U.S. restricting visa programmes panics Infosys
By siliconindia   |   Thursday, 19 May 2011, 22:06 IST   |    16 Comments
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U.S. restricting visa programmes panics Infosys
Bangalore: Infosys is crossing its fingers and praying hard so that U.S. does not bring in any strict action on its B-1 visa, H1B visa, and other visa programmes as the company has said its business could be adversely affected if the U.S. decides to restrict the visa programme as a fallout of its lawsuit against its ex-employee Jack Palmer. After Jack Palmer brought to the notice of the U.S. authorities about the misusing of the visas, the existing visa laws in U.S. is under scrutiny. There are possibilities of news rules and legislations by the U.S. government regarding the outsourcing of projects, wages and work visa holders at client locations. "In the event that the U.S. government undertakes any actions which limit the B-1 business visa programme or other visa programme that we utilise, this could materially and adversely affect our business and results of operations," Infosys said in a filing to the U.S. Securities and Exchange Commission (SEC). The law suit has turned out to be a bad omen for Infosys as Infosys said legislation in certain countries, including the U.S. and the UK, could restrict outsourcing work to Infosys or limit its ability to send employees to the client sites. In the light, of the lawsuit filed by Jack Palmer, a U.S. senator submitted a letter to U.S. Secretary of State and Secretary of Homeland Security, requesting to review the B-1 business visa programme and investigate the manner in which it is being utilized by companies, including Infosys. In a 13-page complaint filed before an Alabama Court early this year, Jack Palmer alleged that Infosys sent lower level and unskilled foreigners to the U.S. to work in full-time positions at its customer sites in direct violation of immigration laws. Palmer, who says he worked for Infosys as "Principal - Enterprise Solutions" since August 2008, alleged that the company was paying these employees in India for full-time work in the U.S. without withholding federal or state income taxes, and overbilled customers for the labour costs of these employees. After the federal government restricted the H-1B programme in 2009, Palmer claimed he was sent to Bangalore for planning meetings. "During one of the meetings, Infosys management discussed the need to, and ways to, 'creatively' get around the H-1B limitations and process and to work the system in order to increase profits and the value of Infosys' stock," he said. "The decision was made by management to start using the B-1 visa program to get around the H-1B restrictions," Palmer alleged. Palmer also alleged that Infosys managers in the U.S. and India asked him to write false welcome letters, and he refused. On July 1, 2010, he claims, he "was asked to join a conference call in regards to his refusal to write the welcome letters during which call plaintiff was chastised for not being a team player."

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