Sthaneswore Devkota, executive director of Foreign Employment Promotion Board, said the board decided on Sunday to pay compensation to 14 of 19 Nepali workers, who were recently sacked by Al Masaood Company.
“Each worker will be provided Rs 7,500 from the Foreign Employment Welfare Fund while the concerned manpower company also will pay an equal amount to the workers in compensation,” Devkota told myrepublica.com.
They were laid off from jobs within one year of their appointment. They had managed to get jobs in the UAE through Peace International Manpower in Kathmandu on different dates within the past one year.
The employer laid them off between January 12 and March 19 citing the global financial crisis.
Devkota said the board is looking into the applications for compensation submitted by the other five workers who are demanding compensation.
A total 111 workers have already received compensation from the government and concerned manpower agents.
The government and Nepal Association of Foreign Employment Agents (NAFEA) had two months back agreed to provide compensation to the workers who lose jobs due to the global financial crisis before the expiry of their contract.
As per the agreement, the victims facing lay off within six months of their recruitment will be compensated with 40 percent of the total money spent. In a case of job loss within six months, 25 percent of the total cost will be provided as compensation.
Last week, the board had provided compensation to 22 laborers who lost jobs in two Malaysian companies—Hong Nam Industry (M) and General Label and Labeling Company (GLLC).
Amid deepening financial meltdown, more than 140 Nepali workers have so far returned from Malaysia, Qatar, and the UAE, shows official data.
Som Lal Bataju, vice president of Nepal Association of Foreign Employment Agencies (NAFEA), estimates about 500 Nepalis have already lost jobs to the financial crisis and more job cuts are likely.
“We have reliable information that some huge lots of laid-off workers are arriving soon from major labor destinations,” said Bataju.
According to International Labor Organization estimates some 22.3 million jobs will vanish in 2009 pushing the job losses to 50 million for the entire period of 2007-2009. The UN labor body has also forecast that in 2009, the number of unemployed will be between 97 million and 113 million in Asia.
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