Just today morning in my previous post, I wrote about Google backing the increase in quota for H1B visas even after the the warning received from US Senators regarding the abuse of H1B visas by Indian companies. Guess what, Patni Computer Systems, one of the top 5 software companies have proved the Senators right ! They abused the H1B visa for highly skilled by underpaying hundreds of employees in tune of 2.4 million Dollars.
The crime
The investigating officers from US Government found that 607 employees hired by Patni in year 2004 and 2005 were not paid the minimum prevailing local wages at that time. There is a strict rule under H1B program that workers under highly skilled category have to be paid the prevailing wages.
The reason
The reason given by the company spokesman Jason Ouellette, was that , “the wage violation was due to accounting error”!
Do you really want people to buy that kind of reasoning ?
The Punishment
Patni has to call upon all its 607 employees, and pay them the prevailing rate, failing which they will be banned from H1B Visa program. Patni has agreed to do it.
Conclusion
Patni Computer system has been long known for its low salary structure. I have personally spoken to quite a few Patni employees who have cribbed about how badly they pay. However, in every area there are exceptions and most of the Indian offshoring companies pay much better wages in US under H1B program. I still believe that if US has to stay competitive, it has to increase the existing H1B quota of 65000 visas.
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Author: Arun Prabhudesai
Arun Prabhudesai is founder / chief editor at trak.in. He jumped the Entrepreneurship bandwagon in early 2008 after a long 13 year stint in I.T Industry. You can follow him on twitter @trakin or get in touch with him at admin-at-trak-dot-in or 91.9822575676.Related posts:
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{ 25 comments… read them below or add one }
Do you really believe that American IT *really* needs to be *saved* by Indian IT workers? Do you *really* believe that Indians are superior to their American counterparts? I’m just curious. I’ve been reading trak.in and I really hope I’m wrong here — but I’m getting the impression that you believe Indians to be superior to American workers. Not just superior IT skills but that Indian culture is also superior.
I don’t consider ethnicity at all when I judge a persons skill…
So what have I misinterpreted?
I don’t know how the others have managed. The abuse of H1b by Indian Companies is a long story. They are clogging the roads to US for a lot of people who actually deserve to go there.
Shubham, Thanks for your comments and yes, I second your opinion.
Jim – you are getting me wrong here *completely*. If your response was based on my last sentence “I still believe that if US has to stay competitive, it has to increase the existing H1B quota of 65000 visas”, it purely meant that US companies are finding shortage of IT workers in US, and hence if they have to stay competitive, they have to increase the quota.
Can you tell me a place where I have said *Indian IT* workers are superior to *American IT* workers- I have not because I do not believe so. I just came across an article yesterday that “Americans are 10 times more productive than Indian workers” , although I do not agree the difference to be that much, I would agree it in certain parts.
Here is the quote from that post –
About culture, India and America has huge differences. I do believe that India has a more family oriented and conservative culture. It necessarily does not mean that one is superior than the other.
Ah very good. Glad I misread or misinterpreted your posts. I’m just fairly sensitive when it comes to the H1B Visa and other immigration issues. Hope I didn’t offend you…
Did any of the Patni employees receive the money. I think Patni will come up with 100 clauses to pay that money and wont even contact the employees who already left Patni.
These things might be a cakewalk for Indian IT companies :)
Thanks Newsseeker for your comment.
I doubt if any of the Patni employees recd. the money. The audit has just happened and it may take months if not years for the formalities and stuff. I do not see anyone getting any money for at least 6-8 months from now….
Greetings to the author of this page. Nice site, keep up the good work diana zubiri
I agree with newsseeker and traking…am one of those lucky ! 607 Patni employees…have already updated my WILL so that my grand kids can followup to collect grandpa’s wages….if at all Patni fails in playing finance and accounting games…
Dear Patni-ite…I hope you get to see your grand kids collect your wages :) I, highly doubt Patni will ever release these payments
I am sorry to say but Patni proved most of us wrong by calling/contacting few ex employees to give them cheques (Oh yeah I really dont know when they will actually give them but atleast they contacted). But some them even got a meagre amount of $600. Hats off to Patni
Newseeker, If thats true – I am very happy for those like Patni-ite. That means they have hope ! I am happy to be proven wrong in this case. Any amount- however small it may be is a bonus. Something that none of them were expecting.
Can similar operation can be started for Europe, I think Patni is underpaying their employees in Europe too
Hemant, This particular audit was actually undertaken by US government based on the numbers that Patni provided to them (Which is compulsory in US). Firstly, one has to see if in Europe there is any legal binding for a software company to pay above some minimum requirement. If it is there and there is a proof available that Patni is paying less than off course you can take some kind of action…
I recently heard that Patni was keeping tax returns from their employees as well….Do they generate revenue by just doin this as well as underpaying their employees !!?
