IT employees' union NITES alleged that Tata Consultancy Services pressured approximately 2,500 employees at its Pune campuses to resign as part of an ongoing restructuring drive, disclosed September 8, 2026. NITES said affected staff were largely mid-to-senior professionals with 10-20 years of tenure, many over 40 with families, EMIs and other financial obligations, and claimed TCS violated the Industrial Disputes Act, 1947 by terminating employment without government notice or statutory retrenchment compensation, instead coercing 'voluntary resignations.' The union urged Maharashtra's Chief Minister to intervene and a separate employee forum, FITE, called for a Special Investigation Team. TCS called the characterization 'inaccurate and purposefully mischievous,' saying only a limited number of employees were affected by a skill-realignment initiative and that those affected received due care and severance.
In August 2026, Indian media reported that Tata Consultancy Services had installed a 'Digital User Experience Monitoring' tool on company-issued laptops covering roughly 600,000 employees, without prior formal communication to staff about the deployment. TCS did not publicly disclose the software vendor, what data was stored or reviewed, or which teams could access monitoring dashboards. Following the reports, TCS issued a statement calling characterizations of the tool as employee surveillance 'baseless and inaccurate,' saying it monitors only macro-level network performance rather than individual employee activity.
Tata Consultancy Services confirmed plans to cut approximately 12,200 jobs (~2% of its global workforce) during 2026, with managers instructed to identify the bottom 5% of staff as 'Band-D' underperformers - a process Indian IT-services labor advocates describe as a 'PIP-as-layoff playbook' designed to engineer voluntary exits at scale. The cuts disproportionately affect mid-career engineers in India and have triggered organizing among Indian IT services workers about their rights, MSA contracts, and background verification practices.
India's National Commission for Women convened a panel (including a retired Bombay High Court justice) that visited TCS's Nashik back office in April 2026 after sexual assault and religious-conversion-pressure allegations surfaced. The panel's 50-page report, submitted to the Maharashtra Chief Minister, found the office's Internal Complaints Committee 'miserably failed' to ensure workplace safety, cited non-compliance with the POSH Act, and called the failures a 'governance failure' rather than a mere compliance gap. Nashik police arrested six people and registered nine complaints. TCS disputed some NCW findings, saying CCTVs were functional and POSH materials were present, and said NCW did not seek company comment before publishing.
Beginning late 2023, dozens of former American TCS employees filed EEOC complaints alleging systematic discrimination based on race, age, and national origin. Complainants - largely non-South Asian professionals over 40 - say TCS targeted them for layoffs while sparing Indian colleagues including H-1B visa workers. Key evidence: TCS global HR head Milind Lakkad told Indian news agency TCS wanted to reduce American employee percentage from 70% to 50% to 'offer opportunities to staff in India.' April 2024: US Representative Seth Moulton (D-MA) urged EEOC formal investigation, noting complainants were his constituents and suggested 'broader pattern of discrimination' and 'potential misuse of U.S. work visa programs.' October 2025: Senate Judiciary Chairman Chuck Grassley and Ranking Member Dick Durbin questioned TCS about hiring 5,505 new H-1B workers in FY2025 while 'hundreds of thousands of American tech employees have been laid off.' Multiple class action lawsuits: Heldt (2015-2018, defense verdict), Katz (2022-2023, partially dismissed), Devorin (2024, pending). Investigation ongoing as of January 2026.
compelled $29.8M
On March 1, 2013, TCS paid $29.75 million settlement after lawsuit filed in 2006 by employees Gopi Vedachalam and Kangana Beri alleged TCS 'unjustly enriched itself by requiring all non-US-citizen employees to endorse and sign over their federal and state tax refund checks to the company and by taking unauthorised deductions from employee's paychecks.' The class action represented 12,000 H-1B visa workers. TCS forced workers to sign over tax refunds they were legally entitled to, and took illegal paycheck deductions. This systematic wage theft targeted vulnerable visa workers who feared retaliation and deportation if they resisted. Settlement represented compensation for thousands of workers systematically exploited through their visa status vulnerability.