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Corporate Apr 3, 2012

Claims in wage suit in US without merit: TCS

Mumbai: Tata Consultancy Services (TCS) on tuesday said the claims made in a class action suit for violating rights of its non-US citizen workers in the US were "without merit".

"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," India's biggest software outsourcer said in a email response to IANS.

Reuters

"TCS continues to believe that when this matter concludes, the court will find that the plaintiff's claims are without any merit," it added.

A judge in District Court in California on monday approved a class action lawsuit, accusing TCS of breaching employee contracts and violating California labour laws.

The petitioner has sought compensation and damages for current and former employees who were not paid what they were promised and were deprived of their US tax refunds.

A class action status means that the result of a lawsuit by one or more plaintiffs would be binding for a larger group of people.
The ruling allows all non-US citizens employed in the US between February 14, 2002 and June 30, 2005, and those sent to the US after January 1, 2002, to take part in the lawsuit.

Earlier this year the IT bellwether expanded its presence in the US, opening a customer collaboration centre in California to serve as the worldwide headquarters of the firm's mobility solutions unit.

The firm has about 214,000 employees across 42 countries, and had a revenue of $8.2 billion in the financial year ending March 31, 2011.

The TCS scrip was down 1.04 percent at Rs.1,178.95 at the Bombay Stock Exchange.

IANS

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