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Outsourcers divided regarding issuing bills to migrant workers

Outsourcing agencies are divided on the subject of issuing bills to migrant workers for the service fees paid by the workers. A clear division has been seen among executive members of Nepal Association of Foreign Employment Agencies — the umbrella organisation of outsourcing agencies in the country.

The Department of Foreign Employment had made it mandatory for outsourcing agencies to issue bills to migrant workers on August 31. But it has halted the process for an indefinite period following protests by outsourcing agencies. 

Outsourcers are not in a position to issue bills to migrant workers, said vice president of the association Kumud Khanal in an interaction today. 

“There are lots of hidden costs involved in the outsourcing sector, so issuing bills to workers is not rational,” he said. According to him, a majority of the outsourcing agencies are in no mood to issue bills to migrant workers. 

The matter has divided outsourcing agencies into two factions — one favouring president Bal Bahadur Tamang and the other opposing him. Prem Bahadur Katuwal, Hansh Raj Wagle and Kiran Kishor Ghimire have been leading the faction against Tamang, which represents about 500 outsourcing agencies among the 790 members of the association. 

Most outsourcing agencies are against the mandatory order to issue bills as set by the department, said Wagle. “Therefore, we will fight against the decision and we will make sure that the government listens to us,” he said, adding that the government enforced the provision to put an end to the business that provides jobs to over 3.5 million people. 

However, president Tamang said that he is not against the opposing faction. “But I cannot say we will not issue bills being in the position that I am in,” he said, “I am ready to resolve the problem through talks.” 

According to him, the department has temporarily stopped the process on his initiative. The government has fixed the service fee for major destinations but outsourcing agencies have been charging more than the prescribed amount.

According to the department, outsourcers can charge Rs 70,000 for a job in the Gulf countries, Rs 80,000 for Malaysia, and Rs 50,000 for Israel. But, the rate being charged is not below Rs 100,000 for Gulf countries and Malaysia, and is more than Rs 500,000 for Israel. 

The department wants to end this malpractice, so it enforced the provision of issuing bills to migrant workers, said director at the department Kashiraj Dahal. “We will enforce the provision at any cost,” he said, “Without the provision, it will be difficult to control the number of fraud cases related to foreign employment.”

Published on: 24 September 2012 | The Himalayan Times

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