Nepal: Labor Act, 1992

Preamble:

Whereas it is expedient to make appropriate provisions relating to labor by providing for the rights, interests, facilities and safety of workers and employees working in establishments belonging to different fields, now therefore, the Parliament has enacted this law in the 21^st year of the reign of High Majesty King Birendra Bir Bikram Shah Dev.

Chapter 1
Preliminary

1.Short Title and Commencement

(1)This law shall be known as the Labor Act, 1992.

(2)It shall come into force at once.

2.Definitions

Unless otherwise meant with reference to the subject or context, in this act,

(a)Manufacturing work means work of the following categories:

(1)Making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating any material or Substance with a view to its use, sale and distribution, transportation, or disposal in any other way.

(2)Pumping of oil, water, or sewerage.

(3)Generating, transforming, and transmitting power, or

(4)Printing, lithography, photography, binding and similar other work.

(b)Establishment means any factory, organisation, institution or firm, or groups thereof, established under current law with the objective of operating any industry, enterprise or service, and employing ten or more workers or employees. The term includes

(1)Tea estates established according to law with commercial objectives, and

(2)Establishments in industrial districts established by His Majesty's Government, which employ not more than 10 workers or employees.

(c)Employees mean persons engaged in the administrative functions of the establishment.

(d)Workers mean persons employed on payment of remuneration in any manufacturing work or in the work of providing services, or for work in any building, land or machinery, or any part thereof, used for the purpose, or any work related or incidental thereto.

The term includes workers who work on a piece-rate, contract, or agreement basis.

(e)Manager (Prabhandhak) means a person appointed to conduct the business of the establishment.

(f)General Manager (Vyabasthapak) means a person who takes the final decision on matters concerning the activities of an establishment. The term includes any person who has been appointed as the head of any branch or unit of an establishment with authority to exercise the final power or responsibility.

(g)Factory Inspector means a Factory Inspector appointed by His Majesty's Government under this act; the term includes the senior Factory Inspector.

(h)Child means a person who is below the age of 14 years.

(i)Minor means a person who is between 14 and 18 years of age.

(j)Adult means a person who is above the age of 18 years.

(k)Power means electrical or mechanical energy. Provided that the term shall not include energy generated by human or animal agency.

(l)Seasonal Establishments mean those establishments which do not or cannot operate except during fixed seasons. The term includes seasonal establishments with cannot operate for more than 180 days in a year.

(m)Day means a period of 24 hours beginning at midnight.

(n)Week means a period of seven days beginning at midnight on Saturday or any other day prescribed by the Labor Department.

(o)Welfare Officer means a Welfare Officer appointed under this act.

(p)Labor Officer means a Labor Officer appointed under this act; the term includes the Senior Labor Officer.

(q)Labor Court means the Labor Court established under this act.

(r)Remunerations mean Salaries or wages received in cash or in Kind by workers or employees from an establishment in consideration of their work in the establishment. The term includes payments made in cash or in kind for piece-rate or contract work.

Provided that the term shall not include allowances or facilities of any kind.

(s)Prescribed or as prescribed means prescribed or in the manner prescribed in the rules framed under this act.

Chapter 2
Employment and Job Security

3.Classification of Posts

(1)The General Manager shall classify the posts of the workers and employees of the establishment according to the nature of the manufacturing process, service, or work of the establishment, and notify the Labor Office accordingly.

(2)In case it becomes necessary to make any amendment in the classification of posts made under Sub-Section (1), the Labor Office may direct the General Manager to do so by explicitly mentioning the reasons. It shall be the duty of the General manager to comply with such directives.

4.Appointment of Workers and Employees

(1)In case it becomes necessary to appoint any worker or employee in any post classified under Section 3, the General Manager must publish an advertisement for the purpose of selecting such worker or employee. The worker or employee who is selected in this manner shall be engaged in work after issuing an appointment letter to him.

(2)Workers and employees appointed under Sub-Section (1) shall be granted permanent appointment they (workers and employees) shall be kept on probation until they complete one year of uninterrupted service, and their (performance, etc)… during that period on the basis of their performance, honesty, discipline, dedication to work attendance, etc. While making such appointments, letters of appointment shall be issued explicitly mentioning the post, remuneration, and service conditions of the concerned worker or employee, and the Labor Office shall be notified accordingly.

