On April 22, 2025, TCS came under scrutiny amid allegations that its U.S. layoffs were discriminatory by targeting non-South Asian employees based on race, age, and national origin. The company has denied these claims, asserting a strong track record as an equal opportunity employer, while multiple complaints and a call from Rep. Seth Moulton have spurred an EEOC investigation.

TCS released a comprehensive global statement outlining its measures to prevent modern slavery and ensure transparency across its supply chain. The statement details ethical standards for suppliers, risk assessments, and enforcement actions including immediate contract termination for non-compliance, reinforcing the company’s commitment to upholding human rights.

On January 1, 2024, TCS faced formal allegations from the IT workers' union NITES accusing the company of forcing over 2,000 employees to relocate without proper notice, suspending salaries for those who resisted, and previously sacking employees while blacklisting staffing firms, highlighting serious labor rights concerns.

The US Equal Employment Opportunity Commission is investigating complaints alleging that TCS discriminated against American workers on the basis of race, age, and national origin. The investigation, which follows complaints filed in late 2023, accuses the company of favoring Indian visa workers and targeting non-South Asian employees for layoffs, raising serious concerns over labor rights and ethical employment practices.