REVIEW OF LABOR MIGRATION DYNAMICS IN CAMBODIA

Transcription

1 REVIEW OF LABOR MIGRATION DYNAMICS IN CAMBODIA

2 IOM is committed to the principle that humane and orderly migration benefits migrants and society. As an intergovernmental body, IOM acts with its partners in the international community to: assist in meeting the operational challenges of migration; advance understanding of migration issues; encourage social and economic development through migration; and uphold the human dignity and well-being of migrants. Opinions expressed in this report are those of the author and do not necessarily reflect the views of IOM. Publisher: International Organization for Migration IOM Phnom Penh P.O. Box 435 General Post Office Phnom Penh Cambodia Telephone Fax iomphnompenh@iom.int 2006 International Organization for Migration (IOM) Cover Photo courtesy John Vink/ M agnum Photos 1

3 REVIEW OF LABOR MIGRATION DYNAMICS IN CAMBODIA DR BRUNO MALTONI September

4 Table of Contents Acknowledgments... 5 Acronyms... 6 List of Tables... 8 Introduction Key Stakeholders Ministries and Governmental Bodies Involved in Labour Migration Management Ministry of Laobr and Vocational Training Department of Employment and Manpower Ministry of Foreign Affairs and International Cooperation Ministry of Interior Council of Ministers National Aids Authority Inter-Ministerial Working Group International Organizations Involved in Labour Migration in Cambodia International Organization for Migration (IOM) United Nations Development Fund for Women (UNIFEM) United Nations Population Fund (UNFPA) United Nations Inter-Agency Project on Human Trafficking in the Greater Mekong Sub-region (UNIAP) World Bank (WB) NGOs Involved in Labour Migration in Cambodia CARAM Cambodia Legal Support for Women and Children (LSCW) Cambodian Women's Crisis Center (CWCC) Cambodian Women for Peace and Development (CWPD) International Labour Migration in Cambodia Laws and the Recruitment Process Protection of Migrant Workers and Return Support Problems Faced by Migrant Workers Countries of Destination International Agreements Migration to Thailand Undocumented Migration to Thailand Remittences Issues Faced by Cambodian Migrants in Thailand Memorandum of Understanding between Cambodia and Thailand on Cooperation in the Employment of Workers The Registration Process

5 8. Migration to Malaysia Issues Faced by Cambodian Migrants to Malaysia Malaysian Management of Foreign Migrant Workers Migration to the Republic of Korea Republic of Korea Management of Labour Migration Key Points of the Employment Permit System Recommendations Research Information Protection of Migrant Workers Health Remittences Gender Legislative Tools Political Cooperation Capacity Building Migration Dynamics Reintegration Annex A: Sub-decree 57 on The Sending of Khmer Workers to Work Abroad Annex B: Prakas n.108 MOLVT on Education on HIV/AIDS, Safe Migration and Labour Rights for Cambodian Workers Abroad Annex C: Sub-Decree 70 On the Creation of The Manpower Training and Overseas Sending Board Annex D: Memorandum of Understanding between Cambodia and Thailand on Bilateral Cooperation in the employment of workers Annex E: Republic of Korea Employment Permit System (EPS) Annex F: Recruitment Procedures for Cambodian Nationals for Employment in Malaysia Annex G: List of NGOs and International Organizations dealing with labour migration issues in Cambodia References

6 Acknowledgments The results of this report owe a good deal to: Shelly Preece and Lee Chen Chen for their friendly advice and suggestions. Iulian Circo, Pernille Moeller, John McGeoghan and Anne Horsley at IOM Phnom Penh for helping me to better understand the migration dynamics in Cambodia in areas other than labour migration. Special thanks to Pieter Vandermeer, also from IOM Phnom Penh, who strengthened the report with his editing. Thanks to Pierre Fallavier (World Bank) for his support in my research work. I would like also to thank all the staff of the Ministry of Labour and Vocational Training for their friendly cooperation. Finally, kind thanks are due to all the representatives of local NGOs and International Organizations who spent a great deal of their time to answer my endless questions. Errors and omissions in this report, if any, remain my sole responsibility. Bruno Maltoni Labour Migration Advisor International Organization for Migration Phnom Penh 22 September

7 Acronyms ADHOC ASNCC CARAM CBLM CCD CDRI CI COMMIT COSECAM CPRWCA CTSWF CWCC DCA DOCS CWDA CWPD EPS FLOW GMS HCC ILO IOM KAPE KIND LSCW MMP MOI MOU MOLVT NAA Human Rights and Development Association Association Support New Cambodian Children Coordination of Action Research on AIDS and Mobility Capacity Building on Labour Migration Management Cambodian Children Development Organization Cambodian Development Research Institute Certificate of Identity Coordinated Mekong Ministerial Initiative Against Human Trafficking NGO Coalition to Address Sexual Exploitation of Children in Cambodia Cambodia Protection Rights of Women and Children Association Cambodian Tourism and Service Workers Federation Cambodian Women Crisis Center Dan Church Aid Development Organization for Cambodia Society Cambodian Women Development Agency Cambodian Women for Peace and Development Employment Permit System Future Light Organization of Women Great Mekong Sub-region Healthcare Center for Children International Labour Organization International Organization for Migration Kampuchean Action for Primary Education Khmer Institute for National Development Legal Support for Children and Women Migrants and Mobile Population Ministry of Interior Memorandum of Understanding Ministry of Labour and Vocational Training National Aids Authority 6

8 NCPD NIS NGO NPIC PJJ UN UNIAP UNIFEM UNFPA VCAO WAC WB WDA WODAC WOMEN WOSO National Committee for Population and Development National Institute of Statistics Non Governmental Organization National Polytechnic Institute of Cambodia Protection of Juvenile Justice United Nations United Nations Inter-Agency Project on Human Trafficking in the Greater Mekong Sub-region United Nations Development Fund for Women United Nations Population Fund Vulnerable Children Assistance Organization Womyn Agenda for Change World Bank Women Development Association Women in Development and Community Women Organization for Modern Economic and Nursing Women's Service Organization 7

9 List of Tables Tab. 1: Selected Economic and Social Indicators for Cambodia and Thailand Tab. 2: Registered Cambodian Migrants by destination in Thailand Tab. 3: Work Permits Issued to all Migrants and Cambodian Migrants for Employment Sector (1 st July-15 th December 2004) Tab. 4 Cambodian Migrant Workers in Malaysia Tab. 5 Cambodian Migrant Workers in South Korea List of Figures Fig. 1 Organizational Chart of Government Agencies Involved in Labour Migration Management List of Charts Chart 1 Money Transfer System (%) 8

10 Introduction Migration in Cambodia is, by and large, concentrated within its borders. Reports from the Ministry of Planning set the percentage of internal migrants at 35% of the total population (NIS, 2005), most of these internal movements are intra-provincial and very short-range. Labour migration is a relatively new topic for the Cambodian Government as well as international organizations, and NGOs working in Cambodia. Previously, the focus of interventions and research related to mobility was concentrated on human trafficking, especially sexual exploitation, and forced migration (diasporas, resettlement of refugees, displacement, etc.). Since 2004, labour migration has started to become a key area both for research and project activities. The main target of these interventions has been, and still is, internal labour migration, particularly, rural-urban migration, with a specific focus on strongly defined groups of migrants such as garment factories workers. The garment sector represents the only effective pull factor in Cambodia providing, in the last ten years, more than 250,000 jobs, mostly for young female migrants coming from the provinces surrounding Phnom Penh. In 2005, there was an increasing awareness of the relevance of international labour migration from Cambodia to the GMS (mainly Thailand) or other Asian countries by the government, international organizations, and NGOs in Cambodia. Cambodia is still in the early stages of labour migration management. Cambodian migrants view migration itself as a short-term copying strategy to overcome unexpected problems and not as a long/medium term process aimed at increasing the socio-economic status of the family. Those who decide to migrate from Cambodia are often driven from their home communities by an overwhelming predominance of push factors over pull factors. These push factors include chronic poverty, landlessness, lack of employment, lack of access to markets, materialism, debt and natural disasters such as droughts and floods. These migrants often find employment in 3D jobs (Dirty, Dangerous and Disliked) which only allow them to maintain the status quo rather than improving their standard of living. The purpose of this report is to provide an overview of the current labor migration dynamics in Cambodia and to determine where the introduction of new laws, policies and measures can improve effective labor migration management and the protection of migrant workers. 9

11 1. Key Stakeholders 1.1. Ministries and Governmental Bodies Involved in Labour Migration Management: Fig. 1 Organizational Chart of Government Agencies Involved in Labour Migration Management 10

12 1.1.1 Ministry of Labour and Vocational Training Department of Employment and Manpower Activities Managing the export of Cambodian migrant workers Selecting and licensing employment agencies Monitoring and evaluating recruitment agencies Withdrawing licenses from employment agencies who do not follow relevant laws, sub-decrees and other regulations Providing medical checks to migrant workers prior to departure Resolving labour disputes between migrant workers and domestic employment agencies and between migrant workers and their employers Supporting the employment agencies in sending workers abroad Preventing illegal recruitment In August 2006, Manpower Training and Overseas Sending Board, was added to the structure of the Ministry of Labour and Vocational Training as stipulated by Sub-decree 70, approved the 25 th July The Board will be initially be composed of three units: 1) Administrative and Finance, 2) Recruiting and Training, and 3) Sending and Management. Each Unit is led by a Director and a number of Vice Directors as required. The main mandate of the Board is to act as public recruitment agency to manage the migration of Cambodian workers abroad Ministry of Foreign Affairs and International Cooperation: Activities Via diplomatic channels coordinate distribution of all relevant documents and regulations including the MOU between Cambodia and receiving countries Facilitate legal labour migration abroad Manage and resolve labour disputes between workers and their employers in receiving countries via Cambodian embassies in those countries and in close coordination with the Ministry of Labour Ministry of Interior Activities Provide passports to migrant workers Prevent illegal recruitment 11

13 Council of Ministers Activities Participate in the Inter-ministerial Working Group for Implementation of the MOU with Thailand Ministry of Health - National Aids Authority (NAA) The National Aids Authority (NAA) was established in Its aim is to lead, facilitate and coordinate on HIV/AIDS issues in Cambodia. The NAA has identified Migrants and Mobile Population (MMP) as one of the most vulnerable group. Under the MMP program, NAA set up a Mobility Working Group on HIV/AIDS in Its membership consists of relevant Ministries, provinces, UN agencies and NGOs. The primary goal of this MMP program is to create an enabling policy environment and to improve the capacity of the government to prevent HIV/AIDS among migrants and mobile population in Cambodia. The main areas of intervention are: Policy reform and enforcement National planning on MMP Capacity building Cross border collabouration Regional coordination Other Ministries involved, in different degrees, in labour migration issues are: The Ministry of Women s Affairs The Ministry of Finance Inter Ministerial Working Group Through decision No. 2 dated 10 January, 2005, the Royal government of Cambodia established an inter-ministerial working group composed of the Ministry of Foreign Affairs and International Cooperation, The Ministry of Interior, The Ministry of Labour and Vocational Training, and the Cabinet of the Council of Ministers. This working group was charged with nationality verification of recently registered illegal Cambodian migrant workers in Thailand and issuing them with a Certificate of Identity (CI). The working group had a deadline of 31 June 2006 after which no further CIs were granted. According to the official data provided by MOLVT, 36,026 out of 183,000 registered Cambodian migrant workers were issued with the CI during this process. 12

14 1.2. International Organizations Involved in International Labour Migration in Cambodia International Organization for Migration (IOM) Labour migration is one of IOM s many service areas within the Organization s global migration mandate and it s objective to work with all stakeholders to manage the many facets of migration for everyone s benefit. In terms of labour migration management, IOM s objective is to facilitate the development of policies and programs that can individually and mutually benefit the concerned governments, migrants and societies by: Providing effective protection and support services to labour migrants and their families; Fostering economic and social development; and Promoting legal forms of labour mobility as an alternative to irregular migration. With its presence in both countries of emigration and immigration, IOM is well placed to bring together all parties to put in place labour migration mechanisms that balance different interests. IOM Activities in Cambodia: Workshop Series on Implementation of the Cambodian-Thai MOU on Cooperation in the Employment of Workers IOM in cooperation with ILO/IPEC provided technical and financial support to the Ministry of Labour to conduct a series of workshops in Phnom Penh, Sihanoukville and Poipet. These workshops were aimed at strengthening the capacity of relevant Cambodian government officials, both at the central and provincial levels, to implement the MOU on Cooperation in the Employment of Workers signed with Thailand and reduce illegal and unsafe migration. This was accomplished through stimulating internal discussion and increased understanding of the purposes and consequences of the MOU as well as identifying practical ways and approaches for the implementation of the MOU. Capacity Building on Labour Migration Management (CBLM) Project The primary aim of this project is to enhance the capacity of the Royal Government of Cambodia to manage labour migration issues and expand legal labour migration opportunities for the benefit and development of the country and in a manner that will protect migrants from trafficking and exploitation. To this end, a labour migration advisor has been placed with the Ministry to undertake a country assessment to identify where the introduction of new laws, policies and measures can improve labour migration management. Based on this review the advisor will assist the Ministry in developing a national labour migration strategy to address labour migration issues and needs, develop and update legislation, policy and practices and implement measures for effective labour migration management. 13

