Heads of domestic labor offices expressed dissatisfaction after the Ministry of Trade and Industry issued a decision to set a maximum fee for recruiting household service workers according to origin countries, which excludes annual air tickets. The decision stipulated on Sunday that contract fee for household service workers hired from the Philippines is KWD 850, whilst KWD 700 for India, Sri Lanka, and Nepal. Meanwhile, a fee of KWD 500 is set for African countries and KWD 350 for special passports submitted by sponsors.
The decision was described by owners as “inconsiderate and unfair”, according to an Arabic daily, especially for other countries besides the Philippines. The owners were concerned that the assigned fees could close the door for Kuwaiti companies with their counterparts in the region. They also believe this foretells another impending crisis for the market when the current Kuwaiti market is saturated with demands for Filipino workers since the Saudi market reopened. They also fear that Kuwait would turn into a dumping ground for unskilled workers, stressing that the decision is not in compliance with the market regulations, and contradicts with local and international manpower laws and consensus.
The decision received criticism from the head of the Kuwaiti Federation of Owners of Domestic Labor Recruitment Offices, Khaled Al-Dakhnan, who pointed out that the fees are “unfair” and will seal competition between Kuwait and other neighbouring countries, emphasizing that labor offices will favour well-paying clients. He also confirmed that air tickets to the Philippines are expensive, and charging the plane fare to the sponsor resolves all concerns, adding that the fees for other countries is inequitable, mentioning the hiring process can be laborious in Sri Lanka for the approved rate. Moreover, he explained that the office guarantees the worker a return ticket valid for six months.
On the other hand, specialist in domestic labor affairs, Bassam Al-Shammari, said that the decision was marred by many observations, as he priced the service with some countries and there are no agreements and memoranda of understanding with them, such as Ethiopia, where fees and costs are still unclear. In a statement to a local Arabic paper, Al-Shammari said that the decision was also unfair regarding Sri Lankan workers, and might result in exporting companies being reluctant due to the lack of budget. He also pointed out that the memoranda of understanding require training and rehabilitation to obtain skilled labour, and in the current decision it is difficult to implement this, which will cause a deficit in the domestic labour sector in the future, not to mention settling for unskilled labor.
The fees for household service workers recruitment from the Philippines are as follows:
1. KWD 15 for the Philippine Embassy notarization fees for documents.
2. KWD 15 for courier fees, as the Kuwaiti Embassy refuses to receive papers except through mail.
3. KWD 35 for the stamp fees at the Kuwait Embassy in Manila.
4. KWD 150 for the office’s fee to search for candidates and send them to the capital, in addition to the medical exam which costs KWD 10. Also, obtaining a passport costs KWD 10, and if hired from the Visayas region or the Davao region, the cost of transferring the worker to the capital is KWD 30, while the cost is KWD 20 if hired from Luzon.
5. After sending a copy of the candidate’s passport to Kuwait to obtain a visa, the candidate undergoes a medical exam in Manila for KWD 30. If the candidate does not pass the exam, the office shall bear the return travel fees.
6. Making the candidate attend government training programs costs KWD 20 which lasts for two weeks.
7. The office that will send the worker to the government pays about KWD 30, and if the office is not accredited, it pays KWD 120 to the accredited office, which pays KWD 30 and keeps the rest as it is responsible for the accommodation of the candidate in the capital, which totals KWD 485.
8. The Kuwaiti government has set the amount of recruitment at KWD 850, which means that KWD 365 remains to be divided between the offices in Kuwait and the Philippines, where the share of the Philippine-based office is about KWD 230, as it is the one who bears the costs of the candidate’s stay in the Philippine capital for one and a half to three months, then sending the candidate to the airport.
9. There is about KWD 135 left for the Kuwaiti office in return for receiving the candidate from the airport and printing the documents. It sponsors the candidate for a period of six months, and is obliged to provide accommodation according to the law, in the event that the sponsor does not hire the worker immediately, other than the expenses of office and secretarial fees.
10. If the sponsor does not like the candidate or the candidate refuses to work, the office is forced to return the full amount to the sponsor and return the worker to the country of origin, because according to Kuwaiti law, the sponsor cannot give the worker to another sponsor, and the office must return the amount of KWD 850 to the sponsor, and bear the value of the return ticket.
11. The office in Kuwait bears the responsibility of the worker even after the expiry of the sponsorship period before the Philippine authorities, in the event that the candidate does not receive the dues.
12. In order for the recruitment office to continue its operations, it must bring at least more than 100 household service workers per month, while ensuring that six percent of them will not return, because if this percentage returns, it loses all what it earned from recruiting the 100 workers.
13. The figures for the amounts are estimates, according to the currency exchange rate.
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