Labour Act, 2048 (1992)


Published: 1992

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
Labour Act, 2048 (1992) 1
Labour Act,2048 (1992)
Date of Authentication
2 Jestha 2053 (May 15, 1996)
Amendment Acts
1. Labour (first Amendment) Act , 2054 15 Magh 2054 (Jan.28, 1989)
2.Chi ld Labor (Prohib i t ion and Regulat ion) Act , 2056• 7Ashadha2057(June21,2000 A.D.)
Act No. 9 of the year 2049 B.S.
An Act to provide for Labour
Preamble: Whereas it is expedient to make timely provisions relating to labour by making
provisions for the rights, interests, facilities and safety of workers and employees working
in enterprises of various sectors.
Now, therefore, the Parliament has made this Act on he twenty first year of the
reign of His Majesty King Birendra Bir Bikram Shah Dev.
Chapter 1.
Preliminary
1. Short title and commencement: (1) This Act may be called as the "Labour Act,
2048 (1992)".
(2) It shall come into force immediately.
2. Definitions. In this Act, unless the subject or context otherwise requires :-:
(a) "Production process" means any of the following processes:
(i) works relating to making, altering, repairing, ornamenting, engraving,
finishing, packing, oiling, washing, cleaning, breaking-up,
dismantling or other kinds of activities given to any article or
substance with a view of bringing it to its use, sale, distribution,
transportation, or disposal.
(ii) pumping of oil, water, or sewage;
(iii) generating, transforming, and transmitting energy; or
• It came into force on 2054.7.18 (Nov. 3, 2000) by a notification published in the Nepal Gazette
2
(iv) printing, lithography, photography, book-bindg and other similar
work.
(b) "Enterprise" means any factory, company, organisation, association, firm,
or group thereof, established under the prevailing laws for the purpose of
operating any industry, profession or service, where t n or more workers or
employees are engaged and this expression also includes:
(1) Tea estates, established under the law for commercial purpose;
(2) Enterprise operating within the industrial districts established by
Government of Nepal where less than ten workers or employees are
engaged.
(c) "Employee" means persons engaged in the administrative functions of the
enterprise.
(d) "Worker" means a person employed on the basis of remuneration ............to
work in any building, premises, machinery or any part thereof used for any
productions process or providing service, or any act relating to such work
or for any unscheduled works and this expression also includes any worker
working at piece-rate, contract or agreement.
(e) "Manager" means a person appointed for performing the functions in the
Enterprise.
(f) "Proprietor" means the person having final authority on the activities of the
Enterprise and this expression also includes any person appointed as the
Chief of any ♣branch or unit of the Enterprise with powers to exercise f nal
responsibility or authority in respect thereof.
(g) "Factory Inspector" means a factory inspector appointed by Government of
Nepal and this expression also includes the Senior Factory Inspector.
Inserted by the First Amendment. deleted by the first Amendment . ♣ Amended by First Amendment .
3
(h) .∝..................
(i) "Minor" means a person who has attained the age of sixteen years but has
not completed the age of eighteen years.
(j) "Adult" means a person who has completed the age of eighteen years.
(k) "Energy" means electrical or mechanical energy.
Provided that, this word shall not include any energy generated from
human or animal sources.
(l) "Seasonal Enterprise" means an Enterprise which cannot be operated or
which is not feasible to operate in any season other than the specific season
and this expression also includes a Seasonal enterprise which cannot operate
more than one hundred and eighty days in one year.
(m) "Day" means period of twenty-four hours starting from any midnight and
ending at another midnight.
(n) "Week" means a period of seven days starting from midnight on Saturday or
from midnight of such other day as prescribed by the Department of Labour.
(o) "Welfare Officer" means the welfare officer appointed under this Act.
(p) "Labour Officer:" means the Labour Office appointed under this Act and this
expression also includes the Senior Labour Officer.
(q) "Labour Court" means the Labour Court under this Act.
(r) " Remuneration" means the remuneration or wage to be received in cash or
kind from the Enterprise by the worker or employee for the works performed
in the Enterprise and this expression also includes any amount to be received
in cash or kind for the works done under piece-rate or contract.
Provided that, this expression does not include any kind of allowance
or facility.
∝ Deleted by Chi ld Labor (Prohib i t ion and Regulat ion) Act , 2056.  Amended by the Chi ld Labor (Prohib i t ion and Regulat ion) Act , 2056
4
(s) "Prescribed" or "as prescribed" means prescribed or as prescribed in the Rules
framed under this Act.

CHAPTER - 2
Employment and Security of Service
3. Classification of Job: (1) The Proprietor shall classify the job of the workers and
employees of the Enterprise according to the nature of production process, service or
functions of the Enterprise and shall provide the information thereof to the
concerned Labour Office.
(2) If the classification done pursuant to Sub-section (1) requires any
amendment, the Labour Officer may, stating the reasons thereof, issue a directive to
the Proprietor and it shall be the duty of the Proprietor to abide by such directive.
4. Appointment of Worker and Employee: ♣ (1) In cases where it is required to
appoint a worker or employee in any post classified pursuant to Section 3, the
Manager Shall have to advertise in order to select su h a worker or employee and
the worker or employee so selected shall have to be provided with appointment
letter and be engaged at work..
(2) The worker and employee appointed under Sub-section (1), ♣shall be
kept on probation period unless he/she completes th continuous service period of
one year and, based on, his/her efficiency, sincerity discipline, diligence towards
works, punctuality, etc in this period he/she shall be appointed permanently. An
appointment letter shall be provided with the name of the post of the worker or
employee and his/her remuneration and conditions of ervice while making such
appointment. Information thereof shall also be provided to the Labour Office.
Clarification : For the purpose of this Sub-section, the words " the continuous
service period of one year" means the period of two hundred forty days engaged at
♣ Amended by First Amendment . ♣ Amended by First Amendment . Inserted by the First Amendment.
5
work during a period of twelve months in an Enterprise, or the period served
continuously in a Seasonal Enterprise during the period of such a running season,
by a worker or employee and, while calculating the said two hundred forty days,
public and weekly holidays shall also be counted.
(3) The worker or employee engaged on piece-rate or contract in the
works of permanent nature of an Enterprise shall also be appointed permanently
under Sub-section (2).
(4) The workers or employee engaged under Sub-section (3) shall be
entitled to facilities provided in this Act according to the scale of his/her post.
(5) ....... 4A. Prohibition of Engaging Non-Nepalese Citizens at Work : (1) Non-Nepalese
citizens shall not be permitted to be engaged at work in any of the posts classified
pursuant to Section 3.
(2) Notwithstanding anything contained in Sub-section (1), if a Nepalese
citizen could not be available for any skilled techni al post even after publishing an
advertisement in national level public newspapers and journals, the Manager may
submit an application to the Department of Labour along with the evidence of such
fact for the approval to appoint a non-Nepalese citizen.
(3) If it is found, in conduction of an inquiry upon the submission of any
application pursuant to Sub-section (2), that a Nepalese citizen would not be
available for the skilled technical post mentioned in the application, the Department
of Labour may, on the recommendation of the Labour Office, grant approval to
engage a non-Nepalese citizen at work years for a maximum period of upto five
years not exceeding two years at a time and, in the specialized kind of skilled
technical post, for a period upto seven years.
(4) The Manager, who engages non-Nepalese citizens at work pursuant to
Sub-section (3), shall have to make arrangements for making the Nepalese citizens
deleted by the first Amendment . Inserted by the First Amendment.
6
skilled and for replacing the non-Nepalese citizens gradually by them. "
5. Engagement in Work: (1) ∝...........
(2) Minors and females may be engaged in the works normally from six
o'clock in the morning till six o,clock in the evening, except in the prescribed
conditions.
(3) By making an appropriate arrangement with mutual consent
between the proprietor and the worker or employee, th females may also be
engaged in the works similar to the males.
(4) 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. .
