WASHINGTON: The Donald Trump administration has proposed ending the 60-day grace period currently available to certain foreign workers, including H-1B visa holders, after they lose their jobs in the United States, a move that could significantly affect thousands of Indian technology professionals.
Under the proposal published by the US Department of Homeland Security in the Federal Register, H-1B and certain other temporary work visa holders would be required to leave the US once their employment ends, instead of receiving up to 60 days to find a new employer willing to sponsor them or make arrangements to depart the country.
The 60-day grace period, introduced in 2017, has allowed foreign workers facing job losses to seek new employment and manage practical arrangements such as housing and their children’s schooling. Immigration lawyers have warned that removing the provision could substantially compress the time available to workers and employers to complete the transition.
The proposed change is likely to have a particular impact on Indian technology professionals, who account for a major share of H-1B visa holders and are extensively employed across the US technology and services sector. Major Indian IT companies, including Tata Consultancy Services, Infosys, HCLTech and LTIMindtree, are among prominent H-1B sponsors, while global consulting firms such as Deloitte, PwC and Ernst & Young also sponsor significant numbers of workers.
Lawyers at Berardi Immigration Law said the proposal would sharply reduce the timeline available to human resources teams handling layoffs and offboarding involving foreign-national employees.
The move is part of the Trump administration’s broader push to tighten legal immigration. The administration has introduced higher visa fees for skilled workers and taken other steps affecting immigration and visa processing.
The Department of Homeland Security has acknowledged that companies could face some disruption if the proposed rule is implemented, while arguing that affected positions could instead be offered to equally qualified US workers. The proposal also provides for employers to use the I-129 petition process if they need to retain foreign workers.
The proposed changes would extend beyond H-1B holders, potentially affecting certain E-1 international traders, E-2 commercial vehicle operators, L-1 executives and managers, O-1 individuals with extraordinary ability, and TN professional workers. H-1B1 workers from Singapore and Chile and E-3 specialty workers from Australia would also fall within the scope of the proposed changes.
The proposal is now subject to a two-month public comment period before the administration can consider moving ahead with implementation.
