US Plan May End 60-Day Grace Period for Laid-Off H-1B Workers
- The US Department of Homeland Security is considering a proposal to eliminate the 60-day grace period for H-1B visa holders after job loss.
- Indian IT professionals, who form the largest chunk of H-1B recipients, would be the most affected.
- If the plan is enacted, laid-off workers would have to leave the US immediately or face deportation, impacting both employees and US tech firms.
- The proposal, reportedly under review, has sparked concern among immigration advocacy groups and Indian tech bodies.
Grace Period Under Scrutiny
The US Department of Homeland Security (DHS) is reportedly weighing a proposal that would scrap the 60-day grace period currently granted to H-1B visa holders after they lose their jobs. If implemented, the change would force foreign workers, including a large number of Indian tech professionals, to either find a new sponsor immediately or leave the country.
The proposal, first reported by Bloomberg Law, signals a major shift in how the US handles employment-based visas during periods of economic uncertainty. Under the current rules, H-1B workers have two months to search for a new employer, transfer their visa, or pack up and depart. That cushion could soon vanish.
Impact on Indian Tech Workers
Indians are the biggest beneficiaries of the H-1B programme, accounting for nearly 70-75% of all visas issued each year. A sudden removal of the grace period would leave thousands of professionals in a precarious position—many of whom have families, mortgages, and children in US schools.
Indian IT firms such as Infosys, TCS, and Wipro, which deploy thousands of engineers to the US on H-1B visas, are closely watching the developments. The change would also affect US tech giants like Google, Microsoft, and Amazon, who rely heavily on foreign talent for engineering and product development roles.
What the Proposal Entails
According to the reports, the DHS is reviewing whether the 60-day window is still necessary, given the rise of remote work and the availability of global talent. Some officials within the Trump administration have argued that the grace period is too generous and allows foreign workers to stay in the US longer than needed after employment ends.
Critics, however, say the move is short-sighted. Immigration attorneys and tech industry bodies have pointed out that the grace period is not a luxury but a necessity—it allows for an orderly transition, prevents sudden disruptions in ongoing projects, and gives workers a fair chance to secure new roles without being penalised for circumstances beyond their control.
Reactions from Stakeholders
The proposal has already drawn sharp reactions from advocacy groups and Indian diaspora organisations. Many argue that eliminating the grace period would turn the H-1B visa into a ticking clock, where any layoff becomes an immediate deportation threat.
Tech industry associations in the US have also voiced concerns, noting that the change could make the US less attractive to global talent. Some have even suggested that it could push more companies to move operations to Canada or other countries with more flexible immigration policies.
What Happens Next
The proposal is still in the review stage, and no formal rule has been published yet. The DHS would need to go through a public comment period before any change takes effect, which could take months. However, the very fact that it is being considered has sent a chill through the H-1B community.
Indian professionals and tech firms are now bracing for a possible scenario where the 60-day grace period is reduced to zero or a token few days. With the US presidential election cycle in full swing, immigration is once again becoming a political football—and H-1B workers, who have long been a target of restrictive policies, are feeling the heat. For now, all eyes are on the DHS's next move, and on whether the proposal survives the regulatory process or gets shelved after public backlash.