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Voluntary Retirement a Statutory Right, Not Just Exit from Service: Supreme Court

/ Human Resource Community

The Supreme Court of India has clarified that voluntary retirement is not simply a resignation or discontinuation of service, but a distinct legal right available to employees upon completing the required years of service. A bench comprising Justices J. K. Maheshwari and Vijay Bishnoi delivered the ruling while deciding appeals filed by a bank against two 2019 orders of the Chhattisgarh High Court. The High Court had earlier directed that a bank employee be treated as voluntarily retired after completion of the mandatory three-month notice period and be granted all terminal benefits. Upholding this view, the apex court observed that once an employee fulfills the eligibility criteria—such as completing 20 years of qualifying service—and submits a valid notice, the retirement becomes effective unless explicitly refused within the stipulated period. The case involved an employee who joined the bank in 1983 and later served as a branch manager in Raipur. After submitting a notice for voluntary retirement in October 2010, he ceased attending work in May 2011, following the lapse of the notice period. However, the bank issued a chargesheet months later in connection with alleged irregular transactions. The court noted that the bank failed to formally reject the retirement request within the notice period. It emphasized that merely issuing a show-cause notice does not amount to initiating disciplinary proceedings or rejecting voluntary retirement under service regulations. Highlighting the legal position, the bench stated that if no refusal is communicated within the notice period, the voluntary retirement takes effect automatically by operation of law. Consequently, any subsequent disciplinary action, including dismissal, would not be legally sustainable. The court concluded that the employee was entitled to all post-retirement benefits, affirming the High Court’s decision and reinforcing the principle that voluntary retirement is a protected right under service rules. Source: PTI

Voluntary Retirement a Statutory Right, Not Just Exit from Service: Supreme Court Read More »

AI Era Sparks ‘Great Flattening’: McKinsey Calls for Leaner, Faster Organizational Structures

/ Human Resource Community

A new leadership perspective emerging from McKinsey & Company suggests that the age of artificial intelligence may fundamentally reshape how organizations are structured—starting with eliminating excess management layers. According to insights highlighted in a report by Business Insider, companies are increasingly exploring how AI-powered systems and agents can streamline operations by reducing hierarchical complexity. The idea is simple: fewer layers, faster decisions. Speaking on The McKinsey Podcast, senior partner Alexis Krivkovich emphasized that AI is equipping leaders with what she described as a “superhuman capacity” to oversee broader responsibilities. This enhanced capability could allow organizations to flatten traditional structures and operate with greater speed and efficiency. Over the past decade, many companies have added one or more layers between top leadership and frontline employees—sometimes up to three. While intended to improve oversight, these additional tiers have often led to slower decision-making and increased operational costs. AI, however, is now being positioned as a solution that can simplify coordination, automate routine functions, and improve real-time decision support across departments like HR, finance, and legal. This structural shift is being widely referred to as the “Great Flattening,” reflecting a move toward more agile, horizontally aligned organizations. Industry leaders are already echoing this sentiment. At IBM, senior executive Mohamed Ali noted that businesses will need entirely new systems to manage AI tools alongside human workers, including frameworks for governance and oversight. Meanwhile, Eno Reyes of Factory highlighted that traditional org charts are likely to evolve into flatter, more collaborative structures as AI becomes deeply embedded in workflows. As AI adoption accelerates, organizations worldwide may soon find that success depends not just on technology—but on how effectively they redesign themselves around it. Source: TOI

AI Era Sparks ‘Great Flattening’: McKinsey Calls for Leaner, Faster Organizational Structures Read More »

Nokia Announces Major Global Restructuring; Over 14,000 Jobs to Be Cut

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Nokia is set to significantly reduce its global workforce by nearly 20%, impacting more than 14,000 roles worldwide, according to recent reports. The move is part of a broader restructuring strategy aimed at streamlining operations and aligning the company with evolving market dynamics. The layoffs will also affect Nokia’s India operations, coinciding with key leadership changes. Samar Mittal has recently taken charge as the business head for India, where he will lead go-to-market strategies and strengthen partnerships across telecom, AI, and cloud ecosystems. Meanwhile, Vibha Mehra is set to assume the role of country manager from April 1, overseeing corporate communications, public affairs, and CSR initiatives. While mobile networks continue to be Nokia’s primary business, the company is increasingly investing in emerging areas such as artificial intelligence and cloud technologies. Its acquisition of US-based optical networking firm Infinera reflects this strategic shift. Despite the restructuring, Nokia has reported strong financial performance in recent months. The company posted a better-than-expected operating profit of €435 million in the third quarter last year, supported by robust demand in optical networks, cloud services, and AI-driven data centre solutions. Additionally, Nokia’s network sales in India witnessed a sharp 75% year-on-year growth in the first quarter of 2025. Source: Economic Times  