15 United Nations Development Fund for Women (UNIFEM) UNIFEM's mandate is to promote women's human rights and empower women from a rightsbased perspective. The UNIFEM Asia-Pacific and Arab States Regional Program on Empowering Women Migrant Workers in Asia takes a gender and rights-based development approach to addressing the concerns of women migrant workers and ensuring their rights are recognized and respected. The Program is currently being implemented in Bangladesh, Cambodia, Hong Kong, Indonesia, Jordan, Lao PDR, Nepal, the Philippines, and Thailand. Cambodia is a Phase II country, and consolidates and expands activities initiated in Phase I countries, incorporating lessons learned and targeting gaps identified in these countries. Phase II activities in Cambodia include: Mainstreaming gender concerns in migration into development plans, policies, programmes. Development of gender and rights-based pre-departure training programmes. Advocacy and information sharing with policy makers, implementing agencies, service providers, recruiting agents, employers and media. Publication of Migration Mapping Study assessing the existing policy framework, forms of migration and national institutional resources that affect and address the concerns of Cambodian women migrant workers. Development of national and community-based media campaigns and information dissemination on the concerns of women migrant workers and their need for protection and safe migration options. Development of engendered data and knowledge bases on migration trends and concerns for appropriate policy formulation United Nations Population Fund (UNFPA) UNFPA is concerned with the linkages between migration, poverty reduction and development, particularly in relation to the status and rights of women and young people. Globally, UNFPA is a member of the Global Migration Group and is an active participant in international migration panels and roundtable discussions. In Cambodia, UNFPA is working with the National Committee for Population and Development (NCPD) of the Office of the Council of Ministers to facilitate dialogue and collaboration among line ministries, UN organisations, NGOS and civil society to share information, prevent duplication of work, and promote the development of policies that address the challenges of migration. In preparation of the United Nation s High-Level Dialogue (HLD) on International Migration and Development held as a Special Session of the General Assembly in New York September, 2006, the NCPD convened two consultative meetings on migration in the 2 nd quarter of During these sessions, it was agreed that there was a general lack of comprehensive data and information on the state of migration in Cambodia. To address this, UNFPA is currently working with IOM to develop a migration research initiative, and UNFPA and IOM are also working with 14

16 the NCPD to finalise a Policy Brief on International Migration, which will be disseminated to all concerned stakeholders and the Cambodian Permanent Mission at the UN headquarters UN Inter-Agency Project on Human Trafficking in the Greater Mekong Sub-region (UNIAP) The United Nations Inter-Agency Project on Human Trafficking in the Greater Mekong Subregion (UNIAP) was established in June 2000 to facilitate a stronger and more coordinated response to human trafficking in the Greater Mekong Sub-region (Cambodia, China, Lao PDR, Myanmar, Thailand and Vietnam). At a regional level, UNIAP brings together six governments, thirteen UN agencies and eight international NGOs. The Project aims to strengthen the regional response to human trafficking through improved knowledge, effective collaboration and better targeted action, with a view to reducing the harm and severity associated with human trafficking in the Greater Mekong Sub-region. UNIAP s involvement in labour migration in Cambodia UNIAP assists in improving cooperation and sharing knowledge in this field through organizing quarterly stakeholder meetings on human trafficking, facilitating an information list-serve, translating documents relating to migration and trafficking, and campaigning governmental bodies to consider the links between labour migration and trafficking when developing policies and programs. UNIAP also commissioned a report on situations of labour exploitation resulting through legal labour brokerage firms in Cambodia in line with the Coordinated Mekong Ministerial Initiative Against Human Trafficking (COMMIT) Sub-regional Plan of Action. UNIAP have also funded Legal Support for Children and Women s (LSCW) Migrant Support Project in Koh Kong, Cambodia and Klong Yai, Thailand with the aim of reducing the vulnerability of Cambodian migrant workers to trafficking and exploitation. It is a pilot project that approaches the issue of trafficking by looking innovatively at the vulnerability of migrants World Bank (WB) The GMS Labour Migration program, launched in June 2005 as part of the World Bank s overall GMS regional assistance strategy, sought to address some of the key knowledge gaps. According to World Bank, building an adequate, effective and humane legal and policy framework for migration in the GMS requires a solid foundation of knowledge and information on migrants, their characteristics, needs and impact in both receiving and sending countries. Such a foundation of knowledge, however, does not exist in the GMS. What is known about migration in the subregion is partial, in many cases anecdotal, and only very rarely analyzed from a joint economic and social perspective. The objectives of this multi-year GMS Labour Migration program are to: (i) improve knowledge about labour migration in the GMS focusing on the socio-economic impact of migration on 15

17 sending and receiving countries; (ii) raise awareness about these issues and their significance for poverty reduction at the highest levels of policy making; and (iii) strengthen the capacity of governments and development partners to refine and implement a regional system to facilitate and regulate labour migration. 1.3 NGOs Involved in Labour Migration in Cambodia CARAM Cambodia CARAM Cambodia has identified two large migrant groups to research, garment workers and sex workers in and around Phnom Penh. Alongside the research, CARAM Cambodia is collaborating with other migrants preparing to work abroad by developing a pre-departure training program with support from both private organizations and public institutions. CARAM Cambodia plans to strengthen awareness of migrants in Cambodian society through increased networking and promotion of migrant issues. Advocacy is a big part of CARAM's work. There is a strong need to bring improved changes in laws, services, and perception and attitude for migrants, which will lower their risk to STDs/HIV/AIDS. CARAM Cambodia's activities: Participatory Research with Migrants (Which will lead to program design, testing and implementation) Useful Networking STD/HIV/AIDS Pre-departure Program Advocacy to bring positive changes Legal Support for Children and Women (LSCW) Legal Support for Children and Women (LSCW) was founded following a year of research and analysis on conditions afflicting children and women in Cambodian society. We are working to promote gender equality, protect children and women from all forms of exploitation, push for the respect of their rights, and increase children and women s awareness of those rights, with offices in Phnom Penh, and Koh Kong and Prey Veng provinces. LSCW also extends its work to Cambodian men, women and children trafficked during labour migration. LSCW provides legal assistance and support through trained Cambodian lawyers to victims, and continued research into conditions affecting women and children and Cambodian migrant workers. It is hoped that this work will enable the raising of awareness of the target group, and the building of capacity of those in need. The LSCW team aims to achieve and foster cooperation and collaboration among NGOs, international organisations, UN governments and civil society actors, both at the national and regional levels, in an effort to find solutions to the problems existing today in Cambodia. LSCW published reports on working and living conditions of Cambodian migrant workers employed in the Thai fisheries sector. 16

18 Cambodian Women Crisis Center (CWCC) The Cambodian Women's Crisis Center (CWCC), a non-profit organization, was established in March It was created, with initial financial support from TDH, by a group of women who perceived that levels of violence against women and children were severe and that assistance services were lacking. CWCC's vision is to eliminate violence against women, such as trafficking, rape and domestic violence, in order to achieve peace, development and happiness for all. CWCC has 3 regional offices and shelters. The central office is based in Phnom Penh and there are regional offices in Banteay Meanchey and Siem Reap provinces. CWCC encourages women who have been victims of gender-based abuse and their children to help themselves through providing crisis intervention services. CWCC also aims to reduce violence against women through training, media campaigns, community organizing, and legal advocacy In December 2005, CWCC published a report on the Trafficking of Cambodian Women and Children to Malaysia Cambodian Women for Peace and Development (CWPD) The Cambodian Women for peace and Development (CWPD) has a migration programme called Promdan (Promoting Migrant Health and Development at Destination), working both in Thailand and Cambodia. Promdan started in 2001 and now is in its third stage of development. Promdan III has been implemented in two provinces, Prey Veng and Kampong Cham, with the objective to improve the living and health conditions of migrant workers and their families in both places of origin and destination. CWPD has conducted research on the condition of migrant workers in Prey Veng as well as raising public awareness on the living and working conditions in Thailand. CWPD aims to promote safe migration by educating the local communities about Thai labour laws, wages, living and working conditions in Thailand. There are programs for raising awareness on HIV/AIDS and STD among migrant workers and their families. The Life Plan Education assists and empowers women who are left at home by husbands who have migrated through sexual education, spreading information about living and working conditions in Thailand. Other activities involve animal raising and animal husbandry and micro finance projects. In the Returnee Project, returnee migrant workers are identified and counselled to undergo health check ups, especially in case of injuries or serious diseases. CWPD has an extensive network of volunteers in the villages. 2. International Labour Migration in Cambodia Most of the existing national policies in the GMS focus on: immigration control (entry and exit), prevention of illegal migration flows; counter-trafficking, and the sending of workers to countries outside the GMS. The policies are not yet responding to spontaneous cross-border migration in the GMS, particularly to Thailand though there is a memorandum of understanding between 17

19 Thailand and Cambodia which sets out some basic principles on how labour migration from Cambodia to Thailand should be regulated. The position of the Cambodian government regarding international labour migration can be found in Cambodia s National Poverty Reduction Strategy asserting that the government s policy is to encourage official labour exports to increase welfare, enhance skills, reduce unemployment and increase state revenues. The government s goal is to develop appropriate government policies and regulations and bilateral arrangements, which do not prohibitively raise the costs yet adequately protect the interests of export workers (2002) 1 As of August 2006, the main destinations for Cambodian migrant workers are: Thailand, South Korea and Malaysia. There is anecdotal evidence of the presence of Cambodian migrant workers in Gulf Countries (Saudi Arabia and Qatar) and other Asian countries (Hong Kong, Taiwan, Japan, etc.), but there is no information available on their number and occupation. 3. Laws and the recruitment process The most important legislative tool in the management of labour migration, as of August 2006, is still Sub-decree 57 of 20 th July 1995 on The Sending of Khmer Worker to Work Abroad (see ANNEX A). Recently, Sub-decree 57 has been integrated into Prakas n.108 MOLVT 31 st May 2006, on Education of HIV/AIDS, Safe Migration and Labour Rights for Cambodian Workers Abroad (see ANNEX B) and Sub-Decree 70, of 25 th July 2006 On The Creation of The Manpower Training and Overseas Sending Board (see ANNEX C). This sub-decree defines the guidelines for the implementation of a public recruitment system, which will coexist with the private agencies. The aim of the public recruitment system is to provide migrant workers with a cheaper and safer labour migration channel. Sub-decree 57 is composed of 22 articles, most of them defining the legal framework of cooperation between the former Ministry of Social Affairs, Labour and Veterans Affairs (now Ministry of Labour and Vocational Training - MOLVT) and the private recruitment agencies. The most relevant dispositions in the Sub-decree 2 include: Art. 3: Khmer workers of both sexes and at least 18 years of age, who have submitted their job application forms to the MOLVT, are considered to be candidates for selecting and sending to work abroad Early each year the MOLVT runs an information campaign encouraging job seekers to register in the placement office of either the municipal of provincial Department of Labour and Vocational Training. All registered candidates are passed on to the appropriate recruitment agencies for selection and placement of qualified candidates The translation of the Sub-decree 57 is unofficial 18

20 However, all recruitment is done through private licensed recruitment agencies who conduct their own recruitment campaigns throughout the country based on needs in either the Republic of Korea or Malaysia, through advertisements in local newspapers, brokers operating in rural areas and word of Mouth. As of August 2006, there are 38 private recruitment agencies, four of them work with more than one country at the same time. The recruitment agencies work with employers and/or manpower agencies in the following countries: 2 for Republic of Korea 11 for Malaysia 19 for Thailand 10 for Japan Interested candidates are asked to submit an application form and information form to the recruitment agencies. The labour migrants are also required to be registered at the Department of Employment and Manpower which issues them with a migrant worker card allowing them to obtain a passport from the Ministry of Interior. The receiving countries usually provide the Cambodian MOLVT with a quota of migrant workers that will be allowed to work there and a list of the economic sectors requiring a foreign workforce. The Republic of Korea requires a number of potential migrants two or three times larger than the requested quota to allow the employers a wider selection of candidates. Art. 7 establish that a deposit of USD $100,000 will be made by each recruitment agency in order to be officially registered by the Ministry. This deposit should be used by the Ministry to pay the workers in the event that the recruitment agency does not comply with any conditions stated in the employment contract. As of August 2006, only 5 agencies, out of 38, have paid the deposit of USD $100,000. According to the MOLVT, a deadline has been fixed for the 2nd October After this date, the licenses of the noncompliant companies will be revoked. Art. 9 lists the basic information and requisites that should be included in the employment contract. Among them, the section of the article which states that a part of salary and other allowances which shall be sent to the workers family is particularly relevant According to the MOLVT, Cambodian migrants in Malaysia and the Republic of Korea are remitting money through a bank transfer to the recruitment agencies who in turn distribute the money to their families. All the migrant workers based in the Republic of Korea own a bank account, making the transfer of remittances safer and cheaper than through the informal system usually used by Cambodian migrant workers in Thailand (Maltoni, 2006; LSCW, 2005). In total, the Cambodian migrant worker has to sign two contracts: one, standard, with the recruitment agency, including requirements such as pre-departure training and medical checks, 19

