OVERSEAS RECRUITMENT

PRACTICES IN INDIA

Dr S Irudaya Rajan
Dr V J Varghese
Dr M S Jayakumar

Research Unit on International Migration

Centre For Development Studies (CDS), Thiruvananthapuram
Ministry of Overseas Indian Affairs (MOIA), Government of India
 INTRODUCTION
India, one of the largest manpower-
exporting countries – about 10 million
or 1 percent of India’s population
It tops the list of recipient countries of
migrant remittances with $ 27 billion
in 2007 – 3 percent of GNP
Kerala State in India – 1.8 million
Remittances – 20% of the SDP
 OBJECTIVES

• Understand the intricacies of

overseas recruitment practices
• Analyze the emigration process
through various channels such as
recruitment agencies and others
• Provide policy recommendations
to improve the recruitment
system.
 STAKEHOLDERS
• The study based on the survey done at the
national level from intending migrants,
recruitment agencies and Protectors of
Emigrants in 8 locations which are hubs of
the recruitment activities and the process
of emigration clearance.
• Foreign employers, Foreign recruitment
agencies, Workers in the Workers Camps
in Gulf, Indian Missions were interviewed
without the structured questionnaire.
• Special Survey among emigrant
households and return migrants in the
state of Kerala.
 Section 22 of the The Emigration Act 1983

• “No citizen of India shall emigrate unless he obtains under this

chapter from the protector of emigrants authorization in the
prescribed manner”
• However, thirteen categories of persons have been exempted
from this requirement (below 18 years, above 50 years,
completed 10 years of schooling)
• Emigration Check Not Required (ECNR) Passport holders –
“Any” country
• Emigration Check Required (ECR) passport holders –
“Exempted” for ECNR countries
• ECNR countries - 174
• ECR countries – 18 countries (Gulf, Malaysia, Jordan, Libya,
Iraq is banned) – Exemption Granted
 The Emigration Act 1983 on Overseas
Recruitment
• Registered Recruitment Agencies (RRA)
• The Protector General of Emigrants
• Three categories of RRA – 1835 as of 2007
• < 300 persons: Rs. 3 lakh
• 301-1000 persons: Rs.5 lakhs
• > 1000 persons: Rs. 10 lakhs
• Service charges: Rs. 5000 (skilled worker,
Rs. 3000 (semi-skilled workers), Rs. 2000
(unskilled workers and Rs 10000 (other than
the above
Workers Emigrated and Suspension
Granted, 1985-2007 (in millions)

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
year

Workers Emigrated Suspension granted

Destination of Indian Emigrants,
1988-2007 (Percent)
120

100

80
million

60

40

20

0
1988

1989

1990

1991
1992

1993

1994
1995

1996
1997

1998

1999

2000
2001

2002

2003
2004

2005
2006

2007
year

% to Gulf % to UAE % to SAUDI

Emigrants by States in India,
1993-2007 (percent)
90

80

70

60

50

40

30

20

10

0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
year

% of South India % of Kerala % of Tamil Nadu

Location of POE offices and Trends
in Migration, 2001-07
80

70

60

50
% of POE

40

30

20

10

0
2001 2002 2003 2004 2005 2006 2007
Year

% of POE
 Emigrants in Gulf:
India and Pakistan, 2002
4000000

3500000

3000000

2500000

2000000

1500000

1000000

500000

0
UAE Saudi Qatar Oman Kuwait Bahrain Total
Arabia
Countries

India Pakistan
 Recognition of Weakness
• Union Minister of Overseas Indian Affairs,
Government of India and other officials
connections with the Ministry
• “ the system that the Government had put in
place to regulate and streamline the emigration
process itself has resulted in corruption and in
the formation of a nexus between government
officials and recruitment agencies leading to
increasing exploitation of the poor”
 Findings from the Intended
Migrants Survey
• Channels of Migration: friends and
relatives = 79%, foreign employer = 7.3,
Government agency = 0.5; RA = 13.5
• Cost of Migration = about 1200 US $
• Sources of Finance: one-third from the
money lenders
• Awareness: Contract, working conditions
and other information on Gulf (limited
knowledge)
 Findings from the Emigrants
Survey
• Cost of Migration: 1200 US $ for friends and
relatives and 2000 US $ for RAs
• Channel and the sources of finance remains the
same
• Various payments of migration: Visa fee,
recruitment charges, interviews (practical tests),
medical test, insurance, emigration clearance
and air faire
• Salaries in Gulf: three out of 5 receives equal to
200 US $ and one of out of 10 above 500 US $
 Findings from the Return
Emigrants Survey
• Channel of Migration: Individual agents and
travel agents – new channels
• Problems faced in the Gulf: taking away
passport, signing of new contract with low
wages, modified work and living conditions and
return airfare and other employment benefits
such as overtime and leave salaries.
• Reasons for return: one in three due to low
remuneration and poor working conditions.
• One groups being exploited and other groups
come in (replacement by region or country)
 Findings from Recruitment
Agencies
• Not transparent
• Buy visas from foreign employers and
foreign recruitment agencies
• Receive services charges from both
foreign employers and emigrants
• Closely work with individual agents
• Closely work with protectors of emigrants
 Notes from Gulf
• Non-payment of salaries
• Salary levels are very low – 100 US $
• Foreign employers pay services charges
to RA in India
• Foreign employers just provide visas and
ask them to send workers
• Foreign employers ask money for visas
from RA
 Notes from Gulf (collusion)
• Between foreign recruitment agencies and
Indian recruitment agencies
• Between foreign employers and recruitment
agencies
• Between foreign employers and individual
agents
• Between return emigrants and foreign
employers
• “Ghost” companies and rampant free visa and
visit visas.
 Required Policy Changes
• POE offices have no credible mechanisms
except the attestation by the Indian
Embassy – Should be reviewed
• MEA – Passport Control and Indian
Embassy; MHA: Bureau of Emigration,
MOIA: POE – Need more coordination
• MOIA should establish its own offices to
handle the labor issues in the countries of
destination
 Required Policy Changes
• Removal of ECR passports
• Compulsory Pre-departure Training
• Negotiation of Minimum wages in Gulf
• Introduce a new system in which RA
receive service charges only from the
foreign employer (no money from intended
emigrants)- Zero cost of migration
• Increase in the Registration fee for RA
• Collaboration of sending countries