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Infosys, TCS cleared of visa violation charges in the US

US had launched a probe to find out whether the two Indian firms violated any labour laws after Southern California Edison laid off about 500 workers.

, ET Bureau|
Updated: Sep 09, 2015, 03.39 AM IST
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The US has cleared India’s top two software exporters Tata Consultancy Services and Infosys of charges of visa violation after a probe.
The US has cleared India’s top two software exporters Tata Consultancy Services and Infosys of charges of visa violation after a probe.
BENGALURU: The US has cleared India’s top two software exporters Tata Consultancy Services and Infosys of charges of visa violation after a probe into an outsourcing contract involving utility firm Southern California Edison.

Infosys on Tuesday said the US labour department has given it a clean chit after concluding its investigation into labour condition applications filed in the Southern California Edison outsourcing contract whereby it reviewed over 145 files.

Sources close to TCS said the Tata Group firm too has been cleared of any visa violation. The US labour department had launched a probe earlier this year to find out whether the two Indian firms violated any labour laws after Southern California Edison laid off about 500 workers in August last year and replaced them with H-1B visa holders from Infosys and TCS.

“We do not practice or condone unfair or unethical H-1B visa practices. Our key priority is to operate fairly, ethically and with integrity, which is good business and what our clients expect,” Sandeep Dadlani, EVP and head of Americas at Infosys, said in the statement on Tuesday.

David Kennedy, EVP for general counsel and chief compliance officer at the firm, said, “Infosys is happy to cooperate with any future government agency inquiries to continue to demonstrate our commitment to compliance.” In a statement mailed to ET, a TCS spokeswoman said that the company was fully compliant with US visa laws. “Audits by the department of labour have taken place from time to time and TCS has always been found to be compliant,” she said. Southern California Edison’s decision to replace its employees with H-1B visa holders from TCS and Infosys had triggered an uproar in the US, leading to the probe. Experts said the politically charged debate on outsourcing is bound to heat up over the coming months with the US elections on the horizon.

ET had reported in June that other outsourcing contracts Indian IT majors have signed with the likes of Walt Disney and Fossil had also come under the scrutiny of the US government.

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