Explanation: For the purpose of this Sub-Section, the term "one year of uninterrupted service" means a period of 240 days during a 12-month period during which any worker or employee has worked in an establishment, or the entire period of operation of a seasonal establishment during which any worker or employee has worker. The period of 240 days shall be calculated by taking into account public and weekly holidays also.

(3)Workers or employees engaged in any piece-rate or contract work of a permanent nature in any enterprise shall also be made permanent as mentioned in Sub-Rule (2).

(4)Workers or employees engaged in any work as mentioned in Sub-Section (3) shall be paid facilities provided for in this act according to their post and scale.

4A.Prohibition to Employ Non-Nepali Nationals

(1)Non-Nepali nationals may not be appointed in any posts classified under Section 3.

(2)Notwithstanding anything contained in Sub-Section (1), in case no Nepali national is available for appointment in a skilled technical post even when an advertisement is published in national-level public newspapers and magazines, the General Manager may apply to the Labor Department, along with evidence thereof, for permission to appoint a non-Nepali national in that post.

(3)In case an application is filed under Sub-section (2), the Labor Department may, in case it finds through investigations that no Nepali national can be available for appointment, in the skilled technical post mentioned in the application, grant permission on the recommendation of the Labor Office to appoint a non-Nepali national for a period of two years at a time, but for not more than a total period of five years. In the case of a skilled technical post of a specialized nature, such permission may be granted for a maximum period of seven years.

(4)Every General Manager who employs a non-Nepali national under Sub-Section (3) must make arrangement for gradually replacing him by training Nepali nationals.

5.Employment

(1)No child shall be employed in any establishment.

(2)Except in prescribed circumstances, minors and women may ordinarily be employed for the period from 6:00 A. M. to 6:00 P. M.

(3)Women too may be employed like men after making appropriate arrangements on the basis of mutual agreements between the General Manager and the employees or workers.

(4)The General Manager may transfer any worker or employee to any branch or unit of the establishment in such a manner that the nature or standard of his work is not changed.

6.Computation of Service Period

The following periods shall also be taken into account for the purpose of computing the service period of any worker or employee in an establishment:

(a)Period during which a worker or employee is kept in reserve under Section 11.

(b)Period during which a worker or employee remains on with remuneration leave.

7.Appointment in Contract Service

In case any establishment is required to immediately increase its production or services, it may appoint any person on contract basis for any specific work other than the one of a permanent nature, by specifying the term of such appointment, the remunerations to be paid to him, and the service conditions.

8.Change in Ownership Not to Have Any Negative Impact

Any change in the ownership of an establishment shall not be considered to have made a negative impact on the service and conditions of workers or employees working in the establishment.

9.Separate Registers of Workers and Employees To Be Maintained

(1)The General manager of each establishment shall maintain separate registers of its workers and employees indicating the following particulars:

(a)Name of worker or employee;

(b)Nature of his work;

(c)Remunerations and mode of payment; and

(d)Other prescribed particulars.

(2)The registers maintained under Sub-Section (1) shall be produced at the request of the Labor Officer or Factory Inspector, or any other person prescribed by the Labor Office.

10.Job Security

The service of a permanent worker or employee of any establishment shall not be terminated without fulfilling the formalities prescribed in this act or the rules or bye-rules framed hereunder.

11.Power to Keep in Reserve

(1)In case it becomes necessary to curtail production or service of an establishment for some time, or in case it is not possible to continue operating an establishment due to special circumstances, the General Manager may curtail production or service, or close down the entire establishment or a part thereof, subject to Sub-Section (2).

(2)In case it becomes necessary to curtail production or service, or close down the entire establishment or a part thereof under Sub Section (1), the permission of the Labor Office shall be obtained if the period of such curtailment or closure is 15 days or less, and of the Labor Department if the period exceeds 15 days. The Labor Office shall inform the Department if it grants any such permission.

(3)While curtailing production or service under Sub-Section (1), all workers working in shifts or on a wage basis, or all permanent workers or employees of the establishment, except (workers or) employees shall be kept in reserve on half-day.

Provided that all such workers or employees shall be entitled to all appropriate facilities which they have been enjoying.

(4)The General Manager may not provide remunerations and facilities to workers or employees kept in reserve under Sub-Section (3) if they refuse to do any similar work offered by him with similar remunerations in the same establishment or in any other establishment under his control, or if they fail to present themselves at the establishment once every day during working hours, or in other prescribed circumstances.

