Manpower agents have preferred this safer way of doing business of late amid increasing fears of job losses and corresponding rise in compensation and other liability due to the worsening effects of the global economic crisis on different labor markets.
The government and manpower agencies agreed a few months back to provide compensation to those losing their jobs at the labor destinations within one year of their recruitment, on the basis of equal liability for compensation between government and manpower agency.
The manpower agents have to take entire responsibility for the safety and security of workers as per the contract documents, if the workers are sent through institutional channels.
Workers who make their way to labor destination countries through individual contacts are not entitled to such compensation from the individuals concerned. “Increasing trend among manpower agents to send workers through individual contacts with job seekers and overseas employers as well as the higher salary offered to those going abroad through individual contacts are the major reasons behind the rise in such practices,” an official at the Department of Foreign Employment (DoFE) said.
According to data compiled by DoFE, the number of job aspirants avoiding the institutional process rose to an average of 3,585 per month during the nine months till mid-June, 2009 as compared to an average of 1,213 recorded during the same period last year.
Of the total number of job seekers going abroad those going through individual channels has increased to 32,238 during the same period as compared to 10,922 in the corresponding period last year. The number of individual job seekers in that period this year rose to 27.1 percent of the total outbound overseas workers compared to 6.4 percent in the corresponding period last year.
“Job seekers are using modern technology like the internet and e-mail to hunt for jobs on their own. At the same time, getting jobs through individual contacts is far cheaper than getting them through manpower agents,” said the official.
Job seekers have to spend at least Rs 80,000 to 100,000 to land jobs in Malaysia and the Gulf through foreign employment agents, excluding charges for insurance premiums, the workers welfare fund, orientation fee and medical check-up. While seeking jobs through individual contacts, job seekers don´t have to pay huge commissions to the manpower agents.
“We can´t rule out that some manpower agents are involved in sending workers abroad through individual channels, avoiding the institutional process. Worse still, some individuals are actively involved in sending workers on the basis of demands received through relatives abroad,” Gyanu Gaire, general secretary of Nepal Association of Foreign Employment Agents (NAFEA), said.
“On an average, each worker contributes Rs 300 to state coffers through the income tax we pay. Increasing number of workers seeking jobs through individual contacts means that the government is suffering a revenue loss,” said Gaire.
The increasing trend of seeking jobs abroad through unorganized means is not only making workers more vulnerable to different abuses and exploitation at labor destinations, more importantly it has had a negative impact on government revenue.
Manpower agents have to pay income tax on the basis of the number of workers they sent to the overseas job market.
He said a meeting of NAFEA held on Monday decided to take strong measures to discourage the practice of sending workers abroad though individual contacts.
prabhakar@myrepublica.com
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