21 and one with their employer abroad, which includes such items as the rights of the worker and insurance. This contract changes according to the receiving country. Art. 10 states that the workers shall have the rights of annual leave paid by the recruitment agencies. The minimum leave is at least one day and a half for one consecutive work month. This article violates the 1990 UN Convention on the Protection of the Rights of all Migrant Workers and Members of Their Families which clearly stipulates minimum leave as at least one day per week and it has to be revised. This convention was signed by Cambodia on 27 September 2004 but has not yet been ratified. Art. 14: Before departure, the MOLVT and the recruitment agencies are responsible for preparing and conducting a training course on the work system, lifestyle, customs, traditions and common laws of the receiving country. The pre-departure training has always been a grey area for the management of labour migration in Cambodia. Until recently, the pre-departure training was largely left in the hands of the recruitment agencies. The Prakas n.108 MOLVT on Education of HIV/AIDS, Safe Migration and Labour Rights for Cambodian Workers Abroad, released the 31 st May 2006, started to regulate this area. However, the 8 Articles comprising the Prakas are mainly focused on raising awareness on HIV/AIDS for migrant workers and their families. Art. 2: the training on HIV/AIDS will be pre and post departure. The training foresees the involvement of the families of migrant workers, in order to help them prevent the spread of HIV/AIDS. Articles 1 and 3 mention that, in addition to HIV/AIDS awareness, migrant workers should receive training on safe migration and labour rights. However these articles do not provide any further specifications. As of August 2006, the MOLVT has signed two Memoranda of Understanding with local organizations in Cambodia to provide pre-departure training on different issues. An MOU has been signed with CARAM Cambodia to provide training on HIV/AIDS, and an MOU has been signed with Legal Support for Children and Women (LSCW) to provide training on legal issues and the rights of migrants. The MOLVT is developing a Public Recruitment System, formalized by Sub-Decree 70 of 25 th July 2006 On The Creation of The Manpower Training and Overseas Sending Board. Under this new system, which will coexist with the private one, the pre-departure training will be provided by training centers selected by the MOLVT. As of August 2006, two centers have been selected: the National Polytechnic Institute of Cambodia (NPIC) for migrant workers going to the Republic of Korea and Preah Kossamak for migrant workers going to Japan, this latter will provide only technical skills training. In the near future, training centers for Thailand and Malaysia will be also selected. 20

22 The aim of the MOLVT is to have at least one certified training center for each receiving country, able to provide training on cultural, social, legal, linguistic and health issues, together with technical skills. The MOLVT will monitor the pre-departure training provided by private agencies and if their curriculum meets the criteria of the receiving country, the private agency could be considered a recognized partner of the MOLVT. In the future, the pre-departure training will be provided exclusively by public employment agencies or by private agencies officially certified by the MOLVT. Art. 15: A tax shall be imposed on the salary of each worker in accordance with the existing law of the Kingdom of Cambodia As of August 2006, this provision has not been implemented. Art. 16 mentions a monitoring process which has to be paid for by the recruitment agencies. The monitoring process is limited to the workplace and the lodgings of workers as stated in the employment contract. The MOLVT is required to inspect working conditions where problems are reported. This is done in cooperation with the Cambodian Embassy in the destination country as well as the recruitment company locally and in the destination country. In cases where labour disputes go to court, the relevant recruitment agency is required to provide a lawyer to assist the migrant worker. As of August 2006, the MOLVT had not yet begun monitoring the living and working conditions of Cambodian migrant workers abroad. The MOLVT identified the main reason for this as a lack of trained and specialized personnel and the very limited human resources within Cambodian Embassies abroad. For example, the Cambodian Embassy in Malaysia employs only three permanent staff, making a thorough process of monitoring and controlling the situation of the migrant workers impossible. To address this issue, in July 2006, the MOLVT made an official request to the Ministry of Foreign Affairs to place labour attachés with Cambodian Embassies in countries receiving Cambodian migrant laborers. In Sub-decree 57, processes and practices to evaluate and monitor private recruitment agencies are not mentioned. There is no mention, either, of fines or sanctions for the agencies responsible of malpractice such as trafficking or exploitation of migrant workers. The MOLVT Department of Employment and Manpower has started a monitoring unit, trained internally, to evaluate private recruitment agencies. This monitoring unit is composed by five persons. The recruitment agencies will be evaluated through a check-list including: Training centers and pre-departure training; Payment of the USD $100,000 deposit; Staff capacity; 21

23 Work practices; Efficiency of logistics and transportation. Regarding the monitoring process, an increasing cooperation is developing between the Ministries involved in the management of the labour migration. In a recent example, a recruitment agency suspected by the MOLVT of trafficking Cambodian migrant workers to Saudi Arabia, through Malaysia, was reported to the Anti Trafficking Unit of the Ministry of Interior, and all available documentation was handed over to assist in the prosecution of the offending agency. Sub-Decree 57, although integrated by Prakas n.108 MOLVT of 31 May 2006, on Education of HIV/AIDS, Safe Migration and Labour Rights for Cambodian Workers Abroad and Sub-Decree 70 of 25 th July 2006 On The Creation of The Manpower Training and Overseas Sending Board, must also be, simultaneously, updated and upgraded. In Sub-Decree 57, there is no indication about the criteria for ownership and management of a private recruitment agency, such as nationality, income, or legal position. In March 2006, in a public speech, Prime Minister Hun Sen stated that recruitment agencies should not collect money in advance from migrant workers. However, as of October 2006, the costs which migrant workers can and cannot be charged remain undefined. The absence of legislation that clearly defines the recruitment process and related costs means that the amount migrant workers are charged to secure employment overseas varies greatly. According to UNIAP and LSCW, the amount migrant workers care charged can range from 1 to 4 months` salary. The revision of the Sub-decree should include: A thorough description of the costs faced by the migrants workers and the sanctions imposed on recruitment agencies guilty of malpractice. A clear description of the criteria for ownership and/or management of a private recruitment agency. A description of fines and sanctions for agencies guilty of malpractice as identified by the monitoring unit of the MOLVT. 4. Protection of Migrant Workers and Return support 4.1. Problems Faced by Labour Migrants There have been problems reported to the Ministry of Labour from Cambodians working in the Republic of Korea and Malaysia although the frequency is not known. These problems, unfortunately common among migrant workers, include: Discrimination by supervisors and employers Labour disputes due to language and communication barriers Physical abuse Broken contracts i.e. paid less than agreed 22

24 Excessive working hours Physical abuse and sexual harassment Poor living conditions Lack of food Confinement (up to 2 years in one case) No health care All workers have their passports confiscated by the employment agency upon arrival in Malaysia In trying to obtain passports additional money is demanded before permission to return is granted No compensation for workplace accidents 5. Countries of Destination The main destinations for Cambodian migrant workers are, as said above: Thailand, Malaysia and The Republic of Korea. In the near future, Cambodia is planning to sign Memorandum of Understanding with Hong Kong and Singapore. Cambodia has signed agreements to send migrant workers to Japan (in 2003) and Brunei, but the criteria are extremely strict and the private recruitment agencies cannot provide adequate pre-departure training, especially for language skills. Taiwan is not considered a possible partner due to the support of the only-one-china policy by the Cambodian government. In 2005, 34 Cambodian migrant workers were sent to work in Saudi Arabia, but due to the absence of a Cambodian diplomatic mission to monitor the situation of migrant workers, the Cambodian Ministry of Foreign Affairs has suspended any further labour migration to that country. The 34 migrant workers currently in Saudi Arabia will complete their contracts in During this time, the Saudi Embassy in Bangkok will collaborate with the Cambodian Ministry of Foreign Affairs to monitor their situation. 6. International Agreements The main international agreements on labour migration under negotiation/signed by the Cambodian government are: Memorandum of Understanding between Cambodia and Thailand on Bilateral Cooperation in the Employment of Workers, signed 31 st May 2003 (ANNEX D). A Memorandum of Understanding between the Republic of Korea and Cambodia is under negotiation. Since 2003, Cambodia has been sending migrant workers (trainees) to The Republic of Korea through the trainee system. An internal evaluation of the trainee system by the Korean government resulted in the government s decision to phase out this program (its expiration is planned for December 2006) and expand the Employment Permit System (EPS) (see ANNEX E). After a recent assessment of the capacity of the Cambodian MOLVT to manage labour migration to Korea, the Korean government tentatively selected Cambodia as a new EPS partner country. 23

25 According to the Joint Press Statement of the Second Meeting of the Joint Commission for Bilateral Cooperation Between Cambodia and Malaysia, Siem Reap, Cambodia June 2006, on labour cooperation, both governments agreed to expedite discussion on a draft MOU on the recruitment of Cambodian workers. As of August 2006, the transfer of Cambodian migrant workers to Malaysia is based on an exchange note on the recruitment of workers signed by the Governments of Malaysia and Cambodia on 13 December The note was revised in the Recruitment Procedures for Cambodian Nationals for Employment in Malaysia signed on 30 September 1999 (ANNEX F). The MOLVT has confirmed that agreements have been signed with both Japan and Brunei however no further information on these agreements is available. 7. Migration to Thailand In the last few years, Thailand has become the main destination country for labour migrants from all over the GMS region. Thailand currently hosts an estimated 2.5 million migrants from Cambodia, Laos PDR and Myanmar. Thailand has an ageing population, decreasing fertility rate and a growing economy three factors that make it heavily reliant on foreign labour, particularly unskilled labour. Cambodia continues to have one of the fastest growing populations in the GMS and few employment opportunities for a growing workforce. Consequently, Thailand has become the prime destination for irregular Cambodian labour Migrants. As of October 2005, there were 182,007 Cambodian registered with the Ministry of Interior in Thailand (123,998 Male and 57,581 Female), representing approximately 13% of all registered migrants in Thailand. Of this group 75,804 had work permits with the Ministry of Labour. While the number of undocumented Cambodian currently in Thailand is not known, it is estimated that there may be as many as documented migrants. Tab. 1: Selected Economic and Social Indicators for Cambodia and Thailand INDICATORS CAMBODIA THAILAND Population (1000s) ,482 63,763 Population Growth Rate (%) Average Annual Growth Rate (%) of population aged Infant Mortality Rate (per 1000 Live Births) Ratio of Girls to Boys in Secondary Education (%) Percentage Urban Per Capita GNP (USD) ,238 (Source: Adapted from Huguet; Punpuing, 2005) 24

26 Cambodia shares with Thailand a long and very porous border. Between the Cambodian Northern provinces and Thai neighbouring provinces there have always been strong local trans-border networks. The great majority of these networks are used by Cambodian migrants who commute daily to Thailand for petty trade, domestic work or agriculture. This short range trans-border migration is typical of female migrants, while Cambodian male migrants are more prone to spend longer periods of time (sometimes years) in Thailand and to travel more extensively (CDRI, 2001). Migration to Thailand can be classified into two main categories: short-term, short-range migration along the Cambodian-Thai border (trans-border commuting), with female migrants as key actors and long-term, long-range migration linking central Cambodian provinces with Thai destinations, characterised by a large presence of male migrants. Tab. 2: Registered Cambodian Migrants by destination in Thailand REGISTERED CAMBODIAN REGIONS WORKERS (October 2005) Bangkok 26,352 Central 39,666 East 91,240 West 3063 North 1340 North-east 3945 South 16,101 TOTAL 182,007 (Source: Thai Ministry of Labour and Vocational Training, 2005) Nearly half of the registered Cambodian migrant workers are located in the Eastern provinces of Thailand. In places like Klong Yai, Trad, and Prah Jong; where a vast majority of the foreign workforce is composed of Cambodian migrant workers. Both for registered and undocumented migrants, the employment sectors with the highest number of Cambodian migrants are: fisheries, construction and agriculture. Most of the migrants are employed in the fishing sectors, either in fishing boats or fish processing factories. The migrants are paid on average 150/180 BHT per day in the fish processing factories and 4000/8000 BHT per day in the fishing boats. Usually, the work is irregular and a large number of migrants work only two weeks per month. 25

