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Indian employee sues TCS subsidiary in US
SUJEET RAJAN
Posted online: Thursday, February 16, 2006 at 0000 hours IST
NEW YORK, FEBRUARY 15: Tata America International Corporation (TAIC), a subsidiary of Tata Consultancy Services (TCS), has been slapped a class action suit by a current employee, Gopi Vedachalam, alleging that the company was ‘‘enriching itself’’ by requiring workers to hand over their Federal and State tax refunds to the company.
The complaint also seeks compensation and damages for current and former employees who were not paid what they were promised and who were required to forfeit vacation pay that they had earned, sources revealed.
The law offices of Lieff Cabraser Heimann & Bernstein, LLP filed the nationwide class action lawsuit in US District Court in San Francisco against TAIC, and its parent corporations TCS and Tata Sons, Ltd.
Tata is one of India’s largest business conglomerates, with revenues last fiscal year in excess of $17 billion. The proposed class consists of thousands of current non-US citizen employees of Tata working in the US, plus former Tata employees dating back to 2000. Tata has faced a barrage of complaints over the years from anti-immigration companies who allege that the company brings workers at low wages, and takes away jobs from Americans.
Asked if employees would hesitate to come forward fearing retaliation and subsequent transfer back to India, Tindall says that under California law, if there is retaliation it would be considered unlawful, and employees, even if they are transferred back to India, would be entitled to damages, if they are awarded.
‘‘No one else has come forward, but we expect the response to be good,’’ said Lieff Cabraser Partner, Steven M. Tindall, in an interview to The Indian Express.‘‘Tata’s employees from India working legally in the US, including thousands of technical support personnel and project managers, work hard to see that the American corporations they support and Tata are profitable,’’ said Tindall. ‘‘These workers are entitled to any amount of taxes they overpaid federal and state tax agencies.’’ Tindall noted that this case constitutes one of the first class action lawsuits against a company engaged in ‘‘reverse outsourcing,’’ bringing non-US citizens to the US to work in US corporations, for “violation of labor laws.”
The complaint says that most Tata employees in the US are non-US citizens, granted visas, which allow them to work and live in the US. However, Tata requires each employee to sign an agreement which states that the employee’s gross amount of compensation will be included as earnings in the US and reported to the US Internal Revenue Service. The complaint alleges that these employees are not paid the amount promised them in these agreements.
The complaint says at least until July 2005, Tata required its non-US-citizen employees to sign power of attorney agreements delegating an outside agency to calculate and submit each employee’s tax returns to state and federal authorities.
http://www.indianexpress.com/res/web/pIe/full_story.php?content_id=87970
http://www.indianexpress.com/res/web/pIe/comments_print.php?content_id=87970&from=0
• How the TCS Tax return fraud works
Here is the modus operandi -
(1)Employee is forced to sign a Power of Attorney permitting TCS to file tax reurns in the USA (2) When the tax refund cheque is issued for the family, TCS receives the cheque at its address(3)TCS then prepares a letter as if the employee has taken a loan exactly to the extent of tax return (white collared criminals!) (4) The employee is again forced to sign that letter and also endorse the cheque in favour of TCS.THis is the true color of TATAs. This is their level of moral and ethical conduct.In India we can do anything and get away with money power. In the USA we will all fall at the feet of the judge and see that TCS is ruined.Please spread this message to all whom you know. When the unfortunate Jews were massacred and put into gas chambers by Hitler, no one REALLY BELIEVED it or took it seriously. It took great effort to make the world know the truth. Now nobody believes us. The key to success is creation of awareness. Copy the url related to the comments posted in the Indian Express and send it to all whom you know. Let us bring the criminals to justice. I will be liquidated if my name is given out! Hope Express will not do that. Thanks
Posted by: Anonymous999, United States, 01-03-2006 at 0622 hours IST
SUJEET RAJAN
Posted online: Thursday, February 16, 2006 at 0000 hours IST
NEW YORK, FEBRUARY 15: Tata America International Corporation (TAIC), a subsidiary of Tata Consultancy Services (TCS), has been slapped a class action suit by a current employee, Gopi Vedachalam, alleging that the company was ‘‘enriching itself’’ by requiring workers to hand over their Federal and State tax refunds to the company.
The complaint also seeks compensation and damages for current and former employees who were not paid what they were promised and who were required to forfeit vacation pay that they had earned, sources revealed.
The law offices of Lieff Cabraser Heimann & Bernstein, LLP filed the nationwide class action lawsuit in US District Court in San Francisco against TAIC, and its parent corporations TCS and Tata Sons, Ltd.
Tata is one of India’s largest business conglomerates, with revenues last fiscal year in excess of $17 billion. The proposed class consists of thousands of current non-US citizen employees of Tata working in the US, plus former Tata employees dating back to 2000. Tata has faced a barrage of complaints over the years from anti-immigration companies who allege that the company brings workers at low wages, and takes away jobs from Americans.
Asked if employees would hesitate to come forward fearing retaliation and subsequent transfer back to India, Tindall says that under California law, if there is retaliation it would be considered unlawful, and employees, even if they are transferred back to India, would be entitled to damages, if they are awarded.
‘‘No one else has come forward, but we expect the response to be good,’’ said Lieff Cabraser Partner, Steven M. Tindall, in an interview to The Indian Express.‘‘Tata’s employees from India working legally in the US, including thousands of technical support personnel and project managers, work hard to see that the American corporations they support and Tata are profitable,’’ said Tindall. ‘‘These workers are entitled to any amount of taxes they overpaid federal and state tax agencies.’’ Tindall noted that this case constitutes one of the first class action lawsuits against a company engaged in ‘‘reverse outsourcing,’’ bringing non-US citizens to the US to work in US corporations, for “violation of labor laws.”
The complaint says that most Tata employees in the US are non-US citizens, granted visas, which allow them to work and live in the US. However, Tata requires each employee to sign an agreement which states that the employee’s gross amount of compensation will be included as earnings in the US and reported to the US Internal Revenue Service. The complaint alleges that these employees are not paid the amount promised them in these agreements.
The complaint says at least until July 2005, Tata required its non-US-citizen employees to sign power of attorney agreements delegating an outside agency to calculate and submit each employee’s tax returns to state and federal authorities.
http://www.indianexpress.com/res/web/pIe/full_story.php?content_id=87970
http://www.indianexpress.com/res/web/pIe/comments_print.php?content_id=87970&from=0
• How the TCS Tax return fraud works
Here is the modus operandi -
(1)Employee is forced to sign a Power of Attorney permitting TCS to file tax reurns in the USA (2) When the tax refund cheque is issued for the family, TCS receives the cheque at its address(3)TCS then prepares a letter as if the employee has taken a loan exactly to the extent of tax return (white collared criminals!) (4) The employee is again forced to sign that letter and also endorse the cheque in favour of TCS.THis is the true color of TATAs. This is their level of moral and ethical conduct.In India we can do anything and get away with money power. In the USA we will all fall at the feet of the judge and see that TCS is ruined.Please spread this message to all whom you know. When the unfortunate Jews were massacred and put into gas chambers by Hitler, no one REALLY BELIEVED it or took it seriously. It took great effort to make the world know the truth. Now nobody believes us. The key to success is creation of awareness. Copy the url related to the comments posted in the Indian Express and send it to all whom you know. Let us bring the criminals to justice. I will be liquidated if my name is given out! Hope Express will not do that. Thanks
Posted by: Anonymous999, United States, 01-03-2006 at 0622 hours IST