HCL Technologies is updating its leave policy, linking employee time off to office attendance. This change comes as the company implements a hybrid work model and encourages a return to the office.

HCL Technologies Limited, a prominent player in India’s IT sector, is introducing a revised leave policy that connects employees’ leave entitlements to their attendance at the office, according to a report by Moneycontrol.

New Policy Aligns with Hybrid Work Model

This adjustment comes as HCL Tech, the third-largest IT company in India, is implementing a hybrid work model that encourages employees to work from the office three days a week and a minimum of 12 days per month. The company’s objective is to bring employees back to the office environment after the disruptions caused by the global pandemic.

Leave Deductions for Non-Compliance

Under the updated policy, if employees fail to meet the attendance requirements, their leave balance will be reduced for each day of absence. This measure has been communicated to certain teams via email and is already in effect. For employees with less than three years of service, the annual leave allotment is 18 days plus one personal leave day. Those with over three years of tenure receive approximately 20 annual leaves and two personal leaves.

HCL Tech’s Perspective on the New Policy

An HCL Tech spokesperson emphasized that the hybrid work policy offers flexibility, especially for middle and senior management who are expected to adhere to a three-day in-office schedule to foster collaboration. Other employees’ work arrangements are determined by their managers to effectively meet client commitments. Earlier this month, C Vijayakumar, CEO and Managing Director of HCL Tech, stated that the company had no intention of linking variable compensation to office attendance, distinguishing it from competitor Tata Consultancy Services (TCS).

Changing Work Trends in India’s IT Industry

The COVID-19 pandemic in 2020-2021 accelerated the adoption of hybrid work models within the Indian annual leave, allowing employees greater flexibility to work from home. However, a recent trend has seen tech companies aiming to increase in-person collaboration to enhance social capital and teamwork, particularly among new hires.

HCL Tech Follows TCS’s Lead

HCL Tech’s move follows a similar decision by TCS to link variable pay to employee attendance in April 2024. TCS aims to have at least 85% of its workforce working from the office. According to TCS’ Chief HR Officer, Milind Lakkad, nearly 70% of their employees are currently working from the office.

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