Labor and Employment regulated primarily under the provisions of the following laws and regulations:
- Labor Act 2074 (2017)
- Labor Rules 2075 (2018)
Department of Labor and Occupational Safety is authorized as the regulatory agency in labor and employment related matters, and functions under the instructions of the Ministry of Labor Employment and Social Security.
Labor Act sets minimum standards to be complied under law in the relations between employers and employees.
Labor Act prohibits the following practices:
- Forced labor
- Discrimination based on religion, class, gender, case, ethnicity, origin, language or beliefs
- Wage discrimination for equal work
- Child Labor
- Employing without executing employment agreement
- Forcing to work overtime
Labor Act requires workers of foreign nationality to obtain work permit prior to engaging in any employment inside Nepal. Work Permit is generally granted to foreign nationals with technical capabilities that are not otherwise available inside Nepal.
Labor Act ensures following rights of workers
- Trade union rights
- Employment security
- Employment status to remain even upon change of ownership
- Employment relation to remain even during reserve status of employee
- Part time employees shall not be barred from working with other employers
- Foreign worker with work permit shall retain same rights as local worker and may remit salary and benefits in foreign currency
- Transport facility for workers working outside of daylight hours
- Remuneration from the date of commencement of work
- annual increment of salary
- minimum remuneration
- festival allowance
- holidays and leaves
- payment in lieu of leaves
- social security contributions (provident fund, gratuity, insurance)
- occupational safety
- compensation for workplace injury
- collective and individual claims
- rights of workers of employers not having registration in Nepal
- fair process in disciplinary proceedings
- retrenchment benefits
Labor Act grants Labor Office, Department of Labor and Labor Court rights and authority to resolve and adjudicate labor disputes.
Disclaimer: The contents of this page are for general information purposes only and shall not be construed as legal advice. Please contact our legal professionals for accurate assistance.
Our Services:
- Labor law advice
- Employment agreement service (drafting, negotiation)
- Obtaining employment related permits and approvals
- Assistance in various employment related procedures
- Labor related litigation, negotiations