Thousands of foreign workers in the United States, particularly Indian H-1B visa holders, could face greater uncertainty after losing their jobs if the government moves ahead with a proposal to remove the existing 60-day grace period.

The Department of Homeland Security is considering ending the window that currently allows certain foreign workers to remain in the US for up to 60 days after their employment ends. During this period, workers can search for a new employer, seek a change in immigration status or make arrangements to leave the country.

The proposal could have a significant impact on Indian professionals, who accounted for around 71 per cent of approved H-1B petitions in the 2024 fiscal year, according to US Citizenship and Immigration Services data.

What is the H-1B 60-day grace period?

The current rule gives eligible H-1B workers and certain other visa holders up to 60 days after losing or leaving a job to find another employer willing to sponsor them.

Workers can also use the period to explore a change of immigration status or prepare to depart the US.

If the grace period is eliminated, employees who suddenly lose their jobs could have considerably less time to secure another position and complete the necessary immigration paperwork.

Why are experts concerned?

Immigration experts and advocates have criticised the proposal, arguing that 60 days is already a limited period for skilled workers to find new employment and complete visa transfer procedures.

Ajay Jain Bhutoria, a former White House adviser, said removing the grace period would create significant difficulties for legal immigrants who contribute to the US economy and technology sector.

He has argued that the government should instead consider extending the period to 180 days, noting that recruitment, interviews and immigration procedures can take several months.

Bhutoria has also urged community groups, business leaders and advocacy organisations to submit comments if the proposal is formally published for public consultation.

What about start-up founders?

The change could also affect H-1B workers who leave established companies to launch businesses of their own.

Attorney Adrian Pandev said the existing grace period can give workers time to pursue a change in status while setting up a new company. Removing that flexibility could force some employees to secure immigration arrangements before leaving their current jobs.

That could create challenges for both workers and employers, particularly when employees need time to complete visa-related procedures.

Why Indian workers could be hit hardest

Indian nationals make up the largest share of H-1B beneficiaries and are heavily represented in the US technology, engineering and healthcare sectors.

Experts warn that eliminating the grace period could create financial pressure for families, disrupt children’s education and leave skilled professionals with little time to secure alternative employment.

The proposal has therefore sparked calls for the DHS to reconsider the move and potentially extend the grace period rather than eliminate it.

For now, the change remains a proposal. Any final rule would have to go through the US regulatory process before taking effect.