TCS fires 16 employees, debars 6 vendors in resource management case
Oct 16, 2023
New Delhi [India], October 16 : Tata Consultancy Services (TCS) fired 16 employees from the company, and another three have been removed from the resource management function after it launched a review to examine some allegations pertaining to human resource management.
"Our investigation found 19 employees to be involved and action has been taken against all as detailed here - 16 employees have been separated from the Company for code of conduct violations, and 3 employees have been removed from the Resource Management function," TCS, a Tata Group company, informed stock exchanges Sunday late in the evening.
Also, six vendor entities, their owners and affiliates have been debarred from doing any business with TCS.
In June 2023, a media report emerged alleging a scam in the recruitment process. The complaint referred to in the article was related to the hiring of such contract resources employed by the contractors. TCS had then said the recruitment activities in TCS are not handled by the Resource Management Group (RMG) as alleged, therefore the reference to the alleged scam in the recruitment process is incorrect.
Meanwhile, TCS informed stock exchanges that it would continue to enhance its governance measures, including regular rotation of personnel performing key roles in the resource management function, enhanced analytics on supplier management, periodic declarations by vendors on compliances, and vendor management process audits.
Tata Company, though, reiterated that this development does not involve any fraud by or against the company and there is no financial impact. It added the issue was related to a breach of the company's Code of Conduct by certain employees and vendors supplying contractors and no key managerial person of the company was found to be involved.
"As a Tata Group company, we have a zero-tolerance policy towards such unethical conduct and the actions of these individuals do not reflect our values. We expect all our stakeholders and our employees to strictly adhere to the Tata Code of Conduct, which forms the bedrock of our integrity,' it added.
TCS shares were trading 0.7 per cent lower at Rs 3,546.25 at 1047 IST.
