TCS Resolves Wage Dispute with American Employees for a Sum of $30 Million
In a recent development, Tata Consultancy Services (TCS) has agreed to settle a class action lawsuit brought against it by Indian former employees working in the US. The lawsuit, which dates back to 2006, has been a long-standing legal issue for the company.
According to reports, the employees claimed that TCS had unfairly docked their salaries and forced them to refund it for tax payments. However, TCS maintains that it always acted appropriately, and none of the allegations have been found to be true by the court.
The settlement fund, amounting to £29.75 million, is available for all members of the class. TCS agreed to the settlement to eliminate any ongoing distraction to its associates and management and to focus entirely on providing world-class service to its clients.
It's important to note that this settlement does not affect TCS's UK operations. In fact, the company recently announced its plans to expand its UK operations by opening a new delivery center in Liverpool. In April last year, a California court ruled that the trial could proceed, and in November, TCS won a multi-million pound IT outsourcing contract with the Home Office.
Despite the settlement, TCS has stated that it fought the litigation at every step since it was filed seven years ago. The company even motioned twice to have the lawsuit dismissed.
It's worth mentioning that there is no public record or verified data on a TCS class action lawsuit settlement related to UK operations as of August 2025. The issues affecting TCS appear operational and employment-related within India rather than legal settlements, especially in the UK.
TCS encourages all class members to participate in the settlement benefits. For more detailed information on TCS's legal matters or UK operations, separate or more specialized legal databases or company disclosures may be required beyond current publicly indexed news reports.
TCS has agreed to settle a class action lawsuit concerning Indian former employees working in the US, which discusses issues related to financial matters such as salary deductions and tax payments within the context of a business dispute. The company, with its focus on expanding its UK operations, has taken steps to settle the lawsuit to avoid further distractions and concentrate on providing excellent business services to its clients.
