KATHMANDU: The Ministry of Labor, Employment and Social Security is set to scrap the registration of those manpower companies failing to send at least 100 Nepali workers abroad for employment a year.

A meeting of the Law, Justice and Human Rights of the Parliamentary Committee took a decision to this effect last Monday.

Once the provision comes into effect, a total of 411 manpower companies registered at the Department of Foreign Employment will get their licenses scrapped.

According to the record maintained by the (DoFE), these companies have been found sending less than 100 Nepali workers abroad for foreign employment.  

Currently, a total of 1,072 manpower companies have been registered at the Department of Foreign Employment.

“Many a manpower company do not send even 100 Nepali workers a year abroad for foreign employment,” Dilip Kumar Chapagain, General Director at the DoFE told Khabarhub, adding, “Many Nepali youths have been duped in the name of foreign employment. We are mulling to amend Foreign Employment Act to end such frauds and other related problems surrounding foreign employment.”

However, Mukunda Khanal, former vice-president of Nepal Foreign Employment Entrepreneurs’ Association, has accused the government of putting restrictions on the manpower agencies by introducing a new provision. “The agencies need to be regulated through an amendment to the Foreign Employment Act but it should not take away entrepreneurs’ right to run the business,” Khanal told Khabarhub.

The ministry has already reached a deal with Nepal Rastra Bank on the deposit and bank guarantee to be furnished by manpower agencies by dividing them into three categories.

According to the agreement, manpower agencies exporting up to 3,000 workers are required to deposit Rs 5 million in government coffers and furnish a bank guarantee of Rs 15 million to start operation.

Similarly, agencies sending 3,000 to 5,000 workers a year are required to park Rs 10 million in state coffers and present a bank guarantee of Rs 30 million to operate their business.

Likewise, those exporting over 5,000 workers annually have to deposit Rs 20 million in state coffers and provide a bank guarantee of Rs 40 million to start operation.

The committee will table the bill at the federal parliament for deliberation. Once it is endorsed by the federal parliament, it will be presented before the President for authentication. Once it is authenticated by the President, it shall come into force.

As many as 30,000 Nepali youths leave Nepal for foreign employment on a monthly basis.

Nepali youths have been working in over 172 different countries across the world.