A US district court has allowed employees of Tata Consultancy Services who were sent on work to the US to sue the company.
The court allowed them to take legal recourse through a class action suit. This means that the employees who meet the conditions for suing as a group — having common complaints and the like — can do so.
The employees, who were sent to work in the US from India, claimed that they were forced to sign over their federal and state tax refunds to the company. According to agency reports, they also claimed their Indian salaries were wrongfully deducted from their US pay.
Breach of contract
They have accused their company of breach of contract and violation of labour laws in California. The contracts did not contain anything that allowed for their Indian salaries to be deducted from their US pay, they alleged.
US District Judge Ms Claudia Wilken in Oakland, California, issued the class certification on Tuesday for all non-US citizens employed by Tatas in California from February 14, 2002, to June 30, 2005, said an agency report. The workers are also suing Tata Sons Ltd., TCS' parent company.
The judge noted that many class members fear retaliation if they file individual suits. Also, many of them are now resident in India and this could make it difficult for them to sue individually.
A TCS spokesperson said: “We have received the order of the US District Court. This is an order only on one procedural matter and does not address the merits of this case. TCS continues to believe that when this matter concludes, the court will find that the plaintiff's claims are without any merit.”
TCS has over 2.25 lakh employees. The company's stock lost Rs 12.40 on the BSE on Tuesday, to close at Rs. 1,178.95.