The COVID-19 pandemic created unprecedented challenges for the global economy, and the Indian IT industry was not immune. Wipro, one of the country’s largest tech employers, found its policies on layoffs, employee bench time, and compensation under a microscope. While the company maintained a public stance of protecting jobs, many employees and labor unions reported a different reality, involving forced time off and significant financial distress through “loss of pay” arrangements.
This article examines the key issues of Wipro layoffs, the controversial Wipro bench policy, and the implementation of loss of pay that affected its workforce during the pandemic.
Official Stance vs. Employee Reality
In mid-2020, at the height of the pandemic’s first wave, Wipro’s leadership, including Chairman Rishad Premji, made public statements assuring that the company had not laid off a single employee due to the crisis and had no plans to do so. They emphasized that cost-cutting would be achieved through other operational means.
However, reports from employee unions, like the National Information Technology Employees Senate (NITES), painted a different picture. They alleged that Wipro was using its “bench policy” to create a situation where layoffs or loss of pay became inevitable for many.
“The speculation related to the workforce is unfounded and has no basis. Wipro categorically denies these rumours. There have been no salary cuts for employees who are in between projects and are awaiting new assignments.”- Wipro Official Statement (mid-2020)
The Wipro Bench Policy: A Contentious Tool
In the IT services industry, the “bench” refers to employees who are between projects and are not currently generating revenue for the company. Wipro’s bench policy became a major point of contention during the pandemic.
Here’s how the situation unfolded:
- Employees Placed on Bench: Hundreds of employees, particularly in sectors hit hard by the pandemic like travel and hospitality, were put on the bench.
- “Extended Bench Period”: Wipro introduced a policy where employees on the bench for an extended period were asked to go on a “loss of pay” leave. This period could last for up to three months.
- Insurance vs. Salary: During this loss of pay period, employees would still receive insurance coverage but no salary. Discretionary bonuses and performance-linked pay were also halted.
- Risk of Termination: The policy stated that if an employee could not find a new billable project by the end of the extended bench period, the company reserved the right to initiate termination.
| Policy Element | Impact on Employee |
|---|---|
| Standard Bench Period | Employee receives full salary while searching for a new project. |
| Extended Bench / Loss of Pay | Employee receives no salary for up to 3 months, creating significant financial hardship. |
| Post-Extended Bench | High risk of termination if no project is secured, effectively becoming a delayed layoff. |
Government Intervention and Union Action
The actions taken by Wipro did not go unnoticed. NITES filed complaints with the Pune Labour Commissioner, arguing that the company was violating government advisories that explicitly stated employers should not terminate employees or reduce wages during the lockdown. This led to official notices being sent to Wipro, demanding that the company address the complaints and adhere to labor laws.
The controversy surrounding the loss of pay at Wipro highlighted a critical disconnect between corporate messaging and the on-the-ground reality for employees. While Wipro technically avoided large-scale, direct Wipro layoffs in the early pandemic, its aggressive use of the bench policy created a system of “soft layoffs” that left many employees in a precarious financial position, ultimately leading to job loss for those who could not secure new projects in a difficult economic environment.