(6) Computation of period of Works: For the purpose of computing the period of
works performed in the Enterprise by any worker or employee, the following
period shall also be counted.
(a) the period remained in reserve under Section 11; and
(b) the period stayed ♣with remuneration leave. ♣7. Appointment in Contract Service: If an Enterprise needs to increase in production
or service immediately, any person may be appointed in contract, by fixing a time
period and setting forth the remuneration to be recived by him/her and the terms of
service, for any specified work other than the works of the Enterprise which are
permanent in nature.
8. Change of Ownership shall not Adversely Affect: Any change in the
ownership of the Enterprise shall not be deemed to have affected on the terms and
conditions of service of the workers and employees of the Enterprise.

∝ Deleted by Chi ld Labor (Prohib i t ion and Regulat ion) Act , 2056. Inserted by the First Amendment. ♣ Amended by First Amendment . ♣ Amended by First Amendment .
7
9. Separate Registers of the Workers and Employee to be Kept: (1) In each
Enterprise, the Proprietor shall maintain separate egisters of the workers and
employees mentioning the following particulars –
(a) Name of the worker or employee,
(b) Nature of job,
(c) Remuneration and method of its payment,
(d) Other prescribed particulars.
(2) The register maintained under Sub-section (1) shall have to be
submitted when demanded by the Labour Officer, Factory Inspector or any other
person designated by the Labour Office.
10. Security of Service: The service of any permanent worker or employee may not be
terminated without following the procedures prescribed by this Act or the Rules
or Bylaws made under this Act.
11. Keeping on Reserve: (1) In case where the curtailment of production or service in
any Enterprise for some period is necessary or where operation of the Enterprise
cannot be continued for some special circumstance, the Proprietor, under Sub-
section (2), may curtail its production or service or may close the Enterprise or a
part of thereof.
(2) Permission from the Labour Office in case of a period up to fifteen
days and from the Department of Labour in case of a period for more than that shall
have to be taken while curtailing the production or se vice or closing the Enterprise
or any part thereof as mentioned in Sub-section (1). The Labour Office shall, inform
the Department of Labour of such permission in case it has given permission.
(3) While doing curtailment in the production or service pursuant to Sub-
section (1), any worker working on shifts or on wages or ♣permanent worker or
employee of the Enterprise except the employee shall be kept reserve on the
condition of receiving half of his/her remuneration.
♣ Amended by First Amendment .
8
Provided that, such worker or employee shall continue to receive the
appropriate facilities which he/she is receiving.
(4) If any worker or employee kept in reserve pursuant to Sub-section (3)
refuse to work on another assignment or similar nature equal ♣on remuneration
offered by the proprietor in the same Enterprise or another Enterprise under his/her
control or if he/her does not come in the Enterprise once a day during office hours
or on other situations as prescribed, the Proprietor may withheld the remuneration
and facility of such worker and employee.
12. Retrenchment and reinstatement: (1) If, for any special circumstances, the
production or service of the Enterprise had to be curtailed or the Enterprise has to
be closed party or wholly for more than three months, e Proprietor may, with the
approval of Government of Nepal through the Department of Labour, retrench in
the number of the workers and employees, partly or wholly, of the Enterprise. (1A) If the Manager makes a demand to Government of Nepal for approval
in respect of the retrenchment of workers or employees pursuant to Sub-section (1),
Government of Nepal shall have to make decision within wo months on whether
such retrenchment of employees to be made or not.
(2) While retrenching the workers or employees under Sub-section (1),
engaged in similar type of works, those ♣permanent workers or employees who
\were appointed in the last shall be retrenched first.
Provided that, if it is required to retrench some of the workers or employees
appointed earlier, not following the prescribed order of retrenchment such
retrenchment may be made by specifying the reasons thereof.
(3) While doing retrenchment as per Sub-section (2), it shall be done as
follows –
♣ Amended by First Amendment . Inserted by the First Amendment. ♣ Amended by First Amendment .
9
(a) By providing a notice with the reasons or retrenchment either one
month in advance or paying the remuneration of one month in case
of worker or employee who is permanent ............... and
(b) By paying a lump sum compensation to each worker or employee of
the amount of remuneration calculated by multiplying the number of
each year of service performed at the Enterprise by the amount of
his/her present remuneration for 30 days.
Explanation: For the purposes of this Clause, the work performed for at
least six months in any year shall be counted as one year of service.
(4) The provisions of Sub-section (3) shall not applicable to any worker
or employee appointed under contract service.
(5) If anybody has to be engaged in the job of worker or employee
retrenched earlier, priority shall be given to theretrenched workers or employees.
Explanation: For the purposes of Section 11 and 12 the "Special Circumstance"
shall mean damage, break down or failure of machines or the Enterprise and
thereby causing stoppage in the production or failure in the supply of fuel,
electricity, coal or similar energy or due to any kind of force majeure or insufficient
supply of raw materials or stock piling of the produced goods due to loss of sale or
other similar situations.
13. Seasonal Enterprise: (1) The workers or employees of a seasonal Enterpris shall
not be deemed to be on reserve during off-season period.
(2) The beginning and closure of operation of season l Enterprise shall be
informed to the Labour Office.
(3) The permanent worker of employee shall have to be paid with at least
twenty five percent of his/her remuneration as retaining allowance for the period of
closure of a seasonal Enterprise during off-season..
(4) The decision of the Department of Labour shall be final in relation to
deleted by the first Amendment .
10
any dispute as to whether any Enterprise is a seasonal or not.
Explanation: While computing the period of two hundred and forty days, the
public Holidays and weekly holidays shall also be counted.
14. ........................
15. Compulsory Retirement: The Proprietor may compulsorily retire any worker or
employee who has crossed the age of fifty five years.
Provided that he/she may extend the period of service of any worker of
employee by five years, in case the worker or employee is indispensable for the
operation of the functions Enterprise.
CHAPTER – 3
WORKING HOURS
16. Working Hours: 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.
17. Computation of Commencement of Working Hour: The time for starting of
work by worker or employee shall be as prescribed y the Proprietor.
18. Intervals for Refreshment and Rest: In any Enterprise where work may be
interrupt, no worker or employee shall be deployed in work for more than five
hours continuously without providing an interval of half an hour for tiffin. In any
Enterprise where works have to be carried out continuously without interruption,
such intervals shall be provided on rotation basis. Such interval of half an hour shall
be deemed to have been included within the daily working hours.
19. Extra Wages for overtime to be Provided: (1) 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/she shall be paid overtime wages at the rate of one and one-half time of his/her
ordinary rate of wages.
Provided that, no worker or employee shall be compelled to work overtime.
deleted by the first Amendment .
11
(2) While deploying any worker or employee to work overtime,
generally the duration shall not exceed four hours per day and twenty hours per
week.
20. Attendance Register to be Kept: Each Enterprise shall keep attendance register of
its workers and employees.

CHAPTER – 4
Remuneration ♣21. Minimum Remuneration Fixation Committee: (1) Government of Nepal may
fix the minimum remuneration, dearness allowances and f cilities of workers or
employees or Enterprises on the recommendation of the Minimum Remuneration
Fixation Committee and the notification on rates so fixed shall be published in the
Nepal Gazette.
(2) Government of Nepal shall, in order to fix the minimum remuneration,
dearness allowances and facilities, constitute a Minimum Remuneration Fixation
Committee consisting of the equal number of representatives of workers or
employees, Managers and Government of Nepal.
(3) While making recommendation in regard to dearn ss allowances and
facilities of workers or employees, the Minimum Remuneration Fixation
Committee constituted under Sub-section (2) may do so on the basis of
geographical areas.
(4) The rates of minimum remuneration, dearness allow nces and facilities
fixed pursuant to Sub-section (1) shall be effective only from the date of publication
of a notification to that effect in the Nepal Gazette.
(5) In cases where the Minimum Remuneration Fixation Committee could
not be constituted or even if it is constituted, it could not make recommendation,
nothing contained in the foregoing Sub-sections shall be deemed to have barred
♣ Amended by First Amendment .
