TCS faces US Federal scrutiny over worker discrimination allegations

India’s IT giant Tata Consultancy Services (TCS) is under scrutiny in the United States after several former employees filed complaints with the US Equal Employment Opportunity Commission (EEOC), alleging discrimination based on age, race, and national origin during layoffs that took place amid the tech industry slowdown, as per reports. 

The complaints – primarily filed by American employees over the age of 40 and of non-South Asian backgrounds – accuse TCS of systematically targeting them for job cuts, while retaining younger Indian workers on H-1B visas. These employees reportedly claim they were disproportionately affected by layoffs that began in late 2023, suggesting a pattern of bias in workforce decisions.

While the EEOC has not yet issued a public statement confirming a formal investigation, it is reportedly reviewing the complaints. Under US federal law, such investigations are often kept confidential during preliminary reviews.

Adding to the controversy, similar accusations have surfaced in the United Kingdom, where three former TCS employees are pursuing claims in an employment tribunal. The employees allege they were terminated in 2023 due to their age and nationality, mirroring the pattern seen in the US-based complaints. TCS has denied these claims, maintaining that the layoffs were performance-based and not discriminatory.

In April 2024, the agency was said to be considering whether to launch an official probe, citing concerns about a possible systematic pattern of discriminatory practices and potential misuse of US visa programs.