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Friday, October 1, 2010

Expats On Govt Contracts Free To Transfer After 3 Yrs

Decision Expected Soon

KUWAIT CITY, Sept 30: The Ministry of Social Affairs and Labor is expected to issue a decision in the next few days to allow expatriates under government contracts to transfer to another sponsor after spending three consecutive years with the current sponsor, instead of five years, only if the contract expires, reports Al-Watan Arabic daily quoting sources.

Sources clarified this is one of several decisions the ministry is currently preparing for the full implementation of the new labor law in the private sector.

Sources said the ministry will also issue a directive to organize the transfer of residence permits for expatriate workers in the private sector. Sources explained the new law allows foreign workers, who entered the country after the issuance of the new decision, to transfer to another sponsor after spending one year with the current sponsor. Sources added those who entered the country prior to the issuance of the decision can transfer to another sponsor anytime with the approval of the current sponsor. - http://www.arabtimesonline.com

Professionals First In Kafeel Switch

Rights Group Welcomes Kuwait Plan

KUWAIT CITY, Sept 28: The proposed Public Authority for Expatriates will not be responsible for all the foreign workers in the country, a ministerial source told the Arab Times.

The Authority will only be responsible for certain classes of expatriates, expected to be around 30 percent of the country’s foreign population, in the initial stages of the proposed plan to set up a separate authority for expatriates.

This came after Minister of Social Affairs and Labor Dr Mohammad Al-Afasi announced earlier this week that Kuwait would end the current sponsorship (kafeel) system in the country on Feb 26, 2011, as “a Liberation Day gift to expatriates.”

Clarifying another point, the source said while the Authority would be the one responsible for sponsoring the residence of the expatriates it would not act like a ‘sponsor’ and that a certain group of expatriates would be similar to a ‘self-sponsorship’ in which an expatriate would have greater freedom to ‘move around’. All the transactions would have to be completed by the expatriate himself after his residence had been approved.

The source, however, clarified that the rules to be enforced by the Authority had not been finalized adding that the government will set a number of conditions and will identify groups, who will come under this scheme, to allow them to ‘sponsor’ themselves and process their transactions without a local sponsor.
The source added that Arab expatriates, who spent 20 years or more in Kuwait without being involved in any criminal case will be given priority, as well as expatriates with high academic and technical qualifications. “Employees in teaching, commercial, technical, engineering and petroleum sectors will be under this scheme and be able to ‘sponsor’ themselves as they hold stable jobs and not likely to change jobs very often,” the source noted.

The ministries of Interior, Social Affairs and Labor are said to be coordinating with each other to frame the bylaws and regulations to allow expatriates to ‘sponsor’ themselves, as well as their children. The source indicated that the ministries will consider the qualifications, designation and social position of some nationalities.

The government, which has been severely criticized by human rights organizations, will also approve a special law for domestic workers in order to protect their rights. The source disclosed the parliamentary Human Rights Committee is urging the government to expedite the process and issue the law at the earliest. The source added these recommendations will be forwarded to the National Assembly for approval.

Meanwhile, the Kuwaiti plan to abolish its employer sponsor system is a significant step to address a major source of labour abuse, but it must also cover domestic workers, Human Rights Watch said on Tuesday.

“This announcement is an important declaration that the Kuwaiti government is taking seriously the need to protect migrant workers,” Sarah Leah Whitson, Middle East director of the New York-based rights group said in an emailed statement.

“But the government needs to say publicly what it plans to do and it needs to include domestic workers in its plans,” Whitson said.

Some 2.35 million foreigners live in Kuwait, about 1.7 million of whom are workers, including 650,000 domestic workers who are not covered by Kuwaiti labour law. Native Kuwaitis number just 1.1 million.
The minister said the system will be abolished once a public authority for the recruitment of foreign workers is established in February.

Kuwait’s current sponsorship system ties a migrant worker’s immigration status to an individual employer, or sponsor, without whose consent the worker cannot transfer employment.

“Absconding from the workplace is a criminal offence, even if a worker has left because of abuse,” HRW said.

This system gives employers unchecked leverage and control over workers, who remain completely dependent upon the sponsoring employer for their livelihood, it added.

Employees can suffer physical and sexual abuse, and employers often withhold salaries, require long working hours with no time off, refuse to allow a worker to go home after an employment contract expires, and block avenues to redress grievances, it added.

“Any new system should allow workers to change or terminate employment at will, and should decriminalise ‘absconding,’ or leaving employment without an employer’s permission,” Whitson said. - By: Ben Arfaj Al-Mutairi, http://www.arabtimesonline.com

BDO, Wells Fargo sign deal on remittance transfers

MANILA, Philippines -- Local banking giant Banco de Oro Unibank seeks to further grow its lucrative overseas Filipino remittance business via a new partnership with American financial giant Wells Fargo & Co.

San Francisco-based Wells Fargo, for its part, has effectively tripled its remittance pay-out locations in the Philippines – the fourth largest country in the globe in terms of inbound remittance – by hooking up not just with the country's largest bank but with the leading non-bank domestic remittance retailer M.Lhuillier Financial Services Inc.

"We understand how important remittances are to the Philippines," said Daniel Ayala, executive vice president and head of Wells Fargo's global remittance services, during Thursday's signing ceremonies on this partnership.

"By helping out Filipino customers reach more locations throughout the country, we hope we can stimulate the economy of their homeland by supporting their family and friends."

BDO has 650 branches and 1,333 automated teller machines and was cited by the Bangko Sentral ng Pilipinas as the largest remittance channel in the country in 2009 based on volumes. In addition to its vast retail network, BDO has existing tie-ups with rural banks as well as the shopping mall and retailing units of its sister companies under tycoon Henry Sy's SM group.

With this new tie-up, overseas Filipinos who are Wells Fargo customers can send up to $3,000 a day to their beneficiary through BDO or up to $1,000 a day to their beneficiary at M.Lhuiller for $5 from an eligible Wells Fargo account or for $7 if originated from cash.

Customers may also qualify for a discounted fee based on their account relationship with Wells Fargo. Remittances to the Philippines are denominated in Philippine pesos.

The tie-up is seen allowing BDO, already accounting for a hefty 30 percent of the inward remittance business, to further grow its market share.

M. Lhuillier vice president Michael Lhuillier, for his part, said his firm's working relationship would help millions of Filipinos living and working in the US better facilitate their money transfers to local beneficiaries. M. Lhuillier has 1,300 locations across the country including remote areas such as Batanes, Tawi-tawi, Surigao and Siargao.

"Together we are offering a service that will provide a secure, convenient and competitively priced remittance services," Lhuillier said. - Doris Dumlao, Philippine Daily Inquirer, October 01, 2010