Leaving TCS Onsite Experience
TCS has now stopped asking for 5 lakh bond money that they used to charge on resigning at onsite especially in USA.
TCS Notice Period at Onsite
The notice period of 15 days is considered good enough to leave while you are in USA.
It is advisable to leave the organization on a good note with your manager. Your manager’s exit feedback makes a good amount of difference to your final settlement amount.
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 USA as your replacement and you can complete the knowledge transfer (KT) to the client’s satisfaction. This is exactly what happened in my case.
TCS Release letters
TCS will issue following 2 documents after settlement:
- Release Letter – mentions that TCS acceptance of your resignation.
- Service letter – mentions the tenure of your service, last designation, and last drawn salary.
TCS Experience Letter – Green Card PERM
By default, TCS will not send you skill letter on settlement. You have to explicitly ask for it from the same team/point-of-contact that helped you in settlement process.
It is only issued once by TCS, so be careful about what you want to be written. Your case now fall into following options:
#1 TCS Settlement Completed
Letter from TCS after settlement – Once 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 letter head.
Fill the template and get your manager’s (or anyone who was a step above in the organizational hierarchy belonging to 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.
#2 TCS 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 company’s letter head.
TCS Full And Final Settlement Amount
- You are required to serve 90 days as notice period at offshore (in India). OR
- (May be applicable) Pay out the $10,000 dollars as compensation on the name of project loss + Basic Indian salary equivalent to shortfall in notice period days.
Full and final settlement calculation – Net Amount Recoverable – Breakup.
|/561||A Claim (Total Earnings – Total Recoveries)||5,885|
|9NPR||B Notice Pay Recovery||42,240|
|9OAB||C Overseas agreement Breach||5,00,000|
|Total||A+B+C NET RECOVERABLE||5,48,125|
- A 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, associate will be termed as RI (resident Indian) and is liable to pay tax to 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, 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 days 37,527 -Income tax due -43,412 Net payable by me 5,885
- B Notice pay recovery was calculated on the 90 – 24 = 66 days shortfall and came out to be 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.
Negotiating The Full and 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 off 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 Overseas agreement Breach amount.
In this case, breach amount was completely waived off due to following reasons
- Person did not claim any ‘Home lease breakage’ amount during employment with TCS at onsite.
- Person completed the 2 weeks notice.
- The Knowledge transfer was completed to the satisfaction of client and the TCS manager.
The person only paid the balance INR 5885 for the settlement.
TCS Provident Fund Settlement
This is the easiest part. No-one can stop your PF withdrawal/transfer even if you do not complete Full and Final settlement.
The settlement team would send the application forms along with the settlement letter.
TCS Provident Fund Settlement – Send hard copy OR scanned copy by email?
You can fill up the PF withdrawal and pension withdrawal forms, sign along with the real version of Indian revenue stamp.
Now, scan all the documentary proof along with main application form (with revenue stamp) and EMAIL it to Retirement benefits team at TCS. This is a separate team than the one who handles your F&F settlement.
They CAN process provident fund withdrawal based on scanned copy of application form and cancelled cheque and deposit the money directly deposited into your salary bank account in India.
TCS Alumni Portal
Register at TCS Alumni portal. This will help you download the Form 16 and other such documents later if you want.
USA Work in USA - H1B, L Visa