Key Insights of the Trade Union Act 2049

Introduction of Trade Union Act 2049

Trade Union Act was authenticated on Mangsir 2049 to highlight legal provisions for the management and operation of Trade Unions in Nepal. The Act consists of Six Chapters and Thirty-One Sections.

The purpose of the Act was to develop an appropriate legal framework for the registration, operation, and management of Trade Unions and provide required provisions for the protection and promotion of Occupational and Professional Rights of Self-Employed Individuals and Workers in Nepal.

Registration of Trade Union

Chapter 2 of the Trade Union Act has provisioned for the registration of Enterprise Level Trade Union, Trade Union Association, and Trade Union Federation in Nepal

Enterprise Level Trade Union

Trade Unions can be registered within a company for the protection of Work and Labor-related Rights in Nepal. For the Registration of such Trade Union, a formal application must be submitted to the Trade Union Registrar.

The Application should be signed by at least ten members that are to be chosen by the Working Committee and should consist of the Trade Union’s Constitution and the required fee for Registration.

The Registrar after receiving the Application required to review it and check for compliance with the Act. After it has been reviewed, the Trade Union registers the Union within 15 Days.

However, if less than 25% of the Company’s Workers are not a part of the Union, it can’t be registered. Workers can only be a member of One Enterprise-Level Trade Union at a time.

Objectives of Trade Union

1. To improve working conditions and promote the economic and social development of workers.
2. To foster positive relations between workers and management.
3. To contribute to enterprise development by enhancing productivity.
4. To encourage worker discipline and responsibility.

Functions, Duties, and Powers of Trade Union:

1. Executing activities and programs necessary to achieve its primary objectives,
2. Ensuring its members participate in the election of the Authorized Trade Union at the enterprise level.
3. Ensuring workers in an enterprise follow the decisions made by the Authorized Trade Union at the enterprise level.

Trade Union Association

A Trade Union Association can be formed in Nepal if at least Fifty Enterprise-Level Trade Unions or Five Thousand Agriculture Laborers from at least 20 Districts, with a hundred individuals from each district or Five Thousand Workers from Similar Businesses, are in mutual agreement to register such association.

An official designated by the Working Committee of the Association must submit an application to the Registrar along with a copy of the mutual agreement, the rules of the Trade Union, and the fee.

After the application has been received by the Registrar, it must be reviewed and registered within 15 days of receiving the application along with a certificate.

Trade Union Federation

A Trade Union Federation can be registered in Nepal by mutual agreement between at least Ten Trade Associations.

To Register the Trade Union Federation in Nepal, an official chosen by the Working Committee must submit an application to the Registrar with a copy of the Mutual Agreement, the rules of the Federation along the required fee.

The Registrar must register the Trade Union Federation within 15 Days of receiving the application along with the certificate of Registration.

Objectives of Trade Union Associations and Trade Union Federation

(a) To provide educational activities for workers.

(b) To establish connections with international institutions for worker benefit.

(c) To offer advice to the Government of Nepal in formulating labor policies.

(d) To conduct workshops, and seminars, and publish information beneficial to workers.

(e) To negotiate with the Government of Nepal and take necessary actions to protect and promote workers’ rights.

Functions, Duties, and Powers

1. Conducting activities and programs required to achieve their objectives
2. Ensuring their members participate in the elections of Trade Union Associations and Trade Union Federations.
3. Ensuring their members comply with the decisions of the Trade Union Association and Trade Union Federation.
4. Resolving labor disputes through negotiations with the Government of Nepal, professional associations, federations, and enterprises
5. Negotiating with the relevant enterprises and managers on behalf of the Enterprise-Level Trade Union.
6. Establishing and managing various funds for the welfare of workers.
7. Publicly disclosing any mistreatment of workers or the Trade Union

Denial for Registration

The Registrar can refuse to register a Trade Union in the Following Cases:

1. If the required information is missing in the application.
2. If at least 25% of the company’s workers are not part of the Enterprise-Level Trade Union.
3. If the Trade Union’s name is already in use.

Registration Renewal

Enterprise-Level Trade Unions need to be renewed every two years in Nepal. However, Trade Union Associations and Trade Union Federations need renewal every four years in Nepal.

Privileges to Trade Union

As stipulated in Section 8 of the Trade Union Act 2049, a Trade Union in Nepal is required to act as an autonomous corporate body with Perpetual Succession. It shall have its seal to manage its activities.

A Trade Union has the right to possess, dispose, or acquire movable and immovable Property. It can also sue and be sued as a Natural Person.

Statute of Trade Union

A Trade Union requires a Statute. The Elements and details of the Statute of Trade Union in Nepal are:

(a). The Trade Union’s name and address.

(b). The objectives for establishing the Trade Union.

(c). The procedure for forming the working committee and the maximum term of office, which is four years.

(d). Information on general membership, the number of officials, and their election process.

(e). A provision stipulating that only Nepali citizens with at least one year of continuous service are eligible for official positions.

(f). Rules regarding the Trade Union’s funds and their auditing.

(g). Rules regarding the Trade Union’s funds and their auditing.

(h). Guidelines for conducting votes of no confidence against officials.

(i). Provisions governing the functions, duties, powers, and meetings of the working committee and the General Meeting of the Trade Union.

(j). Procedures for amending the Trade Union’s statute.

(k). Guidelines for dissolving the Trade Union.

(l). Provisions for handling the Trade Union’s liabilities and assets after dissolution.

Registrar

Chapter 4 Section 14 of the Trade Union Act has equipped Registrars as required for the registration of Trade Union in Nepal through the Government of Nepal.

Functions, Duties, and Powers

The Responsibilities, Duties, and Powers of the Registrar are as follows:

(a) To register Trade Unions.

(b) To maintain and update a Register Book containing comprehensive details of registered Trade Unions and related information.

(c) To request any additional information deemed necessary for Trade Union registration.

(d) To take appropriate actions if the Trade Union fails to submit the required particulars, reports, or other documents

(e) To outline the procedures for the election of the Authorized Trade Union.

Trade Union Fund

Each Trade Union is required to maintain a fund of its own which will cover all the expenses incurred in the name of the Trade Union. It shall consist of the following:

(a) National fees collected.

(b) Grants or aids received from national organizations.

(c) Funds from any other sources.