US proposes scrapping 60-day H-1B grace period, Indian tech workers could face immediate exit
US Proposes Scrapping 60-Day H-1B Grace Period, Leaving Indian Tech Workers Facing Immediate Exit After Job LossAI

The Donald Trump administration has proposed ending the 60-day grace period currently available to H-1B visa holders and certain other foreign workers who lose their jobs in the United States.

The proposal, announced by the US Department of Homeland Security (DHS), could particularly affect Indian technology professionals, who make up a large share of H-1B visa holders in the US.

Under the current rules, an H-1B worker who loses their job can stay in the US for up to 60 days or until the end of their authorised stay, whichever comes first. During this period, they can look for another employer willing to sponsor their visa or make arrangements to leave the country.

If the proposed rule is finalised, workers could be required to leave the US when their employment ends, instead of getting the 60-day window to find another job.

The 60-day grace period was introduced in 2017 to give foreign workers time to deal with unexpected job losses. It also allows them to manage practical issues such as housing, travel and their children's schooling before leaving the country.

Why Indian workers could be affected

H-1B visas are widely used by technology companies and other businesses to employ highly skilled foreign professionals. Indian professionals form a major portion of H-1B beneficiaries, making the proposed change particularly important for India's IT workforce.

Major Indian IT companies, including Tata Consultancy Services, Infosys, HCLTech and LTIMindtree, are among significant H-1B sponsors. US consulting companies such as Deloitte, PwC and Ernst & Young also employ foreign professionals through the programme.

For an Indian worker who suddenly loses their job, removing the grace period could make it much harder to find a new employer and complete the required immigration process before having to leave the US.

Other visa holders could also be affected

The proposal is not limited to H-1B workers. It could also affect people holding E-1, E-2, E-3, H-1B1, L-1, O-1 and TN visas, along with certain dependants.

The US government has argued that removing the grace period would bring immigration status more closely in line with employment and reduce the administrative burden of managing the grace period. Critics, however, say the change could create serious difficulties for workers and families who have built their lives in the US.

Proposal is not yet final

The change has not yet become law. The proposal will go through a public comment period of around 60 days before the DHS decides whether to issue a final rule. It would only take effect after the final rule is issued and an implementation date is set.

If approved, the move would significantly reduce the safety net available to foreign workers who suddenly lose their jobs in the US, with Indian technology professionals likely to be among those most affected.