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Employees work at their desks inside IT company Tech Mahindra office building in Noida in the outskirts of New Delhi March 18, 2013.Reuters file

While the Indian IT sector has been making constant news for the alleged mass layoffs and "forced resignations," it also seems to be witnessing a change that was never thought of before. And this change comes in the form of government intervention, which wasn't really the norm in private sector enterprises. Though it might be a bit too early to decide whether this change was required or not or whether it is a good thing for the industry or bad, it looks like there is no going back.

Amid reports of mass layoffs by IT giants such as Infosys, Cognizant, Capgemini and many others and employees alleging that they are being fired under the pretext of the annual performance appraisal, the government is keen to resolve the issues between the employees and the organisations, something it hasn't done before. In tune with this, the Karnataka government has been mulling a policy that addresses the concerns of employees, especially those who have unfairly been sacked by their employers. However, the government also intends to know both sides of the story for which it plans to consult these firms as well.

"We are keen on coming out with a policy addressing various problems including 'forced resignation' adopted by IT companies, but not before listening to the problems faced by IT industry leaders and employees," Karnataka IT Minister Priyank Kharge told the Press Trust of India.

Kharge also said that he would come to a conclusion only after looking at the performance appraisal process that the companies follow and discussing the matter with both the parties. He explained that his focus is not only to try and provide more jobs but also to "safeguard the jobs."

The IT minister had earlier said that the government is concerned about the mass layoffs and said that it would even help the employees with legal assistance if the need arises.

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Employees at a software companyReuters

The All India IT Employees Association had earlier sought a meeting with Kharge to explain the plight of the employee, who were not only laid off but even forced to resign by the IT giants so that they didn't have to bear the expense of severance pay.

"This will give government a sense about the problems faced by IT companies and employees in the presence of IT captains and management of companies," AIITEA president Syed Muqueemuddin earlier told the agency.

"While not everything is bad with this industry, the absence of appropriate regulations and watchdogs in the form of unions or associations has led to a situation that unscrupulous elements continue to cause severe and unrepairable damage to the very same industry that contributes significantly to the GDP of our country."

The Forum for IT Employees (FITE) too met Kharge and requested the government's intervention on the matter.