US green-card freeze at 8 IT firms: Sridhar Vembu urges Indian techies to return, Dharmendra Pradhan backs appeal

What happened to green-card sponsorship processing at the eight named technology companies?

The US Labour Department suspended the eight companies from the Permanent Labour Certification Programme, known as PERM. As a result, the department will not accept new or process pending PERM-based labour certification applications involving them. This matters because PERM is generally needed before an employer can sponsor an eligible foreign worker for US employment-based permanent residency.

The affected companies include TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe. The department linked the suspensions to multiple ongoing federal investigations. Employees pursuing permanent residency may therefore face delays or uncertainty about their long-term plans.

The suspension does not automatically stop H-1B applications under existing rules. It also does not mean workers lose existing H-1B visas or green cards. However, companies may need to reconsider long-term workforce plans while the investigations and PERM suspensions continue.

Which eight technology companies were suspended from the US Permanent Labour Certification Programme?

The US Labour Department suspended eight companies from the Permanent Labour Certification Programme. Four are Indian IT services companies: Tata Consultancy Services, Infosys, Wipro and HCLTech. The other companies are Cognizant, Capgemini, Microsoft and Adobe.

The suspension means the department will not accept new or process pending PERM-based labour certification applications involving these employers. PERM is generally a required stage before an employer can sponsor an eligible foreign worker for employment-based permanent residency in the United States. The department linked the action to multiple ongoing federal investigations.

The decision affects workers seeking long-term status and companies planning their future workforces. It does not automatically stop H-1B applications under existing rules, and the article does not say that existing H-1B visas or green cards are being withdrawn. The practical impact is concentrated on PERM-related green-card sponsorship processing.

What is PERM, and why is it usually required before an employer can sponsor a foreign worker for a US employment-based green card?

PERM stands for the Permanent Labour Certification Programme. It is a labour certification process that employers generally must complete before sponsoring an eligible foreign employee for US employment-based permanent residency. The process matters because it connects foreign-worker sponsorship to the availability of qualified workers in the American labour market.

Typically, an employer advertises the job, considers applicants and documents why qualified US workers were not selected. If the Department of Labor approves the certification, the employer can then file an immigration petition with US Citizenship and Immigration Services. PERM is therefore an employer-led step, not the green card itself.

For the eight suspended companies, the Labour Department will not accept new or process pending PERM applications. That creates uncertainty for employees pursuing permanent residency. It does not automatically stop H-1B applications or cancel existing H-1B visas and green cards under the rules described in the article.

What happens to new and pending green-card applications connected to the suspended companies?

The US Labour Department will not accept new PERM-based labour certification applications involving the suspended companies. It will also not process applications that were already pending. Since PERM is generally an early requirement for employment-based green-card sponsorship, affected cases cannot move through that labour-certification stage while the suspension applies.

For example, an eligible foreign employee at one of the companies may have been waiting for the employer’s PERM application to be reviewed. That application is now affected if it is new or pending. The employer cannot use an approved PERM certification to move forward until the relevant process resumes or another permitted route applies, which the article does not specify.

The immediate consequence is uncertainty for employees pursuing permanent residency and for company workforce planning. The suspension does not automatically stop H-1B applications. It also does not mean employees lose existing H-1B visas or green cards.

How is a PERM-based green-card process different from the H-1B visa process?

A PERM-based process is connected to employment-based permanent residency, commonly called a green card. It usually requires an employer to complete labour certification before filing an immigration petition. The process examines whether qualified US workers were available for the advertised position and documents the employer’s recruitment results.

An H-1B visa, by contrast, enables employers to recruit eligible foreign workers for specialised occupations under the programme’s existing rules. The article describes it as a work-visa programme, while PERM is a labour-certification step for permanent-residency sponsorship. The two processes can therefore serve different stages or goals in a worker’s US employment journey.

The current suspension affects new and pending PERM applications at eight companies. It does not automatically stop H-1B applications, cancel existing H-1B visas or remove existing green cards. The article also notes that the H-1B programme faces increased scrutiny and allegations of fraud from the US vice president.

Why does the US Labour Department require employers to advertise jobs and show that qualified US workers were not available before approving PERM certification?

The Labour Department requires recruitment evidence because PERM is tied to employment-based permanent residency. Before approving certification, it generally wants an employer to show that the foreign worker is not being sponsored for a role that qualified US workers could fill. This makes the employer’s hiring decision part of the certification process.

The employer generally advertises the job, considers applicants and documents why qualified US workers were not selected. The Department of Labor then reviews the certification request. If it approves the application, the employer can file an immigration petition with US Citizenship and Immigration Services. The article presents this as the usual sequence.

The requirement also explains why the suspension matters to affected companies and employees. Without Labour Department processing, new and pending PERM applications cannot advance through this stage. The article links the suspensions to multiple federal investigations but does not provide details about those investigations or their expected duration.

What is the difference between a temporary work visa, permanent residency, and citizenship in the US?

A temporary work visa allows a foreign national to work in the United States for a limited period and under defined conditions. The H-1B programme described in the article is an example of this category. It enables employers to recruit eligible foreign workers for specialised occupations, but it is not itself permanent residency or citizenship.

Permanent residency, shown by a green card, allows a person to live and work in the United States on a long-term basis. The article connects PERM to employment-based permanent residency. PERM is a labour-certification step, not the green card itself. After approval, an employer can file an immigration petition with USCIS.

Citizenship is a separate status that generally provides full membership in the country, including voting rights and a US passport. The article does not discuss citizenship or the naturalisation process. It does state that the suspension does not automatically remove existing H-1B visas or green cards.

Key Facts:

📌 PERM processing was suspended for eight technology companies.

📌 New and pending PERM applications involving them are halted.

📌 Existing H-1B visas and green cards are not automatically cancelled.

📌 TCS, Infosys, Wipro and HCLTech are on the list.

📌 Cognizant and Capgemini were also suspended.

📌 Microsoft and Adobe complete the eight-company list.

📌 PERM is generally required before employment-based green-card sponsorship.