12
fixing the minimum remuneration, dearness allowances and facilities of workers
and employees of Enterprises by Government of Nepal.
(6) 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 pursuant to Sub-section (1).
(7) The other functions, duties and powers of the Minimum
Remuneration fixation Committee shall be as prescribed. 21A. Annual Increment in Remuneration: (1) The worker and employee appointed
permanently pursuant to Sub-section (2) of Section 4 shall receive an increment in
remuneration each year.
(2) The amount of increment in remuneration to be received pursuant to
Sub-section (1) shall be equal to the half day's remuneration of the concerned
worker or employee.
(3) Notwithstanding anything contained in Sub-section (1) above, such
increment in remuneration shall not be provided in cases where the remuneration is
withheld pursuant to subsection (2) of Section 52. ♣22. Payment of Remuneration, Allowances and Facilities: It shall be the
responsibility of the concerned Manager to provide th remuneration, allowances
and facilities to be received by a worker or employee of the Enterprise.
23. Period of Remuneration: The Proprietor may fix the period of payment of
remuneration to the workers or employees on weekly, fortnightly or monthly basis
in way not exceeding the period of one month.
Provided that, this provision shall not apply in respect of the persons who are
working on daily wages, piece-rate or contract basis.
24. Prohibition on Deduction of Remuneration: (1) The remuneration of workers or
employees shall not be deducted expect under the following circumstances –
Inserted by the First Amendment. ♣ Amended by First Amendment .
13
(a) In case it is required to realize any fine.
(b) In case it is required to deduct against absence;
(c) In case it is required to deduct against loss or damage of cash or kind
of the Enterprise caused intentionally or negligently;
(d) In case it is required deduct in respect of providing prescribed
facilities;
(e) In case it is required to deduct in respect of advance or over payment
of remuneration;
(f) In case it is required to deduct in respect of the period of suspension;
(g) In case it is required to deduct under the order of government office
or court'
(h) In case it is required to deduct as per the notifica ion of Government
of Nepal published in the Nepal Gazette; or
(i) In case it is required to deduct in respect of income tax or any other
tax levied under prevailing laws.
(2) The limit of amount to be deducted pursuant to Sub-section (1) the
method of deduction, the period of deduction and other related matters shall be as
prescribed. ♣25. Petition to be Filed in cases a Deduction in Remuneration Made or Delay
Caused in Payment or other Facilities not provided or Delay Caused in
providing such Facilities in an Undue Manner: (1) Except in cases of
happening of a mistake or failure to fix the remuneration amount or inability to pay
the remuneration due to the occurrence of an unforeseen incident or of special
circumstance or failure on part of the concerned worker or employee to come to
receive his/her remuneration or his/her refusal to receive the same; if, in an undue
manner, a deduction in remuneration is made or a delay is caused in payment or in
case of release from suspension or annulment of expulsion by a judgment of a court,
♣ Amended by First Amendment .
14
the remuneration for the period of such expulsion or suspension is not paid or a
delay is caused in such payment or the allowance, gratuity or the amount of
provident fund or compensation to be received by a worker or employee is not paid
or delay is caused in such payment, the concerned worker or employee him/herself
or through his/her attorney may file a petition in the Labour Office.
(2) The petition as referred to in Sub-section (1) shall have to be filed
within six months from the date of deduction in remuneration or causing delay in
payment or non payment of allowance, gratuity, amount of provident fund or
compensation or causing delay in such payment.
(3) While conducting necessary inquiry and examinatio on the petition
filed pursuant to Sub-section (1), if it is proven that the remuneration has been
deducted in an undue manner or a delay has been caused in payment or the amount
of allowance, gratuity, provident fund or compensation has not been paid or a delay
has been caused in such payment, the Labour Office may give order requiring to
make payment of such remuneration, allowance, gratuity, amount of provident fund
or compensation to the concerned worker or employee and to pay the concerned
worker or employee amount upto three times of such amount in default for
atonement thereof.
(4) If it is proven that the petition under Sub-section (1) has been filed
with a malicious motive or with an intention of causing unnecessary trouble or
distress to the Manager, the Labour Office may give order requiring the petitioner
to pay not exceeding one thousand rupees for compensatio to the Manager.
(5) The Labour Office shall make available to the concerned party the
amount to be paid or handed over in accordance with the order issued under Sub-
section (3) or (4) by getting recovered and realized the same by taking all or any of
the following action:-
(a) By keeping withheld the movable and immovable properties of the
concerned Enterprise, worker or employee in accordance with the
prevailing law,
15
(b) By keeping withheld the deposit amount of the concerned Enterprise,
worker or employee being kept in any Government Office or in any
Corporate body with the ownership of Government of Nepal or the
amount to be paid or handed over the concerned Enterpris , worker
or employee by such Office or corporate body,
(c) By keeping withheld the import or export of the concerned
Enterprise, worker or employee.
(d) By keeping withheld the discount, facilities orconcessions of the
concerned Enterprise, worker or employee to be obtained under the
prevailing law.
26. Appeal: The party dissatisfied with the Order issued pursuant to Sub-section (3) or
(4) may file an appeal to the Labour Court within thirty five days of the receipt of
information of such order and the decision of the Labour Court shall be final.
CHAPTER – 5
Health and Safety
27. Provisions Relating to Health and Safety: The Proprietor shall make the
arrangements in the Enterprise as mentioned below –
(a) To Keep each Enterprise clean and tidy by cleaning daily including
with germicidal medicines, necessary arrangements of pr per
drainage and coloring from time to time and preventing from odor;
(b) To make arrangements for adequate supply of fresh air and light as
well as proper temperature in the working rooms;
(c) To make arrangements of removal and disposal of solid waste during
production process,
(d) To make arrangements of prevention of accumulation of dust, fume,
vapour and other impure materials in working rooms which would
adversely affect the health;
(e) To make arrangements of necessary preventive personal devices for
protection of health from adverse any other source, and make
16
provisions this would produce less noise during the work process;
(f) To avoid any congestion in the work-room or work place leading to
injurious to the health of workers or employees andto avail working
space to each worker or employee, according to the nature of the job,
or normally fifteen cubic meters and, the height above four meters
from the floor surface shall not be counted for such purposes.
(g) To make provisions for sufficient supply of pure potable water
during the working hours, and to make arrangement for sufficient
water in the Enterprise where chemical substances, are used or
produced which may be injurious to the health, for the purpose of
extinguishing fire or washing and cleansing during emergency
situations;
(h) To make provisions for separate modern type toilets for male and
female workers or employees at convenient place;
(i) To declare as non-smoking zone in all or some parts of the
Enterprise, according to the nature of its works; and
(j) Too cause to conduct compulsory health check-ups of the workers or
employees once every year in the Enterprises where the nature of
works is likely to affect the health adversely.
28. Protection of Eyes: (1) Necessary protective means shall have to be arranged for
the protection of eyes of the workers and employees from injuries likely to be
caused by dust or pieces while working in the Enterprise using glass, mercury,
magnet, pallets, iron, concrete, cement, lime, stone and explosive substances.
(2) Necessary protective devices shall have to be arranged to protect the eyes
from harmful rays coming from during the process of welding or gas-cutting, or
other similar works.
29. Protection from Chemical Substance: The Proprietor shall have to make
provisions for necessary personal protective devices for the protection of workers or
employees handling chemical substances.
17
30. Provision for Safety Against Fire: (1) The Proprietor shall have to make
arrangements of necessary modern equipment for safety against fire in each
Enterprise.
(2) Provision shall have to be made for easy exitfrom the Enterprise
during emergency.
(3) Other provisions to be made by the Enterprise in relation to safety
from fire including fire-fighting devices shall be as prescribed.
31. Hazardous Machines to be fenced: (1) Strong fences shall have to be placed
around every part of hazardous machines, instruments a d equipment operated by
energy.
