The Ministry of External Affairs (MEA) on Friday clarified that the US government’s decision to suspend several tech companies from the employment-based green card program will have no impact on the status of existing H-1B visa or visa holders and their dependents. However, the ministry said that suspending applications under the Permanent Labor Certification (PERM) program may affect the permanent residence i.e. green card process of eligible employees of the companies concerned.

Ministry of India and US It also emphasized the economic benefits of the movement of skilled talent between them and said the latest move did not boost the common ambitions of the two countries. The Ministry of External Affairs said, ‘It should also be clear that the flow of talent is valuable to both economies. Not only does this create opportunities for Indians, it also helps American companies create cutting-edge talent, innovation, research, productivity, competition and jobs, and also increases shareholder wealth in America.

Which companies have been suspended?

The US Labor Department has suspended Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini from the PERM program. The department said it will not accept fresh applications from the affected companies and will not process their pending applications. U.S. Labor Secretary Keith Sonderling said companies had collectively sought millions of foreign workers under the employment-based immigration program and received millions of approvals.

Keith Sonderling further said, ‘Since 2009, these companies alone have demanded approximately 3 million foreign workers. They have received over 230,000 H-1B visa approvals and more than 100,000 permanent labor certifications. This meant that millions of jobs were taken away from American workers.

The administration alleges that companies have abused the employment-based immigration program to replace American workers with foreign workers. The allegations are made by US officials and the announcement cites an ongoing investigation.

What does US law say on PERM?

PERM is a labor certification process that allows an eligible US employer to sponsor a foreign worker for employment-based permanent residence (commonly known as a green card). Before certifying an application, the US Department of Labor must ensure that there are not enough qualified and available US workers for the position and that hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.