Microsoft buyout offer: Will taking the exit package mean H-1B visa workers may have to leave the country?

A paid departure can offer breathing room between jobs. It can provide some amount of satisfaction that people may at least be getting financial support before they have to leave their jobs. For a US citizen, this may look like a bittersweet deal but for an employee working in the United States on an H-1B visa then the scenario may be different. This is because Microsoft may be taking care of employees' finances for a month, but for some it can challenge their living status and immigration permission are different things.

According to a report by Newsweek, nearly 60,000 employees across four countries are eligible to consider leaving, although the company has not said how many will accept. Visa-dependent workers must weigh the package against what happens when their employment ends. Their decision could affect family plans as well as their next job.

Who qualifies for the Microsoft buyout offer?

Microsoft announced its Voluntary Exit Offer on October 26. It covers eligible employees at level 70 and below within participating organizations.

Microsoft’s exit packages are not just for the US but employees from the United Kingdom, Canada and India are also included. While the eligibility for this offer will be decided according to the team they belong to, Microsoft has said that employees who will be qualified will be receiving separate offers on their emails.

The 60,000 figure mentioned in media reports is about how many employees are eligible to take the Microsoft buyout offer and it doesn’t mean all of them are going to opt for departures. However, the company has not yet disclosed how many eligible employees hold H1-B status, according to a report by a Newsweek.

What do Microsoft exit packages provide?

The packages resemble Microsoft’s standard severance, according to GeekWire. They include base pay linked to tenure and level, alongside continued stock vesting. Temporary healthcare coverage and career transition services are also included.

Employees reportedly have until early December to decide. Those accepting are expected to leave at year-end.

For visa holders, the key question is when employment legally ends. Receiving severance should not be assumed to extend H-1B status. Workers need their departure arrangements reviewed before relying on continued payments as evidence of employment.

How could accepting affect H-1B workers?

USCIS guidance covers employment ending voluntarily or involuntarily. Eligible employees who hold the H-1B visas and are out of jobs may get a discretionary period of up to 60 days or till their authorized validity expires, whichever may come first. During this period, they need to find another job so their new employer may file a petition for them to qualify to stay in the country. Some workers can try to pursue another eligible immigration status instead.

Workers who fail to file the qualifying status or are disqualified due to some other reason will have to leave the country. Taking Microsoft’s voluntary buyout doesn’t extend their allowed period to stay in the country or their immigrant status.

Is the 60-day grace period changing?

The Department of Homeland Security has proposed eliminating it. But, currently it is still a proposal and the public comments remain open till November 10.

So employees who are planning to take the exit package on the last date need to check the rules before accepting it.

Why does the PERM suspension matter?

The administration has separately suspended Microsoft from the PERM labor certification program, which supports certain employment-based green-card applications.

PERM and H-1B are different so suspension for one doesn’t mean that the H-1B status of employees are also cancelled. However, change in the PERM status of the company may mean problems arising for workers who want to take up permanent residency in the country.

Before accepting Microsoft’s buyout offer, workers should ask an immigration lawyer about how their departure from the company will affect their case. A spouse’s dependent status may also need review.

FAQs

Does eligibility for buyout mean an employee must leave?

No. Microsoft describes the offer as voluntary.

Does severance guarantee extra time in the U.S.?

No. Payment duration and immigration permission are separate questions.