(2) In case it is required to do inspecting, lubrication or adjusting any part
of hazardous machines during its running condition only experienced and well-
trained adult worker or employee shall have to be engaged to perform such works.
32. In relation to Lifting of Heavy Weight: (1) No worker or employee shall be
engaged in the works of lifting, loading or transporting any load likely to cause
physical injury or harm to the health.
(2) The maximum load to be lifted, loaded or transported by an adult,
minor, male or female workers or employees shall be as prescribed.
32A. Minor not to be engaged in Works without Adequate Guidelines or of
Vocational Training: (1) No minor shall be engaged in works without adequate
directives about the concerned working areas or vocati nal training.
(2) Provisions with regard to adequate directives about the concerned
working areas or vocational training to be given to minors pursuant to Sub-section
(1) shall be as prescribed.
 Inserted by the Chi ld Labor (Prohib i t ion and Regulat ion) Act , 2056
18
(3) The entrepreneur engaging a minor in work against Sub-section (1)
shall be liable to a punishment of imprisonment up to three months in maximum or
a fine of ten thousand rupees in maximum or the both.
32B. Disputes Relating to Age: (1) In case a dispute arises with regard to age of a
minor engaged in an enterprise, the age mentioned in the date of birth certificate of
the minor shall be deemed to be his/her actual age.
(2) In case a minor does not have birth registration certificate after having
carried out medical tests the age determined by a medical practitioner prescribed by
the Department of Labor shall be deemed to be his/her actual age.
33. Pressure Plants: (1) In case a machine has to be operated at a pressure more than
the atmospheric pressure in course of the production pr cess of any Enterprise,
necessary effective measures shall have to be adopted in a way that such machine
will not be operated at a pressure heavier than safe working pressure.
(2) Provisions in relation to testing, certifying and licensing for operation
of the machines mentioned in Sub-section (1) shall be as prescribed.
34. Orders to Provide for Safety : (1) In the situation where provision of safety has
not been made which was required to be done pursuant to this Act, in any
Enterprise, the Labour Office may issue a written order to the Enterprise giving a
reasonable time limit in order to provide and make necessary arrangements thereon
within such period.
(2) If the order issued as per Sub-section (1) has not been followed, the
Labour Office may, order the closure of such unsafe portion, plant or machinery or
the Enterprise and it shall be the duty of the Enterprise to abide by such order.
35. Notice to be Provided: (1) Each Enterprise shall have to inform the Labour Office
within three days if any worker or employee dies or is injured making him/her
disabled to work for more than forty eight hours, from an accident occurred in the
 Inserted by the Chi ld Labor (Prohib i t ion and Regulat ion) Act , 2056
19
Enterprise or for any other reason, and within seven days if such worker or
employee has been caught by any disease resulting from the profession.
(2) The authority empowered to investigate the accident or disease
mentioned in the information given pursuant sub- section (1), his/her powers,
functions, duties, and the procedures relating there o shall be as prescribed.
36. Powers to Determine the Standards: (1) Government of Nepal may prescribe the
standards of safety required under this Chapter as per necessity by publishing a
notice in Nepal Gazette.
(2) Except those mentioned in Sub-section (1), other provisions relating
to health and safety to be adopted while using machinery, instruments or equipment
in the Enterprise shall be as prescribed.

CHAPER – 6
Welfare Provision
37. Welfare Fund: The Enterprise shall have to establish a Welfare Fund, as prescribed
for the welfare and benefit of the workers or employees.
38. Compensation: In case any worker or employee of the Enterprise is physically
wounded or seriously hurt or dies in course of his/her work, the compensation shall
be paid to him/her or to his/her family, as prescribed.
39. Gratuity, Provident Fund and Medical Expenses: The gratuity, provident fund
and facilities relating to medical expenses to be provided to the workers and
employees shall be as prescribed.
40. Leave: The public holidays, sick leave, annual leave, maternity leave, obsequies
leave, special leave, with remuneration or without ♣remuneration leave, etc. to be
enjoyed by the workers and employees of each Enterpris shall be as prescribed.
41. Provision of Quarters: (1) The proprietor shall each year allocate not less than
five percent of the gross profit of the Enterprise to provide healthy quarters for the
♣ Amended by First Amendment .
20
workers and employees and shall gradually build such quarters.
(2) A separate fund shall have to be maintained for depositing such amount
allocated pursuant to Sub-section (1).
(3) The operation of the fund as mentioned in Sub-section (2) shall be as
prescribed.
42. Provisions Relating to Children: (1) 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.
(2) A trained nurse, including some necessary toys, shall also be arranged
for the children as mentioned in Sub-section (1).
(3) The female workers and employees shall be provided time, as
necessitated, to feed their suckling babies.
43. Relaxing Room: Where fifty or more workers and employees are engaged at work,
the Proprietor of the Enterprise shall have to make provisions for relaxing room
with minimum amenities.
44. Canteen: Where fifty or more workers and employees are engaged in work at one
time, the Proprietor of the Enterprise shall have to make provisions for a canteen.

CHAPTER – 7
Special Provisions to be Applicable to Special Type of Enterprise.
45. Tea-Estate: (1) The Special provision mentioned as below shall be applicable in
respect of the tea estates –
(a) Formation of Committee: Government of Nepal may constitute, as
prescribed, a Committee to provide necessary advice on promotion,
policy formulation and other related matters in respect of the tea
estates.
(b) Provision of Quarter: The Proprietor shall have to make
arrangements for appropriate quarters within the tea-estate for the
21
workers who do not have their residence nearby.
(c) Provisions of Primary Health Care: The Proprietor shall have
establish a primary Health Care Center under the responsibility of a
trained employee in order to provide free primary trea ment of minor
injuries to the workers and employees engaged within the tea-estate
and to the members of their family.
(d) Safety Devices: The Proprietor shall have to provide safety devices
and equipment required for personal protection of the workers of the
tea-estate.
(e) Provisions of Primary School: The Proprietor of a Tea-estate shall
run a primary school if there are fifty or more children of the age
between five and fourteen years, receiving primary education, of the
workers residing in the quarters provided by the tea-estate and in
case there is no school within a distance of one kilometer from the
tea-state.
(f) Daily Consumer Goods: The Proprietor shall have to arrange to
make the daily consumer goods easily available to the workers and
employees, if there is no market near the tea-estate.
(g) Provision for Entertainment: The Proprietor shall have to make
necessary arrangements for appropriate sports facilities within the
tea-estate for physical and mental development of the workers of the
tea-estate.
(h) To get the works done on contract: This Section shall not be
deemed to prevent from entering into agreement between the
Proprietor and the workers of the tea-estate in respect of doing
certain specified works of the tea-estate under contract.
(2) For the purpose of this Section –
(a) "Tea-estate" means tea-estate registered under prevailing laws with
commercial objective and this expression also includes the factory
22
established therein.
(b) "Worker of tea-estate" means any person engaged in the tea-estate
for digging, ploughing, levelling, picking, spraying, sowing, cutting,
reaping, plucking, derooting and doing other similar works and this
expression also include any person engaged for cleaning any house,
land or machinery or its parts inside the tea-estat or any person
doing any other works related to the tea- estate.
46. Construction Business : The following special provisions shall apply in resp ct of
the construction business –
(a) Provisions for Construction Tools: The Proprietor shall have to
avail from its own side all necessary tools and materi l in sufficient
quantity for the workers engaged in the construction works at
construction site.
Explanation: For the purpose of this Section, "construction work"
means the construction work of building, road, bridge, canal, tunnel,
internal or interstate waterways or railways, or installing of
telecommunication equipment or machine including those of
electricity, telephone or telegraph or other works relating to
construction.
(b) Special Arrangements at Temporary Construction Sites: At the
temporary construction work sites, where fifty or more workers are
engaged, the Proprietor shall have to make arrangements for
quarters, food stuffs, drinking water, etc. for theworkers who do not
have residence nearby.
