The US department of homel and security is considering the elimination of a 60-day grace period for specific visa holdersThe US department of homel and security (DHS) on Thursday released a draft proposal to eliminate the 60-day grace period, currently available to certain non-immigrant workers (such as H-1B and L-1 visa holders) following termination of employment. While the proposal covers several employment-based non-immigrant visa categories, from the perspective of the Indian diaspora, the most significant impact would be on H-1B visa holders, L-1 visa holders (those on intra-company transfers) and O-1 visa holders (this visa is given to those who are recognised for extraordinary ability).

Under the existing framework, following a layoff or other termination of employment, these visa holders are typically granted a discretionary grace period of up to 60-days, or until the end of their authorised stay, whichever comes first. The proposal marks a significant reversal of a policy DHS itself introduced in 2016.

At the time, the agency recognised that the abrupt loss of employment was not necessarily the worker's fault and that allowing highly skilled workers time to find new employment could benefit both foreign workers and US employers. The proposed rule now argues that the 60-day provision goes against the employment-linked nature of these immigration classifications.

DHS states: “The up to 60-day discretionary grace period disconnects the alien’s lawful status from the very basis of eligibility under these employment-based non-immigrant classifications.” The agency also says the earlier rule “did not sufficiently consider the negative impacts of the grace period provision.”

Notably, DHS acknowledges that scrapping the grace period would carry human and economic costs. The department says some affected workers could suffer monetarily because they would have to leave the US and subsequently seek readmission rather than remain in the country while looking for new employment.

It also acknowledges that some workers could receive Notices to Appear (NTAs) and potentially enter removal proceedings. DHS further recognises the extent to which foreign workers and their families may have put down roots in the US.

In the proposal, it notes that such workers and their dependents may have “purchased houses, paid taxes, and may have otherwise invested in the local community in reliance on the alien’s continued stay in the US.” They may also have made career and personal plans on the assumption that they could remain in legal status for up to 60 days after their employment ended while seeking a new status.