It is quite an irony that more and more foreigners are seeking permits to work in Nepal while a huge number of Nepalis are leaving the country for employment. The Department of Labour (DoL)’s record shows that the number of foreign nationals taking permits to work in Nepal surged by 53 per cent in the last fiscal year 2014-15.

 

A majority of expats coming to Nepal for work are engaged in the construction sector, followed by service sector. According to DoL, a total of 1,333 foreigners took new work permits and 549 individuals renewed their permits in the last fiscal year. In fiscal year 2013-14, a total of 869 foreigners had obtained new permits and 876 had renewed their permits.

 

Through the budget announcement for the current fiscal year 2015-16 too, the government had stated that work permits will be made mandatory for non-Nepalis to be employed in Nepal and updated records will be maintained. So far, as per the DoL, around 12,000 foreigners have received permits to work in Nepal but there is no official record on how many foreigners are working in the country by flouting the Labour Act 1992.

 

“The trend shows that more non-Nepalis are seeking permits to work in Nepal as it has been made mandatory in the labour law,” said Hari Prasad Sharma, information officer and technical director of DoL. He said that a majority of expats who took the permits are in the construction sector and Chinese nationals who are employed in different infrastructure projects have topped the list.

 

The rise in number of expats taking permits is also attributed to the guideline introduced to encourage foreign workers to get work permits. Issuing a directive ‘Guideline for Work Permit Management of Non-Nepali Employees 2070’, the government had provided a 90-day ultimatum about 18 months ago.

 

Even though the law requires any foreigner coming to Nepal for work to obtain a work permit, the provision has remained less effective because of the considerably low number of expats approaching for the permit, lack of effective monitoring by DoL, and absence of strict rules to penalise those expats not abiding by the rules. According to Sharma, despite resource constraints, the department does conduct inspections if they receive complaints.

 

The budget of the current fiscal year has also talked of conducting a study on the need for foreign workers within mid-October for effective regulation on hiring of foreign workers. In a bid to make foreigners follow the labour rule of the country, the government for the last five years has been working on a plan to make all foreign workers obtain a work permit and renew it.

As per the directive, a foreigner who works in Nepal without a permit could be fined Rs 20,000 and may even face deportation. Work permit is not required for diplomatic staff, who enjoy diplomatic privileges and immunity.

 

Education, construction, aviation, bank, hydropower, foreign diplomatic missions, telecom and hospitality, among others, are the sectors that have employed foreign nationals.

 

DoL said that due to the hiring of foreign workers without legal process, the government has also incurred losses amounting to millions of rupees in revenue. A fee of Rs 5,000 has been fixed for Indians, while individuals from other countries are required to pay Rs 10,000 to get the work permit. A foreigner wishing to work in Nepal can get a permit valid for a minimum of five years in the initial phase.