Manpower Entrepreneurs Protest Government Action Against Overseas Employment Firms

June 14, Kathmandu – The government’s disciplinary actions against manpower companies for using foreign airports to send workers overseas have sparked an uproar.

Business operators have warned that they will completely stop sending workers abroad if these actions are not withdrawn. They have been appealing to relevant authorities to reconsider the decision.

The Department of Foreign Employment penalized 156 manpower companies for utilizing Indian airports without approval to send workers overseas.

The department had requested flight details from companies for workers who received labor approval and were sent abroad between March 14, 2026, and June 14, 2027. Out of 1,117 registered manpower companies in operation, only 678 complied with the request.

Among these, 156 companies were formally warned for first-time violations related to unauthorized use of foreign airports. Meanwhile, 434 companies that failed to provide required details were directed to comply.

Eight companies repeatedly failed to follow directives and were fined 50,000 Nepali Rupees each. Some conducted flights from India and failed to submit the requested information, in violation of Article 54 of the Foreign Employment Act. These companies ignored the department’s instructions twice.

The department sought information to monitor and analyze compliance with Article 22 of the Foreign Employment Act, which mandates the use of domestic airports.

Following these disciplinary measures, manpower entrepreneurs have expressed strong dissatisfaction, alleging that the government has imposed unilateral actions without proper consultation and are demanding their withdrawal.

The businessmen are preparing to appeal to the Ministry of Youth, Labour and Employment regarding the decisions. They have threatened to halt the deployment of workers abroad if the penalties are not reversed.

The Nepal Overseas Employment Entrepreneurs’ Association has already met with Mira Acharya, Director General of the Department, Labour Minister Ramji Yadav, and Labour Secretary Dr. Deepak Kafle to present their concerns.

Use of Indian Airports Was Approved by the Government: President Khatri

The association has warned that it will fully suspend sending workers abroad unless the government withdraws this decision.

President Dik Bahadur Khatri criticized the department’s move as impractical, hasty, and demeaning to entrepreneurs.

Khatri explained that in 2024, during repair works on the taxiway at Tribhuvan International Airport, the airport operated only 10 hours per day, reducing flight frequency. Amid these exceptional circumstances, a tripartite meeting involving the Ministries of Labour, Foreign Affairs, and Tourism authorized flights from Indian airports.

“At that time, under government instruction, the Nepali Embassy in India issued notification permitting workers with labor approvals to fly without NOC,” Khatri stated. “Taking punitive action now on that basis shows a lack of coordination among government bodies and is unjust towards entrepreneurs.”

After the reduction in international flights, the decision permitting workers to depart from Indian airports was made jointly by former Foreign Minister Arju Rana Deuba, former Culture, Tourism and Civil Aviation Minister Badri Pandey, and former Labour Minister Sharatsingh Bhandari, along with the approval of the Nepali embassy in New Delhi.

Khatri also highlighted the high airfare from Nepal as a factor forcing businesses and workers to choose Indian airports. Tickets from Nepal cost around NPR 65,000, whereas the same flights from India are available for about NPR 21,000.

“There is cartelization of airfares at Nepali airports, and the government has compounded the burden on workers by adding 13% VAT,” he said. “The government is undermining workers’ rights to affordable fares.”

According to Khatri, the department took punitive measures even against agencies that regularly submitted the required information and included companies that never used Indian airports.

“These actions have damaged operators’ due diligence reports in the international market,” he noted. “Demands from reputable agencies like Fusion International have been canceled as a result, negatively impacting Nepal’s overseas employment reputation.”

Entrepreneurs plan to appeal the decision at the Ministry of Youth, Labour, and Employment. The association has also engaged with Labour Minister Ramji Yadav and Secretary Dr. Deepak Kafle to present their demands.

“If the government does not reverse this unjust action and reform service charges and relevant laws to better regulate the sector, we will be compelled to completely halt sending workers abroad. Currently, 90% of businesses consider the situation as ‘zero state’ and are unwilling to send workers,” Khatri warned.

Following the disciplinary action, the association submitted a memorandum to Director General Acharya. In response, Acharya stated that the department was enforcing the law and reminded stakeholders that appeal mechanisms are available within the ministry.

Yesterday, the association met with Minister Yadav and Secretary Kafle to discuss the issues faced by manpower entrepreneurs. During the discussion, Minister Yadav assured that consultations with the department would follow and that solutions would be sought through dialogue.