 59.45% of revenue, with attrition at 13.8%.The company's strict bench policy could influence other IT firms to tighten similar policies as the industry adapts to AI-led demand for advanced skill sets, experts told ET.