Wipro Salary Cut Row: Employee Union Writes To Labour Minister Calling For Strict Action Against Company

IT sector employees' union NITES has written to the Union Labour Minister against Wipro's decision to cut salary offers to freshers awaiting onboarding, as it called for strict action against the tech company for violating the terms of offer letter and breaching contract.

Taking up cudgels on behalf of affected employees, NITES expressed concern that Wipro's move could set a dangerous precedent for other companies "which could lead to exploitation of workers and a lack of job security".

NITES' (Nascent Information Technology Employees Senate) letter to Labour Minister Bhupender Yadav comes after Wipro recently reached out to candidates to whom it had earlier rolled out an offer of Rs 6.5 lakh per annum (LPA) asking them if an offer of Rs 3.5 lakh in annual compensation would be acceptable to them, instead. These candidates were waiting to be onboarded.

"The company is now reducing the salary unethically, which is a clear violation of the terms of the offer letter and a breach of contract," Harpreet Singh Saluja, President of NITES, wrote in the letter seen by PTI.

The employees' union has sought necessary actions regarding "unethical reduction in salary offer of more than 4,000 employees by Wipro".

NITES, while taking up the issue, said the company is now reducing the salary "unethically" which is a clear violation of the terms of the offer letter and a breach of contract.

Offer letter, it said, is a "legally binding document" outlining the terms and conditions of the job offer and any changes to it should be done with consent of both parties.

"In this case, the employees have not given consent for a reduction in salary, yet the company is trying to impose it upon them," NITES wrote.

NITES said its immediate actions and attention are focused on protection of IT and BPO employees from financial, legal, labour and social problems.

Wipro, in a recent communication to candidates who have successfully completed Velocity training programme, said: "Like others in our industry we continue to assess global economies and customer needs which factor into our hiring plans. We appreciate your commitment and patience as we try to identify joining opportunities for you."

Wipro went on to say that "currently we have certain project engineer roles available for recruitment with annual compensation of Rs 3.5 lakh. We would like to offer all our Velocity graduates in FY23 batch an opportunity to opt for these roles."

When contacted on the issue, Wipro in response to an e-mail query said: "In light of the changing macro environment and, as a result, our business needs, we had to adjust our onboarding plans."

"As we work to honour all outstanding offers made, this current offer creates an immediate opportunity for candidates to start their careers, build their expertise and acquire new skills - both through the interesting and innovative work that we do, as well as our extensive learning and development programmes," Wipro said.

The IT company said it is committed to the growth and success of all its employees and looks forward to welcoming this new group of recent graduates.