Stories
PERM Vs H-1B: Understanding The US Suspension And Its Impact On Tech Workers
- •The Donald Trump administration suspended Microsoft, TCS, Infosys, Wipro, HCLTech, Cognizant, Adobe, and Capgemini from the PERM employment-based green-card program.
- •India's Ministry of External Affairs clarified that PERM and H-1B are separate programs, meaning the suspension does not automatically invalidate existing H-1B visas.
- •H-1B is a temporary, non-immigrant work visa for specialized occupations, whereas PERM is the Department of Labor's labor-certification process required for certain permanent residency paths.
- •The US administration stated the suspension aims to protect American workers and address alleged misuse, though affected companies like Microsoft and TCS have disputed claims of system abuse.
- •While existing H-1B holders do not need to leave the US immediately, the PERM suspension disrupts green-card pathways and creates long-term uncertainty for foreign professionals.
Key Questions Answered
PERM stands for Program Electronic Review Management, which is the Department of Labor's process for certifying that an employer has met labor-market requirements before sponsoring a foreign worker for permanent residency. While not a visa or green card itself, it is a crucial step in many employer-sponsored green-card applications, particularly under the EB-2 and EB-3 categories.
No, the suspension of PERM applications does not automatically invalidate existing H-1B visas or affect the legal status of current H-1B holders and their dependents. The H-1B is a temporary work visa administered separately from the PERM labor-certification process, meaning workers can still legally work while green-card processing is disrupted.
The US administration suspended Microsoft, Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, Cognizant, Adobe, and Capgemini from the PERM programme, stopping new and pending applications involving these firms.
