Nepal's migrant labour system runs through manpower agencies. So do many of its abuses

Private recruitment agencies are the primary conduit for Nepalis seeking overseas employment, managing roughly two-thirds of the country's migrant workers. Despite their crucial role, these manpower companies are consistently at the center of criticism regarding Nepal's troubled labor migration system.

Mira Acharya, director general of the Department of Foreign Employment, identifies manpower agencies as a major site of violations of foreign employment laws. "Every provision introduced to regulate foreign employment is being violated," she stated. The department has recently taken action against 771 agencies for offenses including charging illegal fees, fraud, worker exploitation, using intermediaries, and failing to be accountable.

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Manpower agencies play an important role in managing unemployed young people. They have also invested millions of rupees in security deposits to operate their businesses. But they have not complied with the law. Every provision introduced to regulate foreign employment is being violated.

Acharya noted that agencies are reacting strongly even though the government has only implemented a fraction of the protective measures in the Foreign Employment Act. "Many provisions have not been implemented at all," she said, adding that the current focus is on recruitment fees and how workers are selected. "Agencies are bringing demand letters indiscriminately. There is fierce and unhealthy competition among them."

Annually, about 500,000 young people enter Nepal's labor market, many struggling to find stable, well-paying jobs. Foreign employment becomes a necessity for many, especially as Nepal's minimum wage remains below living cost estimates. Remittances from the approximately 3.5 million Nepalis working abroad are a vital pillar of the nation's economy.

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Many provisions have not been implemented at all. So far, only the provision related to recruitment fees has been enforced. We will now examine how workers are selected. Agencies are bringing demand letters indiscriminately. There is fierce and unhealthy competition among them.