New manpower companies planning foreign employment agency business will have to pay 20 times more license fees, if the Labour Ministry’s proposal to increase it from the current Rs 3 million is approved.
The Ministry of Labour, Employment and Social Security has proposed to raise the license fees for new agencies in the foreign employment business to Rs 60 million.
The proposal of steep increase in licence fee is to deter new entrants, minimising the number of agencies and seek greater accountability. Earlier, recruiting agencies, seeking new licence for entering foreign employment business, paid Rs 3 million—Rs 700,000 in cash deposit and Rs 2.3 million in bank guarantee as deposit.
The Department of Foreign Employment (DoFE) has 1,415 recruiting agencies on its register at present. A large number of agencies are either defunct or sending a small number of workers abroad.
The government plan to hike fees has miffed recruiting agencies. Some threatened to surrender their licenses to the government.