Problems within space of Employment based international relocation

Jon Purizhansky from Buffalo, NY notices that while optically the process of international employment based relocation appears to be straight forward and simple, in actuality the process is extremely inefficient and riddled with fraud, due to the absolute absence of transparency and lack of pre-arrival communications between employers in Host Countries and employees in Origination Countries.

The root of the problem is currently unavoidable presence of multiple middlemen, often unethical and greedy, between the employer in the Host Country and the employee in the Origination Country.

Essence of the problem is best described by the following hypothetical example of how a foreign migrant worker, located in a third works country, is currently relocated for employment with an employer in the EU (could also be North America, Australia, New Zealand, The Middle East, Japan or South Korea).

The process takes place as follows:

1) Employer decides to hire foreign workers.

2) Employer dedicates monthly budget ( Budget) per foreign worker that includes:

a) foreign worker’s net monthly salary;

b) monthly taxes that apply to the net salary;

c) monthly accommodation per worker;

d) monthly expense on food per worker ( typically 500g of rice/500g of vegetables/500g of meat products per day per worker)

For example, let’s assume that a construction company in the EU wishes to hire 100 general laborers and it decides to spend:

a) 700 Euros on net salary; and
b) 300 Euros on taxes; and
c) 500 housing; and
d) 500 food

Then, the employer’s budget per foreign worker per month will be 2,000 Euros.

3) Employer comes in contact with Middleman 1 and agrees that Middleman 1 will find foreign workers to accept employment with the Employer based on the terms of employment offered by the Employer. The employment terms are largely, but not totally, based on the Budget. Typically, the employer documents its intent to offer employment to foreign workers by issuing a Job Order to Middleman 1 that reflects terms of employment.

Here is an example of a Job Order provided by Jon Purizhansky from Buffalo, NY

JOB ORDER

ISSUED BY:     EMPLOYER

ISSUED TO: MIDDLEMAN 1

Whereby, the Employer agrees to employ 100 citizens of “Origination Country” as general laborers on the following terms:

a) 700 Euros net salary
b) employment taxes paid by the Employer
c) housing paid by the Employer
d) food ( breakfast, lunch, dinner – 500g rice;500g vegetables; 500g meat products ) covered by the Employer
e) transportation to and from work – covered by the Employer
f) overtime – covered in accordance with Hist Country laws

Term of employment agreement – 2 years

NAME AND POSITION OF EMPLOYER’S REPRESENTATIVE

SIGNATURE

NOTARY STAMP

4) Middleman 1 contacts Middleman 2 and offers to sell to Middleman 2 the opportunity (The Opportunity)  to place 100 foreign construction workers with the Employer. NOTHING IS STOPPING MIDDLEMAN 1 FROM ALTERING THE INFORMATION CONTAINED IN THE JOB ORDER AND INFORMING MIDDLEMAN 2 THAT THE SALARY WILL BE HIGHER OR THE EMPLOYMENT CONTRACT TERM WILL BE LONGER, ETC…

For example: Middleman 1, who secured the Job Order from the Employer, is located in the Host Country. Middleman 1 is aware that Middleman 2 has contacts in the Origination Country that may allow Middleman 2 to recruit the 100 foreign workers for employment with the Employer. Middleman 1 and Middleman 2 then enter into an agreement, whereby Middleman 2 promises to pay Middleman 1 a fixed fee (let’s assume it’s $2,000) for every foreign worker that the Employer will hire because of the efforts of Middleman 2 .

5) Middleman 2 contacts Middleman 3, who may or may not be an HR recruitment agency, licensed in the Origination Country able to offer The Opportunity to prospective foreign workers in the Origination Country. Middleman 2 and Middleman 3 then enter into an agreement, whereby Middleman 3 promises to pay Middleman 2 a fixed fee (let’s assume it’s now $4,000) for every foreign worker that the Employer will hire because of the efforts of Middleman 3.

NOTHING IS STOPPING MIDDLEMAN 2 FROM ALTERING THE INFORMATION CONTAINED IN THE JOB ORDER RECEIVED FROM MIDDLEMAN 1 AND INFORMING MIDDLEMAN 3 THAT THE SALARY WILL BE HIGHER OR THE EMPLOYMENT CONTRACT TERM WILL BE LONGER, ETC…WITH THE OBJECTIVE OF UPSELLING THE OPPORTUNITY.

6) Middleman 3 will then employ the services of so-called “SUB-AGENT”, which is now Middleman 4. Middleman 4, consequently, promises to pay Middleman 3 a fixed fee (let’s assume it’s now $6,000.00) for every foreign worker that the Employer will hire because of the efforts of Middleman 4.

7) Middleman 4 recruits foreign workers, usually in remote areas of the Origination Country, and sells them The Opportunity for an amount that is higher than the amount that Middleman 4 has to pay to Middleman 3 (here in after referred to as The Fee. Let’s assume it’s now $8,000)

8) Foreign worker typically takes out a loan to pay The Fee to Middleman 4. Typically, the conditions of the original Job Order are grossly misrepresented when The Opportunity is sold by Middleman 4 to the foreign worker.

9) Middleman 4 collects the documents from foreign workers that the Employer needs to file with the authorities in the Host Country for the purpose of securing work permits for the foreign workers.

10) Middleman 4 forwards to Middleman 3 “The Fee less Middleman 4’s percentage of the Fee” and foreign workers’ documents required to support the application for the work permit in the Host Country.

11) Middleman 3 forwards to Middleman 2
“The Fee less Middleman 3’s percentage of the Fee” and foreign workers’ documents required to support the application for the work permit in the Host Country.

12) Middleman 2 forwards to Middleman 1
“The Fee less Middleman 2’s percentage of the Fee” and foreign workers’ documents required to support the application for the work permit in the Host Country.

13) Middleman 1 retains “The Fee less the percentages of the Fee retained by Middlemen 2,3 and 4” and either keeps The Fee in its entirety or shares it with the Employer. Middleman 1 submits to the Employer the foreign workers’ documents required to support the application for the work permit in the Host Country.

14) Employer files for work permits for foreign workers with the relevant government agency of the Host Country.

15) Work permits are issued.

17) Middleman 3, typically in cooperation with Middleman 4, facilitated filing for applications for Work Visas for foreign workers with the appropriate Consular Post of the Host Country that has jurisdiction over the foreign workers (typically Host Country Embassy located in Origination Country).

18) Work Visas are issued.

19)Foreign Workers fly to the Host Country to commence employment with the Employer.

20)PROBLEM STARTS

NATURE OF THE PROBLEM STEMS FROM

THE FACT THAT FOREIGN WORKERS’ EXPECTATIONS AND EMPLOYERS’ EXPECTATIONS ARE NOT ALLIGNED UPON FOREIGN WORKERS’ ARRIVAL

Jon Purizhansky from Buffalo, NY says that as long as foreign workers are required to pay fees to middlemen for the opportunity to relocate abroad for employment, various middlemen will continue to take advantage of the foreign workers , resulting in a wide array for problems both, for the worker and for the employer.

Originally Posted: http://www.jonpurizhanskybuffalo.com/problems-within-space-of-employment-based-international-relocation/

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