Infosys' H-1B visa misuse: US court denies arbitration in Palmer case

In a major setback to IT bellwether Infosys, a US court has denied arbitration in the visa case filed by employee Jack Palmer against the software major.

Palmer had earlier alleged Infosys was misusing H1B visa norms by sending low-level and unskilled employees to the US on B1 visas instead,which are typically used for short-term business travel. Infosys was illegally sending employees from India to the US to work in full-time posts at its customer sites against the immigration laws.

Palmer had initially filed a whistleblower complaint and thereafter a case in a civil court in the US.

The judgment was delivered on late Wednesday in the US with the court ruling that there has to be clear and unmistakable intent from both sides to go through arbitration, reports CNBC TV 18’s Sunanda Jayaseelan.However, in this case there has been no clear intent.

The court also goes on to say that there is no reasonable justification for this lack of mutuality and that Infosys is in a better bargaining position as an employer.The court has denied Infosys to compel arbitration.

Palmer, who has been working with the company since 2008, further said that Infosys managers in the US were intentionally committing fraud to avoid paying taxes locally and that the company mistreated him when he filed a complaint as part of the whistleblower policy.

The H-1B visa progamme, the holy grail of skilled work-based migration to the US, provides more than 10,000 Indians temporary employment rights and a shot at permanent residence there.

“In the course of his employment, my client realised that Infosys was violating the law with respect to B-1 visas, but he also determined that many of the H-1B visa holders don’t have the specialised talent that is needed,” Kenny Mendelsohn, the attorney handling the case against Infosys, had told Firstpost earlier.

Speaking to ET Now on the matter, Infosys CFO, Balakrishnan said, “We have to go through legal process. It is too early to comment. We will go through the process and see where it ends.”

“Mr Palmer is not alone. There are two more whistle-blowers supporting the violations that he reported. The federal government is also investigating Infosys,” Mendelsohn told Firspost on 9 September.

After the first two complaints, Infosys relocated its head of human resources, Nandita Gurjar, to US. This time, the complaint has come from the Infosys’ human resources department in the US. Infosys’ head of immigration compliance Eshan Joshi was also asked to go on a sabbatical ever since the whistleblower complaints at Infosys have become public knowledge.

This case could cost Infosys millions since it relates to hampering the plaintiffs ability to work, emotional distress and legal misrepresentation.

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