Ah hmd is always before me, except in timepass.
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Here is what I have for you baba jee.
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HE CAN USE AC-21.
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Well he should not have resigned in the first place. If he has proof of what he is saying - he can use it in his defense - email/letters etc.
Now employer is playing games - AC-21 simply states that one can change job after 180 days of applying 485, not that you have to count 180 days of slavery!
Your friend needs to gather proofs, even now if it is not late. He should do in following order:
1. Call USCIS, inform them that his/spouse' 485 is not represented by any lawyer(if he filled G-28 for the same.). Confirm it after a week or so - so that now employer can't do anything thru lawyer.
2. Prepare letter and attach proofs for Labor Department against this malpractice. Use strong words for the same. He may need it later.
3. Prepare a letter for USCIS in case of RFE, stating all the facts. He may need it later.
4. Find another job - use AC-21. Promptly inform USCIS about it. AC-21 states change in job, not about hiring and rehiring on the same position - he never changed the job.
What did his employer do wrong?
1. It can be very easily prooved that due to holidays/vacations your friend was forced to resign. Employer is guilty from three sides:
a. Asked you friend to continue in the same position(I am sure employer never published an ad for the same position). If the client contract was not over and they did it - then employer is in even worse situation - guilty in eyes of DOL for intimidating and forcing employees.
b. If they approach USCIS on the issue - they will be held guilty the same as above - your friend should keep a copy of the documents which are prepared for a.
c. Guilty of IRS - this is clearly a movtivated hiding of earnings but running a business is incorrect way. The income is being reported for 365 days is in fact that of 350 days or so.
All these are criminal offenses. If your friend wants to screw the employer, he can do it in no time.
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Let us see his worse case defense in this scenario - employer informs USCIS. Your friend has done step 1 and 4. USCIS sends an RFE(very unlikely - did he really change his job? No.). He sends the prepared document to USCIS with Labor Dept as cc (or vice versa) and IRS too. Can his employer do anything for this complain - no! These all can be filled under condition of secrecy - prosecution fear for your friend - none.
What will USCIS do? Check AC-21 and since there is no rule about fire and rehire -
may call him for interview and then approve it. This is the worst case scenario - believe me - it will never happen unless employer's brain is programmed for suicide! Employees have a better say in eyes of law.
What will dept of labor and IRS do? His employer will not be a position to tell it to us.
Ask him to mention this if at all he gets RFE:
Also intent is clear from your friend's side - he joined in again - he thinks it is a future job. Uncertainity forced him to use AC-21. (Read as: His employer doesn't thinks so - another reason why he is forced to use AC-21.)
Tell him to use AC-21 and enjoy his life. He is on the right side - no need to worry. And also not to read more than what is written in AC-21. I would strongly suggest get a lawyer like Rajiv Khanna too.