TCS fires 16 employees for bribes-for-jobs scandal

Tata Consultancy Services Ltd. (TCS), India's largest private employer, has taken action in response to a hiring scam that came to light in June. Following an extensive investigation launched on June 23, TCS uncovered a scheme in its resource management function involving bribes-for-jobs. As a result of this investigation, TCS has made the following decisions:

1. Sixteen employees have been terminated for violations of the company's code of conduct.
2. Three employees have been removed from their roles in the resource management function.

Additionally, TCS has barred six vendors, including their owners and affiliates, from conducting business with the company. This is in response to the involvement of these vendors in the hiring scam.

TCS is now implementing several measures to strengthen its resource management function, including regular personnel rotation, enhanced analytics for supplier management, periodic declarations by vendors regarding adherence to the Tata Code of Conduct, and periodic audits of the vendor management process.

The hiring scam was initially reported by the Mint newspaper on June 23, revealing a multi-crore recruitment scandal within TCS. A whistleblower had alleged that a senior executive in the resource management group at TCS had been accepting bribes from staffing firms over an extended period. The estimated commissions earned by those involved in the scam reportedly amounted to around Rs 100 crore.

Despite these developments, TCS has emphasized that there was no financial impact on the company, and it does not constitute a fraud. The issue is characterized as a breach of the company's code of conduct by certain employees and vendor partners.

TCS reaffirmed its commitment to ethical conduct and integrity, stating that it upholds a zero-tolerance policy for such unethical behavior. The company expects all employees and stakeholders to strictly adhere to the Tata Code of Conduct, which is fundamental to its core values.

Tata Sons Chairman Natarajan Chandrasekaran addressed the issue at the TCS Annual General Meeting on June 29, stressing the importance of ethical conduct and integrity for Tata Group companies. He expressed deep concern over any violation of ethical standards by employees and committed to taking strong actions in such cases.