In a significant move to enforce its return-to-office mandate, Tata Consultancy Services (TCS) has paused the final anniversary appraisal process for a section of its workforce. The action is a direct consequence of employees not adhering to the company's work-from-office (WFO) requirements in previous quarters.
Appraisal Process Halted for Policy Violators
The final anniversary appraisal at TCS follows an annual cycle aligned with an employee's work anniversary. For eligible freshers, an anniversary email is triggered, and the update is visible on the company's intranet portal, Ultimatix. It is important to note that TCS had already discontinued this specific appraisal process for lateral hires back in 2022.
However, for those currently in the cycle, non-compliance with office attendance rules has led to a stall. An internal email reviewed by TOI stated, "Please note your anniversary appraisal process is completed but not processed further by corporate since you are WFO non-compliant till Q2 FY26 (July 2025 to September 2025)." The communication further warned that if an anniversary due in January 2025 is affected by non-compliance in Q3, the employee would be excluded from the FY26 banding cycle with no performance band released.
Stringent WFO Policy and Its Consequences
TCS expects its employees to work from the office for five days a week, a stricter mandate compared to the hybrid two or three-day models common in other major Indian IT firms. The company is the first among its large-cap peers to link appraisal outcomes directly to physical attendance compliance.
The appraisal process itself involves the supervisor creating a goal sheet, which the employee submits and discusses. Performance is evaluated yearly, culminating in the release of banding results. By withholding this final step, TCS is making a clear statement about the importance of its WFO policy.
To ensure adherence, TCS has also tied variable pay to attendance. The company refined its WFO exception policy last year, specifying that personal emergencies can be cited for up to six days per quarter, with no option to carry over unused days. The system allows for up to 30 space-constraint exceptions in one entry and five simultaneous network-issue entries, while explicitly prohibiting bulk uploads for seeking attendance exemptions.
Broader Implications for the IT Sector
This firm stance by TCS, a bellwether for the Indian IT industry, sets a precedent and underscores a sector-wide shift away from the pandemic-induced remote work culture. The direct impact on career progression and compensation through appraisals and variable pay marks a significant escalation in ensuring employees return to office premises.
When contacted by TOI for comment on this development, TCS did not respond before the time of publication. The move highlights the growing tension between organizational mandates for in-person collaboration and employee preferences forged during the work-from-home era, with tangible professional consequences now on the line.