12.Retrenchment and Reemployment

(1)In case it becomes necessary to curtail production or service of an establishment, or to close down the entire establishment or a part thereof, for more than three months due to special circumstances, the General Manager may fully or partially retrench its employees after obtaining the permission of His Majesty's Government through the Labor department.

(1a)In case the General Manager requests HMG for permission to retrench workers or employees under Sub-Section (1), His majesty's Government must take a decision won whether or not to allow such retrenchment within two months.

(2)While retrenching its workers or employees under Sub-Section (1), those appointed last among workers and employees performing similar work who have permanent shall be removed first.

Provided that in case it becomes necessary to retrench those who have been appointed first instead of those who have been appointed last according to the prescribed order, this may be done after explaining the reasons.

(3)The following procedure shall be observed while retrenching workers or employees under Sub-Section (1):

(a)By serving one month's advance notice indicating the reasons for retrenchment, or paying one month's remunerations in lieu of such notice, while retrenching a permanent worker or employee.

(b)By paying compensation in a lump sum at the rate of 30 days remuneration of the concerned worker or employee for every year of service completed by him in the establishment.

Explanation: In case anybody has worked for at least six months in any year, he shall be considered to have a service period of one year for the purpose of this Clause.

(4)Sub-Section (3) shall not be applicable in respect to workers or employees appointed in contract service.

(5)In case it becomes necessary to again fill up the posts vacated by retrenched workers or employees, priority shall be given as far as possible to the workers or employees who have been so retrenched.

Explanation: For the purpose of Sections 11 and 12, the term "special circumstances" means circumstances in which production in any establishment is halted owing to breakage or damage of machinery, or fuel, electricity, coal or similar other sources of energy is not available, or there has been any natural disaster, or necessary raw materials are not available in sufficient quantities, or stocks accumulate because of lack of sale, or similar other circumstances.

13.Seasonal Establishments

(1)Workers or employees of a seasonal establishment shall not be considered to have been kept in reserve when the establishment is closed during off-season.

(2)Notices of the commencement or closure of operations of seasonal establishments shall be furnished to the Labor Office.

(3)When a seasonal establishment is closed during off-season, those workers or employees who have permanent shall be paid a retaining allowance amounting to at least 25 percent of the remunerations to which they are entitled.

(4)In case any dispute arises on the issue of whether or not an establishment is a seasonal one, the decision made by the Labor Department shall be final.

15.Compulsory Retirement

The General Manager may compulsorily retire any worker or employee who has completed the age of 55 years.

Provided that the term of service of any worker or employee who is indispensable for the operation of the establishment may be extended for an additional five years.

Chapter 3
Working Hours

16.Working Hours

No worker shall be engaged in work for more than eight hours a day, or 48 hours a week. Every worker shall be given one day's leave in a week.

17.Calculation of Commencement of Working Hours

The time of commencement of working hours of workers and employees shall be as prescribed by the General Manager.

18.Recess for Rest and Tiffin

Workers or employees of any establishment where work can be stopped at any time shall not be engaged in work for a period longer than five hours continuously without providing them with a recess of at least 30 minutes for tiffin. In establishments where work cannot be stopped and has to be carried on continuously, such recess shall be provided by a rotation. The period of such recess shall be considered a part of the daily working hours.

19.Extra Remuneration for Overtime Work

(1)In case any worker or employee is engaged in work for more than eight hours on any day, or for more than 48 hours in any week, he shall be paid remuneration for such overtime work at the rate of 150 percent of the usual remuneration. Provided that no worker or employee shall be compelled to work overtime.

(2)Ordinarily, such overtime work shall not exceed four hours in a day and 20 hours in a week.

20.Attendance Registers to be Maintained

Every establishment shall maintain attendance registers of its workers and employees.

21.Minimum Remunerations Fixation Committee

(1)On the recommendation of the Minimum Remunerations

Fixation Committee, His Majesty's Government may prescribe the minimum remunerations, dearness allowances and facilities of workers or employees of establishments. Notices regarding the rates fixed in that manner shall be published in the Nepal Rajapatra.

