The US district court of Northern California on Monday allowed two former
employees of I-T giant Tata Consultancy Services Ltd [ Get
Quote<http://money.rediff.com/quotes/tata+consultancy+services+ltd>]
to proceed with a class action lawsuit against their former company
over
wage dispute and breach of contract.
<http://ads.rediff.com/5c/inbusinessA.rediff.com/business-article.htm/1672925100/x15/default/empty.gif/636f397a74303938357a414143736958>

The case that started with two plaintiffs will now cover 13,000 TCS
employees, who worked between 2002-2005 in the United States.

"This is a big case. It's going to be an exciting case," Steven M Tindall,
Rukin Hyland Doria & Tindall LLP, and plaintiffs' attorney, told *Rediff.com
*.

Tindall said, "It's an important case because of the companies, coming from
outside are not aware of the bylaws in the US. Even though these employees
are from India [
Images<http://search.rediff.com/imgsrch/default.php?MT=india>], US
laws govern them once they start working here. So we want to make
sure that this law gets enforced."

"We have received the order of the US district court. This is an order only
on one procedural matter and does not address the merits of this case. TCS
continues to believe that when this matter concludes, the court will find
that the plaintiff's claims are without any merit," the US media cell of
TCS said, when contacted by *Rediff.com*.

The case was filed six years ago by Gopi Vedachalam and Kangana Beri on
behalf of themselves and all others employees in similar situation. The
plaintiff alleged that their company breached contract and each of these
people signed an employee agreement with TATA.

"We allege that in the suit that TATA violated that contract by requiring
them to pay their tax refund check, back to the company.

In the nationwide claim, the company broke the federal law," said Tindall.

Also these employees were supposed to get both Indian salary as well as US
salary, which did not happen. "We have alleged that they deducted Indian
salary from the US salary," said Tindall.

"Yes, they have a written agreement," noted Tindall. "However, the TCS
after July 2005 has stopped this practice," he added.

Talking on the achievement that came after six long years, Tindall said,
"It is a big milestone in the case because till now it wasn't sure that
these two people would represent the 13,000." He added, "It's a global
news, as it's a global company. But all the events that we are talking
about happened in the US."

The lawsuit has another part to it that covers the California state law.
Out of 13,000 the case also deals with the 6,000 employees who worked in
the state of California during 2002-2005.

"We have California group, in that breach of contract," said Tindall.
Though it is a similar claim, but California statute says employers cannot
recoup money from their employees.

According to the court report, plaintiffs alleged various California wage
and hour violations in this diversity-based class action, along with
collateral claims.

The lawsuit names Tata America International Corporation, Tata Consultancy
Services Ltd and Tata Sons Ltd as defendants in this action.

TCS is an information technology-outsourcing and consulting company
headquartered in India and Tata Sons Ltd is the parent company.  Tata
America International Corporation is a United States subsidiary of TCS.

Gopi Vedachalam is one of two plaintiffs in the suit. Vedachalam, an Indian
native worked as a project manager in the United States since April 2000
under an L-1 visa. The L-1 visa allows multinational companies to transfer
foreign employees to work for parent, subsidiary, affiliate or branch
offices in the United States. From 2000 to 2003, Vedachalam worked in
California at various locations.

Vedachalam's complaint alleges his agreement salary was $74,000 per year
during his deputation in the US, but that he did not receive this amount of
salary in 2004 or 2005. In addition, Vedachalam alleges that defendants
forced him to endorse his tax refund check over to TCS by stamping the back
of the check to the Tata Consultancy Services.

He further alleges that defendants retained state and local tax refunds
intended for him totaling nearly $25,000.

In six of the nine claims alleged in the complaint, Vedachalam has alleged
defendant on breach of contract for failing to pay the salary promised in
the Deputation Terms Agreement; conversion of tax refunds; unjust
enrichment through retaining tax refunds; violation of California Labour
Code (which provides that it "shall be unlawful for any employer to collect
or receive from an employee any part of wages theretofore paid"); violation
of California Labour Code (which requires that the employer provide
accurate statements showing gross wages and deductions); and "false,
unfair, fraudulent and deceptive business practice within the meaning of
(California) Business and Professions law.

Tindall said he has been receiving phone calls from various Indian
employees in US, alleging similar situation.
On how challenging is the case, Tindall said, "They (TCS) are well funded
and have hired very good lawyer, but we are happy with what we are doing."
http://www.rediff.com/business/report/us-court-nods-to-lawsuit-against-tcs/20120404.htm

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