KATHMANDU- One of the pilots of the modern economy, the labor outsourcing agencies of Nepal are found to have turned deaf ears to the ‘clarion call’ of the government policy.

Although the government initiated the process of pulling them to the regulatory entity’s access through licensing and bail provisions, the efforts are still far from being materialized.

The Ministry of Labor, Employment and Social Security had introduced the provision of submitting 1.5-4.5 million rupees as the security amount to submit by the outsourcing agencies supplying manpower to the Provinces and the Federal Capital.

But, according to Sanat KC, the Director-General of Department of Labor and Occupational Security, most of the outsourcing agencies, which are in operation in most of the major towns of the country, have been working without submitting the amount.

Labor Act articulates that the prospective labor outsourcing agency should get a license paying 1.5 million to 4.5 million rupees before it can bring the labor outsourcing office in operation.

There are more than 2 thousand employer outsourcing agencies registered in the Ministry of Industry and running their business.

However, according to KC, only 215 such agencies have deposited the mandated amount. Only 29 agencies collected license, the mandatory document, depositing the surety amount.

Citing that most of the agencies/companies are not abiding by the government laws and regulations, KC disclosed the government plan to monitor more effectively and crack the defaulters.

“The labor bill was prepared in consultation with experts from various stakeholders and later enforced as an act with an objective of bringing the labor outsourcing entrepreneurs and their work under the legal arena through license and the surety amount,” said KC.

He reiterated on effective enforcement of the legal provisions and made the commitment to work for effective implementation in coordination with the province offices and the central offices. “In consultation and coordination with the province offices,” KC said, “We shall create the situation compelling all outsourcing agencies to arrange for the bail prior to running their agencies.”

With the increase in the swindling and malpractices in the outsourcing industry, the department is planning to work more effectively to overcome the difficulties arising.

The task of regulating the workers supplied in internal markets is executed by the Department of Labor and Occupational Security. Prior to this, all the companies and agencies working in the outsourcing sector used to register in the Ministry of Industry.

Since the provision could not get deemed result, the task is assigned to the Department. “Now, outsourcing permission is granted only after registering the agencies in the department of labor.”

Said KC confessing, “There are malpractices in abundance in this sector. Now the amount can be used to compensate the victims of fraud, relatives of the deceased, and the medical service to the needy workers.”

The government planned to use the security fund to compensate the victim of economic exploitation. Sarcastically, only the companies supplying security guards are seen loyal to the provision and the Department is unable to make its monitoring role effective and take disciplinary action against the bigger companies’ sans license.

Although the outsourcing agencies seem to be mushrooming in the major cities of Nepal, due to the poor regulatory mechanism, thousands of youths in the domestic job market victimized by it.

Some of the outsourcing agencies, working as the agent of manpower companies, are outsourcing Nepali youths in foreign employment.

Poor regulation mechanism: grossing agencies without registration two ways

Most of the companies established to promote employment sector outsourcing cream manpower are grossing doubly with poor and ineffective regulatory mechanisms. For providing the manpower, they bag money from the employing companies whereas they collect a certain percentage from the employees.

The inefficiency of the regulatory body is costing high to the poor youths seeking their fate with prospective employment opportunities.

The victims do not turn in to the administration as the amount is relatively smaller than the toil they have to make for collecting it back provided they get it. They even do not go to the nearby police as they think the small amount mentioned may not be a tempting issue for the police to go ahead with the case.

The advertisement claiming golden opportunity for the job are common and yet tempting columns for the unemployed youths.

However, the Department is still hopeful of curbing the issue once the license and security provisions are enforced more effectively.