(2)For the purpose of fixing minimum remunerations, dearness allowances and facilities. His majesty's Government shall from a minimum remunerations Fixation Committee comprising an equal number of representatives of workers or employees, General Managers, and His Majesty's Government.

(3)The Minimum Remunerations Fixation Committee formed under Sub-Section (2) may make recommendations concerning dearness allowances and facilities of workers or employees on the basis of geographical regions.

(4)The rates of minimum remunerations, dearness allowances and facilities prescribed under Sub-Section (1) shall come into force on the date of their publication in the Nepal Rajapatra.

(5)In circumstances when it has not been possible to from the minimum Remunerations Fixation Committee, or when the Committee, even if formed, is unable to make any recommendation, the provisions contained in the above Sub-Sections shall not be deemed to have prejudiced the power of His majesty's Government to prescribe the Minimum remunerations, dearness allowances and facilities of workers and employees of establishments.

(6)No agreement may be concluded between the General manager and workers or employees of any establishment providing for remuneration, dearness allowances and facilities lower than the minimum remunerations, dearness allowances and facilities prescribed under Sub-Section (1).

(7)The other functions, duties and powers of the Minimum Remunerations fixation Committee shall be as prescribed.

21A.Annual Increment in Remuneration

(1)Workers and employees who have been appointed on a permanent basis under Sub-Section (2) of Section 4 shall be entitled to an increment in their remunerations every year.

(2)The amount of increment in remuneration to be provided to a worker or employee under Sub-Section (1) shall be equal to his half-day's remuneration.

(3)Notwithstanding anything contained in Sub-Section (1), (no worker or employee) whose (annual.) increment in remuneration has been withheld under Sub-Section (2) of Section 52 shall be entitled to such increment in remuneration.

22.Payment of Remunerations. Dearness Allowances and Facilities

It shall be the responsibility of the concerned General manager to pay remunerations, dearness allowances and facilities to the workers or employees of his establishment.

23.Remuneration-Period

The General Manager may fix the period for payment of remunerations to the workers or employees of the establishment on a weekly, fortnightly, or monthly oasis. But such period shall not be longer than one month.

Provided that this provision shall not be applicable in respect to those employed on a daily wage, piece-rate, or contract basis.

24.Restrictions on Deductions From Remunerations

(1)The remunerations due to any worker or employee shall not be deducted except in the following cases:

(a)If it is necessary to deduct fines imposed on him;

(b)If it is necessary to make deductions on account of absence from duty;

(c)If any loss or damage is caused to the property, in cash or in kind, of the establishment, deliberately or due to negligence, and it is necessary to make deductions therefor;

(d)If it is necessary to make any deductions on account of grant of prescribed facilities;

(e)If it is necessary to make any deductions in order to adjust advances or excess remunerations paid;

(f)If it is necessary to make any deductions on account of period of suspension;

(g)If it is necessary to make any deductions in accordance with the orders of any government office or court;

(h)In circumstances prescribed by His Majesty's Government by notification in the Nepal Rajapatra; and

(i)If it is necessary to make any deductions on account of income tax or any other tax according to current law.

(2)Arrangements in respect to the maximum amount to be deducted under Sub-Section (1) above, the method of deduction, and the time-limit therefor, as well as in respect to other incidental matters, shall be as prescribed.

25.Application in Case of Unjustified Deduction or Delay in payment of Remunerations, or in Case of Non-Payment or Delay in Payment of Facilities

(1)Except when there has been a mistake, or the pates of remunerations have not been fixed, or (the establishment) is unable to pay remunerations due to any accident or to any special reason, or when the concerned worker or employee has not come forward or agreed to collect his remuneration, in case the remuneration due to any worker or employee is deducted in any unjustified manner or a delay is made in the payment of his remuneration or in case the payment of remuneration due for the period of suspension or dismissal (of any worker or employee) is not made or is delayed after the lifting of the suspension or the cancellation of the dismissal (order) through a judgment of the court, or in case in payment of amounts due to the concerned worker or employee as allowances, gratuity, provident fund or compensation is not made or is delayed, the concerned worker or employee may, directly or through his representative, submit an application to the Labor Office.

(2)The application mentioned is Sub-Section (1) above must be filed within a period of six months from the date of deduction or delay in the payment of remunerations, or non-payment or delay in the payment of allowances, gratuity, provident fund or compensation.