Nokia Announces Major Global Restructuring; Over 14,000 Jobs to Be Cut Read More »

Median CEO Pay in India Rises to ₹10.5 Crore in FY26, Growth Slows Amid Market Volatility

/ Human Resource Community

The median compensation for professional, non-promoter CEOs in India increased by 5% year-on-year to ₹10.5 crore in FY 2025–26, according to a report by Deloitte. However, this marks the slowest pace of growth since the COVID-19 period, reflecting changing compensation structures and broader economic uncertainties. The report highlights a shift in executive pay design, with greater emphasis on incentives, stock-linked compensation, and emerging leadership roles such as Chief Digital Officers. Experts note that subdued equity market performance over the past 12–18 months and rising geopolitical risks have contributed to more cautious salary increments. Among top executives, Chief Financial Officers (CFOs) saw the highest rise in compensation. This trend is driven by increased demand for financial expertise, a strong focus on capital efficiency, and direct accountability to shareholders. Notably, around 15% of companies in the NIFTY 50 witnessed changes in CFO positions, indicating significant churn and high demand for experienced talent. The study also points to a transformation in remuneration strategies. Companies are moving away from a uniform approach and adopting multiple long-term incentive plans tailored to different employee groups. While larger firms, especially those in the NIFTY50, are implementing complex multi-year Performance Share Plans, smaller organisations continue to rely on traditional stock options or ESOPs. Additionally, firms are increasingly linking executive rewards to internal performance metrics rather than stock price movements alone, aiming for sustainable value creation. Strengthened governance practices, clearer executive contracts, and improved transparency in compensation decisions are further shaping the evolving CXO pay landscape. The findings are based on the seventh edition of the Deloitte India Executive Performance and Rewards Survey, released in September 2025, which covered insights from over 350 organisations across the country. Source: PTI

Median CEO Pay in India Rises to ₹10.5 Crore in FY26, Growth Slows Amid Market Volatility Read More »

India’s GCCs Rapidly Rise to Global Leadership Roles, Driven by AI and Strategic Expansion

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India’s Global Capability Centres (GCCs) are increasingly stepping into influential global roles, reflecting a significant shift in how multinational companies leverage their India operations. According to insights from ANSR and Deloitte India, nearly 20% of GCCs now hold strategic authority—up sharply from just 5% a decade ago. The number of global leadership positions based in India has surged dramatically, rising from just 115 in 2015 to over 6,500 today. This figure is projected to reach 30,000 by 2030, with artificial intelligence expected to further accelerate this trend. Major global corporations are already entrusting their India centres with critical functions. Walmart oversees its global retail technology operations from Bengaluru and Chennai, while Target manages key aspects of its digital commerce and supply chain from Bengaluru. Similarly, Microsoft develops core components of Azure in India, and Amazon builds technologies for Alexa and Prime Video within the country. A study by Ernst & Young highlights that 45% of GCCs in India now participate in global decision-making. However, the transformation remains uneven. Around 40–45% of centres still focus on back-office and IT support, while another 35–40% contribute to engineering and product development but lack control over pricing, market entry, or customer engagement. Industry experts point out that while technical capabilities are strong, true strategic ownership is still limited. Many GCC leaders do not yet have full authority over budgets or product direction, keeping them more aligned with execution than decision-making. That said, newer GCCs are being established with clearly defined strategic mandates from the outset—such as leading cloud transformations or global AI deployments—allowing them to mature faster. These account for 30–35% of new centres today, a significant rise from under 10% a decade ago. Companies like Samsung are already empowering their India teams with ownership of product lines and innovation. Similarly, Alstom and Wabtec have assigned product responsibilities for local markets to their India operations. Meanwhile, the engineering depth in India has made centres of Google and Microsoft increasingly indispensable. Despite this momentum, experts caution that not all business decisions will shift to India. Strategic choices tied closely to local markets—such as retail merchandising or financial services decisions—are likely to remain near headquarters. However, the growing role of AI is reshaping this dynamic. As much of the development and deployment of AI systems happens in India, influence is gradually shifting closer to where the work is executed. The next phase of evolution for GCCs will depend on whether global headquarters are willing to extend greater decision-making power alongside this technological leadership. Source: Economic Times  

