HI-B crisis sparks legal scramble for new HR solutions

Law firms and corporations are racing to tackle the human resources impact of the vexed H-1B matter, after US President Donald Trump's latest immigration crackdown threw India's $283 billion IT sector into turmoil.

- Krishna Yadav & Devina Sengupta

The new rule, which mandates that employers pay a staggering $100,000 fee for each first-time H-1B visa applicant, threatens to cost the country's top IT services companies billions of dollars and has left thousands of employees in limbo. In response, law firms across India are brainstorming on reworking termination clauses, exploring alternate visa routes, and deciding on what happens if an employee on H-1B visa quits mid-way during the US posting. IT services makes up a big chunk of India's broader IT industry.

Arka Majumdar, a partner at Argus Partners specializing in employment law, said his firm is advising companies to tie employee roles to work authorization.

"We are advising to make the role contingent on maintaining valid work authorization and allowing quick conversion to another status or remote arrangement if the visa is refused," Majumdar said. The advice also includes implementing a "variable component" in wages for remote workers, which would only be paid if and when an employee successfully transitions to a US posting.