According to Business Today, the Nascent Information Technology Employees Senate (NITES) employee union has officially lodged a complaint against HCLTech. The complaint pertains to the recent modifications made by the company to its Engagement Performance Bonus (EPB) policy, resulting in reduced salaries for certain employees.
NITES President Harpreet Singh Saluja informed Business Today, “In response to the unjust changes implemented by HCLTech, NITES has filed a complaint with the Labour Ministry, urging them to take appropriate action to protect the interests of IT employees.”
Previously reported by Business Today, HCLTech has indeed revised its policy concerning the Engagement Performance Bonus. Under the previous policy, employees received EPB on a monthly basis. However, the new policy stipulates that EPB will now be paid on a quarterly basis. Additionally, employees who are on the bench will no longer qualify for EPB, consequently reducing their monthly salary. Furthermore, employees who resign during a quarter will also be ineligible to receive the EPB portion of their salary for that quarter, as communicated by HCLTech to its employees.
An email sent to employees stated, “Employees on the bench will not be eligible for EPB payout during the period they are on the bench.”
The email further explained, “Achievement is calculated on a quarterly basis, and if an employee resigns during the quarter, no EPB amount will be paid for that quarter.”
The President of the employee union informed Business Today, “Now, according to the company’s new policy, employees who are on the bench will not receive any EPB payout at all. Consequently, this abrupt policy change has resulted in significant financial losses for the affected employees. The decision by the company to reduce salaries instead of providing increments contradicts fair and equitable employment practices.”
HCLTech acknowledged the policy change in their HR policy but clarified that it had always been the standard practice, and the adjustments were only made during the pandemic to support employees.
An HCLTech spokesperson stated, “In order to support employees during the pandemic, the company made a policy exception and paid 100% EPB regardless of performance. Post-pandemic, the company is reverting to the original policy. This information has been communicated to our employees.”
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