The Ministry of Labour and Employment & Training (“MLET”), vide its office memorandum dated 8 September, 2009, has imposed restrictions on the issue of Employment Visas (“EVs”) to highly skilled and professionals foreign nationals (“FNs”). These guidelines restricted the hiring of FNs to the extent not exceeding 1% of the total number of workers working on a project, with a minimum of five workers and a maximum of twenty workers (“FN worker quota”). MLET later revised the said guidelines on 22 December, 2009 wherein the ceiling of FN hiring was enhanced to 40 for the steel and power sector until June 2010. Following a press release dated 24 May 2010, the Ministry of Home Affairs (“MHA”) abolished the said limits for Information Technology (“IT”) software and the IT enabled services sector provided the concerned sponsored FN is drawing salary exceeding USD 25,000 per annum.
The MHA has now released further clarifications by revising the FAQs in respect to the ceiling applicable on the issue of EVs. In answering question no. 5 of the FAQs, it has been clarified that:
1. the FN worker quota restriction will no longer be applicable provided the sponsored FNs are drawing salary in excess of USD 25,000 per annum.
2. this income limit of US 25,000 per annum will not apply to ethnic cooks, language teachers (other than English language teachers), translators and staff of Embassies/High Commissions in India.
3. the earlier guidelines issued on this subject by MLET will no longer apply.
Conclusion- Considering the hardship faced by various sectors, the removal of a quota limit for hiring FNs is a welcome step and will help Indian companies to invite high-skilled FNs to meet their requirements. Further, fixing the minimum wage limit of USD 25,000 per annum for the issue of EV will help to control the influx of unskilled and semi-skilled workers into India.