(3)In case it is proved through necessary investigations into an application filed under Sub-Section (1) that there has actually been an unjustified deduction or delay, or that the payment of amount due as allowances, gratuity, provident fund or compensation has not been made or has been delayed, the Labor Office may order (the concerned establishment) to pay to the concerned worker or employee compensation in the form of an amount not exceeding three times the amount of such remuneration, allowances, gratuity, provident fund or compensation, along with the amount of remuneration deducted or allowances, gratuity, provident fund or compensation due to be paid.

(4)In case it is proved that the application filed under Sub-Section (1) is motivated by malice or is intended to harass the General Manager, the Labor office may order the concerned applicant to pay compensation of an amount not exceeding Rs. 1,000 to the General manager.

(5)The amount which is payable by one party to another according to the order issued under Sub-Section (3) or Sub-section (4) shall be realized by the Labor Office by taking all or any of the following actions and paid to the concerned party:

(a)By sequestering according to current laws the movable and immovable property of the concerned establishment, worker or employee.

(b)By withholding the deposit kept by the concerned establishment, worker or employee in any government office or any corporate body owned by HMG, or by withholding any payment due to the concerned establishment, worker or employee from such office or body.

(c)By holding up exports or imports of the concerned establishment, worker or employee.

(d)By withholding concessions or facilities to which the concerned establishment, worker or employee is entitled under current laws.

26.Appeal

Any party dissatisfied with the order issued under Sub-Section (3) and Sub-Section (4) of Section 25 may appeal to the Labor Court within 35 days from the date of receipt of such order. The decision of the Labor Court shall be final.

Chapter 5
Health and Safety

27.Arrangements Relating to Health and Safety

(1)The General manager of each establishment shall make arrangements for the following;

(a)To clean the establishment every day and use disinfectants according to need, arrange for an appropriate drainage, repaint and revarnish from time to time, ensure that dirt and filth do not cause any stench, and thus keep the establishment neat and clean.

(b)To arrange for adequate ventilation and light, as well as suitable temperature in work-rooms.

(c)To arrange for disposing of and destroying refuse and dirt and filth.

(d)To prevent the accumulation of dust, polluted air, fume or vapour, and other contaminated matter harmful to health in work-rooms.

(e)To arrange for necessary personal protective equipment to avoid any adverse impact on health from any noise produced in the course of work or for any other reason, and make suitable arrangements to reduce noise according to the nature of work.

(f)Not to overcrowd any work-room or place so as to injure the health of workers or employees. Ordinarily, there shall be 15 cubic meters of space for each worker or employee depending on the nature of the work. For this purpose, the space four meter above the surface shall not be taken into account.

(g)To arrange for adequate hygienic water for drinking during the period of work; arrange for sufficient water in establishments using or manufacturing toxic chemicals for the purpose of extinguishing fire, or for washing or cleaning, so as to ensure safety in any emergency in such establishments.

(h)To arrange for separate modern latrines for male and female workers or employees in easily accessible places.

(i)To arrange for a compulsory medical check-up of workers or employees at least once every year in establishments which are likely to have an adverse impact on their health.

28.Protection of Eyes

(1)In establishment where glass, mercury, magnet, plate, iron, concrete, cement, lime, stone, and explosive materials are use, necessary protective equipment shall be arranged to protect workers or employees from dust or pieces which may hurt their eyes in course of work.

(2)Arrangements shall be made for necessary personal protective equipment to protect (workers or employees) from harmful radiation produced in the course of such work as welding and gas cutting.

29.Protection From Chemicals

The General Manager shall arrange for necessary personal protective equipment to protect workers or employees who handle chemicals.

30.Arrangements for Protection From Fire

(1)The General Manager shall make arrangements for necessary modern equipment to protect the establishment from fire.

(2)Arrangements shall be made to facilitate an easy exit from the establishment in emergencies.

(3)Other arrangements to be made by an establishment for protection from fire and for fire fighting equipment shall be as prescribed.

31.Dangerous Machinery to be Fenced

(1)A strong fence shall be constructed around each part of power-operated dangerous machinery, apparatus, or equipment.

(2)In case it is required to inspect, lubricate, or adjust any part of a dangerous machinery while it is in motion, only an adult worker or employee trained and experienced in the job shall be made to do so.

