US clears Infosys, TCS of work visa misuse allegations

By: |
Bangalore | Published: September 9, 2015 12:30:56 AM

Indian IT services companies have long been the largest recipients of non-immigrant H-1B work visas, leading to intense scrutiny

India’s top two IT services exporters – Tata Consultancy Services (TCS) and Infosys — have been cleared of  all charges on alleged misuse of work visas by the US department of labour. The issue first came to light in June this year following reports that Infosys and TCS had displaced US employees with cheaper resources from India, thereby allegedly violating labour regulations.

A statement by Infosys said: “Infosys is pleased to report that the US department of labor concluded its investigation with a determination of compliance regarding labor condition applications filed in the Southern California Edison project. Infosys fully cooperated with the DOL in its investigation, and over 145 files were reviewed, with no violations found.”

Similarly, a spokesperson of TCS said, “Audits by the US department of labor have taken place from time to time and TCS has always been found to be compliant. TCS attaches the highest importance to a strict compliance programme and abides by all regulatory requirements and visa laws.”

Indian IT services companies have long been the largest recipients of non-immigrant H-1B work visas, leading to intense scrutiny by lawmakers and other public bodies. There is a notion in the US that Indian IT companies regularly replace American tech workers with lower-cost resources from India.

The Indian companies have steadfastly denied any violations of US labour regulations while using H-1B visas, pointing to the existing demand-supply mismatch in America.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.