Tata Consultancy Services has been accused of discrimination based on an employee’s race, age and national origin, prompting an investigation by the US Equal Employment Opportunity Commission. The IT services company has denied the allegations.
According to a report in Bloomberg, the former employees are largely professionals from non-South Asian ethnic backgrounds over the age of 40. They said that TCS targeted them for layoffs but spared their Indian colleagues. They pointed out that some of them were working on H-1B skilled worker visas.
The employees started filing complaints against TCS in late 2023. The investigation started during the Joe Biden administration and has continued under President Donald Trump.
However, TCS denied any wrongdoing. A spokesperson said that the allegations of “unlawful discrimination” are meritless and misleading. “Allegations that TCS engages in unlawful discrimination are meritless and misleading. TCS has a strong track record of being an equal opportunity employer in the US, embracing the highest levels of integrity and values in our operations,” said the spokesperson.
Three former TCS workers have made similar claims in the UK too, stating that they were discriminated against based on age and nationality, as reported by The Guardian. TCS denied the allegations in a response submitted to the tribunal where the employees had complained.
In April 2024, US Representative Seth Moulton had urged the EEOC to open an investigation into TCS over discrimination charges. Moulton said TCS’s actions may have led to discrimination as well as “potential misuse of US work visa programs designed to fill US labor shortfalls”.
Earlier in February, there were reports that TCS used the L-1A visa, reserved for managers, heavily. Some ex-employees alleged that the company used them to circumvent H-1B rules. TCS has denied any wrongdoing.
Trump had, earlier in the year, appointed Andrea R. Lucas as EEOC chairman. Lucas vowed to step up investigations into discrimination against US workers.
Meanwhile, TCS shares settled 0.80 per cent higher at Rs 3,298.95. At this price, the IT major’s counter has corrected 19.79 per cent on a year-to-date (YTD) basis.