32.Carrying of Excessive Loads

(1)No worker or employee shall be employed to lift, carry, or move any load so heavy as to be likely to cause him injury or harm his health.

(2)The maximum load that an adult or minor male or female worker or employee may be allowed to lift, carry, or move shall be as prescribed.

33.Pressure Plants

(1)In case any establishment is required to operate any machinery at a pressure higher than the atmospheric pressure in the manufacturing process, necessary effective measures shall be taken to ensure that the safe working pressure is not exceeded.

(2)Arrangements relating to the procedures of testing and certifying, and granting permission to operate, the machinery mentioned in Sub-Section (1) shall be as prescribed.

34.Power to Issue Orders to Make Arrangements for Safety

(1)In case any establishment has not made safety arrangements according to this act, the Labor Office may order it in writing to make necessary arrangements and provisions within the prescribed time limit.

(2)In case any establishment fails to comply with the orders issued under Sub-Section (1), the Labor Office may order it to close down its unsafe part or stop the operation of its unsafe plants or machinery. It shall be the duty of the concerned enterprise to comply with such orders.

35.Notice to be Furnished

(1)In case any worker or employee dies or becomes unable to work for more than 48 hours after sustaining injury due to any accident, or for any other reason, the concerned establishment shall notify the Labor Office within three days. In case the establishment finds any worker or employee to have contracted any occupation-related disease, it shall notify the Labor Office within seven days from the date when it becomes aware of it.

(2)The authority empowered to conduct investigations into the disease or accident mentioned in the notice received under Sub-Section (1), and his functions, duties, and powers, as well as working procedures, shall be as prescribed.

36.Power to Determine Standard

(1)The standard of safety arrangements provided for in this Chapter may be prescribed by His Majesty's Government by notification in the Nepal Rajapatra according to need.

(2)Arrangements relating to health and safety measures, other than those mentioned in Sub-Section (1), which need to be made while using machinery, apparatus, or equipment in an establishment, shall be as prescribed.

Chapter 6
Welfare Arrangements

37.Welfare Fund

Every establishment shall establish a welfare fund in the prescribed manner for the benefit and welfare of its workers and employees.

38.Compensation

In case any worker or employee sustains any physical injury, or becomes disabled, or dies, while working in an establishment, such worker or employee or his family shall be paid compensation as prescribed.

39.Gratuity, Provident Fund, and Medical Facilities

The gratuity and provident fund benefits and medical facilities to which a worker or employee is entitled shall be as prescribed.

40.Leave

Public holidays, sick leave, home leave, maternity leave, mourning leave, special leave, leave with or without remuneration etc., to which workers and employees of each establishment are entitled, shall be as prescribed.

41.Arrangements for Quarters

(1)The General Manager shall set aside not less than five percent of the gross profit of the establishment every year for the purpose of arranging for healthful quarters for workers or employees, and gradually arrange for such quarters.

(2)A fund shall be established to credit the amount set aside under Sub-Section (1).

(3)The fund mentioned in Sub-Section (2) shall be operated in the prescribed manner.

42.Arrangement for Babies

(1)In every establishment employing 50 or more women workers and employees, the General Manager shall arrange for a healthful room for their babies.

(2)Arrangement shall be made for necessary toys and trained nurses for babies mentioned in Sub-Section (1).

(3)Women workers and employees shall be granted recess to feed their babies according to need.

43.Rest Rooms

The General Manager of an establishment employing 50 or more workers or employees shall arrange for rest rooms equipped with minimum necessary facilities.

44.Canteen

The General Manager of an establishment where 50 or more workers or employees work simultaneously shall arrange for a canteen.

Chapter 7
Special Provisions Applicable to Special Establishments

45.Tea Estates

(1)The following special provisions shall be applicable in respect to tea estates:

(a)Formation of Committee: His Majesty's Government may from a committee as prescribed to advise it on matters concerning the promotion, policy formulation, and other matters concerning tea estates.

(b)Arrangements for Quarters: The General manager of a tea estate shall arrange for suitable quarters within the tea garden for those workers who have no place of residence near the estate.

(c)Arrangement for First Aid: The General Manager of a tea estate shall arrange for a First Aid Center functioning under a trained employee to provide first aid treatment free of cost for any minor injury sustained by any worker or employee working in the estate, or any member of his family.

