Manpower Companies Find Relief as Government Extends License Renewal Deadline
Once again this year, the government has successfully saved approximately 200 manpower positions from being dismissed.
During the cabinet meeting held on Ashad 26, it was decided to issue a clearance order for licensed organizations (manpower) that failed to send at least 100 Nepalis for foreign employment annually in 2078/79 and 2079/80. These organizations will now be able to renew their licenses for the financial year 2080/81, as confirmed by the Minister for Communications and Information Technology, Rekha Sharma.
Following the renewal deadline of Ashad 31, the government has taken steps to remove obstacles and has rescued the manpower companies that were at risk of cancellation.
Meghnath Bhurtel, the Secretary General of the Nepal Foreign Employment Professionals Association, was quoted as stating that this decision was expected, as the government had already introduced a bill in parliament to amend the law. The requirement of sending at least 100 workers per year was considered unjustified. Bhurtel was quoted as mentioning, "This benefits approximately 200 manpower companies."
The Foreign Employment Act includes a provision for revoking the license of a manpower company that fails to meet the specified quota. However, as the bill was not passed by parliament before the end of June, the manpower companies were facing termination.
Therefore, the Nepal Foreign Employment Professionals Association took the initiative to request the Ministry of Labour, Employment and Social Security, and the Prime Minister's Office to remove the obstacles caused by the existing law.
The bill proposed to amend several Nepal Acts and submitted to parliament seeks to eliminate the provision of canceling permits if at least 100 workers are not sent within two consecutive years under the Foreign Employment Act.
Previously, the Council of Ministers had issued an order to remove obstructions and allowed the renewal of licenses for companies that were subject to revocation for up to two times. In the last financial year 2078/79, over 200 manpower positions were saved from termination, and in 2077/78, more than 250 were saved, in accordance with the law, through a notice published in the gazette. All manpower companies were allowed to renew their licenses, utilizing the right granted by Section 82 of the Foreign Employment Act 2064.
In 2075, during Gokarn Bista's tenure as the minister, the law was amended due to small manpower companies being unable to cover operational expenses, leading to an increase in fraudulent practices. The amendment stated that if these companies failed to send even 100 workers within two consecutive years, their licenses would be revoked.
Due to the COVID-19 epidemic, many workers were unable to be sent abroad. As a result, business owners have been demanding the removal of the requirement to send 100 workers for license renewal.
Although the situation has returned to normal now, approximately 200 manpower companies have been unable to send even 100 workers abroad for two consecutive years, according to the department. With many companies on the verge of cancellation, the government has not only decided to preserve their licenses but also agreed to amend the law based on the demands of business owners.
Business owners argue that such a requirement creates unhealthy competition for labor demands. They claim that as a result, they are forced to pay exorbitant fees to fulfill the demand.
Secretary General Bhurtel was quoted as stating, "The system of sending a specific number of workers for license renewal is impractical. It should consider the context, time, circumstances, the situation of the destination country, and the interests of the business. The right to conduct business should not be hindered."
(Disclaimer: This article is a translation based on an original article. Consistency in information has been maintained for accuracy.)
