Class Action TCS In US

One of India’s leading software giants, Tata Consultancy Services (TCS) is facing legal proceedings in the US. The company is alleged to be biased against American workers. As per Bloomberg report, a federal judge in California rejected the request of TCS to dismiss a 2015 legal trial that condemned it of breaching anti-discrimination laws by being biased to South Asian workers.

Class Action TCS In US

The worries of the software giant were further aggravated when the federal judge amplified the case filed by American workers. They even lost their jobs at the TCS offices in the US into a class-action lawsuit.

If reports are to be believed, between 2011 and 2016, TCS hired 12,500 people in the US thereby adding to more than 50% of the jobs in America.

Over the past three years in the US, TCS has spent over $3 billion on employment, education and academic partnerships.

Although the case precedes Donald Trump’s election, its objective reflects his campaign undertakings to reduce the use of overseas workers in the US and “America First” policy. On the part of the Indian Government, it is a challenge protecting Indian Companies working in the USA under Trump Administration.

A class action suit differs from a traditional lawsuit, wherein all the parties are present in the court and one party sues the other for compensation of a wrongdoing.

Earlier, TCS received a hefty $2.25-billion outsourcing contract from Nielsen, a global data and measurement giant. TCS and Nielsen renewed their already existing partnership in October 2017. In 2018, these two companies were tied up in a 10-year deal for $1.2 billion, which was then expanded to a whopping $2.5 billion in 2013.

As per the new deal, the terms of the agreement are further extended for an additional time period of five years and would expire on December 31, 2025. Also, added to it, three one-year renewal options have been imparted to Nielsen.

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