TCS says Trump's PERM suspension won't affect US plans, targets 15,000 new hires

The US government suspended eight companies from participating in the Permanent Labour Certification, or PERM, programme. The named companies are TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe. The move forms part of a broader crackdown on skilled-worker immigration.

The suspension means the US Department of Labour will stop accepting and processing new and pending PERM applications involving these companies. PERM is normally a required labour-certification step before an employer can sponsor an eligible foreign worker for a permanent-residence green card.

The decision does not stop the companies from hiring in the United States altogether. TCS said it would follow government directives and continue focusing on local recruitment. It also said its PERM applications had been in single digits during the past two years, limiting the expected effect on its workforce strategy and client engagements.

PERM stands for Permanent Labour Certification, an important step in the US employment-based green card process. Employers generally need certification from the US Department of Labour before sponsoring eligible foreign workers for permanent residence. It connects an employer’s hiring need with the government’s review of the US labour market.

To obtain certification, an employer must establish that there are not enough qualified, willing and available US workers for the position. The employer must also show that hiring the foreign worker will not adversely affect wages and working conditions. These requirements are designed to make the hiring process structured and reviewable.

For the eight suspended companies, the Department of Labour said it would stop accepting and processing new and pending PERM applications. TCS said this should have little practical effect because its applications had been in single digits over the previous two years.

TCS plans to hire an additional 15,000 employees in the United States over the next five years. The company presented this target as part of a wider effort to expand its local workforce. It said its US workforce strategy is anchored in hiring local talent and supported by campus recruitment.

TCS also said it has built a significant local workforce across 31 offices and delivery centres throughout the country. That means the hiring plan is tied to its existing US presence, rather than being described only as a route for bringing in foreign workers. The company said it intends to further augment this local workforce.

The five-year target remains TCS’s stated plan despite the PERM suspension. The company expects the suspension not to affect that strategy materially because its PERM applications were in single digits during the last two years. It also expects no impact on customer engagements.

TCS says the suspension will not materially affect its workforce strategy or customer engagements because PERM plays only a small role in its recent hiring activity. The company reported that its PERM applications were in single digits during each of the past two years. That limits the number of cases directly affected by the decision.

The company also relies on local recruitment in the United States. TCS said its workforce strategy is anchored in hiring local talent and supported by a robust campus recruitment model. It has built a significant local workforce across 31 offices and delivery centres, giving it an established domestic hiring base.

TCS plans to hire another 15,000 people in the United States over five years. It said this goal will further expand its local workforce. TCS stated that it will comply with Department of Labour directives, while maintaining that the suspension should not disrupt its broader staffing plans or client work.

The immediate consequence is a halt in the US Department of Labour’s handling of PERM applications involving the affected companies. The department said it would stop accepting and processing both new and pending applications. This applies to the eight companies suspended from participating in the programme.

The freeze matters because PERM is generally required before an employer can sponsor an eligible foreign worker for permanent residence. Without the labour-certification step moving forward, the related employment-based green card process cannot proceed through that stage for the affected applications. The article does not give a separate timetable for the suspension.

TCS said it would comply with the US government’s directives. It also said the practical effect should be limited because its PERM applications had been in single digits over the past two years. The company plans to continue expanding through local US hiring, including 15,000 additional employees over five years.

The Department of Labour requires this showing to ensure that employment-based immigration does not disadvantage American workers. The PERM process asks employers to establish that there are not enough qualified, willing and available US workers for the position. It also examines whether the proposed hire could adversely affect wages and working conditions.

The mechanism is labour certification. Before sponsoring an eligible foreign worker for permanent residence, an employer must provide evidence supporting the job need and the potential effect on US workers. This creates a structured review rather than allowing an employer’s claim alone to determine whether the foreign hire proceeds.

The article presents these safeguards as central to the debate over PERM. Pramila Jayapal said the process is designed so foreign-worker hiring benefits the US economy without harming American workers. The administration, however, accused affected companies of abusing the visa system at American workers’ expense.

Employer-sponsored immigration programmes connect global technology companies with foreign skilled workers who may fill roles in the United States. PERM is a key labour-certification step before an employer can sponsor an eligible foreign worker for an employment-based green card. It therefore links company staffing decisions to a permanent-residence pathway.

The mechanism includes a labour-market test. Employers must show that enough qualified, willing and available US workers are not already available for the position. They must also establish that hiring the foreign worker will not adversely affect wages and working conditions. These safeguards are intended to balance business hiring needs with protections for US workers.

The article shows the dispute through the suspended companies and political responses. The administration alleged that companies abused the visa system at American workers’ expense. Jayapal defended PERM’s safeguards, while JD Vance challenged her defence of major technology companies. TCS emphasized local hiring and a plan for 15,000 additional US employees.