US court allows class suit against TCS

A US District Court in California has approved a class action suit in a case charging Tata Consultancy Services with systematic violations of the rights of its non-US citizen workers in the US

Written by ENS Economic Bureau | Mumbai | Published: April 4, 2012 12:44:54 am

A US District Court in California has approved a class action suit in a case charging Tata Consultancy Services (TCS) with systematic violations of the rights of its non-US citizen workers in the US.

As a result,employees of Tata Sons Ltd who were deployed from India to work in information technology jobs in the US won the right on Monday to proceed with a lawsuit against the Indian corporate giant over unpaid wages. California federal judge Claudia Wilken granted class-action status to the suit that accuses TCS of breaching employee contracts and violating California labour laws.

A class action suit is a lawsuit brought by one party on behalf of a group of individuals all having the same grievance.

“TCS continues to believe that when this matter concludes,the court will find that the plaintiff’s claims are without any merit,” the company said. “This is an order only on one procedural matter and does not address the merits of this case,” it added.

Two former employees accused the company in 2006 of forcing all non-US citizen workers to sign over their US federal and state tax refund cheques to the company.

TCS also deducted their Indian wages from their compensation,the suit alleged. The judge authorised one national class of plaintiffs,comprised of non-US citizens who worked at the company between 2002 and 2005,to sue for contract violations.

The court certified a separate class of employees to bring claims under California labour laws.

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