Global Scrutiny of Indian Employers: Labour Law Implications from TCS Discrimination Allegations

From the perspective of Indian labour law and employment practices, the allegations against Tata Consultancy Services (TCS) by former U.S.-based employees regarding discrimination on the basis of age, race, and nationality highlight a sharp contrast between Indian and foreign labour law frameworks. The U.S. Equal Employment Opportunity Commission (EEOC) has initiated a formal inquiry into claims that TCS disproportionately targeted non-South Asian, particularly American, employees for layoffs, while retaining Indian employees on H-1B and L-1A visas.

Under Indian labour law, employment practices are governed by principles of non-discrimination and fairness, particularly under statutes like the Equal Remuneration Act, 1976, and the Industrial Disputes Act, 1947. However, Indian law does not impose restrictions based on nationality in the same way as U.S. or U.K. laws might. In India, there is a strong emphasis on protecting domestic labour, and employment of foreign nationals is subject to strict visa and regulatory controls, including work permit approvals.

While TCS has denied any wrongdoing and reaffirmed its status as an equal opportunity employer, the issue underscores the increasing scrutiny faced by Indian multinationals operating abroad. It also raises important questions about the extraterritorial impact of Indian employers’ HR policies, and the need for alignment with local labour compliance standards in jurisdictions where they operate.

The emergence of similar discrimination claims in the U.K. in 2023 signals a growing global focus on diversity, equity, and inclusion, and may prompt Indian IT majors to reassess global HR governance and risk mitigation frameworks.