HighLights
  1. US suspends PERM for 8 major tech companies.
  2. PERM is a step towards US permanent residency.
  3. H-1B is a temporary work visa, not green card.

PERM vs H-1B Visa: The United States has suspended eight major technology companies, including Microsoft, Tata Consultancy Services (TCS), Infosys and Wipro, from a key green-card programme known as PERM. The move is seen as a setback for many Indian technology professionals seeking permanent residency in the US, with many comparing its impact with the H-1B visa programme.

However, the Ministry of External Affairs (MEA) on Friday clarified that the PERM programme and H-1B visas are separate, meaning the suspension does not automatically affect the validity of existing H-1B visas.

This has further raised questions about the difference between Permanent labor certification program (PERM) and the H-1B visa programme.

What Is PERM?

PERM is a process used by the US Department of Labor (DOL) to help employers hire foreign workers for permanent jobs in the US. According to the US Department of Labor, under this process, an employer must generally show that there are no suitable American workers available for the job and that hiring a foreign worker will not negatively affect the wages and working conditions of American workers.

The employer files a labour certification application, usually through Form ETA-9089. If the application is approved, the employer then moves to the next step, which is filing an immigrant petition with US Citizenship and Immigration Services (USCIS). While PERM is not a visa or a green card itself, it is an important step in the process of helping eligible foreign workers obtain permanent residency in the US.

After this step, workers must meet the requirements of the relevant green-card category and may have to wait for a visa number to become available. However, not every employment-based green-card application requires PERM.

ALSO READ: 'Deeply Offensive': India Hits Back At JD Vance's Remarks On H-1B Workers, Says PERM Move Undermines Shared Goals

What Is H-1B Visa?

On the other hand, the H-1B visa allows US employers to hire foreign workers temporarily for jobs that require specialised knowledge and usually at least a bachelor's degree in a relevant field. These jobs can include positions in technology, science, medicine and other specialised areas. An H-1B visa is generally granted for an initial period of up to three years and can usually be extended to a maximum of six years, subject to applicable rules.

The programme has an annual limit of 65,000 regular places, along with an additional 20,000 places for eligible workers with advanced degrees from US institutions. However, an H-1B visa only allows a person to work temporarily in the US. It does not automatically give them permanent residency or a green card.

What Is The Difference?

The main difference is that H-1B is for temporary employment, while PERM is a step towards permanent residency. An H-1B visa allows a foreign professional to work legally in the US for a limited period. PERM, on the other hand, helps an employer begin the process of sponsoring an eligible foreign worker for a green card.

The two programmes are confused as an H-1B visa can help foreign workers begin the process of obtaining permanent residency in the US. Under this route, an employer can sponsor an H-1B worker for a green card by starting the employment-based immigration process. This step often involves obtaining PERM labour certification.

The latest suspension has raised concerns as it can create difficulties for Indian technology professionals whose employers need PERM labour certification to move forward with their green-card applications. Their plans to obtain permanent residency can get delayed or affected, depending on the status of their applications.

ALSO READ: US Green Card: How Indians Can Apply? Benefits, Eligibility And Application Process Explained

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