India’s GCCs Rapidly Rise to Global Leadership Roles, Driven by AI and Strategic Expansion Read More »

Flipkart Announces 105% Bonus Payout for Employees Following Strong 2025 Performance

/ Human Resource Community

E-commerce giant Flipkart has declared a 105% bonus payout for eligible employees for the year 2025, reflecting the company’s robust growth and steady progress toward profitability. According to an internal communication accessed by PTI, employees up to the Senior Director level will receive their bonus payouts in March. Meanwhile, those at the Vice President and Senior Vice President levels will have their bonuses disbursed after the completion of the annual performance review cycle. In an email to staff, Chief Human Resources Officer Seema Nair highlighted that the company’s performance multiplier is driven by achievements across key business, financial, operational, and people-focused metrics. She emphasized that Flipkart has continued to build momentum while moving closer to sustainable profitability. Backed by Walmart, the company has also made notable progress in strengthening its core business segments while expanding new growth avenues. The bonus announcement aims to acknowledge the contributions of employees across all levels of the organization. Flipkart has not issued an official public statement in response to media queries regarding the development. Source: PTI

Flipkart Announces 105% Bonus Payout for Employees Following Strong 2025 Performance Read More »

LPG Shortage Triggers Workforce Migration Concerns in Auto Component Sector: ACMA

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India’s auto component industry is facing a potential workforce challenge as shortages of LPG cylinders begin to push workers to return to their native places, according to the Automotive Component Manufacturers Association of India. The industry body warned that while the current situation is not as severe as the disruptions seen during the COVID-19 pandemic, it could worsen if fuel supply issues persist. ACMA Director General Vinnie Mehta noted that many workers had shifted to LPG-based cooking after restrictions on wood usage due to air pollution concerns. However, the ongoing shortage is now making it difficult for them to manage daily cooking needs. The situation is further compounded by the shutdown of several factory canteens, leaving workers with limited alternatives and prompting some to migrate back home. This trend could disrupt manufacturing operations if it intensifies. ACMA, which represents over 1,000 manufacturers and accounts for more than 90% of the organised auto component sector’s turnover, highlighted the broader economic implications. In FY25, the industry recorded a turnover of USD 80.2 billion, including exports worth USD 22.9 billion and a trade surplus of USD 500 million. The shortage is partly attributed to supply disruptions linked to the US-Israeli war on Iran, prompting the government to prioritise domestic LPG consumption. In response, the Ministry of Petroleum and Natural Gas has set up a panel to review industry concerns. The auto component sector has urged the government to ensure uninterrupted supply of LPG or piped natural gas (PNG) for MSME units, particularly in foundry and forging segments, or to provide a transition window for alternative fuels. Industry leaders emphasised that continued support is critical to maintaining production levels, sustaining exports, and preserving India’s position in global automotive supply chains. Source: PTI

LPG Shortage Triggers Workforce Migration Concerns in Auto Component Sector: ACMA Read More »

DGCA Grants Temporary Flight Duty Relaxations to Air India Amid Middle East Airspace Restrictions

