Fri, 1 Jul 2011

Companies flout visa laws at their peril

Global payroll professionals that fail to meet strict visa legislation risk penalties that can cause irreparable business damage, an immigration solicitor has warned.

The caution comes after US authorities announced they are investigating Indian software giant Infosys for allegedly breaching immigration laws by buying cheaper, short-term visas than those required for its staff.

Anne Morris, immigration solicitor at Davidson Morris Solicitors, said the case highlighted the serious consequences of making errors in international assignments. ‘The Infosys case sends out a message to companies with global operations that you have to be careful when making informed choices about the types of visas you’re putting people on,’ she said.

‘If Infosys is fined, it will be a huge fine, and any fine is money off a company’s profit margin,’ she said. ‘Breeched rules might result in you being barred from future opportunities, and the adverse publicity would be awful.’

Infosys is being investigated for its use of the US B-1 visa, issued for short-term business assignments, after a former employee filed a lawsuit alleging they were misused. The claimant said work undertaken by Infosys employees required an H-1B visa, which covers high-skilled workers for longer periods. These visas take months to process and cost from $3,000 (£1,850), compared with the B-1 visa, which is issued in days and costs $140 (£86).

Morris, who spoke about the case during last month’s Activpayroll Conference in Aberdeen, said payroll and HR managers can make visa errors if given inaccurate details of employees’ roles.

Infosys declined to comment on the case.