.. whom should I contact to report the issue regarding wages paid to L1 employees, in Patni their is “HUGE” difference in the wages paid to H1 and L1 employee. If you think H1 employees were paid less, then you can’t even imagine how much L1 employees are paid.
.. any direction (to the appropriate Senators.. if you will) would be big help.
I came from Patni Noida(INDIA) and I worked for Patni in Chicago for 6 months…and I was never contacted by them for any additional pay….I think I shud also be in one of the 607 employees..
Hey Ex-Patni…get intouch with their accounts department giving dates when you were employed to see if your are eligible…if you are, you should surely get compensated…
Any other reader here who has already been compensated by Patni…It would be interesting to hear the story…COuld be a guiding light for lot of them like Ex-Patni…
Hey, I am one of those 607 employees too. I got paid $700 for 2004-2005. I was surprised when I got a letter at my home address that they want to pay me the back wages. But when I saw the amount it was just 700, it means 350 for a year. I doubt here that they paid me the correct amount. Do you guys have any idea, how can I find out that if they paid me the correct amount. They said that the DOL has calculated the amount and asked them to pay that much, I doubt it that DOL calculated the back wages. What do you think/
Hi All,
I recently came out of Patni and cant express how relieved I am. Only after I starting looking out I came to know how under paid I was. Before I came to the US, they made me write an agreement in India that I would work for them for at least one year in the US or else they could sue my family back in India. They even took signatures of my family regarding the same. Not sure how valid this agreement would be. But I never bothered to even look for jobs after coming to the US. After almost two years I completed the assigned project. Then started looking out, found exceptional offers more than 20grand more than what was patni was paying me. Before leaving they offered me another project but I politly refused and told them I want to move on. So they made me resign and relieved me on the same day. I guess they didnt want to waste money on me for the notice period. And what do I get for being nice and working with them for almost 5 years (india+US), a relieving letter saying I did not give the notice period accoring to Patni norms. How cheap!!! I do not know if this letter would effect my career in any way. Any ideas?
hi,
I am on L1 too and facing the same problem of being paid extremely less than H1 counterparts (more than 10k difference). Have you found any legal remedy for this problem, since you posted in september?
Lawyers say, if you file a case there are good chances you could win..but that sound risky right?
I was interviewed in first week of month of Dec 2007. On Jan 3rd 2008 I recd offer letter.During interview I was told that there will be SLA.I accepted the offer.However after I resigned from my previous organization then I was called to sign the SLA wherein they asked me to sign an agreement which states that in case I prefer to resign before 1 year then I will have to pay 1 lakh 24 thousand rupees towards the cost of training towards the project.Not only this amount apart from this I will have to return the salary earned and that too at 18% rate of interest.I had experience of 1.7 years.They said that will be giving good project hence this amount was towards training of the project assigned.I joined because I thought training will be provided on some new technology & project.But the day I joined and saw the profile I came to know that this was the worst profile.But profile is nothing more than monitoring.They never provided any sort of training.In fact the day I joined I expressed my desire to quit but they said that I will have to pay 1 lakh 24 thousand..This was cheap!!!
One of my friend is working in the same company, when he went to US with family on H1B. They paid the warm cloth allownce of rupees 750.
Do you think the 750 Rs you could get a monkey cap for you? How cheap it is?
I am a financial market trader and came upon this thread while searching for information on Patni. Quite interesting is all I will say.
While the American engineers complain about discrimination by employers biased in favour of sweat shop wage levels paid to Indian engineers, Indian engineers are ripped off by employers whose only raison d’etre is to enjoy wage cost arbitrage. Why do the Indian engineers suffer it? Admit it or not 99% of them see the I.T. sector employment as a way out of India.
Even the great Infosys has not created any lasting franchise by way of intellectual property. Are we Indians so intellectually bankrupt that we have not been able to create a single product which has impacted people’s lives on a lasting basis?
This whole I.T. services model is based on exploiting people(both Indian and American). No More No Less.
"This whole I.T. services model is based on exploiting people(both Indian and American). No More No Less." – I can not agree with you more.
It is the engineers who always gets screwed up by the management. The skill level and work ethics certainly does not depend on ethnicity but irony is payment does!!! The great globalisation!!!
Now Patni is filing B1 for most employees and sending them onsite to work at 60$ pay day for 3 month durations. Patni team is having contacts with USCIS officials so that B1 visa interviews of patni employees are just a formality. Now patni does not require high paying L1/ H1 visa. So low wage complaints may not be coming against patni in future since most workers (B1 workers) will not come under US salary rule and can be provided with 60$ daily allowance.