(c) Accident Insurance: The Proprietor shall have to insure all workers
engaged in the construction site against accident in he way as
prescribed.
(d) Safety Arrangements:
(1) The Proprietor shall have to make necessary and adequate
23
arrangements of safety at the sites of construction w rks.
(2) The Proprietor shall have to arrange of personal protective
equipment necessary for the workers engaged in construction
works.
47. Transportation Business: (1) The following special provisions shall apply in
Respect of the Transportation Business _
(a) Working Hours:
(1) The worker and employee of the transport vehicl may be
deployed in work till reaching the destination.
Provided that, in a passenger transport vehicle operating
♣in long route, at least two drivers shall be engaged to drive it
alternately.
♣"Explanation : for the purpose of this Section, "long route"
means the long route as referred to in Clause (aa) of Section 2
of the Motor Vehicle Transport Management Act, 2049
(1992)."
(2) The driver of a vehicle transporting animals or goods and
operating in the long distance route shall be allowed to take
rest at several places before reaching the destination.
(b) Trip Allowance: In case worker or employee of the transportation
service is engaged for more than eight hours, he/she shall be paid
overtime at the rate of one and one-half times of his/her present
amount of remuneration.
Provided that, if the worker or employee engaged in a operating
vehicle is paid with any trip allowance, fooding allowance or any
such other allowance, he ♣shall receive such allowance or one and
♣ Amended by First Amendment . ♣ Amended by First Amendment. ♣ Amended by First Amendment.
24
half of the amount of remuneration to be received by him/her, which
one is greater.
(c) Fifty percent Allowance to be received during Breakage or Waiting
Period: In case any worker or employee engaged in operating vehicle
has been stayed idle due to breakage of the vehicle before reaching
destination or while the vehicle had been in waiting for its return,
such person shall receive fifty percent of the allowance payable
during the operating time of the vehicle .
(d) Accident Insurance : The proprietor shall insure all workers and
employee engaged in the vehicle operating against accident in the
manner as prescribed .
(e) First Aid Materials : The operator of transportation business shall
keep sufficient medicines and materials of first-aid treatment in each
vehicle.
(f) Prohibition of Consumption of Alcoholic Drinks:
(1) No worker or employee in any vehicle used for transportation of
passengers, animas or goods shall consume alcoholic drinks
before driving of the vehicle till reaching to the d stination.
(2) In case a vehicle is operated by any worker or employee after
consuming alcoholic drink, the Proprietor may, on charge of
misconduct, dismiss him/her from the service.
Provided that, the concerned worker or employee shall be
provided with and opportunity to defend him/herself before
dismissing him/her from service.

(3) Any person aggrieved by the order issued under Sub- clause (ii)
may appeal in the Labour Court within thirty five days from the
receipt of notice of dismissal from service.
(g) Commission Agent: The facilities under this Act shall not be
25
provided to Commission Agent engaged in bookings or car iage of
goods who is not registered in the Register of the transportation
Enterprise.
(h) Change in Ownership: In case the transport vehicle is sold or there is
change in ownership and if it is deemed necessary to terminate the
services of any permanent worker or employee who has completed
one year continuous service, the transportation busines person, may
terminate the service on payment of compensation and f cilities
payable under this Act, including such additional compensation as
may be available pursuant to mutual agreement entered into or
understanding reach between the Proprietor and the worker of
employee.
(2) For the purposes of this Section, "Transportati n business" means a
transport service engaged in carriage of passengers, animals or goods from one
place to another taking rents in a vehicle operated by means of mechanical device. (3) The Provision set forth in this Section and the provisions of Section
4,10,72,73 and Chapters 4 and 8 shall be applicable in r spect of the Enterprise
related with transportation business where less than en workers or employee are
engaged at work.
48. Business of Hotel, Travel, Trekking, Adeventure, Rafting, Jungle Safari etc:
The following special provisions shall apply in resp ct of the business of hotel,
travel, trekking, adventure, rafting, jungle safari, etc:-
(a) Females may be engaged in work: Females may be deployed in
works in a hotel or travel agency at any time by making special
arrangements of safety according to the nature of works.
(b) Safety of Workers or Employees engaged in Trekking or Rafting:
(I) The Proprietor shall compulsorily have to make arrangement,
Inserted by the First Amendment.
26
as per necessity, for personal protective equipment and
necessary clothing, shoes and other articles for prtection of
health of the workers or employees engaged in trekking
rafting or other adventures sports.
(II) It shall be the responsibility of the concerned Proprietor to
rescue or cause to rescue operation as may be required.
(c) Accident Insurance: The Proprietor shall insure all workers and
employees engaged in trekking, rafting jungle safari or other
adventure sport against accident in the way as prescrib d.
(d) Payment of Field allowance etc: The Proprietor shall have to provide
field allowance, fooding allowance or other similar allowance while
sending workers or employees engaged in trekking, rafting or other
similar adventure sport to the working place and in case such
allowance have been provided no additional overtime shall be paid
as provided in this Act.
(e) Provisions for First Aid: The Proprietor shall have to avail adequate
supply of medicines and materials of first-aid while sending the
workers or employees engaged in trekking rafting or other
adventures sport to the work-sites.
49. Applicability of other Provisions: The provisions of this Act and the Rules made
hereunder shall also be applicable in respect of the Enterprises mentioned in
Sections 45, 46, 47 and 48, in addition to the provisi ns specified in this chapter.
CHAPTER – 8
Conduct and Punishments
50. Type of Punishment: The Proprietor may punish any worker or employee
performing misconduct with any of the following punishments.
(a) To reprimand,
(b) To withheld annual grade increments,
(c) To suspend, or
27
(d) To dismiss from service.
51. Misconduct: For the purpose of Section 50, the following conduct of the worker
or employee shall be deemed as misconduct:
(a) In case of any bodily harm or injury or fetters or detains to the
Proprietor, Manager or Employee of the Enterprise with or without
use of arms or injury or causes any violence or destruction or assault
within the Enterprise in connection with the labour dispute or on any
other matter;
(b) In case creates or causes to create any stir within the Enterprise with
an intention or affecting the production process or service works of
the Enterprise, or prevents the supply of food and water, or connection
of telephone and electricity, or obstructs the entry into or movement
within the Enterprise; ♣ (c) In case steals the property of enterprise; (C1) If commits embezzlement in the transactions of the Enterprise, (C2) If absents in the Enterprise more than a consecutive period of thirty
days without notices.
(d) In case accepts or offers brides;
(e) In case imprisoned on being convicted on a criminal offence
Involving moral turpitude.
(f) In case participates or compels any other person to participate
in any authorized strike or in a strike which is declared illegal;
(g) In case strikes without fulfilling the legal requirements or
intentionally slow down the work against interests of the Enterprise;
(h) In case intentionally destroys any property of the Enterprise, or
causes damage thereon or takes and uses it outside the Enterprise or
♣ Amended by First Amendment. Inserted by the First Amendment. Inserted by the First Amendment.
28
gives its use to unauthorized person without permission of the
competent person;
(i) In case intentionally violates intentionally the orders or
directives issued under this Act or the Rules made hereunder
frequently, 0r the Bylaws made by the Enterprise, or misbehaves
with the customers of the Enterprise;
(j) In case remains absent from the work frequently without obtaining
permission or comes late after the regular time; ♣ (k) If it is certified by a doctor that one has come to the duty after
consuming or has consumed alcoholic substances during the working
time.
(l) In case performs any activity with a motive of causing damage to
secrecy relating to special technology of the Enterprise, Production
Formula or;
(m) In case abuses any items which has been kept for the interest,
Health and safety of the workers or employees or causes damage to
them intentionally;
52. Punishment: (1) Any worker or employee, who commits any misconduct as
mentioned in ♣Clauses (i), (j) or (m) of Section 51 may be reprimanded.
