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.
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