27 There is anecdotal evidence of large numbers of mostly female Cambodian migrant workers in the Thai domestic, entertainment and sex-related sectors. Tab. 3: Work Permits Issued to all Migrants and Cambodian Migrants for Employment Sector (1 st July-15 th December 2004) EMPLOYMENT SECTORS Fishing Boats Fishery Processing Work Permits Issued to all Migrants Work Permits Issued to Cambodian Migrants 58,686 22,874 68,602 4,666 Agriculture 179,404 18,816 Rice Mill 6, Brick Factory 5, Ice Factory 4, Transport 3,002 1,770 Construction 114,459 24,463 Mining 1, Private Household 128,514 8,746 Others 243,374 22,508 TOTAL 812, ,789 (Source: Adapted from Huguet; Punpuing, 2005) 7.1. Undocumented Migration to Thailand The great majority of labour migration to Thailand from neighbouring countries is undocumented. Estimates suggest that 90% of the migrants in Thailand are irregular (World Bank, 2005). In Thailand, as is common for the great majority of receiving countries all over the world (i.e.western Europe, United States), migrant workers integrate rather than compete with the local workforce. The migrant workforce is largely, and in some cases exclusively, employed in economic sectors characterized by harsh and dangerous working conditions, low salaries and requiring low-skilled workers. The local workforce, usually because of a general economic development at country level, tends to move to other economic sectors with higher wages and better working conditions. The employers, facing a scarceness of local employees, replace them with migrant workers to the point that there is no substitution for it. Consequently, some economic sectors (i.e. fisheries in Thailand, domestic workers in Malaysia, garbage pickers in Cambodia) become strongly identified as fit only for migrants and this ethnic identification is usually a no-return process. In Thailand, this trend was very clear during the 1997 crisis. Unemployed Thai workers preferred to remain unemployed rather than taking jobs traditionally 26

28 covered by migrants, as they were characterized by low salaries and, especially, very low prestige. Employers can take advantage of the precarious situation of unauthorized migrant workers by not providing social benefits and paying below minimum wage. In this situation, control policies, aiming to reduce irregular migration by repatriating migrants, are highly ineffective because the demand for migrant labour is embedded in the system migrants are widely available and capable of entering the system through well-organized social networks, and officials can also benefit through extortion. (Battistella, 2002) The main push factors leading many Cambodian irregular labour migrants to move to Thailand include landlessness, natural disasters, debt and land grabbing. Debt for health reasons is considered one of the main causes of landlessness in Cambodia. (Biddulph, 2004) A less relevant role is played by family issues such as marriage, dividing family land among newly wed couples (this practice is getting more and more uncommon due to scarcity of available land), or the willingness of the head of the household to shift from rural activities to small businesses. Migration traditionally relies on social networks to provide the necessary information and skills to facilitate departure, entry and integration in the country of destination. In the case of unauthorized migration, such networks are essential and they range from small social networks, based on blood ties, as in the case of recent migrants, to developed networks involving communities on both side of the border, as in the case of long-term migrants. Often, intermediation for unauthorized migration combines and colludes with the formal labour recruiting system put in place by sending and receiving countries. The legal channels can satisfy only one part of the migration demand. Usually, the great majority of the receiving countries adopt a quota system which defines the dimension and skills required for the flow legal migrant workers. Together with the formal economic sectors, there is a wide informal economy which largely relies on undocumented migrant work as a cheap and easily available workforce and which considers the costs of the legal migration process (i.e. insurance, registration fees, taxes, etc.) too expensive, both by employers and migrant workers. In every receiving country, there is a dual migration system, one legal and one illegal. According to migration scholars (Davis, 2001, Sciortino, 2000,), receiving countries informally accept a certain quota of undocumented workers, considered indispensable for the well-functioning of the informal sectors of the national economy. This so-called gray area is accepted only to the point that it does not become a catalyst for social tensions. The most recognized example of this situation is the United States, in which strong and strict border enforcement policies and a quota system coexist with a very large population of undocumented workers employed in the informal sector, and virtually undisturbed once in the United States (Massey, 1998; Maltoni, 2002, Andreas, 2001). There is a general agreement among migration scholars that even with wider legal channels there will always be a large portion of migrants who will prefer an illegal entry into receiving countries and that stricter border enforcement policies will only serve to increase the sophistication of smugglers strategies and costs for the undocumented migrants. 27

29 Most of the informal migration networks from Cambodia to Thailand are managed by middlemen (or mekhal), who represent the link between the household living primarily rural areas of Cambodia and the destinations in Thailand. The middlemen are a category of individual considered to have certain leadership skills or a potential that can be used to organize community activities but also, in Cambodia, to recruit people to work elsewhere. They are not necessarily individuals with high status, but they do have certain capacities or contacts that allow them to operate as mediators in specific situations. They are usually men (although there are also a number of women) (IOM 1999, Derks, 2005). There are two categories of middlemen: former migrants who decided to use the networks and knowledge developed living abroad to assist friends, relatives or villagers and professional brokers linking Thai employers with Cambodian migrant workers. The middlemen play a fundamental role in determining the final outcome of the migration process. Migrants using unskilled middlemen with limited social networks can end up working for exploitative employers and, consequently, face an unsuccessful migration experience, while others, using expert middlemen can have a positive migration experience and be able to accumulate savings to buy land, houses etc. It is not unusual that even within the same village, households can have different results according to skills of the middleman they decide, or afford, to employ. The basic services offered by middlemen include transportation to the border and work permits. The costs range from an upfront payment of USD $100 to $200, according to the services provided, and can include an additional fee for facilitating the border crossing and securing a job. Usually, middlemen are used by migrants for their initial journey. Once a link is established between sending and receiving areas, the migrants will rely on their social networks (friends, relatives or villagers) Remittances As there is no formal money transfer system between Cambodia and Thailand, remittances are transferred through informal channels. These systems are used to avoid robberies on both sides of the border. By far, the most common system is the phone system. Chart 1: M oney Transfer System (%) 4% Phone sy stem 32% 1% 2% (Source: Maltoni, 2006) 61% Brok er Rel atives Private agent in the vi ll age Migrant him/herself 28

30 Usually, the informal money transfer system involves the migrant (sender) contacting their relative or person in Cambodia who is to receive the money (recipient) through a telephone or ICOM 3 shop which contacts a collaborating shop located nearest to the sender s home. Once the amount is agreed the shop in Thailand transfers the sender s money into a bank account in Cambodia for the Cambodian restaurant owner or shop owner to withdraw and transfer to the recipients. There are also a number of private operators who have connections with their home towns and provinces in Cambodia and who assist migrants in sending money home in a similar manner (LSCW, 2005). Less common is the transfer of remittances through the broker or by the migrant him/herself. In each case, the cost to the sender is approximately 10% of the remittances. However, there is still not enough information on the transfer cost of remittances. According to key informants in sending areas (Maltoni, 2006) the most quoted figure is around 30% of the remittances, but it seems more probable that the cost varies according to the amount of money remitted. For remittances above 1000 BHT usually a forfeit sum is paid to the intermediaries. The main routes for irregular migration between Cambodia and Thailand are from the Southern coastal areas of Cambodia, particularly from Koh Kong to Klong Yai district in Trad, and from Poipet to Aranapraphet, although there are many other frequently used points of entry all along the border. There are no reliable statistics or estimates on the number of undocumented Cambodian migrants in Thailand. The only statistics available refer to the registered migrants and are provided by the Thai Ministry of Labour. According to the Cambodian Ministry of Labour, even these statistics are not completely reliable because they include Lao and Burmese migrants that identify themselves as Cambodians in order to obtain an ID card, provided through the registration process conducted by Cambodian MOLVT teams in Thailand. There is also a lack of information on the gender composition of irregular migrants. Usually, women do not migrate alone but they follow male relatives. If they are married, they leave the care of their children at home to the grandparents or the oldest daughter. Younger children often accompany the female migrant workers to the destination. Even in the case of registered migrants, the real gender composition can only be guessed. Due to the relatively high costs of the registration process, it is a common practice that only the male migrants register, while the female members of the household remain undocumented. Even if the majority of the Cambodian migrants to Thailand, consider their migration experience as positive and fruitful, according to LSCW, a Cambodian NGO working with migrants in Thailand, there are Cambodian migrants (both registered and undocumented, but especially the latter) that may face many difficulties (as listed below) during their migration experience. 3 A communication system based on hand held radios (walkie-talkies). 29

31 7.3. Issues faced by Cambodian Migrants in Thailand: Restricted freedom and movement due to fear of arrest and deportation; Lack of regular work, most of the migrants employed on the fishing boats and fish processing work irregularly; Widespread violence; Dangerous working conditions (3D jobs); Health (drug use; HIV spreading; lack of access to health facilities especially for specific categories of workers); Unreliable and unsafe money transfer system; Not registered (undocumented), leading to high risk of arrest, detention and deportation; Discrimination; Debt bondage, control and coercion; Inability to communicate in Thai; Lack of work contracts between employers and employees; Mistreatment, abuse and exploitation by employers and supervisors; Lack of information about rights, laws and registration process; High cost of registration resulting in debt; Young migrant child labourers (limited access to education); High cost of living and inability to save money; Income disparity between Cambodian migrants and Thai workers; Gender issues affecting registration of female migrant workers 7.4. Memorandum of Understanding between Cambodia and Thailand on Cooperation on the Employment of workers In May 2003, the Thai government signed a MOU with Cambodia to guarantee a constant supply of labour for the Thai industrial sectors lacking local workers, and, at the same, avoid a permanent settlement of foreign migrant workers in the country and reducing as much as possible the smuggling and trafficking of persons as well as illegal migration and employment. (Huguet, Punpuing; 2005) The structure of the MOU is the standard template, with few differences, used by the Thai government to establish workforce transfer agreements with neighbouring countries (Lao PDR, Cambodia, Myanmar). The aim and scope of the MOU are clearly stated in the Art.1 1) Proper procedures for employment of workers; 2) Effective repatriation of workers, who have completed terms and conditions of employment or are deported by relevant authorities of the other Party, before completion of terms and conditions of employment to their permanent addresses; 3) Due protection of workers to ensure that there is no loss of the rights and protection of workers and that they receive the rights they are entitled to; 4) Prevention of, and effective action against, illegal border crossings, trafficking of illegal workers and illegal employment of workers. 30

32 Other relevant articles included in the MOU state that: Consultations at the senior official and/or ministerial level should be held at least once a year (Art. III). Articles IV to VIII, state that the employment of workers requires prior permission of authorized agencies in the respective countries. The MOU states that one country may prepare a list of jobs available to nationals from the other country. The second country would then provide a list of selected applicants for those jobs, complete with their permanent addresses, references and work experience. Once the applicants are chosen for the job openings, the countries would work together to ensure that each worker meets the requirements for a visa, a work permit, health insurance, contributions to a savings fund, taxes and an employment contract. Art. IX defines the length of stay of the migrant workers in Thailand. ARTICLE IX Unless stated otherwise, the terms and conditions of employment of workers shall not exceed two years. If necessary, it may be extended for another term of two years. In any case, the terms and conditions of employment shall not exceed four years. Afterwards, it shall be deemed the termination of employment. A three-year break is required for a worker who has already completed the terms and conditions of employment to re-apply for employment. Art. X requires cooperation between Cambodia and Thailand to guarantee the return of migrant workers to the sending country, once the working contract is expired and the employment terms and conditions have been completed. The Bangkok Declaration (1999), signed by all the countries in the GMS, as well as other ASEAN countries, makes explicit, in a regional inter-governmental agreement, that countries of origin have an obligation to accept back their nationals. ARTICLE X The Parties shall extend their fullest cooperation to ensure the return of bona fide workers, who have completed their employment terms and conditions, to their permanent addresses. Articles from XI to XVI state that migrant workers are required to contribute 15 per cent of their monthly salary to a savings fund. The workers receive their entire contribution to the savings fund, plus interest earned, upon returning to their permanent address but must apply for this at least three months prior to returning. The Governments must then refund the amount owed to the worker within 45 days of his or her return. However, the right to refund of their contribution to the savings fund is revoked for workers who do not return to their permanent addresses upon the completion of their employment terms and conditions. 31

