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What is H1 B bill and Its Impact on Indian Industry

22 Apr, 2017 by Admin / Category: Uncategorized

Donald Trump wanted to end the misuse of visas. A bill called H1B in the US has been reintroduced in the US by two lawmakers. This bill allows skilled workers from other countries to fill jobs in the US. It came after companies like SoCal Edison, Disney and others have criticized it excessively.

Let us have a look at its purpose:

What is H1 B visa?

It is a non-immigrant visa to employ skilled workers from other countries for the specialized field of occupation for a specific time.

Defining H1 B program bill

There are few things that come under this bill:

It prohibits companies to employ more H1-B employees if have 50 people and more than 50 percent of their employees already under this visa or L-1 holder.

It prohibits the replacement of American workers with H1-B or L-1 holders.

It seeks to build the minimum salary of H1-B visa holder to $100,000 per annum.

Through this, the Department of Labor enhanced the authority to review. It can also investigate and penalize fraudulent or abusive conduct.

It encourages companies to recruit American workers. The provision will reduce a large number of H1-B and L-1 workers that come for short training periods and will send them back to their home countries.

The companies do not have to go lengthy paperwork if the H1-B employee has an equivalent degree of Masters or higher. Moreover, he or she will be paid at least $60,000 annually.

Any employee who wants to work in the US will have to apply for H1-B visa petition with the US immigration department. This has been the most coveted visas as in 2016, the department received 2,36,000 petitions within five days of opening this bill. It will remove the ‘per country’ cap or equal distribution for better employment. It also restrains spouses of H1-B holders from working the US. The H1B news was published in most of the local and international newspaper as it had much importance.

Effect on Indian Industry

The Indian IT industry has been affected by the decision as the number of people going to the US for work will be reduced. However, the root cause of the problem, which is STEM (Science Technology Engineering and Math) has not been dealt well. The high-skilled IT workers working temporary visas earn competitive salaries and cost similar to that with the American counterparts. Apart from the visa curb, the US recently increased the visa fee for certain categories. You can check various NRI websites that mentioned the impact of this on Indian industry.

Mr. Trump promised said that he believes in buy American and hire American policy. Further, he included that years ago we use to take pride in buying things made in America but now this has changed. And Americans love their country but once they go out they change their minds. This bill has hit a major section of the workforce from India and other countries that visit the US. Indubitably certain decisions will have an adverse effect on countries like India. 

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Dts good
By Alen John On 05 May, 2017
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