Parliamentary committee questions use of procurement law to outsource workers

Kathmandu, August 25

A parliamentary committee has raised concerns over the use of procurement law to outsource workers in both the public and private sectors, warning that the practice is being used to evade responsibility and undermine workers’ rights.

The Industry and Commerce, Labour and Consumer Interest Committee of the House of Representatives held a meeting on Tuesday to discuss the management of workers through outsourcing.

Committee Chair Rahbar Ansari expressed serious concern over the practice of using procurement law to outsource labour and deprive workers of their rights.

Ansari said no government agency or private organisation should be allowed to avoid its responsibility towards workers by outsourcing labour under the cover of procurement law.

He also raised concerns about what he described as a nexus between politics and business, particularly in industrial corridors. He said ward chairs and local representatives of political parties were allegedly acting as outsourcing agents, recruiting workers for industries and benefiting from their wages.

Ansari called for strict action against such fake outsourcing agencies as well as industries and companies that allow political figures to exercise authority over worker recruitment.

He said a digital registry should be established to ensure transparency in labour management and protect workers’ rights. He also called for an end to the practice of employing workers for as little as Rs 10,000 to Rs 12,000 without paying the minimum wage.

Ansari further called for action against agencies that seize the citizenship certificates and other documents of domestic workers, effectively holding them hostage and subjecting them to financial exploitation.

He also criticised the emergence of practices such as “tighre allowance” and “mundre allowance” in the industrial sector. He expressed concern over the recruitment of thousands of workers from across the border, which he said was displacing local workers.

He also raised concerns over the lack of accountability when workers are injured or killed in workplace accidents.

Ansari urged the government to amend the Labour Act as necessary to address these issues and ensure workers’ rights are protected.

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