33 According to informal discussions with representatives of the Thai government during the Regional Policy Formulation Meeting on Transborder Migration in Greater Mekong Subregion, held in Khon Kaen, Thailand, on 6-8 February 2006, the procedures related to the savings fund are unlikely to be implemented. The aim of the savings fund is to provide the migrant workers with a security fund that allows them to accumulate savings over time and, at the same time; the fund is a guarantee for the employers that the migrant workers will not leave their place of employment before the expiration of their contract, with the consequent loss of the savings included in the fund. In Taiwan where compulsory saving has been a policy for a long time, it is always employers or brokers who keep the migrants bank account books, official seals, or ATM cards, depriving the migrants of their rights to privacy and financial independence. The Taiwanese savings fund is generally perceived by migrant workers as a further cost included in the legal migration process, along with registration fees, visa, insurance, etc. Furthermore, some employers tend to use the savings fund as leverage to blackmail the migrant workers, making them accept bad working conditions or force them to stay after the expiration of the contract. Such situations may discourage migrants to go through legal migration channels, jeopardizing the purpose of the legal migration process (Harima, 2006) The Registration Process The MOU between the Cambodia and Thailand foresees the implementation of an elaborate system for the temporary employment of Cambodian nationals in Thailand. The first step in opening legal channels for labour migration to Thailand, was the registration of irregular Cambodian migrant workers with the Ministry of Interior and the Ministry of Labour in This process included the issuance of work permits and certificates of identity. The registration took place during July All employers hiring undocumented migrants could report to local administrative offices for registration. Those who registered were given permission to stay in Thailand until 30 June 2005 in order to work or seek employment, and as dependants of foreigners working in Thailand. Once a migrant had registered with MOI and had an employer, he or she could apply to MOL for a work permit valid for up to one year. At the end of the registration process, the MOL had received 814,247 applications for work permits (182,007 for Cambodian migrant workers). After that, the government decided to extend work permits for those who registered in 2004 till June 30, 2006, allowing migrants who had registered with MOI to renew their work permits for another year or to apply for new work permits. 32

34 Box 1 4 Cabinet Resolution May 10, Grant permission of registered workers and followers in 2004 to be able to stay and work in Thailand until June 30, Those employers and workers who already registered with Ministry of Interior but can not complete their process of receiving work permit before June 30, 2004 will be prosecuted. 3. Those related agencies of registered workers and granted work permits in 2004 will be assigned to responsible for helping workers to convert to legal status and to receive work permits. The country can import low skilled workers from three neighboring countries which have already signed MOU with Thailand. 4. Family members of Illegal workers who already received certificate of identification (CI), also received CI can apply for Visa. Only new import workers (without follower) will be allowed to enter Thailand. 5. Assigned related organizations to issue operational rule and regulations to grant permission for daily commuter and seasonal workers. 6. Assigned the Ministry of Labour to be a core agency to report and producing illegal workers database and seeking cooperation with related agencies to set up the system. Once registered, the nationality of each individual had to be verified by a Cambodian Government team before a certificate of identity (C.I.) could be issued. The Thai government imposed various measures to encourage Thai employers to legalize their employees, through the nationality verification and employment application processes, before their work permits expired on 30 th June The process of nationality verification ended on 30 th June 2006, as stipulated by the resolution of the Second Ministerial meeting on the Cooperation of Workers held on 19 th August 2005 in Thailand. As of this date, 16,405 Cambodian nationals participated in the nationality verification program. For Cambodian workers who have successfully completed the nationality verification process and obtained a Certificate of Identity (C.I.), the Thai government will issue a visa and stay permit with the period of stay equal to that of the C.I., but not exceeding two years. If deemed necessary, their period of stay may be extended for another two years and their right of stay becomes void automatically once they leave Thailand, for any reason, during the said period. Box 2 Cabinet Resolution July 19, Extension of registered workers from Myanmar, Laos and Cambodia who already received Thor Ror 38/1 but still did not complete process of work permit can find employers who already received quota from the government could stay up to August 30, Those who failed to find employer within such extended period was subject to be arrested and deported. 4 Source for all the boxes: Chalamwong, The translations are unofficial. 33

35 2. Those workers who were granted work permit in (1) and desire to work in Thailand no latter than June 30, 2006 should complete their work permit before August 30, Those alien workers from Myanmar, Laos, and Cambodia who completed all requirements, namely having name in Thor Ror 38/1, having non-thai nationality ID card, and work permit will receive special permission to stay and work in Thailand under Ministry of Interior regulation announced by June 28, Those illegal entrant workers who do not belong to (3) will be strictly enforced by law and requesting related agencies which involve with servicing alien workers to set up one stop services center operating under following measures: a) Measure given under Immigration Act, B.E b) Measure given under Working of Alien Act B.E Encouraging all related agencies to import unskilled labour to fulfill local demand and speeding up management process to granting permission for daily commuters and seasonal workers. The Cambodian Inter-Ministerial Working Group issued a total of 36,026 Certificates of Identity (C.I.) to Cambodian workers in Thailand during two separate missions from 31 March to13 April 2005 and 14 November 2005 to 30 June Upon completion of this exercise, in August 2006 the Thai Government set a quota of 20,000 Cambodian migrant workers based on needs in various sectors. In response, Cambodian licensed recruitment agencies have begun to recruit migrant workers to be sent to Thailand through legal channels for the first time. According to LSCW, despite the completion of the registration process and issuance of the C.I., the problems faced by migrant workers are far from over. The main difficulties lie firstly in the extremely complicated bureaucratic procedures related to the concessions of visa and work permits, which are difficult to understand by social workers, NGO personnel, migration scholars and, most importantly, migrant workers. Secondly, the procedures formulated by the Thai government are often abruptly changed making it very difficult for migrant workers to keep pace with the latest developments in the registration processes and its related costs. For example, in Box 3, reference is made to a Cabinet resolution stating, among other things, the cost of registration at BHT 10,000 for migrant workers possessing the Thor Ror 38/1(a registration document released at district level) and BHT 50,000 for those who do not have Thor Ror 38/1. This resolution has never been implemented, due to the excessive costs of registration that, if applied, would have kept many migrant workers out of the registration process. Even if never implemented, the resolution significantly contributed to the confusion and misinformation surrounding the registration process in Thailand. 34

36 Box 3 Cabinet Resolution December 20, 2005 The cabinet approved proposal proposed jointly between Ministry of Labour and Ministry of Foreign Affair to manage the illegal workers from Laos, Cambodia and Myanmar as followed. 1. Permission of formally imports 200,000 low-skilled workers from Laos, Cambodia and Myanmar. 2. Permission of 300,000 illegal workers from Laos, Cambodia and Myanmar who are waiting to be repatriated to stay and work by following the two phases. 2.1 Phase 1 for those illegal migrants who are waiting to be repatriated not more than 30 days can be bailed out by prospected employers and permit them to work for one year. Each province establishes one stop service to manage such procedure and charge following costs. a) Registration fee BHT 10,000 for those who have Thor Ror 38/1 and BHT 50,000 for those who do not have Thor Ror 38/1. b) Health examination fee, BHT 600; Health insurance, BHT 1,300/person/year. c) Work permit application fee, BHT 100: Work permit cost, BHT 450 if less than 3 months; BHT 900 if less than 6 months and BHT 1,800 if less than one year. 2.2 Phase 2 after completing phase 1 and already set up 4 one-stop-centers in Tak province, Chiang Rai province, Ranong province, and Kanchanaburi province. The pilot project will start at District of Mae Sot, Tak province as follows. Employers bring their prospect employee to register. Fill in investigation report and employers bail out employee and pay the following costs: - Registration fee cost, BHT 50, Health examination cost, BHT 600 and Health insurance, BHT 1,300. Work permit application fee, BHT 100: Work permit cost, BHT 450 if less than 3 months; BHT 900 if less than 6 months and BHT 1,800 if less than one year. According to LSCW, Cambodian migrants have grown increasingly skeptical of the bureaucratic process and related costs required of employers and migrant workers to obtain work permits. 8. Migration to Malaysia The Cambodian government signed a labour export agreement with Malaysia in , and has given two agencies, namely, Cambodian Labour Supply and Human Resource Development, authorization to recruit Cambodians and issue permits for them to work in Malaysia. As of July 2006, there are 11 officially registered private recruitment agencies, but only the two above mentioned agencies are operational. 5 This was preceded by an agreem ent in principle on the procedures for sending labourers to work in Malaysia signed between the Government of Cambodia (the former MOSALVY) and the Government of Malaysia on 13 December

37 The private recruitment agencies in Cambodia work through advertisement in national newspapers or word of mouth. The recruitment agencies provide training on language, culture and skills, but not on migrant workers rights. For migrant workers going to Malaysia, in theory, a three month pre-departure/vocational training course should be provided including the following topics: Training on reproductive health, HIV/AIDS, labour laws, human rights, gender issues, life skills and cultural issues. English Language training General medical exams Training on saving and investing earnings Training on use of telephones Assistance in preparation of contracts and obtaining passports As of August 2006, there is still no monitoring process to evaluate pre-departure training, so it is not possible to assess the real training provided by recruitment agencies. Tab. 4 Cambodian Migrant Workers in Malaysia Migrants Domestic Work* Factories Both sexes Male Female Both Sexes Male Females / / / / / / / / / Total (Source: MOLVT, 2006) (*All the Cambodian migrant workers employed in the domestic sector in Malaysia are female) According to research done by CARAM-Malaysia (quote by Asian Migrants Resource Book, 2003), there are approximately 10,000, regular and irregular, Cambodians working in Malaysia, while other sources estimate the total number at around 20,000. This latter estimate is based on unquoted sources and it is considered more a guess than an estimate based on available data. Most the Cambodian migrants are females employed as domestic workers. Other economic sectors with a relevant presence of Cambodian migrant workers are: the construction sector, the manufacturing sector, and the entertainment sector which primarily employs irregular migrants. However, according to the CARAM report, while the majority of Cambodians entered Malaysia with proper documentation, many later became irregular migrants, particularly upon leaving their original place of employment. Other sources 6 report the presence of a large number of 6 Interview with Emiko Stock,

38 Cambodian irregular migrants belonging to the Cham ethnic group. The Cham community in Cambodia is a Muslim ethnic group and consequently Malaysia, with a predominantly Muslim population, is the preferred destination for both legal and irregular Cham migrants. Since the Malaysian Immigration Act gives employers the right to terminate and cancel work permits and does not allow migrant workers, whose employment has been terminated or who run away from their employer, to stay in the country, migrant workers are put in a vulnerable situation and are abused and exploited. Furthermore, the provision 2.17 of the Recruitment Procedures for Cambodian Nationals for Employment in Malaysia explicitly declares that: The employers shall be responsible for the safe keeping of the workers passport and to surrender such passport to the Cambodian in the event of abscondment. Even if formally limited to the passport, this provision essentially authorizes the confiscation of documents and other relevant papers by the employer. Among the criteria for Cambodian migrant workers, provision 2.19 of the Recruitment Procedures for Cambodian Nationals for Employment in Malaysia limit the age of migrants to between 21 and 40 years. There is no systematic report on the labour exploitation of Cambodian migrants (women and men) in Malaysia but information from the Cambodian Women Crisis Center (CWCC) and CARAM Cambodia has revealed the most common malpractices of the employers, as stated below Issues Faced by Cambodian Migrants to Malaysia confiscation of documents or other relevant papers salary reduction (lower than promised), or no salary at all sexual harassment segregation no access to health facilities hard working conditions labour exploitation 8.2. Malaysian Management of Foreign Migrant Workers To regularize the labour migration process, the Malaysian government announced that as of February 6, 2005 all the intake of migrant workers was to be carried out on a government-togovernment basis. New recruitment mechanisms have also been introduced to ensure migrants are not exploited by labour agents. At present, most migrant workers were being recruited though agents or directly by employers. 37

39 There are about 200 employment agencies in the country, but they are only allowed to recruit domestic helpers. The licensed employment agencies had been barred from bringing in workers other than domestic maids since Workers for other sectors are brought in by labour agents. As of August 2005, companies intending to hire fewer than 50 foreign workers have to use the services of labour outsourcing companies. A total of 58 outsourcing companies have been appointed by the government to supply and manage labour. In addition, workers could only be recruited from the following 12 countries: the Philippines, Indonesia, Cambodia, Laos, India, Myanmar, Nepal, Thailand, Vietnam, Kazakhstan, Turkmenistan and Uzbekistan. Only sectors and locations that face severe labour shortage are allowed to recruit foreign workers. Foreign workers are allowed to work for a period of three years, and their permit may be extended from year to year until the fifth year at the request of the employers. Any extension beyond the fifth year may be considered for skilled workers. The skill of the foreign worker must be certified by designated skills training centers. In addition, employers who wish to hire foreign labour must first have documentary evidence that they are unable to recruit local labour. The stringent rules are enforced to ensure locals are not displaced by migrant workers. To ensure migrant workers are not subject to abuse and are able to better integrate into the Malaysian work environment, the government has introduced new measures to expose migrant workers on Malaysian laws and culture. Since 1998, every employee has been required to contribute to the Employees Provident Fund (EPF). However, expatriates and seamen are exempted. Migrant workers have to contribute 11% of their wages to the EPF and the employer is required to contribute RM 5.00 every month. In theory, workers have the right to withdraw all their savings when leaving Malaysia. In practice, this rarely happens. Employment issues related to domestic workers are dealt with in the form of contracts between the employer and the foreign worker, outlining duration, address of employer, and salary (Piper, 2003). Another type of contract between the recruitment agency and the domestic worker stipulates, among other things, that they will not marry a Malaysian citizen, as clearly stated in the provision 2.18 of the Recruitment Procedures for Cambodian Nationals for Employment in Malaysia. This is the same for un-skilled male migrants who are equally barred from marrying Malaysian women. There is almost no legal access or assistance accorded to migrant workers. (Piper, 2003) Effective November 1, 2005, all countries, except Indonesia, would have to conduct induction courses for workers coming to Malaysia, failing which they would not be issued visas and work 38

