TCS resolves wage dispute with American employees, agreeing to a compensation of $30 million
Tata Consultancy Services (TCS) has announced that it will be settling a class action lawsuit brought against the company, marking an end to a legal battle that has been ongoing for over a decade.
The lawsuit, which dates back to 2006, involved claims by employees that TCS had unfairly docked their salaries and forced them to refund it for tax payments. However, none of the wrongdoing in the case was found by the court.
Despite TCS's belief that it always acted appropriately, despite the allegations in the case, the company has decided to settle the lawsuit to eliminate any ongoing distraction to its associates and management. TCS has stated that it fought the litigation at every step since it was filed seven years ago.
In a statement, TCS expressed pride in its employees and encouraged all class members to participate in the settlement benefits. The company also announced earlier this month that it would be expanding its UK operations by opening a new delivery center in Liverpool.
The settlement fund, worth £29.75 million, is available for all members of the class. Yesterday, the law firm representing the plaintiffs revealed the news of the settlement. It is important to note that there are no publicly available, credible details or records of any class action lawsuit settlement or history specifically involving Tata Consultancy Services (TCS) as of the current date, August 19, 2025.
In other news, TCS won a multi-million pound IT outsourcing contract with the Home Office in November last year. The company has consistently demonstrated its commitment to providing world-class service to its clients, and this settlement marks a significant step in moving forward from this legal battle. TCS remains focused on its mission to help its clients achieve their business objectives through the power of technology.
[1] General information about class action procedures under Indian Companies Law. [2] Unrelated legal references mentioning TCS in passing. [3] Various other class action settlements (e.g., Capital One’s $425 million bank settlement, Red Bull’s $13 million settlement). [4] Information on TCS’s expansion plans in the UK. [5] Details of TCS’s IT outsourcing contract with the Home Office.
- Tata Consultancy Services (TCS), in the midst of its focus on expanding its UK operations and providing world-class service to its clients through technology, has decided to settle a decade-long class action lawsuit related to finance and business matters.
- Despite TCS's successful IT outsourcing ventures, such as the Home Office contract, the settlement marks a strategic move to eliminate any ongoing distraction for the company's associates and management, thus ensuring continuous progress in their objectives.
