Manpower companies threaten to halt overseas job placement unless policy reforms implemented

Foreign employment recruitment agencies in Nepal have issued an ultimatum, threatening to cease all overseas job placements unless the government enacts urgent policy reforms. The Nepal Association of Foreign Employment Agencies has set a 15-day deadline, which expires Friday, to address critical operational challenges plaguing the sector.

At the heart of the dispute are demands for transparent recruitment fee structures, reduced airfares, the reopening of institutional migration pathways to European countries, and broader market diversification. The agencies argue that current government policies have created an environment where ethical and legal business operations are impossible, ultimately harming migrant workers.

"If this sector cannot be reformed, it is simply not viable to continue operating," stated Dik Bahadur Khatri, president of the association. "The business is facing a severe crisis. The government must step in and create a healthy, transparent environment that allows us to work legally."

The core issue revolves around the government's existing fee structure. Current regulations prohibit agencies from charging workers any fees for migration to major destinations like Saudi Arabia, the UAE, and Malaysia, adhering to the 'free ticket, free visa' policy where employers should cover all costs. For other destinations such as Qatar, Kuwait, and Bahrain, a maximum service fee of Rs10,000 is permitted. However, these provisions are largely ignored in practice, leading workers to pay exorbitant amounts, often between Rs300,000 and Rs500,000, to secure jobs abroad.

Compounding the problem are excessively high airfares, which recruiters attribute to collusion between airlines and select travel agencies. They also point to the lack of direct international flights from regional airports, forcing workers to fly from India to find cheaper tickets, a practice strictly prohibited by the Department of Foreign Employment without prior approval. Agencies are demanding a scientifically determined, transparent service fee structure that reflects actual operational costs, alongside measures to curb airfare inflation and ensure fair market practices.

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If this sector cannot be reformed, it is simply not viable to continue operating. The business is facing a severe crisis. The government must step in and create a healthy, transparent environment that allows us to work legally.