TCS takes action against employees not working from office, to cut variable pay for low attendance

TCS takes action against employees not working from office, to cut variable pay for low attendance

In a strategic move aimed at boosting office attendance, Tata Consultancy Services (TCS) has rolled out a revised variable pay policy. Effective immediately, the policy introduces stringent criteria linking variable pay to physical presence in the office, The Times of India reported.Â

Under the new policy, employees are required to maintain a minimum office attendance of 60 percent to qualify for any variable pay for the quarter. Attendance between 60-75 percent will yield a reduced variable pay of 50 percent, while those attending 75-85 percent of the time will be eligible for 75 percent of the variable pay. Notably, employees achieving an office compliance level above 85 percent will receive their full variable pay entitlement. India Today has reached out to TCS for more details on this, and we will update the copy once we receive a response. Â

This initiative comes on the heels of TCS’ recent quarterly results, indicating a strategic shift towards prioritising in-office work. The cited report suggests that business unit heads have communicated to their teams that promotions and performance evaluations will be closely tied to adherence to the office attendance policy. Additionally, the company has warned of disciplinary action for those who will not comply with the 85 percent of office attendance.Â

“Employees’ compliance to work from home will be reviewed every quarter. In the event an employee is found to be in violation of the laid down policies, there will be implications on the annual performance review, compensation, and career progression of the employee,” the policy stated.

The company’s CEO K Krithivasan emphasised the significance of returning to the workplace in a recent communication to employees, citing the benefits of shared experiences, collaboration, and camaraderie.

Besides, previously several IT companies have asked their employees to work from office to they will face strict action. Earlier this year, ET reported that Wipro warned employees of potential consequences if they fail to adhere to the new work policy, which became effective in January 2024. Moreover, Infosys also recently rolled out “In person Collab Weeks” for its employees in Eng-IoT (engineering Internet of Things) projects. The company urged people to come to the office 10 days a week.