Microsoft announced a voluntary buyout offer on October 26, 2026, for eligible employees in four countries. For workers in the United States on H-1B visas, accepting the Microsoft buyout offer raises a separate question from severance: how long they can remain in the country after employment ends.

Key Takeaways

  • The offer covers eligible employees at level 70 and below in participating organizations.
  • Severance payments do not necessarily extend H-1B status or permission to stay in the United States.
  • A proposal to eliminate the H-1B grace period remained open for public comment through November 10.

Who can take the Microsoft buyout offer?

The voluntary offer covers eligible employees in the United States, United Kingdom, Canada and India. Eligibility depends on the employee’s organization and team, and Microsoft said qualified employees would receive separate offers by email.

Nearly 60,000 employees are reported to be eligible, but that figure does not indicate how many will accept. Microsoft has not disclosed how many eligible workers hold H-1B status.

The packages include base pay linked to tenure and level, continued stock vesting, temporary healthcare coverage and career transition services. Employees reportedly have until early December to decide, and those who accept are expected to leave at year-end.

What happens when H-1B employment ends?

Eligible H-1B workers whose employment ends may receive a discretionary grace period of up to 60 days, or until their authorized validity expires, whichever comes first. During that time, a new employer may file a petition on their behalf, or they may seek another eligible immigration status.

The grace period applies to qualifying voluntary and involuntary departures, but it is not guaranteed. Workers who do not file for a qualifying status, or who are otherwise ineligible, may have to leave the country.

Continued severance payments should not be assumed to extend immigration permission. The date employment legally ends is important, and a worker’s departure arrangements and any spouse’s dependent status may need review.

Proposed rule and green-card implications

The Department of Homeland Security has proposed eliminating the grace period. As of October 27, 2026, the change remained a proposal, with public comments open until November 10.

Separately, Microsoft has been suspended from the PERM labor certification program, which supports certain employment-based green-card applications. PERM and H-1B status are distinct, so the suspension does not itself cancel employees’ H-1B status, though it may affect workers pursuing permanent residency.

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