No office, leave deductions! HCLTech links employee leaves to office attendance
No office, leave deductions! HCLTech links employee leaves to office attendance
HCLTech’s new policy links employee leave to office attendance, aiming to enforce a three-day office work week
India’s third-largest software exporter, HCLTech, is implementing a new policy that ties employee leave entitlements to their attendance in the office. According to multiple sources familiar with the matter, employees are required to be present in the office for at least three days a week and a minimum of 12 days a month. Failure to meet this requirement will result in a reduction of their leave balance for each day they are absent.
This policy shift is part of HCLTech’s efforts to reinforce a three-day work-from-office routine, as companies strive to bring employees back to the office post-pandemic. Employees must be in the office three days a week and at least 12 days a month. Failure to comply will result in leave deductions. The new policy comes five months after HCLTech transitioned to a hybrid work model, mandating employees to return to the office three days a week.
Employees with less than three years at HCLTech are eligible for 18 annual leaves and one personal leave, while those with over three years get around 20 annual leaves and two personal leaves. HR has begun informing teams about this update via email and the policy is already in effect. Non-compliance could lead to loss of pay once leave balances are exhausted. IT services companies initially embraced hybrid work models during the pandemic. However, many firms now encourage office attendance to foster social capital and enhance project collaboration.
Before HCLTech, Tata Consultancy Services (TCS) linked its quarterly variable pay to employee office attendance. TCS requires a minimum of 85% attendance in the office for full variable pay. Those with 75-85% attendance receive 75% of their variable pay, while 60-75% attendance results in 50% variable pay. Employees with less than 60% attendance are ineligible for the pay-out, and consistent non-compliance could lead to disciplinary action. This policy has seen success, with almost 70% of TCS employees returning to the office.
HCLTech’s approach to the hybrid work policy involves middle and senior-level management following a three-day-a-week office arrangement to support collaboration. Other employees’ schedules are planned by their respective managers to meet client commitments. For HCLTech, quarterly variable pay constitutes less than 3% of an individual’s annual compensation. It applies primarily to junior-level employees, with no significant changes quarter on quarter. HCLTech’s Chief People Officer, Ramachandran Sundararajan, reiterated on July 12 that the quarterly variable pay is a minor cost for the company.
For the June quarter, HCLTech reported a 20% year-on-year increase in net profit, reaching Rs 4,257 crore compared to Rs 3,534 crore in the previous year. Revenue from operations rose 6.7% to Rs 28,057 crore in Q1FY25, up from Rs 26,296 crore in Q1FY24.
HCLTech’s new policy marks a significant shift in how the company manages employee attendance and leave, aiming to strengthen the hybrid work model and enhance in-office collaboration.
