The outsourcers have applied for merger as the government has increased the bank guarantee amount for them.
“Some 226 manpower agencies have applied for merger after the government amended the Foreign Employment Act to encourage them to go for mergers, , according to the Department of Foreign Employment (DoFE). “After the merger process is completed, the 226 firms will become 98 manpower agencies.”
“Some 576 manpower companies have deposited their bank guarantee while some 533 have deposited cash guarantee, according to the amended Act, till today,” the department informed, adding that the government – through the amendment – has increased the guarantee money to operate a recruiting agency to up to Rs 60 million, some 20-fold increase from the previous amount forcing the manpower agencies to either merge or close down. “Those, which can not deposit increased bank guarantee amount will be forced to close down.”
Earlier, the outsourcing firms had been paying Rs 3 million as guarantee money – Rs 700,000 in cash and Rs 2.3 million as bank guarantee to run their business. There are almost 1,200 recruiting firms at present.
The government has fixed September 3 as the final deadline to submit increased bank guarantee for them. “If they fail to submit the increased bank guarantee amount, the department will revoke their recruiting licence,” the department informed, adding that the department has given the manpower agencies ample time to abide by the new provision.
According to the new law, the recruiting agencies sending up to 3,000 workers per year must deposit Rs 5 million and submit Rs 15 million as bank guarantee. Likewise, the outsourcing agencies sending between 3,000 and 5,000 workers must deposit Rs 10 million and submit Rs 30 million in bank guarantee, it reads, adding that those, who supply over 5,000 workers per year must deposit Rs 20 million and provide a bank guarantee of Rs 40 million to start their operation.
“Some 226 manpower agencies have applied for merger after the government amended the Foreign Employment Act to encourage them to go for mergers, , according to the Department of Foreign Employment (DoFE). “After the merger process is completed, the 226 firms will become 98 manpower agencies.”
“Some 576 manpower companies have deposited their bank guarantee while some 533 have deposited cash guarantee, according to the amended Act, till today,” the department informed, adding that the government – through the amendment – has increased the guarantee money to operate a recruiting agency to up to Rs 60 million, some 20-fold increase from the previous amount forcing the manpower agencies to either merge or close down. “Those, which can not deposit increased bank guarantee amount will be forced to close down.”
Earlier, the outsourcing firms had been paying Rs 3 million as guarantee money – Rs 700,000 in cash and Rs 2.3 million as bank guarantee to run their business. There are almost 1,200 recruiting firms at present.
The government has fixed September 3 as the final deadline to submit increased bank guarantee for them. “If they fail to submit the increased bank guarantee amount, the department will revoke their recruiting licence,” the department informed, adding that the department has given the manpower agencies ample time to abide by the new provision.
According to the new law, the recruiting agencies sending up to 3,000 workers per year must deposit Rs 5 million and submit Rs 15 million as bank guarantee. Likewise, the outsourcing agencies sending between 3,000 and 5,000 workers must deposit Rs 10 million and submit Rs 30 million in bank guarantee, it reads, adding that those, who supply over 5,000 workers per year must deposit Rs 20 million and provide a bank guarantee of Rs 40 million to start their operation.
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