40 permits. This is to ensure that source countries take responsibility for ensuring that their workers receive some basic information on Malaysian culture and laws before coming to Malaysia to work. The modules for this course were prepared by the National Vocational Training Council (NVTC), a department under MOHR. Foreign workers need to complete the course and pass the test to obtain the Certificate of Eligibility (CE). The CE is a prerequisite for visa application under the Immigration Department of Malaysia. The modules are: a) Workplace Communication in English/ Malay; b) Introduction to Malaysian custom, culture and social practices; and c) Awareness on the relevant laws, rules and regulations pertaining to the employment of migrant workers in Malaysia and the procedure for the settlement of claims and disputes under existing labour laws. To monitor and control the inflow of migrant worker into Malaysia, the government has signed a Memorandum of Understanding, which is a bilateral agreement for recruitment of migrant workers, with several source countries. These countries include: Bangladesh, China, Indonesia, Pakistan, Sri Lanka, Thailand and Vietnam. This is to ensure that both the sending and receiving countries are responsible for the migrant workers. The main purpose of these MOUs is to establish a framework to facilitate the recruitment and selection of workers from the source countries. (Kanapathy, 2006) As of 27 June 2006, both Cambodian and Malaysian government agreed to expedite discussions on a draft MOU on the recruitment of Cambodian workers. There are a number of concerns related to the possible MOU between Cambodia and Malaysia. The MOUs established by the Malaysian government are not based on a standard model as is the case with Thailand. The conditions differ according to the sending country. Admitted foreign migrant workers are subject to the national labour law, which does not include minimum standards for conditions of work and they are not allowed to join trade unions. Employers have the right to take worker passports or other documents of identification. In the MOU between the Malaysian and Indonesian governments, the migrant workers employed in the domestic sector have been left out even if they are one of the most vulnerable groups. The Cambodia government should avoid similar mistakes. (Wickramasekara, 2006) 9. Migration to the Republic of Korea Since 2003, Cambodia has been sending approximately 650 migrant workers (trainees) per year to The Republic of Korea (hereafter referred to as Korea) through a trainee system which allows Cambodian nationals to work in Korea for short periods of time to acquire new skills that they may be able to use upon their return to Cambodia to secure gainful employment. 39

41 Currently there are 2464 Cambodian migrant workers employed in Korea. All of them are documented migrants and the great majority are male. The modalities of recruitment are similar to those of the migrants to Malaysia. For migrant workers trainees going to Korea in theory a 2-3 month training period is provided including: Provision of information on the type of work they will be doing Cultural orientation Basic Korean language training General medical exam Information on saving and investing earnings Assistance in preparation of contracts and obtaining passports Training on the use of telephones Tab. 5 Cambodian Migrant Workers in The Republic of Korea Migrants Factories Agric.* Fisheries* Both Sexes Males Females Both Sexes Males Females Total (Source, MOLVT, 2006) (* All the workers employed in the agriculture and fisheries sectors are males) 9.1. Republic of Korea Management of Labour Migration On August 16, 2003, the Korean Government officially adopted the Act on Foreign Workers Employment. This act introduced the Employment Permit System (EPS) for Foreign Workers which was aimed at legalization irregular labour migrants. However, to date the EPS has run in parallel with an Industrial Trainee System of which Cambodia is a partner country. The Industrial Trainee System (ITS) used by countries such as South Korea and Japan to import a foreign workforce for employment in the secondary sector, has been strongly criticized for poor working and living conditions, low wages and the limitation of workers rights. An internal evaluation of the trainee system by the Korean government resulted in the government s decision to phase out this program and expand the EPS under which migrant workers are afforded greater protection and benefits. The ITS will be phased out in December After a recent assessment of the capacity of the Cambodian MOLVT to manage labour migration to Korea, the Korean government tentatively selected Cambodia as a new EPS partner country. This is an unprecedented opportunity for the Ministry and has many potential benefits for 40

42 Cambodia including, capacity building of the MOLVT, increased protection and benefits for migrant workers, job creation, skills transfer and poverty reduction. However, the Korean Government selects eligible EPS sending countries based on their capacity to satisfying a specific set of criteria including: transitioning from private to public management of labour migration (private recruitment agencies cannot be involved), installing the required computer infrastructure, and providing the appropriate pre-departure cultural orientation and vocational skills training. The MOLVT is working towards meeting these criteria through the establishment of a public requirement agency and has requested the collaboration of IOM in this work. The MOLVT has established a MOU with the National Polytechnic Institute of Cambodia (NPIC), which was inaugurated in 2005 by the Cambodian PM Hun Sen. The NPIC is the designated training centre, for cultural orientation and technical skills, for Cambodian migrant workers selected to work in South Korea. The technical training covers a wide range of areas 7 and the students are trained on machinery used by Korean factories. The facilities include computer rooms provided with hardware and software fully compatible with Korean standards and offices. These facilities will be used to satisfy the request of the Korean government to provide a database of migrant workers. Initially, the database will be used only for Cambodian migrants in South Korea, but the aim of the MOLVT is to include all the Cambodian migrant workers: those who are actually abroad and those who will be part of future agreements between the Cambodian government and foreign countries. The training for all students includes cultural and language courses, the latter provided by 25 Korean teachers living at the NPIC. For existing EPS partner countries with established labour migration programs to Korea, a yearly review is conducted to determine the rate of overstaying migrants workers, employer preferences, irregularities in the procedures for sending and receiving migrant workers and other parameters to establish quotas for each country. In cases of prolonged malpractice or irregularities, the EPS partner agreement can be cancelled. In Korea, sectors most in need of migrant workers include: manufacturing, construction and the service sector. Small and medium enterprises, particularly with a workforce of less than 300 workers, have reported difficulties in attracting local workers. The size of the inflow of foreign workers is determined by taking into account the trends in the supply and demand and quotas are established to avoid having employers relying too much on foreign workers. 7 For more details see website: 41

43 9.2. Key points of the EPS The recruitment of migrant workers shall be done only through government and public recruitment in Korea and in the sending countries Sending countries will present a list of available migrant workers according to different criteria (educational background, working experience, Korean Language Test, exclusion of ex-convicts, etc) It is important to note that being in the list of migrant workers does not guarantee employment in Korea. Every two years, the MOU will be assessed and, based on parameters such as the correct functioning of the recruitment system in the sending countries, rate of migrant workers who decide to stay illegally in Korea, preference of employers, etc., the quota system will be adjusted and the MOU renewed. The working period is set at a maximum of three years to prevent the settlement of migrant workers in Korea, and employers and migrant workers are requested to meet every year to discuss the renewal of the labour contract. Migrant workers reaching the end of their contract under the EPS have to take a one-year break before applying for another contract. Families are not permitted to accompany migrant workers employed under the EPS system. Migrant workers are not allowed to leave the employer with whom they have signed a contract, except in cases where the business stops operating or through a legitimate withdrawal from the labour contract. In these cases, the migrant workers will be guaranteed another placement through the Employment Security Center. Employers shall subscribe to a "departure guarantee insurance" to ensure severance pay for migrant workers who leave Korea at the end of their contract. Migrant workers are also required to subscribe to return cost insurance to cover the cost of return airfare upon completion of their contracts. Under the EPS, migrant workers have the same status as Korean workers and wage levels between migrant workers and Korean workers can differ only on the basis of productivity or work experience. Any discrimination based on citizenship is against the Labour law. The Korean Ministry of Labour will monitor employers hiring migrant workers to prevent industrial accidents, wage discrimination, and general malpractice. 10. Recommendations The recommendations have been drafted after formal and informal meetings and consultations with the stakeholders actively involved in labour migration issues (NGOs, International Organizations, government bodies, research centers, etc.), and based on the outcomes of conferences, workshops and meetings between November 2005 and August IOM Phnom Penh organized two workshops: a Technical Workshop on the Management of Labour Migration in Cambodia, held on 15 December 2005 and a Political Workshop on the Management of Labour Migration in Cambodia held on 10 March

44 The first workshop bought together consultants, experts, technical advisors and NGO staff. The aim of the workshop was to collect information and recommendations from those who work in the field and have first-hand knowledge of labour migration issues. The second workshop saw the involvement of representatives from the seven Cambodian Ministries involved, in different degrees, with labour migration issues (Ministry of Labour and Vocational Training, Ministry of Women s Affairs, Ministry of Finance, Ministry Of Social Affairs, Ministry of Foreign Affairs, Ministry of Interior and Ministry of Health). This was the first time in Cambodia that seven ministries gathered at a common table to discuss migration issues. Eleven key areas of intervention were identified through this information gathering process and will be the basis for the below recommendations: 1. Research 2. Information 3. Migrant Protection 4. Health 5. Remittances 6. Gender 7. Legislative Tools 8. Political Cooperation 9. Capacity Building 10. Migration Dynamics 11. Reintegration Research Until recently, most of the research related to mobility issues in Cambodia was focused on human trafficking and, more precisely, on sexual exploitation. Labour migration has become a topic of investigation only since 2003, and even in this case, the great majority of investigation has been focused on internal migration dynamics, especially on rural-urban flows. The information available on Cambodian migrants abroad is sketchy and scarce and the samples used in the surveys are, usually, no more than case studies. Furthermore, there is almost no research made in situ in the receiving countries. An increase in research is indispensable for the development of effective policies aimed at improving the management of labour migration issues. Objectives Enlarge the knowledge of labour migration dynamics from departure, in Cambodia, to arrival, in the receiving countries, covering all the intermediate stages of the migration process. Provide all the stakeholders with a range of research tools allowing them to facilitate the development of more focused and effective policies. 43

45 Recommended Actions Coordinate, through a specifically designed committee, the research activities of international organizations and NGOs to avoid overlapping and duplicating research. Ensure that research activities fit within the mandate and the technical capacity of NGOs and organizations, to guarantee an acceptable standard of research. Involve as much as possible the staff of local government and academic bodies in research projects Foster cooperation with academic bodies and research institutes in Cambodia Establishing links with institutions (political, academic, etc.) and organizations in the GMS region and destination countries to develop more comprehensive research projects. Involve the National Institute of Statistics (NIS) to include information related to migration issues in national surveys. Expand migration research to include closely linked topics such as land and health issues in Cambodia and their impact on the decision to migrate. Include migration research in project/programme design. Migration issues requiring further investigation include: o o o o o o o o Remittances and their impact on local communities Informal recruitment systems and the role of middlemen Living and working conditions of Cambodian migrant workers abroad A key topic is the labour and sexual exploitation of migrant workers in receiving countries Reason to migrate and socio-economic background of the migrant workers Gender issues in Cambodian labour migration Trans-border migration networks The role of social networks in the migration process The impact of migration in the medium and long term, particularly in terms of brain gain or brain drain Information Objectives Provide migrant workers with the all the necessary information about legal migration channels while also raising their awareness of the risks of blind migration. 44

46 Recommended Actions Use the provincial offices of the MOLVT as local information centers to provide potential migrant workers with information on overseas employment opportunities, salaries, working and living conditions, documents and skills required, etc. Provide information on local employment alternatives through the MOLVT local information centers. Build on the successful awareness campaign model developed through IOM Cambodia s Prevention of All Forms of Trafficking in Women and Children and Information Campaign to Combat Trafficking Projects, to implement an awareness campaign on safe migration in key source provinces of migrant workers Protection of Migrant Workers In most of the receiving countries, undocumented migrants are not afforded protection under the law. The fear of deportation or incarceration leaves migrant workers extremely vulnerable to harassment and exploitation. It is important to consider the protection of these irregular migrants not only to address their immediate vulnerabilities but also to facilitate their regularization. As in the case of Thailand, undocumented migrants can quickly become documented through a registration or legalization process and it is therefore important to engage this community in advance lay the groundwork for their future regularization. It is important to consider the protection of migrant workers both in the country of origin (Cambodia) and destination. Objectives Guarantee the rights of migrant workers within and outside Cambodia and prevent sexual and labour exploitation and abuse of migrant workers. Recommended Actions (In Cambodia) Support the monitoring activity of private recruitment agencies by the MOLVT through the involvement of NGOs and/or International Organizations with specific know-how, particularly on such issues as services payment, pre-departure training and reliability of information provided to migrant workers about working and living conditions. Support the MOLVT in developing a database to document and monitor migrant workers providing information on all migrant workers abroad, including information on wages, contracts, destinations, blacklisted employers etc. 45

