Did TCS fire American employees to hire Indian techies on H1-B visa?

Tata Consultancy Services (TCS), an Indian IT company, is currently under fire for allegedly treating its employees unfairly.

The continuing discussion around the US visa programme for skilled foreign workers took a new turn when a group of American professionals accused the company of firing them suddenly and recruiting Indians with H-1B visas to fill their positions.

Let’s take a closer look.

The allegations

The Wall Street Journal reported that the American employees claimed that TCS unlawfully discriminated against them based on race and age, fired them and that they had transferred some of their responsibilities to lower-paid Indian immigrants with temporary work permits.

At least 22 employees, who are between the ages of 40 and 60 and come from a variety of ethnic backgrounds, have complained to the Equal Employment Opportunity Commission (EEOC) since late December, claiming that TCS has given preference to those who own H-1B visas.

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The EEOC is in charge of implementing federal laws that forbid discrimination against job applicants or employees based on race, colour, religion, sex, age, disability, or genetic information.

According to the WSJ report, TCS is accused of breaking the law by singling out American professionals based on protected factors like age and ethnicity, even though layoffs affecting staff with more seniority are common.

The report adds that the employees impacted by these claimed discriminatory practices hold advanced degrees, including a master's in business administration, and are located in more than a dozen US states.

They allege that the company gave Indian employees in the US who had coveted H-1B visas preferential treatment through its conduct.

TCS’ response

TCS has denied the allegations and called them 'misleading'.

Responding to WSJ in an email, a TCS spokesperson said, “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, imbibing the highest levels of integrity and values in our operations.”

Not the first time

Well, this isn't the first time that an Indian IT firm has been accused of discrimination.

The Tata company faced similar allegations in 2015, in which the jury gave it a clean chit during its hearing in 2018.

According to Business Standard, in a similar case filed in a New Jersey court in 2022, TCS was also granted partial relief.

Three TCS workers brought a lawsuit against the company in Oakland, California in 2018. The nine-member jury found in favour of TCS with a unanimous decision.

For the uninitiated, several big tech firms are cutting down costs as a result of low demand in the industry. This has also led to laying off contractual employees who were hired due to high demand.

Previously, US-based employees have filed cases against companies such as Infosys and Wipro alleging discrimination.

H-1B visa programme

The H-1B visa programme enables US companies to hire foreign workers in specialised careers requiring technical expertise, according to NDTV.

Employers sponsor chosen applicants for the visa as part of the selection process, which is a lottery run by US Citizenship and Immigration Services.

Holders of H-1B visas typically work for three to six years, though they may be able to extend that time if they apply for a Green Card and become permanent citizens.

The H-1B visa programme, which grants 65,000 visas per year plus an extra 20,000 to those with advanced degrees from US universities, has long been controversial, as per the news channel.

Advocates argue that it gives businesses access to low-cost labour from other countries, which could result in a displacement of US employees and a drop in pay.

With inputs from agencies