(2) Any one who commits any misconduct as mentioned i ♣ Clause (C1), (f),
(g) or (n) of Section 51, may be punished withholding the annual grade of
remuneration.
(3) Anyone who commits any misconduct mentioned in ♣ Clause (b), (d) or (k)
of Section 51 may be suspended for up to three months.
♣ Amended by First Amendment. Inserted by the First Amendment. ♣ Amended by First Amendment. ♣ Amended by First Amendment. ♣ Amended by First Amendment.
29
(4) Anyone who commits any misconduct mentioned in ♣Clauses (a), (c), (c2)
(e) or (l) of Section 51 may be dismissed from service.
(5) Any workers or employee, who has been punished twice for any offence of
misconduct according to Sub-section (1), (2) or (3) commits again the same offence,
may be dismissed from service. Provided that the punishment received under Sub-section (1) shall not be
counted after the expiry of three years. (6) Nothing contained in this Section shall be deemd to have barred the
Manager from imposing a punishment lesser than those prescribed under this
Section.
53. Procedures: ♣(1) Before imposing punishments under Section 52 upon a
permanent worker or employee, a notice of at least seven days with setting forth in
a obvious manner the fact of the misconduct and the punishment as may be
imposed if such fact is proven, shall have to be giv n to such a worker or employee
to submit his/her clarification thereof.
Provided that, after the expiry of two months from the date of such
misbehavior, no action may be taken in this respect. ♣ (2) If the worker or employee does not submit his/her clarification within the
time limit as referred to in Sub-section (1) or theclarification so submitted is not
satisfactory, he/she may be punished under Section 52 for the misconduct .
Provided that, in making decision in respect of imposing such punishment, it
shall have to be made within two months from the date of seeking clarification.
(3) If the notice send to the concerned worker or employee is not accepted by
him/her or, in case of his/her absence, if the notice is sent by post under registered
post at his/her address and a copy of such notice is k pt in the public notice board of
♣ Amended by First Amendment. Inserted by the First Amendment. Inserted by the First Amendment. ♣ Amended by First Amendment.
30
the Enterprise, and the service document is prepared on the witness of at lease three
person and if a copy of such notice is also provided to the concerned Labour Office,
the concerned worker or employee shall be deemed to have been duly provided of
such notice.
54. Department of Labour may dismiss from service: (1) The Department of Labour ♣may impose any punishment pursuant to Section 52 to any worker or employee
who causes violence illegally in any Enterprise, other than his/her Enterprises or in
any government office, or if he/she directly or indirectly encourages others to do so.
(2) In case any worker or employee has ♣to punish, the procedures as laid
down in Section 52 shall have to be followed.
55. Misconduct of Proprietor or Manager: (1) If the Proprietor or Manager
commits any of the following acts, it shall be deem d as misconduct:
(a) In case contravenes or disobeys this Act or the Rul s made hereunder
or any order or directive issued thereunder.
(b) In case the Enterprise is closed or the workers or employees are
retrenched in contravention of this Act;
(c) In case a lock-out declared illegal is continued;
(d) In case any worker or employee is assaulted or manhandled; or
(e) In case performs any activity to incite or provoke the workers or
employees in order to create dissension or enmity among the workers
or employees.
♣(2) The concerned Labour Office may fine the Manager or proprietor,
who conducts any misbehavior under Sub-section (1) above, upto ten thousand
rupees, may make available proper compensation if any d mage or loss is caused to
any worker or employee and may give an order to reinstate the worker or employee
retrenched pursuant to Clause (b) of Sub-section (1) above.
♣ Amended by First Amendment. ♣ Amended by First Amendment. ♣ Amended by First Amendment. ♣ Amended by First Amendment.
31
(3) ........
56. Punishment for Obstruction to Government Employee : In case any person
obstructs to any government employee engaged in any function under this Act, or
refuses to submit any Register Book or any document required to be submitted to
him/her, or fails to produce or presents to the examin tion of any worker or
employee ordered to be produced or examined by him/her, the Labour Office may
punish such person with a fine ♣upto Five Thousand Rupees.
57. Other Penalties: Except those punishments as provided in other Sections of this
Act, any person contravening any other matter mentioned in this Act or the Rules
made hereunder or the written order or directives issued thereunder, the Department
of Labour may punish, for each offence and according to the gravity of such
offence, a fine from ♣upto Ten Thousand Rupees, and if such offence is committed
(continued) again after it is proven, he/she may be punished with an additional One
Hundred Rupees for each day, except those punishment as mentioned in other
sections of this Act.
58. Quashing of Illegal Acts : Except as provided to the contrary in this Act or in the
Rules made hereunder, if any activity contrary to this Act or the Rules made
hereunder has been performed such activity shall be quashed by the order of the
Department of Labour.
59. Instituting of case and Limitation : (1) Any case relating to the offence
punishable under this Act may be instituted only on the complaint lodged by the
Labour Office or a person authorized by such office or by the aggrieved or the
concerned person or the concerned Trade Union.
(2) Any case relating to the offenses punishable under this Act shall have
to be instituted within three months thereof.
deleted by the first Amendment . ♣ Amended by First Amendment. ♣ Amended by First Amendment. Inserted by the First Amendment.
32
..................
(3) In case any particular authority of punishment has been specified
under various Section of this Act in respect of trail of any offence committed under
this Act, the case relating to such offence shall be lodged before such authority and,
excepting thereto, all other cases relating to other off nce lodged before Labour
Court.
60. Appeal: Any party not satisfied with any punishment awarded un er this Chapter
may file an appeal within thirty five days from the date of such punishment or
receipt of order in the following manner -
(a) At the Court of Appeal against the orders of Government of Nepal or
Department of Labour;
(b) At the Court of Appeal in respect of the case tri d and decided in
original jurisdiction by the Labour Court;
(c) At the concerned Labour Court in respect of the punishment or order
given by the Proprietor or other office or Authority.
61. Realizations of Fines: Fines, Punishments awarded under this Act shall be realized
in the manner as governmental dues under prevailing laws.

CHAPTER – 9
Committee, Officers and Other Provisions
62. Central Labour Advisory Board: (1) Government of Nepal may constitute a
Central Labour Advisory Board consisting of representatives from workers or
employees, Proprietors and Government of Nepal to receive necessary opinion and
advice in relation to formulating policies and drafting of laws with regards to
labour.
(2) The method of composition of Board pursuant to Sub-section (1) its
powers, functions and duties shall be as prescribed.
deleted by the first Amendment .
33
(3) The Board may regulate the procedures of the me ting itself
63. Labour Relation Committee: (1) 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 o develop healthy
labour or industrial relation on the basis of mutual participation and co-ordination.
(2) The method of composition of the Committee pursuant to Sub-section
(1), its powers, functions and duties shall be ad prescribed.
(3)The committee constituted as per Sub-section (1) may regulate its own
procedures.
64. Appointment of Labour Officer: Government of Nepal by publishing a notice in
the Nepal Gazette may appoint one or more Labour Officers, as per necessity or
designate any other officer to perform the functions of a Labour Officer for one
region/sector.
65. Powers of Labour Officer : (1) The Labour Officer shall have the following
powers –
(a) To enter into the premises of the Enterprise as per necessity;
(b) To examine the documents and registers of the Ent rprise relating to
workers and employees;
(c) To function or advise as per necessity for improving labour relations;
(d) To attempt for solving disputes arising between workers or employees
and the Proprietor;
(e) To implement welfare provisions, if it does not exit and where if exist,
to supervise whether or not it is operated property;
(f) To supervise the implementation of minimum remuneration
prescribed by Government of Nepal;
(g) To record statement, of anybody to fulfil the objectives of this Act, as
per necessity;
(h) To Performs tasks of the Factory Inspector in his/her absence, except
technical tasks; and
34
(i) To perform other tasks as per the directives of G vernment of Nepal
and Department of Labour.
(2) Other powers, functions, and duties of the Labour Officer shall be as
prescribed.
