Leaving TCS Onsite – Skill Letter for Green Card

Leaving TCS onsite governed by US laws. No bond money. Join direct client payroll. Complete Full & final settlement to get skill letter for green card.

Written by Anil Gupta
  Anil Gupta    Updated  5 Jun, 20


TCS has now stopped asking for 5 lakh bond money that they used to charge on resigning at onsite especially in the USA.

How many days of notice period required in USA?

The notice period of 15 days is considered good enough to leave while you are in the USA.

15 days are good enough to make sure that TCS does not immediately suffer any kind of loss on the project due to your exit.

A person can be brought to the USA as your replacement and you can complete the knowledge transfer (KT) to the client’s satisfaction.

Can TCS hold my provident fund if I don’t complete full & final settlement?

TCS cannot hold your PF withdrawal even if you do not complete the Full and Final settlement.

How can I apply for PF withdrawal?

The TCS settlement team will send the PF withdrawal application forms along with the settlement letter.

Can I send scanned copy PF form by email?

You can send a scanned color copy of the PF withdrawal form by email.

You can fill up the PF withdrawal and pension withdrawal forms, sign along with the real version of an Indian revenue stamp.

Now, scan all the documentary proof along with the main application form (with revenue stamp) and EMAIL it to the Retirement benefits team at TCS. This is a separate team than the one who handles your F&F settlement.

Can TCS transfer PF amount direct to Indian bank account?

TCS can process provident fund withdrawal based on a scanned copy of the application form and canceled cheque and deposit the money directly deposited into your salary bank account in India.

TCS Release letters

TCS will issue following documents after settlement:

  1. Release Letter – mentions that TCS acceptance of your resignation.
  2. Service letter – mentions the tenure of your service, last designation, and last drawn salary.
  3. Skill Experience Letter – This is required for US green card or Australia and Canada PR application. You need to explicitly request it. TCS will not give it to you by default.

How to Get Skill Letter?

#1 Settlement Completed

Letter from TCS after settlement – Once the settlement is completed, HR will send you a skill certificate template.

Template for skill certificate as shared by TCS – This letter is printed on TCS letterhead.

Tcs skill certificate sample
Tcs skill certificate sample

Fill the template and get your managers (or anyone who was a step above in the organizational hierarchy belonging to the same business unit as you) approval. Once approved, they would issue the letter in 3 working days.

For this person, it took 8 days after approval to receive the signed letter PDF copy by email.

#2 Settlement NOT completed

Letter from a co-worker on plain paper – Get the skills endorsement from a co-worker or your last manager (basically someone who worked with you and can endorse your skills).

This letter needs to be notarized.

This option might not prove fruitful in the sense that the DOL (US department of labor) might ask you to prove it while inspecting your application. Normally, the current trend in DOL is to sample 30% of the total applications and verify the claims.

So, if you fall in this 30% category by your sheer luck, they may or may not ask you for the same letter on the company’s letterhead.

TCS Full & Final Settlement Amount

  • You are required to serve 90 days as notice period at offshore (in India).  OR
  • (Maybe applicable) Payout the $10,000 dollars as compensation on the name of project loss + Basic Indian salary equivalent to a shortfall in notice period days.

Full and final settlement calculation – Net Amount Recoverable – Breakup.

TCS codeMeaningAmount
/561A – Claim (Total Earnings – Total Recoveries)5,885
9NPRB – Notice Pay Recovery42,240
9OABC – Overseas agreement Breach5,00,000
TotalA+B+C NET RECOVERABLE5,48,125

#A Claim (Total Earnings – Total Recoveries)

Net amount after en-cashing your Indian leave balance on the basis of basic salary and deducting the Indian income tax (if any).

As per India Residency Law:

An associate is in India for 182 days or more during the current financial year, then, the associate will be termed as RI (resident Indian) and is liable to pay tax to the Indian Government.

An associate is in India for more than 60 days but less than 182 days during the current financial year, in this case, if associate stay in India is more than 365 days in preceding four financial years then, an associate will be termed as RI and is liable to pay tax to Indian Govt.

As per the Indian financial year, if the total stay of an associate in India determines him as India resident, then his India salary for all 12 months is taxed. In this case, the last day with TCS was 30 September and hence Indian tax is applicable @Rs 43,412 for the six months of work.

Hence, the net figure of 5,885.

Leave En-cash 43 days37,527
-Income tax due-43,412
Net payable by you5,885

#B Notice pay recovery

Notice pay recovery is calculated on the 90 – 24 = 66 days shortfall. It was INR 42,240 on the basis of basic Indian salary.

#C Overseas Agreement breach

Even though the policy says it is $10,000 and the dollar’s exchange rate was $1 = INR 60, TCS used a generic rate of $1 = INR 50.



