Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The government has scrapped a long-standing directive governing the deployment of trainee workers to Japan, effectively opening the Japanese labor market to all licensed manpower companies in Nepal.
The Ministry of Labour, Employment and Social Security has repealed the Directive on Sending Technical (Trainee) Workers to Japan, 2066 (2009), which had restricted worker deployment to a limited number of listed recruitment agencies. With the repeal, all licensed manpower companies will now be allowed to send Nepali workers to Japan, similar to labor migration procedures for other destination countries.
Under the repealed directive, Nepali workers were sent to Japan primarily through the Japan International Training Cooperation Organization (JITCO). Only manpower companies specifically listed under the directive were permitted to process applications, creating a controlled and limited channel for labor migration.
Labour Ministry spokesperson Pitambar Ghimire confirmed that the directive has been officially revoked and that JITCO-related arrangements have also been terminated.“With the directive no longer in place, all licensed manpower companies can now send workers to Japan,” Ghimire said. “Nepali workers have been going to Japan under the Technical Intern Training Program (TITP), and the directive was no longer relevant.”
Shift in Japan’s Labor Framework
Japan itself is undergoing a major shift in its foreign labor framework. The country plans to abolish the Technical Intern Training Program and replace it with a new scheme—Employment for Skill Development (ESD)—from 2027. Despite this transition, Nepal had continued to send workers through JITCO under the old TITP model, a process stakeholders have long criticized as outdated and cumbersome.
The directive repeal comes amid mounting pressure from manpower companies, which had repeatedly demanded equal access to the Japanese labor market. Business groups argued that the earlier system functioned like a syndicate, benefiting only a select group of recruiters.
Previously, manpower companies sending workers to Japan were subject to separate listing and renewal procedures, distinct from standard license renewals conducted by the Department of Foreign Employment. While other manpower firms renewed their licenses annually, Japan-focused agencies faced delays and additional regulatory hurdles, leaving many unable to renew their permits.
As a result, several recruitment agencies reportedly stopped renewing their licenses altogether.
Industry Welcomes Decision
Foreign Employment Agencies Association Secretary Kunchha Dorje Dimdong said Nepal had continued to follow the JITCO-based system even after Japan abolished it in 2017.“Japan ended JITCO years ago and is now preparing to scrap TITP as well, but Nepal was still stuck in a complicated and outdated process,” he said. “With the directive repealed, all licensed agencies can now send workers, which is a long-overdue reform.”
Dimdong said the association had consistently demanded the removal of the directive and equal treatment for all manpower companies. “Our demand has finally been heard,” he added.
At its peak, 482 manpower companies were listed under JITCO. However, many of them were later unable to send workers to Japan, contributing to frustration within the industry.
Cabinet Decision and Procedural Changes
The Labour Ministry had earlier formed a task force to review the directive. Based on its recommendations, the Cabinet meeting held on mid-January (11 Poush) approved the repeal.
Following the decision, provisions requiring special examinations for workers sent under JITCO have also been removed, according to the ministry.
Japan recruits Nepali workers through multiple channels, including trainee and skilled worker schemes. Trainee workers generally travel after passing Japanese language tests, while skilled workers under the Specified Skilled Worker (SSW) category often migrate through individual labor permits.
Recently, the Nepali Embassy in Japan began verifying demand letters for SSW workers, signaling a gradual expansion of alternative and more flexible migration pathways.
Stakeholders say the removal of the directive is expected to reduce procedural bottlenecks, curb syndicate-like practices, and expand employment opportunities for Nepali workers seeking jobs in Japan.
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