66. Appointment of Factory Inspector: Government of Nepal may, by a publishing a
notice in Nepal Gazette, appoint one or more Factory Inspector, as per necessity for
one region or may appoint one Chief Factory Inspector for whole of Nepal.
67. Powers of the Factory Inspector: (1) The Factory Inspector shall have the
following powers –
(a) To enter into the premises of the factory as per necessity;
(b) To examine building, land, plant, machine, health nd safety features
of the factory, to collect the samples of finished or semi-finished
materials used in the factory and to examine them or caused to be
examined, to inspect the registers and document relating to the factory
and, if necessary, to record statements of any person, as per necessity;
(c) To examine the boilers and pressure vessels and to permit the
operations thereof;
(d) To provide necessary advice and assistance to the Proprietor on
making arrangements of training of workers or employees;
(e) To exercise the powers, functions and duties to the Labour Officer
during this absence; and
(f) To perform other tasks as per the directives of G vernment of Nepal
and Department of Labour.
(2) Other powers, functions and duties of the Factory Inspector shall be as
prescribed.
68. Welfare Officer: (1) One welfare Officer shall have to be appointed in Enterprise
where two hundred fifty or more workers or employees are engaged and one
additional Assistant Welfare Officer shall have to be appointed where there are
more than one thousand workers or employee.
35
(2) In the enterprise where there are less than two hundred fifty workers or
employees, the Proprietor may designate or appoint any officer of the Enterprise as
the Welfare Officer.
(3) Where the Welfare Officer and Assistant Welfare Officer are appointed
pursuant to Sub-section (1) the Department of Labour shall be informed of such
appointment.
(4) The powers, functions and duties of the Welfare Officer and Assistant
Welfare Officer appointed or designated, pursuant to Sub-section (1) of (2) shall be
as prescribed.
69. Notice to be provided of establishment of Enterprise: (1) If any Enterprise is to
be established or constructed or expanded in any building or land, the Proprietor
shall submit the particulars to that effect as prescribed, to the Labour Office.
(2) The concerned Labour Office may after examinatio of the particulars
received pursuant to Sub-section (1), if deemed necessary to make certain changes
on the particulars in view of health, safety and environment, direct the enterprise to
do so and it shall be the duty of the concerned Proprietor to follow such directive.
70. Information to be provided by Proprietor: (1)The Proprietor shall inform in
writing the concerned Labour Office including with e prescribed particulars,
fifteen days in advance where any new house or land h s to be possessed or used by
an Enterprise.
(2) The Proprietor Manager shall inform the Labour ffice within seven
days, from the date of assuming his/her office for the first time.
71. Notices and Posters: The Labour Officer or Factory Inspector may issue dir ctives
to the Proprietor or Manager of the Enterprise to display the notices and posters
relating to health, safety and welfare provisions of the workers as provided in this
Act or Rules made hereunder at places in an easily readable and understandable
manner.


36
CHAPTER – 10
Settlement of Labour Dispute
72. Establishment of Labour Court: (1) Government of Nepal shall, establish Labour
Court by publishing a notice in Nepal Gazette. The Jurisdiction and the location of
such court shall be as prescribed in such notice.
(2) The Procedure of the Labour Court constituted un er Sub-section (1)
shall be as prescribed.
(3) Notwithstanding anything contained in Sub-section (1) and (2) until the
constitution of the Labour Court, all functions to be performed by the Court of
Appeal. 72a Proceedings May Be Initiated in Contempt: The Labour Court may initiate
proceedings against its contempt and, if it holds that contempt has been committed,
may punish the accused with a fine of upto Five Thousand Rupees or imprisonment
of upto two months or both punishments.
Provided that, if the accused submits an apology t the satisfaction of the
Court, the Court may either pardon him/her or, if asentence is already imposed,
remit or commute the sentence or hold the execution of the sentence on condition
fixed by the Court and may issue order not to execute the sentence if such condition
is fulfilled.
73. Procedures Relating to Personal Claims or Complaints: (1) If any one or more
workers or employees have any personal claim or complaint against Proprietor
relating to the service, the concerned worker or employee may file it in writing with
the concerned Proprietor.
(2) Upon receipt of the claim or complaint as per Sub-section (1), the
Proprietor shall have to discuss on it ♣with the concerned worker or employee
within a fifteen days and settle the problem.
(3) If the Problem, could not be solved through the discussion held as per
Inserted by the First Amendment.
37
Sub-section (2), the worker or employee may file a petition at the concerned Labour
Office specifying clearly their claims.
(4) The Labour Office shall held a discussion betwe n the Proprietor and the
worker or employees and solve the dispute, within fifteen days of the receipt of a
claim pursuant to Sub-section (3).
(5) The Chief of concerned Labour Office shall have to dedide on the dispute
within seven days in case the problem could not be solved as pre Sub-section (4).
(6) Any of the parties may, appeal to the Labour Court within thirty five days
from the date of receipt of notice of the decision in case not being satisfied with the
decision made pursuant to Sub-section (5).
74. Procedures Relating to Submission of Claims of Collective Dispute: (1) The
claim relating to collective right, interest or privilege shall have to be presented in
writing to the concerned Proprietors signed by at least fifty one percent of the
concerned workers or employees and in the claims their representatives shall have
to be nominated and the claim shall be presented throug such representatives.
(2) Upon receipt of the claim relating to the dispute as per Sub-section (1),
the Proprietor shall hold bilateral discussion with the representatives as mentioned
in the same Sub-section and solve the dispute within twenty-one days and shall
enter into an agreement.
(3) If the dispute could not be solved as per Sub-section (2), the dispute shall
be solved within fifteen days by holding bilateral discussion in the presence of
Labour Office.
(4) If the dispute could not be solved through the bilateral discussion held as
per Sub-section (3), the dispute may be referred to a mediator appointed, with
mutual consent of proprietor and the workers and employees, or if no such mediator
could be appointed, with mutual consent of proprieto and the workers and
employees, or if no such mediator could be appointed, o a tripartite committee
constituted, with consent of both parties, by Government of Nepal having equal
♣ Amended by First Amendment.
38
representation from the workers or employees, the Proprietor and the government.
(5) The mediator or the committee appointed as per Sub-section (4) shall
decide the dispute within fifteen days.
(6) Any parties if not satisfied with the decision made pursuant to
Subsection (5), may appeal to Government of Nepal within thirty five days from
the date of receipt of notice of the decision.
(7) If the mediator or the Committee does not make decision within the
time-limit as referred to in Sub-section (5) or, in case where an appeal is filed
before Government of Nepal pursuant to Sub-section (6), a decision thereon is not
made by Government of Nepal within sixty days from the date of filing such appeal,
the workers or employees may strike by following the procedures set forth in
Section 76.
75. Prohibition to Claim : Notwithstanding anything mentioned here above, the
following demand or claim shall not be allowed to submit –
(a) Which is contrary to the Constitution of Nepal;
(b) Which would affect other's interest due to being based on untestified
or baseless allegation;
(c) Matter which is prejudicial to the personal conduct of any worker or
employee;
(d) Matters unrelated to the Enterprise; and
(e) Where a period of two years has not elapsed since the date of last
collective agreement.
76. Notice of Strike to be Provided: In case the demands are not solved through the
process mentioned in Sub-section (3) of Section 73 the ♣workers and employees
wish to strike in the Enterprise, a notice in writing stating the claims and their
rationale, including with a resolution passed by at le st sixty percent of the total
workers and employees through secret ballot, shall ve to be provided to the
Inserted by the First Amendment.
39
concerned Proprietor thirty days in advance and an information thereof shall also be
given to the Department of Labour, concerned Labour Office and the local
administration and a strike may be started thereafter only.
77. Lock Out: (1) If a strike has been started or continued withou giving prior notice
as mentioned in Section 75 or if the collective dispute is not solved through the
process mentioned in Sub-section (3) of Section 73, the Proprietor may declare a
lock-out of the Enterprise after submitting the justifications with its rationale and
obtaining the approval of Government of Nepal.
