While the initial two months of training were conducted and stipends were provided, the situation took a grim turn soon after. For the next four months, despite many candidates actively working on the company’s projects, no salaries were paid. What added to the chaos was the discovery that the company’s office remained closed most of the time. When some of the employees reached out to the HR department for clarity, they were met with hostility — and in some cases, the police were reportedly called in by the company itself.
IT Forum Steps In, Calls It Criminal Fraud
Distressed and left without answers, the affected employees approached the Forum for IT Employees (FITE) — an organization that advocates for IT professionals across India. FITE has condemned the incident as a serious act of fraud, emphasizing that this goes far beyond a typical labour dispute. The forum announced plans to escalate the matter to the Labour Commissioner and called for criminal proceedings against the company.
In a strong statement, FITE said, “This is not merely about unpaid wages — this is outright deception. A company shutting down without paying its employees must be treated as a criminal offence, not just a labour violation.”
Advice to Freshers: Stay Alert
Following the incident, FITE has also issued a warning to aspiring IT professionals:
Avoid getting trapped in paid placement or training schemes.
Thoroughly research any company before making payments — including checking reviews, financial records, and its reputation.
Report any cases of unpaid wages or suspected fraud to the appropriate labour and legal authorities immediately.
This case has sparked anxiety among freshers already navigating a tough job market, especially in the face of ongoing layoffs and hiring freezes across the tech industry. The timing couldn’t be worse — with rising unemployment and increasing competition, job scams like these are only adding to the stress of young professionals trying to find stable careers.
The situation is further complicated by the industry’s current slowdown. Major IT firms have adopted cost-cutting strategies, reducing their workforce in response to global market conditions. Most notably, Tata Consultancy Services (TCS) recently announced plans to cut 12,000 jobs — a move that has drawn attention to the broader employment crisis in the sector.
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