Decoding the Growing Trend of Forced Resignations in Indian IT

The Indian IT sector has been making headlines lately, from layoffs and burnout to return-to-office mandates. And now, a new concern is gripping the industry: forced resignations. 

The issue grabbed attention after a Reddit user claimed TCS pressured him to resign, giving him a choice: quit immediately with three months’ pay or face termination with no salary.

“I was forced to resign a few days back,” the TCS fresher wrote. “They told me to mention personal reasons even though I was working on an active project. Why did they even hire me?”

Stories like this are becoming increasingly common. According to 2025 data from LayoffGuard, an AI-based legal help platform, most forced resignation cases in India this year have come from IT companies, often involving senior engineers and team leads. What once happened quietly is now out in the open, as more employees speak up about the stress and uncertainty they face.

For HR professionals, this trend serves as a reality check. The constant push to meet business goals often clashes with the responsibility to protect employees’ interests and uphold ethical practices. It puts HR in a difficult position, balancing organizational demands with fairness and compassion. In moments like these, how HR handles exit becomes a true reflection of the company’s culture and values.

So why are companies taking this route and what does the law say about it? Let’s take a closer look.

Inside the trend of forced resignations

A forced resignation happens when an employee feels pushed to leave their job because of direct pressure or unfair treatment from the employer side (managers, supervisors, or company leaders). Unlike a normal resignation, which is voluntary, a forced resignation is not truly the employee’s choice. 

Forced resignations usually happen because of a mix of company changes and management decisions:

• Performance pressure: Sometimes employees on a Performance Improvement Plan (PIP) are asked to resign before the process even ends.
• Restructuring and role changes: When companies merge, cancel projects, or reorganize teams, certain roles may quietly disappear.
• Cost cutting: Shorter bench periods or strict utilization targets can lead to employees being marked as “non-billable” and asked to leave.
• Manager conflicts: Tension or bias from a reporting manager can also turn into informal pressure to resign.

The reasons may vary, but the impact is the same: less transparency, lower trust, and a risk to the company’s reputation.

What HR needs to keep an eye on

Forced resignations don’t usually start as a fixed rule, they happen when certain behaviors or pressures go unnoticed. HR teams play a key role in spotting these early and making sure exits are handled fairly and respectfully.

Here’s what to keep an eye on

Some common reasons companies take this approach include:

1. Performance and Process: If someone is leaving due to poor performance, it should follow a proper improvement plan with clear goals and manager support. Sudden exit calls without proof can look like pressure.
2. Manager Behavior: Many cases happen because of how managers give feedback. HR should train them to have honest but respectful conversations about performance or role fit.
3. Exit Patterns: Keep track of resignation trends by team, department, or manager. A sudden rise in “voluntary” resignations under one leader is a warning sign.
4. Proper Records: Always keep written notes of discussions related to exits. It helps maintain fairness and protects both HR and the company.
5. Safe Feedback Options: Have confidential ways for employees to report pressure or unfair treatment without fear of retaliation.
6. Open Culture: Promote transparency around exits. Ethical and respectful separations show that the company values people, even when they leave.

When HR leads with fairness and empathy, it helps reduce forced resignations and builds a culture of trust.

HR’s legal perspective: compliance & protection

In India, if an employee resigns under pressure or threat, the law may treat it as an employer-initiated termination rather than a voluntary resignation. In such cases, courts have sometimes ordered reinstatement, back pay, or other compensation.

Under the Industrial Disputes Act, 1947, employees are protected against unfair or improper dismissals. Employers must follow due process, including proper notice, compensation, and government approvals (where required), before ending employment.

For HR teams, this means being alert and following strict procedures:

• Keep proper records: Document all performance discussions, improvement plans, and exit conversations.
• Work with legal early: Involve legal and compliance teams whenever there’s a workforce restructuring or large-scale exit.
• Coach managers: Train them to avoid any language or behavior that might feel like pressure (for example, “resign or lose benefits”).
• Track exit data: Regularly check if certain teams or managers have unusually high resignation numbers.

Building a culture of compliance, fairness, and transparency not only reduces legal risk but also strengthens trust within the organization.

Employee rights, HR responsibility

Recently, the IT employees’ union NITES accused TCS of forcing about 2,500 employees in Pune to resign, saying it went against the Industrial Disputes Act. TCS denied the claims, but the issue reopened the debate on how much pressure companies can put on employees to leave.

At the same time, some state governments are making labor laws more flexible for IT and ITeS companies. For example, Karnataka’s 2024 rule extended exemptions for IT, ITeS, and start-ups from parts of the Industrial Employment (Standing Orders) Act, 1946. This has raised questions: does this flexibility support business growth or reduce employee protection?

For HR teams, these changes send a clear message: when outside protections become weaker, internal systems must become stronger. HR should go beyond just following the law. It must ensure fairness, trust, and a safe space for employee voice. Having proper grievance systems, exit feedback, and regular check-ins can help prevent issues from turning into bigger problems.

The way forward

With India’s tech workforce growing rapidly, it’s time for labor laws and workplace practices to evolve together, creating a fair balance between employee protection and business flexibility. 

For HR leaders, the focus should be on:

• building clear and fair exit processes
• training managers to handle performance and separation discussions with respect
• exploring redeployment or reskilling before letting people go. 
• Regularly tracking exit data can also help spot early signs of pressure or bias. 

Above all, companies should make it part of their culture that how an employee leaves is just as important as how they join.

Employees, too, need to stay informed,

• keeping records of all feedback and communication
• avoiding on-the-spot resignations and seeking advice or support if they ever feel pressured.

 A fair and transparent exit process benefits both sides — strengthening trust, respect, and long-term credibility in the workplace.