Nepal Manpower Agencies Begin Nationwide Shutdown, Worker Departures And Recruitment Services Stopped

Kathmandu, August 17, 2026

Manpower agencies across Nepal have begun a nationwide shutdown from Monday, stopping major foreign employment services after the Nepal Association of Foreign Employment Agencies said the government had failed to take concrete action on its demands.

The shutdown affects manpower companies in Kathmandu as well as their branch offices across the country. According to the association, new job advertisements, interviews, recruitment procedures, labour related processing and scheduled departures of workers through member agencies will not continue during the protest.

The association had already introduced its protest in stages before announcing the complete shutdown. It had stopped processes including pre final labour approvals, new advertisements and visa stamping.

Manpower agencies had been given a final period to complete the departures of workers whose recruitment and other required procedures had already been completed. Association Senior Vice President Mahesh Kumar Basnet said agencies had been informed a week earlier that such workers should be sent before Sunday midnight.

According to Basnet, workers whose procedures had been completed were allowed to depart until the deadline. With that period now over, the association says worker departures handled through the protesting manpower agencies will also stop.

What Are The Manpower Agencies Demanding?

The dispute is linked to a 15 point memorandum that the Nepal Association of Foreign Employment Agencies submitted to the government in July.

One of the association's main demands is a review of the service fee that manpower agencies can charge workers. Under the existing system introduced in 2015, licensed recruitment agencies are generally allowed to collect up to Rs 10,000 as a service fee under the Free Visa, Free Ticket policy.

Manpower businesses argue that the existing amount is not practical considering the costs involved in recruitment and sending workers abroad. The association has therefore called for a more practical and transparent system for determining foreign employment service fees.

It was reported in July that the association submitted its 15 point memorandum to Youth, Labour and Employment Minister Ramjee Yadav and initially gave the government 15 days to address the issues. The association said it could not continue sending workers abroad without an appropriate service fee system.

The service fee issue has been under discussion for months. Manpower representatives have previously called for a service fee equivalent to two months of a worker's salary, arguing that the current Rs 10,000 limit does not cover recruitment costs.

Action Against 598 Manpower Agencies

Another major issue is government action involving 598 manpower companies linked to cases in which workers travelled through Indian airports. The association has demanded that the government withdraw the action. The association argues that workers were sent through Indian airports under special circumstances, while authorities have taken the position that manpower agencies did not have permission from the Department of Foreign Employment to use those routes.

Earlier reporting said some of the 598 agencies faced fines or warnings. The association has argued that the action created uncertainty and unfairly affected foreign employment businesses.

The association's other demands cover wider reforms in Nepal's foreign employment system. These include reducing unnecessary administrative difficulties, making government monitoring and action more transparent and practical, improving the implementation of labour agreements with destination countries, classifying foreign employment agencies and reviewing rules related to licence renewal, bank guarantees and deposits.

Government Is Reviewing Foreign Employment Rules

The dispute comes as the government is itself considering changes to Nepal's foreign employment system.

The Ministry of Labour has prepared proposed changes to the Foreign Employment Act that would allow the government to determine the service fee payable by workers when employers in destination countries do not cover recruitment costs.

The proposed changes also address demand letter verification, digital recruitment systems, standards for manpower agencies and stronger action in cases involving fraud.

Labour Minister Ramjee Yadav has also said the government is reviewing the Free Visa, Free Ticket policy introduced in 2015. According to the minister, the policy exists on paper but many workers are still paying large amounts to travel abroad for employment. The government says it wants a system that makes recruitment costs more transparent and easier to monitor while working toward a model in which employers bear recruitment costs.

Talks Fail To Produce Concrete Agreement

Despite discussions between the two sides, the dispute has not yet been resolved.

According to the association, preliminary talks were held with a Labour Ministry team on Friday, but no concrete agreement was reached. The association has also complained that discussions had not reached the ministerial level and that the government was not giving enough priority to its concerns.

The association has said it remains open to further negotiations. However, it has taken the position that manpower agencies will not return to normal operations until the government provides a clear decision and a reliable basis for implementing solutions to its demands.

Association General Secretary Hirabahadur Dangi said in a statement that the protest is connected to the professional future, rights and interests of foreign employment businesses.

The association has also issued strict instructions to its member companies not to secretly continue operations or use alternative methods to bypass the shutdown.

It has warned that companies that ignore the decision could lose future assistance and protection from the association. Further action against such companies could also be considered during an upcoming review meeting.

Shutdown Could Affect Workers Preparing To Go Abroad

The immediate impact of the shutdown could be felt by Nepali workers who are currently preparing to leave the country for foreign employment.

With recruitment, interviews, advertisements, administrative procedures and worker departures affected, people whose foreign employment processes have not been completed could face delays if the dispute continues.

The scale of the impact will depend largely on how long the shutdown lasts and whether the government and manpower association can reach an agreement.

For now, the association says its doors remain open for negotiations, but it will continue the protest until the government takes concrete action on its demands.

The shutdown has therefore turned a long running disagreement over recruitment fees, regulation and government action against manpower companies into a nationwide disruption of Nepal's foreign employment recruitment system.