India’s biggest outsourcer is facing a class action suit in the US in a row over tax involving Indian staff working in the US.
A current US-based Indian Tata employee has filed a class action suit against the Mumbai-headquartered company, alleging the company insists on taking back any tax refunds awarded to its US-based staff.
Tata has a large number of staff on visas in the US, which are employed on outsourcing contracts with US companies. According to the lawsuit, these staff have their tax affairs in the US looked after by Tata.
The lawsuit claims that any resulting tax refunds owed to the employee must be signed over to the company, contrary to Californian employment law. Tata said it was still waiting to see full details of the lawsuit and insisted that it fully complied with US and state laws.
The lawsuit is claiming damages and refunds for all current and past Tata employees who have seen tax refunds taken off them.