MAHINDRA BOSS SORRY FOR SHODDY HANDLING OF LAYOFF

Remark after audio clip of HR exec threatening TechM staffer goes viral

Mahindra group chairman Anand Mahindra has apologised to the treatment meted out to a former employee of Tech Mahindra, the group’s information technology services arm.

“I want to add my personal apology. Our core value is to preserve the dignity of the individual and we will ensure this does not happen in the future," Mahindra tweeted on Friday after an unnamed employee shared the recording of how he was treated when he was let go by Tech Mahindra.

The audio clip that went viral on the internet had a human resources (HR) executive threatening the employee that he would be fired if he did not resign the same day.

“This is a corporate decision. Beyond chief executive or chief technology officer, is there anybody? Whom will you approach? If you can just read your offer letter, company reserves the right to talk to associates to leave the company at any moment by paying them the basic salary. I can ask you to leave the company today, end of day, in line with your offer letter, which you have accepted when you joined Tech Mahindra. Why did you sign the offer letter if it (termination clause) was clearly mentioned in there?" an HR executive is heard saying on the clip.

It is not just Mahindra. Top executives of Tech Mahindra have regretted the incident which they say does not reflect the Rise philosophy.

Tech Mahindra vice-chairman Vineet Nayyar and chief executive C P Gurnani also regretted the incident and pointed out that the company had taken corrective steps that such incidents did not repeat themselves in the future.

“We have become aware of the incident involving a conversation between an employee and a company HR representative. We deeply regret the manner in which the discussion took place and have taken corrective steps to ensure that this does not happen again in the future," Nayyar said. Gurnani echoed similar sentiment on Twitter.

Tech Mahindra has seen the slowest growth among top five Indian information technology firms, with operating margin at 12 per cent for the quarter ended March.

This has forced the company to reduce its workforce.

Indian information technology services firms have tightened performance evaluation for their employees, weeding out those who do not match the metrics. They have also reduced people on the bench.

Several employees of Tech Mahindra have petitioned labour department in Maharashtra seeking relief from what they call arbitrary sacking by the company. Besides Tech Mahindra, aggrieved employees from other information technology services firms like Cognizant, Wipro and Syntel across the country have been alleging unfair and illegal termination on a very short notice following “cost-optimisation” and “restructuring".

At the Pune Labour Commission hearing last month, many mid-level former Tech Mahindra professionals who lost their jobs alleged that even their medical benefits had been held back following their removal from the company despite having paid the medical premium.

“I want to add my personal apology. Our core value is to preserve the dignity of the individual and we will ensure this does not happen in the future” ANAND MAHINDRA Mahindra group chairman