Minister Bhandari revives controversial E-7 Visa Policy

KATHMANDU, OCTOBER 28: Nepal’s Minister of Labour, Employment, and Social Security, Sharatsingh Bhandari, has reintroduced a controversial policy allowing manpower companies to handle South Korea’s E-7 visa applications. On October 8, he directed the Ministry of Foreign Affairs and Nepal's Embassy in Korea to implement the "Procedure for Sending Skilled Workers to Korea 2080."

Bhandari had previously developed this policy during his earlier tenure as Labour Minister, but it was heavily criticized for lacking transparency in worker selection, service fees, and standards. In response to public backlash, then-Prime Minister Pushpa Kamal Dahal (Prachanda) halted its implementation. Now that Bhandari is back in the same ministry, he has instructed officials to proceed with the original policy without any changes.

Decision Shrouded in Secrecy

Although Bhandari held a press conference to celebrate the government's first 100 days in office, he did not disclose anything about the revived E-7 visa policy. Labour Secretary Mukunda Prasad Niraula confirmed that the Ministry of Foreign Affairs has been notified and the policy will take effect within a few days. "This policy was prepared earlier, and we believe it will help send skilled workers efficiently," Niraula explained.

Controversy Surrounding the E-7 Visa

Nepal and South Korea currently send workers through the Employment Permit System (EPS), which has proven effective. However, Bhandari’s decision to allow manpower companies to manage E-7 visas faced sharp criticism.

On January 8, 2024, following the controversy, Prime Minister Dahal issued a 16-point directive instructing the Labour Ministry to keep all worker placements, including E-7 visas, under the EPS framework. Bhandari, however, ignored the directive and pushed forward with the new policy. Before he could implement it, a government reshuffle removed him from the ministry.

His successor, D.P. Aryal, later formed a study committee led by Undersecretary Govind Prasad Rijal to assess the policy. The committee concluded that the E-7 visa plan, as it stood, should not be implemented. Based on this recommendation, Aryal forwarded the policy for further review and revision.

Manpower Companies Exploit the Policy

​​​​​​​Manpower companies have already begun using the ministry’s letter to demand high fees, according to reports. A youth from Jhapa shared that companies are now bargaining for hefty payments, claiming that they have official authorization to send workers to Korea.

Previously, some manpower firms were found charging up to NPR 1.5 million per person for jobs in Korea. There were also reports from the Ilam district of companies offering skill training and exams to prepare workers for E-7 visa jobs, further raising concerns about exploitation.

Why Korea Is a Hotspot for Nepalese Workers

​​​​​​​​​​​​​​Nepal and South Korea first signed an agreement in 2008 under the EPS system, allowing Nepalese workers to work in sectors like manufacturing, agriculture, and shipbuilding. With plans to expand into service industries, Korea has become an increasingly attractive destination. Over 100,000 Nepalese workers are currently employed there under EPS.

Experts warn that opening the E-7 visa route through manpower companies could lead to more worker exploitation. Despite Nepal's zero-cost agreements with Malaysia and Gulf countries, workers still end up paying over NPR 200,000 for jobs. Given Korea’s higher salaries, experts fear that manpower companies will exploit the opportunity to charge even more.

Lack of Formal Agreements on E-7 Visas

Although Nepal sends workers to Korea under EPS, there is no separate agreement governing E-7 visas. Without clear service fees, officials from the Labour Ministry warn that workers are at high risk of being overcharged. However, employees within the ministry have refrained from speaking publicly against Bhandari’s policy, fearing repercussions.

Key Provisions of the New E-7 Visa Policy​​​​​​​​​​​​​​

The revived policy allows licensed manpower companies to send workers to Korea under the E-7 visa system, provided they meet certain criteria. These companies can also facilitate language training and offer skill-development programs.

Key requirements include:

• Companies must own or lease long-term training centres for language and skill development.
• At least two certified Korean language instructors must be employed.
• Companies can partner with legally registered organizations in Korea to manage recruitment and provide welfare services for workers.

If Korean employers or training providers come to Nepal, they can use their own facilities or partner with existing training centres.

The policy requires the Nepalese Embassy in Korea to verify job demand letters within 15 days. If not, the Labour Ministry will handle the verification.

Under the policy, employers must cover expenses like airfare, insurance, health checks, welfare contributions, social security payments, and labour approvals. If employers fail to cover these costs, manpower companies can charge service fees as determined by the ministry.

This policy revival has sparked concerns that without strict regulation, workers could face exploitation. As Korea offers higher wages than other destinations, the temptation for manpower companies to overcharge workers remains a serious issue.