The US department of homeland security has put spotlight on Infosys, India?s second largest IT exporter, for likely errors in employer eligibility documents of its employees working in the US, prolonging its season of woes. Infosys, on Monday, said it is confident that it will come out unscathed in this case as there was no discrepancy.
?The US department of homeland security (DHS) is undertaking a review of our employer eligibility verifications on Form I-9 with respect to our employees working in the US,? Infosys said in its filing to the US Securities and Exchange Commission on April 18. ?In connection with this review, we have been advised that the DHS has found errors in a significant percentage of our Forms I-9 that it has reviewed,? the company said adding that if the DHS finds errors it will be subjected to fines and penalties.
However, the firm noted that it is currently unable to ?estimate the range of loss that we could incur from unfavorable outcomes in such matters.?
?In the event that any government undertakes any actions which limit any visa programme that we utilise, or imposes sanctions, fines or penalties on us or our employees, this could materially and adversely affect our business and results of operations,? said Infosys in its SEC filing. Infosys? share price declined by 3.92% on Monday at the Bombay Stock Exchange closing at Rs 2,311 a share.
A senior official of the company on condition of anonymity said once the court starts scrutinising documents they will not find any discrepancy.
The company informed that on May 23, 2011, it received a subpoena from a grand jury in the US district court for the eastern district of Texas. The subpoena required Infosys to provide certain documents and records related to its sponsorships for, and uses of, B-1 business visas.
Last year, in November, federal judge Myron Thompson ruled on that former Infosys employee Jack Palmer?s lawsuit ? alleging visa abuse by the company ? will remain in the courts.
Palmer, who has been working with Infosys since 2008, had filed a complaint with the Alabama State Court last year in February that Infosys has been using the cheaper B-1 visa programme to send lower-level and unskilled employees to the US for long-term work instead of H-1B, the appropriate visa for such work. H1-B visas are more expensive and difficult to get, compared to B-1 visas, which are issued to business visits.
Palmer had alleged that while being employed as an Infosys consultant, he uncovered evidence of fraud in the procurement of H-1B visas for speciality workers. He believed that Infosys improperly asked employees to write ?welcome letters? for unskilled workers. Palmer asserts that, upon reporting this information to his supervisors and Infosys? ?whistle blower team?, he was subjected to various forms of harassment.