KATHMANDU: The government has initiated investigation and action against Nepali licensed foreign employment agencies associated with the Foreign Worker Centralized Management System (FWCMS) of Malaysia.

The Department of Foreign Employment has directed 25 licensed organizations listed as “main worker recruitment organizations” in the system not to continue affiliation with the system, to submit factual information with evidence that they have exited the system and not to join anew. The new pre-approval process for 250 organizations said to be “affiliated” or “affiliated” with these organizations has also been stopped for the time being.

The Department has taken this step as per the directive of the Ministry of Youth, Labour and Employment and the ministerial-level decision dated September 11, 2083.

The department has started an investigation into the transactions of 25 main organizations, the basis of selection, past involvement in Malaysia employment and the procedures adopted while inducting other organizations. Similarly, the process of seeking clarification from 250 organizations listed as affiliated or affiliated organizations in the system, the procedures adopted and the relationship with the main institutions has been initiated.

The 250 institutions will not be allowed to proceed with the new pre-approval process for Malaysia until the investigation and study is completed. The ministry has clarified that this ban will only apply to new pre-approval for Malaysia. The action taken in this regard will not affect the status of workers who have already completed all the procedures for foreign employment and obtained the work permit. The process of going for foreign employment of such workers will remain the same.

The department has directed the institutions concerned not to indulge in any act or structure that may curtail fair competition. It has been asked to immediately terminate affiliation with such a structure and not to engage in any activity that may establish group control or monopoly in the selection of workers and foreign employment business.

The department has stated that it is the duty of the licensed institution concerned to comply with the directives issued under Section 37 of the Foreign Employment Act, 2064. It has warned that action will be taken as per Section 54 of the same Act and other prevailing laws if the directive or the prevailing law is violated. The section provides for action up to the cancellation of the license.

The government has said that it will ensure a level playing field for all licensed entities by maintaining transparency and fair competition in the foreign employment business. Necessary legal action will be taken if the investigation confirms the illegal involvement of any person or institution, illegal financial transactions or activities that limit competition.

Administrative and diplomatic initiatives are underway to resolve the issue of labour migration with Malaysia through government-to-government dialogue between the two countries and request for provisions as per the laws of Nepal and the labour agreement signed with the Government of Malaysia. The government is committed to ensuring safe, decent and just foreign employment by making the process of sending Nepali workers to Malaysia transparent, systematic, competitive and unhindered.