This is not charged these days by TCS. So, you can ignore it.

Negotiating Full & Final Amount

You need to negotiate for row B and C and it is possible to bring this amount to a manageable figure.

B – Negotiating notice pay recovery

The notice period pay waiver depends highly on your conduct and relationship with your manager while you were on the project with TCS. The manager has the final say in releasing you at onsite.

If you and your manager agreed upon a KT (knowledge transfer) timeline and it was completed to each party’s satisfaction, manager can give a good feedback and you will benefit in this area.

C – Negotiating Overseas agreement Breach

Although it is widely known to be negotiable up-to INR 60,000 to 1 lakh, it depends on your own negotiation skills.

NOTE: These days, TCS has stopped asking for the Overseas agreement Breach amount.

In this case, the breach amount was completely waived off due to the following reasons

  • The person did not claim any ‘Home lease breakage’ amount during employment with TCS at onsite.
  • The Knowledge transfer was completed to the satisfaction of the client and the TCS manager.
  • The person completed the 2 weeks notice.

This person only paid the balance INR 5885 for the settlement.

TCS Alumni Portal

Register at the TCS Alumni portal. This will help you download the Form 16 and other such documents later if you want.




Author

Written by Anil Gupta
  Anil Gupta           



Recent discussion on forum

  1. anonymous
    anonymous

    I heard even if you give 2 weeks notice and account managers are pushing for 1 month notice then they are putting into Absconding case?


  2. anil_am22
    anil_am22

    This is rubbish. Don’t believe in rumors. Legally, they can’t stop you even for a single day.
    You can resign in the morning and leave by evening in USA or India or any other country.

    The only thing is that you have to pay the cash for the notice time that you have not served and that too only the Basic salary.

    There is nothing like they will declare you absconding. TCS is a multinational company and not a road side vendor. They have processes and rules that they follow.

    Please do not believe in non-sense rumors.


  3. Anonymous09
    Anonymous09

    Roughly how much is the amount we will have to pay( with respect to notice, leave and all)


  4. anil_am22
    anil_am22

    The notice period is 90 days. Shortfall = 90 – number of days of your notice.
    They will multiply this number by your daily Indian basic salary component.

    For example, if you basic salary was 30k per month and you shortfall comes out to be 45 days (meaning yous served 15 days notice in USA), you will have to pay 1000*75 = 75k.

    Your balance leaves would also be paid out with same basic salary calculation. So, if you had 20 balance leaves, TCS would pay you 20*1000 = 20k.

    So, the net amount you would have to pay is 75k – 20k = 55k.
    Off-course, this is just an example. It all depends on your basic pay at the time of resigning.

    Have they not shared the F&F statement with you? They normally send it out within a month from your last day.


  5. anonymou
    anonymou

    Thank you Anil! for sharing your experience here and patiently guiding others.
    I got the skill letter finally today, your blog was helpful.

    Here is my story.
    When I quit TCS I gave 15 days notice, gave good KT and left with positive note.
    Settled the dues with ffs team. After 6 months when my new employer initiated my GC process I contacted corporateffs, they provided me template. I updated with my actual work and skills and got it reviewed by my attorney and contacted my supervisor. My Engagement manager approved and after 5 days I got my skill letter. Overall it took me 28 days to have the letter in my email. It takes time but worth trying.

    Thank you.


  6. mailsuhas
    mailsuhas

    Hi Anil, Your inputs have really helped me a lot so a big thank you for taking the time to share and keep the information updated.

    I have one challenge though - the reason they are mentioning they will note is ‘Stopped Attending’ though I had resigned while at onsite and given a couple of days of notice. This was way back in time when Ultimatix was just getting started and we even didn’t have access to TCS email id while at customer site. So resignation email was from a personal id and I finally left the day I said would be my last day. I guess ‘Stopped Attending’ would not be a very favourable remark in the service letter. Any experience in that regard or anything you may have heard.


  7. ak007
    ak007

    Hi Anil,

    Thank You for all the details. I have a couple of questions.

    1. If I haven’t traveled to India for the last 3 years, what would be my “A – Claim (Total Earnings – Total Recoveries)”

    2. What type of leaves are compensated as part of the notice period shortfall?
      For example, if my Basic Pay is 25K and I have the following leave balances, what is considered and what is not:

    US Leave Balance
    Vacation Days 20
    Sick Leave 5

    India Leave Balance:
    Earned Leave 40
    Sick Leave 8
    Flexi Holiday 2

    In the above case, what would be my “B – Notice Pay Recovery”.

    Looking forward to your answer. Thanks in advance.

    Stay Safe.


  8. anil_am22
    anil_am22

    As far as I know, no leaves are allowed in notice period.


Comments are closed. Ask question on Forum