Labour Minister cunningly amends guidelines

KATHMANDU, NOVEMBER 8: Labour, Employment, and Social Security Minister Sharat Singh Bhandari has made another decision that could facilitate the exploitation of Nepalese workers particularly in Korea. He furtively amended the "Guidelines on Sending Skilled Workers to Korea 2080,' now allowing the Foreign Employment Department in Kathmandu to authenticate demand letters for South Korea's E-7 visas.

According to the 'Guidelines for the Inspection and Verification of Foreign Employment Demand Letters 2075,' demand letters should be authenticated by the embassy in the host country. However, Minister Bhandari has now set a rule that if the embassy does not authenticate the demand letter within 15 days, the said department in Kathmandu can do so.

 Minister Bhandari had tried to bring the authentication process under the Ministry during his earlier term. At the time, the Ministry of Foreign Affairs did not agree, and the rule couldn't be implemented. Now that he is back in office, Bhandari has revived his earlier plan.

On April 10 2023 Bhandari sought the Ministry of Foreign Affairs' opinion on amending the authentication procedures. The Foreign Ministry responded on October 3, 2023, with objections, refusing to agree with Bhandari's plan. As a result, Bhandari was unable to implement the new guidelines, underwhich a committee, including a representative from the Foreign Ministry, was supposed to handle authentication. However, the Foreign Ministry did not send a representative, so Bhandari couldn’t proceed. Yet, he has now revived the guidelines again.

Foreign Ministry’s Objection

Foreign Ministry Undersecretary and Information Officer Rishiraj Acharya stated that they have no knowledge of giving the Foreign Employment Department the authority to authenticate demand letters. "Our position on this issue remains unchanged," he said. The official explained that demand letters have a set process: they are authenticated within 10 days if all documents are complete. If documents are missing, the process takes longer. However, he noted that the Labor Ministry cannot enforce a 15-day deadline.

The ‘Guidelines for the Inspection and Verification of Foreign Employment Demand Letters 2075,’ approved by the Cabinet on May 14, 2018, require employers to apply for demand letter authentication through the respective Nepalese embassy in the host country. The embassy verifies various factors, such as:

• Inspecting the company
• Ensuring employees receive proper salaries and benefits
• Checking the company’s financial status
• Confirming workers' welfare in case of issues
• Making sure the company isn't blacklisted
• Ensuring the promised salary and accommodations are provided

If problems arise or workers are deceived, the embassy is held accountable. The official emphasized that the department in Kathmandu cannot complete all these verifications.

Issues for Workers

If workers face problems, the embassy is the first point of contact. Without knowledge of the demand letter's authentication, the embassy cannot hold the company responsible. Thus, having the Ministry or department in Kathmandu authenticate demand letters would be a poor decision for workers, the official said. "If embassy staff are found to have done something wrong and there’s proof, the Ministry takes immediate action. We have a zero-tolerance policy for misconduct," he added.

Spokesperson Unaware

Labor Ministry spokesperson and Joint Secretary Danduraj Ghimire admitted he was unaware of the situation, as he was on leave and not up to date. "I've only heard about seeking the Foreign Ministry's opinion on amending the guidelines, but I don’t have the latest information," he said.

Violation of Regulations

Minister Bhandari’s ‘Procedures for Inspecting and Approving Demand Letters 2080,’ bypassing the Foreign Ministry, also contradicts regulations. Rule 52(2) of the Foreign Employment Regulations 2064 allows the Ministry to make necessary procedures, provided they don’t conflict with existing laws or guidelines. Yet, the Ministry has created conflicting procedures and is trying to force implementation.

Potential for Worker Exploitation in Korea Minister Bhandari’s new decision opens the door for manpower agencies to exploit workers seeking South Korea’s E-7 visas. After returning to office, he secretly sent letters to the Foreign Ministry and the Nepalese embassy in Korea, pushing to implement the guidelines. Under these rules, manpower agencies can now bring in demand letters for E-7 visas, but fees remain unregulated, potentially leading to exploitation.

The government has capped service fees at NPR 10,000 for Malaysia and Gulf countries, but 98% of workers pay far more. Studies show that Nepalese workers heading to these destinations pay an average of NPR 200,000. Manpower agencies have been charging up to NPR 200,000, and experts fear Bhandari’s decision could lead to even higher fees for Korean jobs.

During his previous term, Bhandari tried to enforce these procedures but faced widespread opposition. Then-Prime Minister Pushpa Kamal Dahal issued a 17-point directive on Poush 24, 2080, instructing that E-7 visas be managed under the existing EPS system. Despite this, Bhandari defied the directive and passed the guidelines, but he couldn’t implement them before leaving office. However, Bhandari, as a minister, now seems grossly bent on implementing them.

Key Provisions in the Guidelines 

• People wanting to work in South Korea as skilled laborers must undergo training as specified.
• Training should be completed at Ministry institutions or government-approved centers.
• Workers must take orientation training and secure insurance from registered companies.
• Contributions to the Foreign Employment Welfare Fund and Social Security Fund are mandatory.