Best Labor Lawyer in Nepal

Introduction of Labor Law of Nepal

Labor Lawyer in Nepal practice Labor law which primarily governs the relationship between employers and employees. It has established Mechanisms for Fair Treatment, Working Conditions and Dispute Resolution.

Nepalese labor law sets minimum standards for employment conditions, including wages, working hours, rest periods, and leave entitlements. Employers are generally required to provide written employment contracts to their employees, and specifying terms and conditions of employment.

The standard working week in Nepal is typically 48 hours, with a maximum of eight hours per day. Overtime rates apply for work beyond regular hours. Employers have a legal obligation to provide a safe and healthy working environment for their employees.

Workers have the right to form trade unions and engage in collective bargaining to negotiate terms and conditions of employment with employers. Mechanisms for resolving disputes between employers and employees may include mediation, arbitration, or adjudication through the labor administration or labor court system.

Labor Lawyer in Nepal

Lawneeti Associates has the Leading Labour Lawyer in Nepal with specialization of Labor and Employment Law. The Following are our Specialized Array of Services for Labor Law in Nepal:

Employment Contract Drafting

We create customized employment contracts that comply with all relevant labor laws and regulations, including non-compete clauses, to address your specific concerns.

Employee Manuals

Our team develops comprehensive employee handbooks and manuals covering company policies, codes of conduct, and formal procedures for employers and employees.

Termination and Severance Agreements

With our expertise, we draft termination and severance agreements to protect your business from potential litigation. We ensure compliance with Nepal’s labor laws and negotiating terms for mutually agreeable resolutions.

Labor Union Negotiations

We provide legal counsel for labor union negotiations, helping to optimize your interests through collective bargaining agreements and maintaining positive employer-employee relationships.

Workplace Investigation

Our team conducts thorough investigations into workplace misconduct, harassment, and discrimination, ensuring fairness throughout the process.

Labor Dispute Resolution

Our experienced litigators and arbitrators specialize in resolving labor disputes through negotiation, mediation, and arbitration, minimizing the need for litigation whenever possible.

Drafting Contracts and Agreements

We excel in drafting various types of contracts and agreements related to labor law, including non-compete arrangements, non-disclosure agreements, and confidentiality agreements, customized to your specifications.

Labor Court Representation

Our litigators have extensive experience representing clients in labor courts, providing comprehensive services from pre-trial filings to post-trial enforcement and remedies.

Labor Laws in Nepal

Labor law in Nepal covers various aspects to safeguard the rights and interests of both employers and employees.

Types of Employment

Employment can be categorized into various types based on different criteria. Regular employment encompasses any form of employment that doesn’t fall under the specific categories mentioned below. This is the standard form of employment where the employee typically works for a fixed number of hours per week or month and receives regular wages or salary.

Task-based employment involves the employer assigning a particular task or service for the laborer to complete. Once the task is completed, the employment may or may not be renewed based on the need for additional tasks. In time-based employment, the employer specifies a certain period during which the laborer must provide a service or perform work.

Casual employment refers to short-term or irregular employment arrangements where the laborer is required to provide a service or perform work for seven days or less within one month.

Part-time employment involves the laborer working for fewer hours than a full-time employee, typically thirty-five hours or less in a week.

Work Permit

To work in Nepal, foreigners need a work permit from the Department. Employers must advertise job vacancies in a national newspaper to find Nepali candidates first.

If no suitable Nepali is found, they can apply for a work permit to hire a foreigner. The Department evaluates applications and may issue permits for skilled foreign workers. Employers hiring foreigners must also commit to training Nepali citizens and gradually replacing foreign workers.

Working Hour and Renumeration

Nepal’s Labor Law limits daily work to eight hours and weekly work to forty-eight hours. Laborers are entitled to a half-hour break after five hours of continuous work. Overtime, up to four hours a day or twenty-four hours a week, is permitted with extra pay.

Workers receive reasonable pay and benefits based on the collective agreement. After one year of service, they’re eligible for an annual pay increase of at least half a day’s remuneration.

The minimum wage is NPR 17,300 per month, and tea estate workers earn NPR 13,890. Additionally, laborers receive festival expenses equivalent to one month’s basic remuneration annually.

Leave

1. Weekly Leave: Laborers are entitled to one day off per month.
2. Public Leave: Laborers receive thirteen paid public leave days annually, including May Day. Female laborers receive fourteen days, including International Women’s Labor Day. Public holidays may vary depending on the enterprise or employer.
3. Substitute Leave: Laborers working on a weekly or public leave day receive substitute leave within twenty-one days.
4. Home Leave: Laborers receive paid home leave at a rate of one day for every twenty days worked, excluding educational or seasonal leave.
5. Sick Leave: Laborers are granted twelve paid sick leave days per year, prorated for those employed less than a year. A medical certificate is required for leave exceeding three consecutive days due to illness.
6. Maternity Leave: Pregnant female laborers are entitled to fourteen weeks of maternity leave, with mandatory leave starting two weeks before delivery and extending six weeks after. Compensation during this period varies.
7. Mourning Leave: Laborers receive thirteen days of mourning leave for personal or family mourning, with full remuneration.

Employment Termination

1. Time-Based Employment: Ends upon the expiration of the specified time in the employment contract. May extend for project-based employment if the project period is prolonged.
2. Work-Based Employment: Concludes upon completion of the specified work outlined in the employment contract. May extend for project-based employment if additional work is added or the work period is extended.
3. Casual Employment: Can be terminated at the discretion of either the employer or the laborer.
4. Voluntary Termination: Laborers can resign in writing, and employers must accept the resignation within 15 days. If not accepted, it’s considered accepted after this period. Resignation can be canceled by mutual consent. Continuing work after resignation acceptance cancels the resignation.
5. Termination for Incompetence: Employers can terminate laborers with unsatisfactory performance for three or more consecutive years, following proper performance evaluations. A seven-day notice is given for clarification.
6. Termination for Health: Employers can terminate laborers due to physical or mental incapacity, grievous injury, or extended medical treatment based on medical recommendations. Special provisions apply for work-related accidents.Top of Form

Collective Bargaining

Any company with ten or more employees must form a bargaining committee to present written claims or demands regarding labor matters to the employer. Upon receiving these claims, the employer has seven days to notify the committee and arrange negotiations.

If an agreement is reached, the dispute is resolved and the agreement is enforceable. If negotiation fails, either party can request mediation from the Office, which must be completed within 30 days.

If an agreement is reached during mediation, it is binding. If mediation is unsuccessful, disputes may proceed to arbitration. The Ministry may mandate arbitration in cases of anticipated financial crises.

An arbitration panel is formed, and the process must conclude within 30 days. The arbitrator’s decision is binding.

Labor Court

Nepal’s Labor Court consists of one Chairperson and two Members. High Court Judges or those eligible serve as Judges, with a four-year tenure. Together, they have jurisdiction, with the Chairperson’s opinion prevailing.

The Court can examine witnesses, take statements, inspect workplaces, and issue interim orders, and can uphold, modify, or change decisions by the Office or employer.