The Union Ministry of Labour & Employment & Training has recently issued revised guidelines in relation to Employment Visa's ("EV") issued to foreign nationals. The guidelines are intended to stem the influx of unskilled labour into India, thereby giving the Indian workforce a greater chance for employment opportunities. The gist of the guidelines is to restrict the issuance of EVs to 1% of the total number of workers working on a project with a minimum of five workers and a maximum of twenty workers, except in the case of the power and steel sector. In the case of the power and steel sector, the maximum limit has been temporarily increased to forty workers till June 2010.
This change in process is causing consternation amongst companies concerned with staffing needs whilst bearing in mind the quota restrictions. The application process is also being tightened up with much more information required to be divulged to the Indian High Commissions and Embassies/Consulates abroad. There is no clear indication that this quota system is meant to apply only to specific sectors or certain categories of workers. Further clarifications are expected by the Indian Government to answer these queries and streamline the process.
On the flipside, communication from the Indian Government suggests that rules may be relaxed that prohibit foreigners on B-visas from working in India for the multi billion dollar IT sector that requires foreign expertise to operate smoothly. Observing some merit in the demands of the IT industry, the Indian Government is in the process of streamlining activities such as training which would allow foreign nationals on B-visas to work for short periods even without permits.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.