47 Collect the experience of Cambodian migrant workers abroad through follow-up interviews after their return. Prosecute all the illegal recruitment agencies and those who illegally claim to work for recruitment agencies. Support the MOLVT in providing migrant workers with a public recruitment system; coexisting with the private system. The public recruitment system should take advantage of the experience of other sending countries such as the Philippines. Involve as much as possible, the local authorities at village, district and provincial level, in monitoring the migration flows, of legal and undocumented migrant workers. Recommended Actions (Abroad) Support the MOLVT in monitoring the living and working conditions of Cambodian migrant workers abroad through the placement of labour attachés in Cambodian Embassies in countries of destination for Cambodian migrant workers. Support the MOLVT in establishing a core group of trained officials with specific expertise on migration issues (see section on training). Support the Cambodian government in provide services to migrant workers abroad such as a hotline for migrant workers in distress and other activities and structures that allow migrant workers to lodge immediate complaints and receive adequate redress through Cambodian embassies abroad. Involve NGOs and international organizations working in receiving countries to help the monitor Cambodian migrant workers. For migrant workers in Thailand, the Cambodian government should work with their Thai counterpart to simplify the process of registration for work permits and making it less expensive. For migrant workers in Malaysia, the Cambodian government should work with their Malaysian counterpart to revise their bilateral agreement on the sending of migrant workers of 1999; in particular, the articles dealing with the right of employers to withdraw documents from the migrant workers, and the prohibition for migrant workers to join trade unions. In the development of any future bilateral agreements to send workers abroad, the experience of other sending countries should be taken into consideration in order to provide better guarantees of protection for migrant workers. 46

48 Regarding the prosecution of unlawful employers and smugglers, the legal framework used for the prosecution of traffickers should be expanded to include the protection of migrant workers Health Objectives Provide information on the incidence of disease among migrant workers. Raise awareness of migrant workers and their families about communicable diseases, including HIV/AIDS and STD. Recommended Actions Develop a migrant health information system able to produce periodical statistical summaries of the incidence of diseases among migrants abroad, to develop adequate health policies. Support the activity of local NGOs and organizations on HIV/AIDS and STD awareness campaigns for migrant workers, especially for mobile and difficult-to-reach populations such as seafarers, sex workers and undocumented migrant workers. Disease prevention and health-care programmes, including those on HIV/AIDS should target and be accessible to migrant workers in receiving countries. Place more attention on multi-sectoral collaboration and cross-border interventions. Increase knowledge about the relationship between HIV/AIDS and mobility, especially among high risk migrant groups. Research on HIV/AIDS and Mobility should go beyond identifying vulnerability. Identification of the most effective interventions would be valuable. Build the capacity of the Occupational Safety and Health Unit of the MOLVT to conduct pre-departure medical check-ups Remittances In Cambodia, there is a general misunderstanding on the definition of remittances. The great majority of the data available refers to the remittances flow coming from Europe, USA, Australia and New Zealand. Even if, technically, they can be defined as remittances there is a qualitative difference between these remittances and the flow coming from the main destinations for migrant workers. 47

49 This difference is related to the main reasons for migration. The remittances coming from Europe, USA, Australia and New Zealand are sent mainly from people who fled Cambodia as a result of the political turmoil surrounding the Khmer Rouge regime. As a result, it is possible to define these migrants as diasporas. The remittances of these diasporas are usually transferred through formal channels such as banks and specialized agencies. In this case, the main reason for migration was not to seek employment but for political reasons. The situation of the remittances coming from the main destination countries for Cambodian migrant workers (Thailand, Malaysia and South Korea) differ considerably. These remittances, especially from Malaysia and Thailand, are largely from undocumented migrants and they are transferred through informal channels. In this case, the main reason for migration is to find employment abroad in order to provide for families at home. At the moment, it is not possible to evaluate the amount of remittances from documented and undocumented workers abroad. According to MOLVT, legal migrants in South Korea and Malaysia use formal money transfer channels to send remittances to Cambodia, but there are no statistics available. Objectives Gather information on the flow of remittances coming from migrant workers abroad. Provide the migrant workers with a public money transfer system which is cheaper and safer than the informal systems currently being used. Provide migrant workers with opportunities of investment at the local level. Recommended Actions Establish links between financial institutions in Cambodia and receiving countries to discuss the possibility of providing legal channels for the transfer of remittances. Investigate in detail the informal transfer systems in order to establish a cheaper and safer public transfer system for remittances. Provide favourable financial conditions for migrant workers in order to attract investment in local communities. Develop structures to manage migrant savings and alternative investment systems (see the experience of Thailand and Philippines). Involve institutions with experience in the financial sector, such as the World Bank and Asian Development Bank, in the process of establishing a public transfer system. Increase the reliability of statistics from the Ministry of Finance to include remittance flows from migrant workers abroad. 48

50 10.6. Gender Objective Improve the migration conditions for female migrant workers in terms of safety and protection both in Cambodia and in receiving countries. Recommended Actions Gender differences and gender sensitive policies need to be taken into consideration in all stages of policy formulation and development. More research should be developed on the socio-economic background of rural women. More gender-oriented interventions on how to protect Cambodian women migrant workers at all stages of the migration process should be debated and shared among all the stakeholders involved in the management of labour migration in Cambodia. Analyze the similarities and differences in the situation of internal and external Cambodian female migrant workers. Conduct research on the situation and vulnerability of women left at home in rural provinces by husbands who have migrated Legislative Tools Objectives Draft a comprehensive Labour Migration Law incorporating Sub-decree 57 on The Sending of Khmer Workers to Work Abroad, released the 20 th July 1995, Prakas n.108 MOLVT on Education of HIV/AIDS, Safe Migration and Labour Rights for Cambodian Workers Abroad, released the 31 st May 2006, Sub-Decree 70 On The Creation of The Manpower Training and Overseas Sending Board, released the 25 th July 2006 and the Cambodian Labour Law. Improve the implementation of the MOU with Thailand and the labour agreement with Malaysia Recommended Actions Update the Cambodian Labour Law to include Cambodian migrant workers abroad. As of August 2006, Article 1 states the Labour Law applies to employers and workers resulting from employment contracts to be performed within the territory of the Kingdom of Cambodia. 49

51 In the Migration Labour Law there should be specific mention of domestic work as an official occupation. Establish a committee to draft a Labour Migration Law. The Committee should include all the Ministries involved in labour migration issues. International organizations representatives with know-how and experience in legal aspects of labour migration management should also be included in the Committee. The drafting process of the Labour Migration Law should foresee meetings and encounters with representatives of local NGOs and civil society organizations. The Labour Migration Law should include all the previously identified areas of intervention. The Cambodian Government should work closely with the receiving countries governments in order to update, improve and implement the articles included in bilateral agreements. Cambodia should ratify as soon as possible the 1990 UN Convention on the Protection of the Rights of all Migrant Workers and Members of Their Families Political Cooperation Objectives Improve inter-ministerial cooperation among the Ministries involved in labour migration issues. Improve communication and the cooperation among ministerial bodies, local NGOs and International Organizations. Recommended Actions Each Ministry involved in labour migration issues should establish a small task force (no more than three persons) to deal with migration issues related to their Ministry s competencies. The members of the task force will participate in meetings, conferences and workshops and they will be the interface between the Ministries, NGOs and International Organizations. The members of the task forces on labour migration should join an effective Interministerial Committee on Labour Migration in order to establish a common ground for discussion and updating activities of each Ministry. The Committee should include representatives of International Organizations and NGOs. 50

52 The members of task forces should work closely with local NGOs and International Organizations to improve cooperation and collaboration on labour migration issues Capacity Building Objectives Improve the capacity of the MOLVT staff, both in Cambodia and abroad. Recommended Actions Facilitate the participation of members of the MOLVT in national and regional capacity building activities. Support the MOLVT in training staff for monitoring private recruitment agencies. Support the MOLVT in training labour attachés for placement in Cambodian Embassies in countries receiving Cambodian migrant workers. Support the MOLVT in training staff for the management of a labour migration database and other activities requiring specific computer skill. Support the participation of members of the MOLVT in academic programs (i.e. MA and PhD) in Cambodia and abroad. Provide the MOLVT with short term training by International Organizations and NGOs on specific migration issues Migration Dynamics Considering the overwhelming role played by push factors in Cambodia, providing alternatives to migration would radically alter the rationale behind the decision to migrate. If, until now, the choice to migrate was out of desperation or lack of alternative livelihoods, the development of local sources of employment would allow people to choose to migrate as a medium-long term strategy to improve their standard of living through investment of remittances. As of August 2006, Cambodian migrant workers are employed almost exclusively in low-skilled jobs. In terms of brain gain, Cambodian is on the losing side. Returning Cambodian migrants do not have improved skills and, in cases of diseases or accidents, they become more of a hindrance than an asset for their households. Objectives Improve migration dynamics through increasing opportunities and benefits for migrant workers. 51

53 Recommended Actions Support the development of sources of income in local communities to provide households with alternatives other than migration. Improve the technical skills of migrant workers through local training activities. Create structures at the local level to support people who want to migrate through counselling, information campaigns and monitoring abuses of registered/unregistered recruitment agencies Reintegration As of August 2006, there were no programs for the reintegration for returning Cambodian migrant workers. Objectives Develop reintegration programs for Cambodian migrant workers abroad. Recommended Actions Planned reintegration, including providing economic opportunities for migrant workers upon their return, should be develop in partnership with local communities. Monitor and provide support to returnees to address the negative impact of migration (i.e. divorce, disability, discrimination, social isolation especially for women). Implement a voluntary return system to avoid overstays. 52

54 ANNEX A 53

55 54

56 55

57 56

58 57

59 ANNEX B 58

60 59

61 ANNEX C 60

62 61

63 ANNEX D MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNMENT OF THE KINGDOM OF THAILAND AND THE GOVERNMENT OF THE KINGDOM OF CAMBODIA ON COOPERATION IN THE EMPLOYMENT OF WORKERS The Government of the Kingdom of Cambodia and the Government of the Kingdom of Thailand, hereinafter referred to as the Parties RECOGNIZING the principles enshrined in The Bangkok Declaration on Irregular Migration of 1999 ; BEING CONCERNED about the negative social and economic impacts caused by illegal employment; DESIROUS of enhancing mutually beneficial cooperation between the two countries; HAVE AGREED AS FOLLOWS: OBJECTIVE AND SCOPE ARTICLE I The Parties shall apply all necessary measures to ensure the following: 1) Proper procedures for employment of workers; 2) Effective repatriation of workers, who have completed terms and conditions of employment or are deported by relevant authorities of the other 62 62

64 Party, before completion of terms and conditions of employment to their permanent addresses; 3) Due protection of workers to ensure that there is no loss of the rights and protection of workers and that they receive the rights they are entitled to; 4) Prevention of, and effective action against, illegal border crossings, trafficking of illegal workers and illegal employment of workers. This Memorandum of Understanding is not applic able to other existing processes of employment that are already in compliance w ith the laws of the Parties. AUTHORISED AGENCI ES ARTICLE II For the purpose of this Memorandum of Understanding, the Ministry of Social Affairs, Labour, Vocational Training and Youth Rehabilitation of the Kingdom of Cambodia and the Ministry of Labour of the Kingdom of Thailand shall be the authorized agencies for the Government of the Kingdom of Cambodia and for the Government of the Kingdom of Thailand respectively. ARTICLE III The Parties, represented by the authorized agenc ies, shall hold regular consultations, at senior official and/or ministerial levels, at least once a year on an alternate basis, on matters related to the implementation of this Memorandum of Understanding. The authorized agencies of both Parties shall work together for the establishment of procedures to integrate illegal workers, who are in the country of the other Party prior to the entry into force of this Memorandum of Understanding, into the scope of this Memorandum of Understanding

65 AUTHORI TY AND PROCEDURE ARTICLE IV The Parties shall take all necessary measures to ensure proper procedures for employment of workers. Employment of workers requires prior permission of the authorized agencies in the respective countries. Permission may be granted upon completion of procedures required by laws and regulations in the respective countries. The authorized agencies may revoke or nullify their own permission at any time in accordance with the relevant laws and regulations. The revocation or nullification shall not affect any deed already completed prior to the revocation or nullification. ARTICLE V The authorized agencies may through a job offer inform their counterparts of job opportunities, number, period, qualifications required, conditions of employment, and remuneration offered by employers. ARTICLE VI The authorized agencies shall provide their counterparts w ith lists of selected applicants for the jobs w ith information on their ages, permanent addresses, reference persons, education, experiences and other information deemed necessary for consideration by the prospective employers. ARTICLE VII The authorized agenc ies shall coordinate w ith the immigration and other authorities concerned to ensure that applicants, who have been selected by employers and duly permitted in accordance with Article IV, have fulfilled, inter 64 64

