TCS halts anniversary appraisals over work-from-office non-compliance

Tata Consultancy Services has put on hold the final anniversary appraisals of some employees who failed to meet its work-from-office requirements in earlier quarters, further strengthening the link between physical attendance and performance outcomes.

The move affects employees whose one-year anniversary appraisals were completed but not processed due to work-from-office non-compliance, according to an internal email reviewed by The Times of India. The email stated that employees who remained non-compliant with office attendance through the July–September 2025 quarter would see their anniversary appraisals halted at the corporate level.

It further informed that in cases where appraisals were not committed in January because non-compliance continued into the following quarter, employees would be excluded from the FY26 banding cycle, with no performance band released.

At TCS, anniversary appraisals are part of an annual cycle linked to the completion of an employee’s work anniversary. Eligible freshers typically receive an anniversary appraisal notification, with updates reflected on the company’s internal portal, Ultimatix. The process begins with formal initiation of the appraisal, followed by the reporting manager creating a goal sheet, assessing performance against defined parameters and releasing banding outcomes. TCS discontinued final anniversary appraisals for lateral hires in 2022.

The decision highlights TCS’s firm stance on office attendance. Employees are expected to work from the office five days a week, making TCS the first among India’s major IT services companies to take formal appraisal-related action for attendance non-compliance. Most peer firms currently mandate office presence for two or three days a week.

TCS has already linked variable pay to attendance compliance, signalling a broader effort to enforce its return-to-office policy. Last year, the company also tightened rules governing attendance exceptions. The Times of India reported that employees are allowed to cite personal emergencies for up to six days per quarter, with no carry-forward of unused days. To manage space constraints, staff can submit up to 30 exception requests in a single entry, while network-related issues can be cited for up to five entries at a time. Bulk uploads or backend entries for attendance exceptions are not permitted.

The pause in appraisals comes as Indian IT firms reassess workforce policies amid slowing growth, margin pressures and increased scrutiny of productivity. By tying appraisals and banding more closely to office attendance, TCS appears to be signalling that compliance with its operating model is now as critical as traditional performance metrics.

The move is expected to intensify debate around workplace flexibility, employee autonomy and the future of hybrid work in India’s technology sector, as the industry watches closely to see whether other large IT firms adopt similar measures.