Labour Act, 1992 (2049)

Labor Act 1992 (2049) replaced the Nepal Factory and Factory workers Act, 1959. The Act emphasizes on job security, rights of remuneration after work, prohibition of child labour, freedom of unite under the trade union, minimum wages, health, safety and welfares, code of conduct, workers' participation in management and dispute settlement. Major Highlights on Labour Act, 2049:

•     The rights, interests, facilities and safety of workers and employees working in enterprises of various sectors shall be protected.

•     Non-Nepalese citizens shall not be permitted to be engaged at work in any of the posts until and unless the Nepalese manpower available inside the country.

•     Change in the ownership of the Enterprise shall not be affected on the terms and conditions of service of the workers and employees.

•     No worker or employee shall be deployed in work for more than eight hours per day or forty eight hours per week and they shall be provided one day as weekly holiday for every week.

•     No agreement may be entered into between the manager and workers or employees in a way to make the minimum remuneration, dearness allowances and facilities lesser than those fixed by GON.

•     The person or institution, who engages the workers and employees of outside the Enterprises at work, must pay the remuneration for the day engaged at work in accordance with the agreement if such agreement in writing has been concluded between the two parties and within seven days if there is no such agreement.

•     No child shall be engaged in work in any Enterprise.

•     Minors and females may be engaged in the works normally from 6 am to 6 pm except in the prescribed conditions.

•     By making an appropriate arrangement with mutual consent between the proprietor and the worker of employee, the females may also be engaged in the works similar to the males.

•     The Manager may transfer a worker or employee to any branch or unit of the Enterprise without causing any difference in the nature or standard of work. .

•     Where any worker or employee is engaged to work for more than eight hours in a day or forty eight hours in a week, he shall be paid overtime wages at the rate of one and one-half time of his ordinary rate of wages.

•     One welfare Officer shall have to be appointed in Enterprise where 250 or more workers of employees are engaged and one additional Assistant Welfare Officer shall have to be appointed where there are more than 1000 workers or employee.

•     The service of any permanent worker or employee may not be terminated without following the procedures prescribed by this Labour Act or the Regulations or Bylaws made under this Act.

•     The permanent worker of employee shall have to be paid with at least twenty five percent of his remuneration as retaining allowance for the period of closure of a seasonal Enterprise during off-season.

•     Proper safety provision should be made in working place to prevent from the probable accidents, harm and injury to the employees.

•     Where fifty or more female workers and employees are engaged in the work, the Proprietor of the Enterprise shall have to make provisions of a healthy room for the use of children of such female workers and employees.

•     The Enterprise shall have to establish a Welfare Fund, as prescribed for the welfare and benefit of the workers or employees.

•     In case any worker or employee of the Enterprise is physically wounded or seriously hurt or dies in course of his work, the compensation shall be paid to him or to his family, as prescribed.

•     The Proprietor shall have to constitute a Labour Relation Committee in each Enterprise in order to create amicable atmosphere between the workers or employees and the management and to develop healthy labour or industrial relation on the basis of mutual participation and coordination.