(2) Before declaring a lock-out as per Sub-section (1), the Proprietor shall
issue a notice for the information ♣of workers and employees seven days in advance
specifying the date of effecting the lock-out and announcing that the Enterprise
shall be locked-out if the strike is not called off.
(3) If there is a situation with possibility of damge to the Enterprise through
riot, violence, destruction, etc ♣from the workers and employees during the strike
the Proprietor may cause lock-out even without following the process of Sub-
section (1) and (2). If a lockout is made in the Enterprise in such situation, the
Labour office and the Department of Labour shall be informed about the lock-out
with reasons within three days.
(4) Government of Nepal may at any time declare the lock-out of an enterprise
as void, in case it appears irrational or it is likely to cause a breach in law and order
conditions of the country or it is contrary to the economic interests of country.
78. Prohibition to Strike: (1) Notwithstanding anything mentioned hereinabove in
this Act, if any existing law has prohibited the strike to be done by workers or
employees the workers or employees of such Enterpris shall not be entitled to go
on strike.
(2) Any employee appointed or deputed on the duty of control, security and
♣ Amended by First Amendment. ♣ Amended by First Amendment. ♣ Amended by First Amendment.
40
guard of any Enterprise shall also not be entitled to go in a strike.
(3) The employees prohibited to strike as per Sub-section (1) and (2) may
submit their genuine demands to the Proprietor. If such demands are not fulfilled
and a dispute has been created Government of Nepal shall constitute a tribunal for
solving it. The decision of the Tribunal shall be final and binding upon both of the
parties.
(4) No strike or lock-out may be done during the proceeding under Section 73.

79. Legal Validity of Collective Agreement: (1) Any agreement entered into between
the workers or employees and the Proprietor in respect solving the dispute shall be
deemed to be of status equal to law upon the concerned parties and such agreement
shall have to be registered in the Labour Office.
(2) An agreement registered as per Sub-section (1) shall come to force from
the date of mentioned in the agreement, if such date is mentioned therein, and if no
such date is mentioned in the Agreement, it shall come into force from the date in
which it is registered in Labour Office. No demand i relation to the provisions
mentioned in such agreement shall be permitted to pu again for two years from the
date of its commencement. 79A. Implementation of Collective Agreement: (1) In case the collective agreement
entered into pursuant to this Act is not implemented, he concerned party may lodge
a complaint in the Labour Office.
(2) If any complaint is lodged under Sub-section (1) above, the Labour
Office may implement the collective agreement by following, as required the
procedures set-forth in Sub-section (5) of Section 25 as well.
80. Order may be issued to End the Strike: If any strike announced to be commenced
or already commenced as per this Act or the Rules made hereunder has created an
extraordinary situation, which is likely to cause a breach in the law and order
Inserted by the First Amendment.
41
situation of the country or would be contrary to the economic interest of the
country, Government of Nepal may issue an order at any time to end such strike or
any strike commenced in the essential services prescrib d by the prevailing law.
81. Termination of Lock-out Period: Where any Enterprise has been locked-out, if
the workers or employees are present for work or here the Proprietor has declared
the ending of lock-out or where Government of Nepal has declared such lock-out as
illegal as per Section 76 or has order to end the strike under Section 79, such lock-
out shall be deemed to have been ended from the date of the declaration making it
illegal or from the date so ordered.
82. Remuneration for the Period of Lock-out: The remuneration for the period of
lock-out declared illegal shall have to be paid to the workers or employees.
83. Special Provisions for Settlement of Dispute: (1) If Government of Nepal deems
that a dispute between workers or employers and the Proprietor has arisen or there
is possibility of arising, Government of Nepal may constitute a committee of one of
more persons, or tripartite committee consisting of representatives of the Proprietor,
the workers or employees and Government of Nepal in order to resolve the dispute.
Such committee may regulate its own procedures.
(2) The decision of Government of Nepal made on the report of the
committee constituted pursuant to Sub-section (1) shall be final and binding to both
of the parties.
(3) The committee constituted pursuant to Sub-section (1) shall have the
powers of examining the evidence and witnesses, of requiring the presence of
witnesses and requiring the production of documents as per prevailing laws similar
to a court, in relation to the dispute.





42
CHAPTER – 11
Miscellaneous
84. Special Powers of Government of Nepal: ♣ (1) Notwithstanding anything
contained elsewhere in this Act, Government of Nepal m y, in consultations with
the Central Labour Advisory Board and by publishing a notification to that effect in
the Nepal gazette, grant exemption from application of any matter provided for in
this Act in respect of any Enterprise.
(2) Government of Nepal may, by publication of a notice in the Nepal
Gazette, fix the minimum remuneration and certain f cilities prescribed in this
Act in relation to the Enterprises where less than ten workers or employees are
working. 84A.Special provisions respect of the Workers and Employees Engaged Outside the
Enterprises: (1) 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.
(2) If any person or institution does not make payment of remuneration to
any worker or employee or a delay is caused in such payment, the worker or
employee who is aggrieved by such act may file a complaint before the Labour
Office, in the districts where Labour Offices are located, and before the Chief
District Officer, in the districts where Labour Offices are not located, in order to get
the remuneration to be received by him/her.
(3) If any complaint is filed under Sub-section (2) above, the concerned
Labour Office or Chief District Officer shall have to require such person or
institution who has not paid the remuneration to be present at Office within fifteen
days except the time period required for journey and shall have to recover and make
♣ Amended by First Amendment.
43
available the remuneration to be received by such worker or employee by following
the procedures as set-forth in Sub-section (5) of Section 25
85. Powers to Remove Obstacles: In case any difficulty arises while executing this
Act Government of Nepal by publishing an order in Nepal Gazette may remove
such difficulties.
86. Powers to Frame Rules: (1) Government of Nepal may frame Rules to implement
the objectives of this act.
(2) Without prejudice to the generality of the powers conferred by
Subsection (1), such rules particularly, may provide for any of the following
matters –
(a) Matters relating to the safety of the workers;
(b) Conducting of operation of employment service;
(c) Condition relating to overtime works;
(d) Conducting of operation of training in order to enhance the efficiency
of workers and employees;
(e) Procedures relating to Labour Court;
(f) Compensation to be paid to workers and employees;
(g) Compilation of statistics of workers and employees;
(h) Compilation of information to labour market.
87. Bylaws to be availed: Each Enterprise shall have to send to the concerned Labour
Office a copy of Bylaws framed by its in respect of c nditions of service of its
workers and employees.
88. Provisions Relating to Enterprise owned by Government of Nepal: With respect
to the terms and conditions of service of the employees of the Enterprises owned
wholly or partly by Government of Nepal, the provisions of the Rules or Bylaws
relating to the terms and conditions of services of the concerned Enterprises shall
apply and in respect of the workers thereof, the provisions of this Act shall apply.
Inserted by the First Amendment.
44
89. Directive of Government of Nepal: (1) Government of Nepal may issue necessary
directives to the Proprietor for implementing the objectives of this Act.
♣ (2) Government of Nepal may impose a fine of upto twenty thousand
rupees in each time on the Manager who does not comply with the directions
issued under Sub-section (1) above.
90. Delegation of Authority: Government of Nepal may delegate the powers conferred
to it by this Act to any Officer by publishing a notice in the Nepal Gazette.
91. Prevalence of this Act: This Act shall apply on matters mentioned herein and in
other the prevailing laws shall apply.
92. Repeal and Saving: (1)The Factory and Factory Workers Act, 2016 (1959) is,
hereby, repealed.
(2) All acts and proceedings performed or executed nder The Factory
and Factory Workers Act, 2016 shall be deemed to have been performed or
executed under this Act.
Note:
The following word has been changed by first Amendment-
''Remuneration'' instead of ''salary''


♣ Amended by First Amendment.