Karnataka IT minister vows steps after mass layoffs

With India's information technology firms axing employees on a large scale, the Karnataka government has stepped in with an offer to provide legal assistance to IT professionals who lost their jobs, while also reaching out to firms with concerns raised by employees.

Karnataka IT minister Priyank Kharge informed the Legislative Council on Monday that the government was aware of layoffs in the IT sector. Bengaluru, India's IT hub, is the state's capital.

''IT employee forums have alleged that the appraisal system in the IT sector is not transparent. We are aware of their problems and are trying to help them with legal aid. We are also talking to corporate companies regarding the problems raised by the forums. The companies are yet to respond,'' he said, replying to BJP MLC Tara's questions on layoffs in the IT sector.

A forum of IT employees had met Kharge almost two weeks ago requesting the state government to intervene and stop what they called "illegal layoffs" in companies across the country.

Members of FITE (Forum of IT Employees) had met the minister on 6 June, urging the state government to reconsider its decision to exempt IT companies from the purview of labour laws and bring IT companies under the Industrial Disputes Act and the Industrial Employment (Standing Orders) Act.

According to a FITE member, ''Employees facing arbitrary terminations, unreasonable working hours and sexual harassment do not have adequate support from the law and the government.''

Kharge said one of the main reasons for layoffs is the visa restriction imposed by the US, Singapore and Australia where the governments are prioritising local talent. This has caused damage to IT industry, he said. He said that change in technology is another reason. ''There is a need to train employees who are already working in the field. But this can't be done overnight. It will be done gradually. Even the IT forum members agreed that they need reskilling,'' he said.

He pointed out that studies have shown that only 7 per cent of the total number of graduates in the country is employable. This is because there is a gap between academics and industry needs. ''To reduce this gap, the government has come up with many centres of excellence to train as per needs of employer,'' he said.

One employee told The New Indian Express that women were more vulnerable to lay-offs, especially those coming back from maternity leave.

IT-BT companies have exempted from the general provisions of labour laws for more than 10 years. An employee can be laid off with immediate effect unlike other industries where a notice period is necessary.

Rajesh N, spokesperson of FITE, said in the last six months, more than 5,000 employees have been laid off from IT majors, including Cognizant, HP, Wipro, Tech Mahindra and IBM. Most of these employees are mid-level to higher level employees. On the other hand, these companies are recruiting freshers.