India’s largest software company, Tata Consultancy Services (TCS), has made a significant decision regarding employees who work from the office, transitioning away from the work-from-home (WFH) model to a hybrid model. According to recent announcements, TCS will no longer provide performance bonuses to employees who do not work from the office, as it has integrated office attendance into its variable pay or annual bonus structure.
Mandatory Office Attendance Requirement
An internal memo issued on April 18 states that employees who maintain less than 60% attendance will not be eligible for this benefit. Under the new attendance rules, employees are required to work from the office for 45 hours per week.
Compulsory Office Presence for at Least Three Days
According to a report by Live Mint, Tata Consultancy Services has intensified its stance on attendance by requiring employees to work from the office for a minimum of three days per week as needed. TCS has decided to take action against employees who do not take their work seriously.
Impact on WFH Employees
Since the onset of the pandemic, TCS had implemented widespread work-from-home policies. However, this decision was reversed after the pandemic. Nonetheless, many employees did not return to the office. Therefore, the company has added incentives such as variable pay or annual bonuses to working from the office.
Approval Required for Remote Work
The company’s internal memo indicates that employees who do not maintain at least 85% attendance or more may face disciplinary action. The company has clarified that employees failing to comply with attendance rules must provide a clear reason. Additionally, such employees must obtain approval for remote work. However, the company has not provided any specific statement on this step at present.
What Are the New Rules?
TCS has announced new attendance rules, requiring employees to clock 45 hours of attendance per week. Under these new rules, employees who come to the office for four days or more per week will receive a 100% performance bonus. Employees with attendance between 75% and 85% will receive a 75% performance bonus, while those with attendance between 60% and 75% will receive a 50% performance bonus. Additionally, a rule has been implemented requiring attendance in the office for 9 hours per day, every day of the week.
TCS’s decision to integrate office attendance into its performance bonus structure reflects its commitment to maintaining productivity and collaboration among its workforce.