KATMANDU, May 5: The government has introduced stricter penalties against manpower agencies that charge foreign job seekers more than the legally permitted fees, including heavy fines and cancellation of licenses.
Under the revised provisions of the Foreign Employment Act, 2064 BS, amended through an ordinance, agencies that overcharge workers will now face a penalty of Rs 50,000 per affected worker, along with the possibility of having their recruitment licenses revoked.
Previously, the law only allowed a fine of Rs 100,000 and required agencies to refund excess charges collected from workers.
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The amended provision significantly strengthens enforcement by making penalties proportional to the number of victims. Authorities will now calculate fines based on the number of workers affected by illegal charging practices.
Officials said the stricter rule is aimed at curbing widespread complaints that manpower companies charge up to Rs 300,000 from workers despite many claiming “zero-cost” recruitment arrangements from destination countries.
In practice, many agencies have been accused of collecting large sums without issuing receipts, making it difficult to track illegal fees. The government believes the revised law will help deter such exploitation and bring greater transparency to foreign employment recruitment practices.
Under the new framework, offenders will not only be required to refund excess fees but will also face substantial financial penalties and risk losing their operating licenses entirely.
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