The survey carried out on Nepali migrant labor in Malaysia and Nepal concluded that almost two-thirds of survey respondents had to pay high and illegal recruitment fees to the recruitment agencies for foreign employment.

88% of the respondents in mobile phone survey of 414 Nepali migrant workers reported payment of fees to agents for overseas jobs. “Because these fees are so high, the majority had to borrow more than half the sum from village moneylenders, placing them in debt,” the report noted.

To meet such high demands of the middlemen, many workers are finding no way other than limiting themselves to low-paid jobs or remain exploited to clear their debts.

“Workers’ calculations about how they will repay these loans are often derailed by unpaid wages or other forms of labor exploitation,” concluded the report.

More than 53 percent of the surveyed reported lower monthly salaries than what was promised by the recruitment agents.

A Special Case

Such situation was reportedly found in case of Nepali migrant labor in Qatar working for the construction of stadiums for the 2022 FIFA World Cup.

Nepali migrant workers to Qatar working in the project are reportedly facing vicious cycle of debt and exploitation, the report noted.

Nepali labor working in Qatar are facing exploitation

This report comes as an additional pressure to FIFA that has been facing internal pressure from its advisory board with regard to Kafala System, a mechanism used in Gulf countries to monitor migrant labor and is often termed as ‘modern-day slavery’.

“Companies who employ migrant workers in the Gulf and Malaysia directly or through their suppliers or subcontractors also have a responsibility. They need to take steps to prevent exploitative labor recruitment,” said AI in its release.

AI further urged the concerned companies to ensure migrants, who have paid recruitment fees, are reimbursed. “Until they take action, they are reinforcing the debt trap that is destroying so many lives in Nepal,” the release added.

Weak Enforcement Laws

Stating that “Nepali migrant workers are being systematically and mercilessly set up,” the Deputy Director of AI’s Global Issues Program James Lynch noted that weak enforcement of relevant laws by the Nepali Government is resulting in this situation.

“Migrant workers all too often end up trapped in the soul-destroying situation of working abroad for years simply to pay off the huge, often illegal fees they were charged to take the job,” James added.

“Nepali Government’s failure to crack down on recruitment agencies, which charge illegal fees for jobs abroad, is leaving migrant workers trapped in a vicious cycle of debt and exploitation,” the report concluded.

This situation is seen despite the presence of governmental policies like ‘Free Visa, Free Ticket’ introduced in July 2015, and only 20% of the surveyed reported proper implementation of the same.

Deep Exploitation

After an analysis and review of 100 Nepali recruitment websites, AI found that that Nepali labor are being advertised as ‘loyal and completely dedicated to work even in adverse situations’.

“Disturbingly, some of these recruiters – who trap workers into bonded labor by saddling them with huge debts – market Nepali workers to prospective foreign clients by highlighting how unlikely they are to leave their jobs,” highlighted the report.

Matter of Urgency

Nepal is working with other labor-sending nations to address migrant workers concerns

Terming this as a matter of urgency, James Lynch urged the Nepali government and businesses to take necessary measures and control corruption in the Nepali recruitment industry to protect migrant workers.

“A good start would be to penalize recruitment agencies that are not complying with the law. Until companies take action, they are reinforcing the debt trap that is destroying so many lives in Nepal,” he added.

In line with the report, Bhuban K.C., a senior official in Nepali Labor Ministry, has reportedly informed that Nepal is working with other labor-sending nations like India, Bangladesh and Sri Lanka towards necessary measures to protect migrant workers’ interests.

“We are raising our voice internationally to ensure that migrants are not cheated,” said Bhuban while also informing that the concerned authorities are offering compensations to the victims.

The post Nepali Migrant Workers in Vicious Cycle of Debt and Exploitation appeared first on Nepali Sansar.

As a measure towards strengthening the rights and welfare of expatriates, Qatar on November 16, 2017 announced QAR 750 as a basic wage limit for all the expatriates working in the kingdom.

Surprisingly, the new basic is QAR 150 less than the minimum wage limit of QAR 900 set by the Nepali Government in 2013 for Nepalis working in Gulf countries.

On January 21, 2013, Nepal announced a provision suggesting QAR 900 as a minimum wage for its unskilled labor working in Qatar, along with QAR 1,100 and QAR 1,500 for semi-skilled and skilled labor, respectively.

The provision also requires the employers to ensure free board allowance up to QAR 300 per worker along with QAR 4,700 as food allowance for professionals.

A Bitter Response

While the international bodies like the International Labor Organization appreciate the move, the decision is sounding bitter for Nepal and a few human rights activists.

“Let’s not forget that this is an 18 percent reduction in wages from the current minimum wage set by the Nepali Government for Nepali workers going to Qatar,” tweeted Catherine Chen, a human rights activist working for a US-based charity called Humanity United, in response to the announcement by the Qatari Labor Ministry.

Kumud Khanal, former Vice-President of the Nepal Association of Foreign Employment Association (NAFEA) says, “Nepal should endorse QAR 750 or stop sending workers until Qatar agrees to abide by its minimum wage standard. The different policies of the labor-receiving and labor-sending nations will only complicate matters.”

According to Khanal, two such different rules would increase the use of fake work contracts.

Ganesh Gurung, a migration expert, also feels that the decisions like this would hamper the workers’ overall demand.

Nepali Government officials informed that they would discuss the issue with the Qatari higher officials maintaining Nepal’s firm stand.

Workers Worry

Following the announcement, the Nepali labor community in Qatar is worried that the new rule might impact their basic rights causing abuse and exploitation concerns.

“There is a danger that QAR 750 will be the new normal and even companies which were paying 900 riyals will now refuse to pay more than the new minimum,” says Krishna Pun, a security guard in Qatar.

Pun, who is currently drawing around QAR 1,800, fears that his company would cut his pay. Many other workers feel the same, he adds. 

Future Impact

While Nepal has similar wage limits for countries such as Bahrain, Oman and Saudi Arabia, Qatar is one of the key destinations hosting around 400,000 Nepali migrant labor.

However, the new wage limit will most likely add to the financial burden of the Nepali workers in Qatar, thus creating a concern for Nepalis’ immigration to Qatar.

Many Nepali workers pay high service charges to recruitment agents and the situation is almost similar in case of workers from India, Pakistan, Myanmar and Bangladesh.

According to Amnesty International, workers pay as much as 60 percent interest on the loans they take from local moneylenders for foreign employment.

Even though countries such as Israel, South Korea and Malaysia have their own minimum wage limits, the basic wages in Qatar is less compared to other foreign destinations such as Bahrain, Malaysia, Kuwait and Oman.

This situation in Qatar exists despite the high demand for work that unskilled workers do there.

Its noteworthy that Qatar is hosting the 2022 football World Cup with most of the labor it has for construction activity are from Nepal and Bangladesh.

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