Labor law in Nepal: Labor Lawyers in Nepal

Nepal has a workforce of 16.8 million workers, the 37th largest in the world as of 2017. It is prepared on the basis of the recently enacted Labor Act, 2017 (2074) (the New Labor Act). It was adopted by Parliament on 11 August 2017 (27 Shrawan, 2074) and became effective following certification by the President on 2074/05/19 BS (04/09/2017). 

The Social Security Act 2017 (2074) has also been referred to the Social Security Fund. The New Labor Act has been passed by the Parliament pursuant to Article 296(1) of the Constitution of Nepal.

What are the relevant labor laws in Nepal?

The Labor Act 2017 (“Labor Act”), the Labor Regulation 2017 (“Labor Regulations”) and the Social Security Fund Act 2017 govern labor law in Nepal.

What are the objectives of the Labor Act?

The objectives of labor law are the definition of an entity, a headcount threshold, an entity registered in a foreign country, domestic workers, and an exempt entity. Labor law shall apply to a company, private firm, partnership firm, cooperative, association or other organization which is in operation or established, incorporated, registered or formed under the prevailing legislation.

How do I bring a case before the Labor Court of Nepal?

You can approach the Labor Office as an individual claim and a collective dispute that will help you to resolve the matter within 21 days. Alternatively, you can also send a legal notice to the person concerned stating your grievances and what you want from him/her. You can engage with a lawyer for that. If the legal notice is ignored, you can file a lawsuit with the Labor Court within 1 year of the date on which your money became due. You can call us if you want legal advice from an expert lawyer or even if you want to hire a lawyer.

When should I file a case for misconduct at the labor court?

The aggrieved person may lodge a complaint with the court in respect of any offense prescribed for commencement and dismissal of the labor court. If the Labor Court registers a complaint received through the Labor Office, it shall forward it to the applicant through the same Labor Office and, in the event that the complaint cannot be registered, it shall also inform the person concerned through the same Labor Office.

If you wish to bring a case of misconduct at work before the Labor Court pursuant to Article 75.Section 160 of the Act shall be in accordance with the Rules of Procedure of the Labor Court, 2052.

What is the procedure for hiring foreign nationals?

The procedure for hiring foreign nationals is compulsory to obtain a work permit first in conformity with Labor Law 2074, Section 22 & 23. If any company or industry wishes to deploy foreign nationals as Chief Executive Officer or a prescribed number of employees, it must be provided essentially by registration. Foreign Nationals technicians employed for less than three months in the repair of machinery, the installation of new technology, similar casual work or any other work shall be provided simply by recording in the company. Employment agreements must be in the English language as laid down in Labor Law 2074 Sec 27. Foreign nationals may repatriate their income in convertible foreign currency in line with Clause 26.

What is the Employers’ Obligation under the Social Security Act 2074?

Employers in the industry, service or business of a prescribed nature or area should enroll with the Fund as prescribed in the Nepal Gazette. The Social Security Act obliges the employer to enroll workers in the Social Security Fund within 3 months from the date of appointment of any workers.

Are the government fees applicable during submission of the submission?

No government fee is required to list the company or employees under the Social Security Fund.

What are the documents required for the registration of employers and employees under the Social Security Fund?

The rate of the amount to be deposited in the Social Security Fund for Employees and Employees shall be paid at the following rate: the employer shall pay 11 per cent of his or her salary and the employee shall add 20 per cent of his or her company income per month to the total employee’s basic salary of 31 per cent.

Are there any criminal obligations in relation to labor disputes?

The amount of criminal liabilities in dispute is known then the penalty is specified accordingly and, if the amount in dispute is unknown, the Labor Act shall fine them with a penalty of up to 1 lakh or imprisonment of up to 6 months or both. If there are many offenders, the secondary offender will receive half of the penalty for the principal offender.

Supplying unlicensed labor and employment from such supplier penalties Fine up to NPR. It’s 200,000. If a foreign national is allowed to work without a job, Fine up to the NPR. 200,000, depending on the number of workers, shall be fined with an additional fine of NPR even after being punished. 5,000 per person a month.

If there is discrimination between workers, there is a fine to the NPR. 100,000 and the order of equality can be given Sanctions: Labor Office or Department

If a worker without a letter of appointment or an employment agreement is a Fine to NPR. 500,000 at the rate of NPR 10,000 per worker; an order for the conclusion of an employment agreement and a letter of appointment is also given.

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