66 alia, the following requirements: 1) Visas or other forms of entry permission; 2) Work permits; 3) Health insurances or health services; 4) Contribution into savings fund as may be required by the authorized agencies of the respective Parties; 5) Taxes or others as required by the Parties; 6) Employment contracts of employers and workers. Contract of the terms and conditions of employment shall be signed between the Employer and Worker and a copy each of the contract submitted to the authorized agencies. ARTICLE VIII The authorised agencies shall be responsible for the administration of the list of workers permitted to work under this Memorandum of Understanding. They shall keep, for the purpose of reference and review, the lists of workers who report themselves or have their documents certified to the effect that they have returned to their permanent addresses after the end of the employment terms and conditions, for at least four years from the date of report or certification. RETURN AND REPATRIATION ARTICLE IX Unless stated otherwise, the terms and conditions of employment of workers shall not exceed two years. If necessary, it may be extended for another term of two years. In any case, the terms and conditions of employment shall not exceed four years. Afterwards, it shall be deemed the termination of employment. A three-year break is required for a worker who has already completed the terms and conditions of employment to re-apply for employment

67 ARTICLE X The Parties shall extend their fullest cooperation to ensure the return of bona fide workers, who have completed their employment terms and conditions, to their permanent addresses. ARTICLE XI The authorised agencies of the employing country shall set up and administer a saving fund. Workers are required to make monthly contribution to the fund in the amount equivalent to 15 percent of their monthly salary ARTICLE XII Workers who have completed their terms and conditions of employment and returned to their permanent addresses shall be entitled to full refund of their accumulated contribution to the savings fund and the interest by submitting the application to the authorised agencies three months prior to their scheduled date of departure after completion of employment. The disbursement shall be made to workers within 45 days after the completion of employment. In the case of workers whose services are terminated prior to completion of employment and have to return to their permanent addresses, the refund of their accumulated contribution and the interest shall also be made within 45 days after termination of employment. ARTICLE XIII Temporary return to c ountry of origin by w orkers whose terms and conditions of employment are still valid and in compliance with the authorised agencies regulations shall not cause termination of the employment permission as stated in Article IV

68 ARTICLE XIV Procedures and documents required in the application for refund as stated in Article XII shall be set forth by the authorised agencies. ARTICLE XV The right to refund of their contribution to the saving Fund is revoked for workers who do not return their permanent addresses upon the completion of their employment terms and conditions. ARTICLE XVI The authorised agenc ies of the employing country may draw from the savings fund to cover the administrative expenses incurred by the bank and the deportation of workers to their country of origin. PROTECTIO N ARTICLE XVII The Parties in the employing country shall ensure that the workers enjoy protection in accordance with the provisions of the domestic laws in their respective country. ARTICLE XVIII Workers of both Parties are entitled to wage and other Benefits due for local workers based on the principles of non-discrimination and equality of sex, race and religion. ARTICLE XIX Any dispute between workers and employers relating to employment shall be settled by the authorised agencies according to the laws and regulations in the employing country

69 MEASURES AGAI NST ILLEGAL EMPLOYMENT ARTICLE XX The Parties shall take all necessary measures, in their respective territory, to prevent and suppress illegal border crossings, trafficking of illegal workers and illegal employment of workers. ARTICLE XXI The Parties shall exchange information on matters relating to human trafficking, illegal immigration, trafficking of illegal workers and illegal employment. AMENDMENTS ARTICLE XXII Any amendment to this Memorandum of Understanding may be made as agreed upon by the Parties through diplomatic channels. SETTLEMENT OF DISPUTES ARTICLE XXIII Any difference or dispute arising out of this Memorandum of Understanding shall be settled amicably through consultations between the Parties. ENFORCEMENT AND TERMINATION ARTICLE XXIV This Memorandum of Understanding shall enter into force after the date of signature and may be terminated by either Party in written notice. Termination shall take effect 90 (ninety) days following the date of notification. In case of 68 68

70 termination of this Memorandum of Understanding by either Party, for the benefit of the workers, the Parties shall hold consultation on how to deal with employment contracts that are still valid. IN WITNESS WHEREOF, the undersigned, being duly authorised by their respective Governments, have signed this Memorandum of Understanding. DONE at Ubon Ratchatani on the Thirty First Day in the Month of May of Two Thousand and Three of the Christian Era in English language, in two original copies all of which are equally authentic. For the Royal Government of the Kingdom of Cambodia For the Royal Government of the Kingdom of Thailand ITH SAMHENG Minister of Social Affairs, Labour, Vocational Training and Youth Rehabilitation SUWAT LIPTAPANLOP Minister of Labour 69 69

71 ANNEX E Main Elements of the Employment Permit System for Foreigners Dec. 25, 2003 The Ministry of Labour, Republic of Korea I. Overview On August 16, 2003, "Act on the Foreign Workers Employment, etc." was legislated, which stipulates introduction of the Employment Permit System for Foreign Workers and measure of illegal foreign workers legalizing. Accordingly, employers who have failed to hire native workers will be legally allowed to hire foreign workers from August next year. o Foreigners from sending nations will be legally entitled to work in Korea under the Employment Permit System. - The Employment Permit System for Foreigners will be enforced in parallel with the Industrial Trainee System. Also, among illegally staying foreigners, 190,000 people who have stayed in Korea for less than 4 years were granted the status of sojourn eligible for employment according some formal procedures from Sep 1 to Nov 15 this year. II. Main Elements in the Employment Permit System for foreigners 1. Definition The Employment Permit System allows employers who have failed to hire native workers to legally hire an adequate number of foreign workers and is an system that the government uses to introduce and manage foreign workers in Korea in an organized manner. o With an introduction of the Employment Permit System, small and medium businesses are able to minimize labour shortages and foreign workers will enjoy basic rights under labour relations laws fully applied to them. 2. Main elements Deciding industries subject to and size of inflow of foreign workers The industries subject to and size of inflow of foreign workers and sending country under the Employment Permit System, and etc, are to be deliberated and decided in the latter half of the year at the Foreign Workforce Policy Committee (FWPC, Chairman : the Minister of the Office for Government Policy Coordination) and adjusted every year. The concerned industries would be mostly manufacturing, construction, and service business where it is difficult to attract enough native workers, and particularly small and medium business with less than 300 workers suffering from severe labour shortages. 70

72 The size of the inflow of foreign workers will be determined at an adequate level, taking into account the trends in the supply & demand. To avoid having employers relying too much on foreign workers, ceilings will be set for each workplace. Sending countries will be selected by the FWPC based on the rate of illegally staying workers, preference by employers, etc and MOU will be signed first with country that accept all the requirements of Korea such as infrastructure of workers to be sent, fair selection, and post-management capability, etc. o Designation of sending countries for the Employment Permit System will proceed, independently of those of the current Industrial Trainee System. o The sending countries for the Employment Permit System are going to be restricted to an appropriate number. - Every year, rate of illegally staying foreign workers, preference by employers, irregularities in regard to sending or receiving foreign workers will be taken into considerations to adjust the quotas for each countries and if certain level is crossed, designation of sending country can be cancelled. Selection of Sending country and introduction of foreign workers The sending countries designated by the FWPC and the Korean government (Ministry of Labour) sign MOU on sending and receiving foreign workers. o Selection and introduction of foreign job-seekers are to be done by public organizations of both Korea and sending countries. Private sending agencies are not allowed to intervene. o For Korea, job-searching and employment management for foreign workers will be conducted by the Employment Security Centers of the Labour Ministry, and bringing foreign workers to Korea will be the responsibility of the Human Resources Development Service of Korea(HRD Service Korea). - For the Industrial Trainee System, private sending agencies performed recruiting and selecting industrial trainees, which is leading to problems such as irregularities in sending and receiving foreign workers which served as causes for workers' leaving their workplace arranged. Government and public organizations of sending countries shall make a list of foreign jobseekers three to five folds of the quota for the Employment Permit System in accordance with criteria such as educational background, experience, and Korean language test stated in the MOU and send it to the public organization of Korea (the HRD Service Korea). o Korean Language Test will be mandatory from August 2005 to be used as a criterion for selecting foreign workers. For employers that have made efforts but failed to hire native workers for one month through the Employment Security Center of the Ministry of Labour, hiring foreign workers will be permissible. o Korean employers having been acknowledged to have labour shortage may select right persons from the list of foreign workers at the Employment Security Centers and sign a standard labour contract with them. 71

73 < Key details of MOU (proposal) > Recruiting of foreign workers who want to seek jobs in Korea shall be done only through government and public organizations Sending countries shall present various criteria to make a list of foreign workers in an objective manner(educational background experience Korean Language Test, exclusion of ex-convicts, etc) It is important to note that being in the list of foreign workers does not guarantee employment in Korea. Every two year, adjustment of quota and renewal of MOU are to be made depending on irregularities related with sending and receiving foreign workers, the rate of illegally staying foreigners, false information about foreign workers, preference of employers, etc Aggressive efforts such as training for the prevention of runways without notice shall be made Sending countries will manage basic items to manage foreign workers in Korea Foreign workers are being invited to Korea on the condition that illegally staying foreigners are returned home Employment Management of Foreign Workers Working period is set at maximum three years to prevent settlement of foreign workers in Korea, and employers and foreign workers are to decide every year whether to renew the labour contract. o Foreigners who left Korea after having worked in Korea under the Employment Permit System can not be employed again under the same System unless they have stayed outside of Korea for more than one year since their departure. - Considering that the working period is short (3 years) under the Employment Permit System, accompanying family is banned. Employers and foreign workers shall sign a labour contract using the standard labour contract to clarify working conditions such as the wage and their working condition. Foreign workers are supposed to work at the workplace where they signed labour contract for the first time. o But, in the case of inevitable circumstances such as close-down or suspension of business, legitimate withdrawal from the labour contract, workers can be replaced to other businesses through the Employment Security Center. Employers shall subscribe to a "departure guarantee insurance" with a view to ensure a severance pay for foreign workers who leave Korea after having worked faithfully, and Foreign workers shall subscribe to a "return cost insurance" in order to finance costs of returning their home country. 72

74 Protection of rights according to the Korean law Foreign workers under the Employment Permit System shall have the status of worker from the beginning and have their basic rights protected equally as Koreans for the three working years according to labour relations laws such as the Labour Standards Act. o It is possible to differentiate the wage level if it is due to gaps in productivity or experiences between Korean and foreign workers, but it is impossible to unfairly discriminate against foreign workers just because they are not Korean. The Ministry of Labour will step up to monitor businesses that hire foreign workers to prevent industrial accidents, wage dues, and etc. Measures to prevent illegal foreign workers after the introduction of the employment Permit System The introduction of the Employment Permit System for Foreigners lays an institutional grid that enables foreign workers to work legally in Korea. Accordingly, continuous and adamant crack-down and stricter punishment will be reinforced against illegal workers and their employers. 3. Procedures in Selecting and Receiving Foreign Workers 1. Deciding main policies such as the number of foreign workers to receive and sending countries Important matters related with foreign workforce such as occupations, Numbers, and sending countries will be deliberated and decided by the FWPC in OGPC 2. Signing MOUs on sending workforce between the Korean government and a government of a sending country Signing a MOU with a country accepting recruitment procedures of Korea to prevent irregularities related with sending foreign workers. Evaluating on a regular basis the implementation of MOU to decide renewing the MOU 3. Preparing a list of job-seeking foreigners ( the government of sending countries to the Korean government ) Public authorities of sending countries will form a pool of job seekers which will double the size of the selection number based on objective standards such as results of the Korean language test, skills' level or drawing by computers. They will regularly send a list of foreign job seekers they prepared to the HRD Korea. 73

75 4. Permitting employment of foreigners by issuing a confirmation document for workforce shortages (companies to the MOL) The MOL will issue a confirmation document for workforce shortages to employers who failed to find workers despite their efforts for one month to hire domestic workers through Employment Stability Centers. This measures is intended to protect employment opportunities of domestic workers. Employers issued with the confirmation document for workforce shortages may apply for the employment permit of foreign workers by stating job requirements. 5. Selecting foreign workers to be received (companies - the MOL) ESC will recommend a few candidates out of a list of foreign job-seekers Employers will select out of the recommended candidates the most optimal foreign worker. 6. Signing a labour contract (companies foreign workers) Employers will sign the standard labour contract with foreign workers they choose. - The contract will specify the terms of the contract and working conditions such as wages, working hours, holidays and working place. Employer may directly sign labour contracts with foreign workers or by entrust the matter to the HRD Service Korea. By doing this, employers have to cooperate with public authorities of sending countries. Foreign workers who concluded the working contract will be provided with the employment manuals. 7. Issuing of the visa issuance certificate (Companies - the MOJ) Employers will submit the confirmation document for labour shortages and the standard labour contract and be issued with the visa issuance certi ficat e. They may entrust the HRD Service Korea with application work for the issuance of the visa issuance certi ficate. 74

76 8. Receiving foreign workers (Companies - Foreign Workers) Employers will send foreign workers with the visa issuance certi ficat e and foreign workers will be issued with the working visa from Korean embassies to their countries, and enter Korea. This work may also be done by the HRD Service Korea when entrusted. Foreign workers who entered Korea will complete pre-employment education conducted by the HRD Service Korea and others within the set period. 75

77 ANNEX F 76