/ Human Resource Community

India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), has granted temporary relief in flight duty regulations to Air India as the airline faces operational challenges due to ongoing tensions in the Middle East that have restricted access to key airspaces. According to sources, the relaxation in Flight Duty Time Limitations (FDTL) norms will remain in effect until April 30. The move comes as Air India’s long-haul flights are being forced to take longer alternative routes to reach destinations in Europe and North America because of restrictions in the airspaces of Iran and Iraq. To bypass these restricted zones, Air India aircraft are now flying via Oman, southern parts of Saudi Arabia and Egypt, increasing overall flying time. Some ultra-long-haul flights are also making technical halts in Rome before continuing to their final destinations. Under the temporary relaxation for long-haul flights operated by two pilots, the DGCA has increased the permitted Flight Time (FT) by 1 hour and 30 minutes, raising it to 11 hours and 30 minutes. The Flight Duty Period (FDP) has also been extended by 1 hour and 45 minutes, allowing a maximum of 11 hours and 45 minutes. However, sources have alleged that the airline may be stretching these limits. In one instance, pilots operating flights to Jeddah were reportedly scheduled for a duty period of 11 hours and 55 minutes—about 10 minutes beyond the permitted extension. The regulator has also temporarily relaxed the mandatory 30-minute buffer required during roster planning. Normally, the maximum Flight Time and Flight Duty Period for a single landing are 10 hours and 13 hours, respectively. Flight Time refers to the duration from the moment an aircraft begins moving for take-off until it comes to a complete stop after landing. The Flight Duty Period, on the other hand, starts when a crew member reports for duty and ends when the aircraft’s engines are switched off after the final flight of the duty cycle. Officials from Air India and the DGCA have not yet issued formal comments regarding the relaxations. It remains unclear whether similar exemptions have been granted to other Indian carriers such as IndiGo for their long-haul services. The adjustments come as airlines worldwide grapple with disruptions triggered by the escalating conflict involving the United States, Israel and Iran, which erupted on February 28 and has led to widespread airspace restrictions across the Middle East. Source: PTI

DGCA Grants Temporary Flight Duty Relaxations to Air India Amid Middle East Airspace Restrictions Read More »

Tilaknagar Industries Names Ina Bajwa as Chief People Officer

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Tilaknagar Industries has appointed Ina Bajwa as its new Chief People Officer, the company announced on Tuesday. In her new role, Bajwa will report directly to Chairman and Managing Director Amit Dahanukar and will operate from the company’s head office in Mumbai. According to the company’s statement, Ameya Deshpande, who had been handling the human resources function on an interim basis, will now return to focusing fully on his primary responsibilities, including corporate strategy, mergers and acquisitions, and investor relations. Bajwa brings more than 22 years of experience in human resources across multiple industries such as retail, e-commerce, technology, banking, consulting, and infrastructure, working with both Indian and global organisations. Before joining Tilaknagar Industries, she served as Group Head – Talent & Engagement for the Middle East at Landmark Group, where she led CEO and executive succession planning along with talent strategy across several retail brands. Earlier in her career, Bajwa held leadership positions including Chief Human Resources Officer at Tata 1mg and Chief Talent Officer at Tata Digital. She also worked in senior HR roles at Tata Communications, and previously held positions at HSBC and Essar Group. Commenting on the appointment, Dahanukar said Bajwa’s expertise in building high-performing teams and driving large-scale people transformation initiatives will support the company’s efforts to strengthen its talent base and develop a future-ready organisation. Bajwa holds a Post Graduate Diploma in Management (Human Resources) from KJ Somaiya Institute of Management and a bachelor’s degree in Communications and Economics from Panjab University. Source: Economic Times

Tilaknagar Industries Names Ina Bajwa as Chief People Officer Read More »

Vedanta Targets 35% Women Representation Across Workforce

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Vedanta Ltd is aiming to raise women’s representation across all levels of its organisation to 35%, up from the current 23%, as part of its broader push toward workplace diversity. The company has also launched a nationwide campaign titled #HerAtTheCore along with a LinkedIn-driven hiring initiative to encourage women to pursue careers in sectors such as mining, metals, oil and gas, power, and technology. Citing data from the Annual Survey of Industries, Vedanta noted that women accounted for around 18% of direct employment across industries in 2023–24. However, in core sectors like mining and metals, women make up only about 6% of the workforce. Through the campaign, the company aims to highlight India’s rapidly evolving industrial landscape, driven by the global energy transition, the growth of EV supply chains, and advances in manufacturing and technology. According to Vedanta, sectors such as metals, minerals, oil and gas, and power will play a critical role in this transformation. Despite their importance, these industries continue to have low female participation. Vedanta said greater inclusion is essential for India to fully harness its talent pool and achieve its economic growth ambitions. Commenting on the initiative, Priya Agarwal Hebbar, Non-Executive Director at Vedanta Ltd and Chairperson of Hindustan Zinc Limited, said the company plans not only to increase representation but also to redesign workplace systems and provide support frameworks that help women thrive in core industries. She added that the #HerAtTheCore initiative is both a celebration of women in the workforce and a call for greater participation in sectors shaping India’s industrial future. Source: PTI  

Vedanta Targets 35% Women Representation Across Workforce Read More »