Carillion hospital managers at a Swindon hospital demanded gifts from foreign workers in return for time off, according to claims made in an Employment Tribunal case.
Goan Indian staff at the Great Western Hospital in Swindon were forced to hand over cash, jewellery, alcohol, cigarettes and even a duvet in return for holiday leave, it is claimed.
The 60 cleaners, who work for private contractor Carillion, have launched a group claim for racial discrimination.
It was claimed that the Indians' white counterparts were not subjected to the same rules.
The workers, and their union the GMB, claim that the staff had been subject to the practice from as early as 2007.
They also claim they were exposed to a culture of intimidation and fear by supervisors, and were victimised and faced "harassment" when they tried to join a union.
Carillion - which manage catering and cleaning at the hospital - strongly denies the practice amounted to racial discrimination and said the main manager responsible no longer worked for the company.
Jose Estrocio, a claimant in the group action and a GMB rep for the workers, said: "We are in a developed country and had to give money and gold for holidays."
Most of the staff were recruited in Britain to work for Carillion as porters, cleaners, and members of the housekeeping staff in Swindon's biggest hospital.
Supervisors implemented a system where they expected gifts in return for favours, but, according to the claim, their demands were only made to non-white employees.
Paulo Fernandes, a union rep, claimed that when he applied for a porter's job, he was asked what he would give a female manager in return.
He was then asked for a gold chain of a certain length and told it had to be visible and not too long or too short, according to the papers.
It is then alleged that Mr Fernandes, accompanied by a friend, handed over a chain, belonging to his wife at the manager's house.
Another claimant, Irene de Souza, wanted to travel to Goa for 10 days in January 2011.
She claims that a manager asked her for a gift in return for the time off and she felt compelled to hand over perfume and a watch worth £25 - both a present from her children and something she found particularly "distressing".
The papers also claim Carillion carried out an investigation and the claimant cleaners were interviewed and told that their evidence was confidential.
However, in June, the company told the workers they would face a disciplinary hearing because they had given gifts in return for benefits, the papers allege.
A spokesman for Carillion admitted that there were incidents of gift giving for favours from managers but added that they had been investigated thoroughly and disciplinary procedures put in place.
The company stated it would vigorously defend itself against the claims. No date for the Employment Tribunal hearing has yet been set.
They said: "In the circumstances it was appropriate that Carillion carried out disciplinary processes with employees who admitted giving or facilitating gifts for advantage.
"This is an ongoing process but outcomes so far have included training to those who gave gifts for advantage - not sanction.
"To be clear: Carillion will not tolerate racism or racist remarks from any of our employees, and racism goes completely against all our values as an organisation, as well as our policies.
"Claims are presently being subjected to a formal case management process by the tribunal.
"It is only once this is completed that we will have a clear understanding of which cases the tribunal will expect Carillion to defend."
Carillion is one of the UK's leading companies in providing support services to local and central government.
In a 2012 interim report, entitled 'Making Tomorrow a Better Place', the company's revenue is listed as £2.2bn with underlying profit before taxation amounting to £73.1m.
The case continues