(d)Safety Equipment: The General Manager shall make available safety equipment and apparatus required for the personal safety of workers of a tea estate.

(e)Arrangement for a Primary School: In case workers residing in quarters made available by a tea estate have 50 or more children of the school-going age of 5 to 14 years, and in case there is no school within a distance of one kilometer from the concerned tea estate, the General Manager shall operate a primary school for such children.

(f)Essential Commodities: In case there is no market near a tea estate, the General Manager shall make arrangements to ensure the availability of essential commodities in a convenient manner for the workers and employees of his tea estate.

(g)Arrangement for Entertainment: The General Manager shall make necessary arrangements for sports within the tea estate itself for the mental and physical development of its workers.

(h)Employment on Contract Basis: This Section shall not be deemed to have prejudiced the power to conclude agreements between the General manager and the workers of a tea estate to execute any specific work of the tea on a contract basis.

(2)For the purpose of this Section,

(a)Tea Estate means a tea estate registered under the current law with commercial objectives; the term includes factories, if any.

(b)Workers of a Tea Estate mean persons who perform such functions as digging, ploughing, levelling, weeding, sowing, planting, trimming, plucking, and uprooting in the lands of a tea estate; the term includes persons who clean lands, buildings, or machinery, or any part thereof, or perform any other work related to a tea estate.

46.Construction Enterprises

The following special provisions shall be applicable in respect to construction enterprises:

(a)Arrangement for Tools Relating to Construction Works: Tools and materials required by workers engaged in construction works in any construction site shall be supplied in adequate quantities by the General Manager.

Explanation: For the purpose of this Section, "construction works" mean construction works of buildings, roads, bridges, canals, tunnels, internal and international waterways and railways, or installation of electrical, telephone or telegraph and other equipment or machinery relating to telecommunication, or other works relating to construction.

(b)Special Arrangements in Temporary Construction Sites: The General Manger of a temporary construction site where 50 or more workers work shall arrange for quarters, foodstuff, drinking water, etc, for workers having no place of residence near the site.

(c)Accident Insurance: The General Manager shall arrange for insuring workers working in construction sites for accidents in the prescribed manner.

(d)Safety Arrangements:

(1)The General Manger shall make necessary and suitable safety arrangement in construction sites.

(2)The General Manager shall arrange for personal protective equipment required by workers employed in construction works.

47.Transport Enterprises

(1)The following special provisions shall be applicable in respect to transport enterprises:

(a)Working Hours

(1)Workers and employees working in vehicles may be engaged in work until the concerned vehicle reaches its destination.

Provided that arrangement shall be made for at least two drivers on a compulsory basis to drive passenger vehicles plying on long routes by rotation.

Explanation: For the purpose of this Section, the term ‘long route" means a long route as mentioned in Clause (a1) of Section 2 of the 1993 Vehicles and Transport Management Act.

(2)In the case of the driver of a vehicle plying on long routes to transport live animals or goods, arrangements shall be made to allow him to take rest at different places before reaching his destination.

(b)Trip Allowance: In case any worker or employee employed in a transport service is engaged in work for more than eight hours a day, he shall be paid remuneration for the overtime work at the rate of 150 percent of the remuneration to which he is entitled.

Provided that in case the trip allowance, food allowance, or similar other allowances are being paid to workers or employees employed in operating vehicles, they shall be entitled to such allowance, 150 percent of their remunerations, whichever is higher for overtime work under this Section.

(c)Fifty Percent Allowance to be Paid in the Event of the Vehicle Not Being in a Serviceable Condition, or Held up for any reason: In case any operating vehicle goes out of order before reaching its destination, or is required to remain at one place because of damages or because, for any reason, workers or employees working in it shall be paid 50 percent of the allowance to which they are entitled at the time when the vehicle is operating.

(d)Accident Insurance: The General manager of an operating vehicle shall insure its employees and workers for accidents in the manner, prescribed in the 1993 Vehicle and Transport Management Act.

(e)First Aid Equipment: The operator of a transport enterprise shall keep necessary medicines and first aid equipment in each vehicle in sufficient quantities.

(f)Restriction on Consumption of Intoxicants

(1)Workers or employees working in a vehicle transporting passengers, animals, or goods shall not consume in toxicants before driving the vehicle and until it reaches its destination.

(2)In case a driver drives a vehicle after consuming intoxicants, this shall be treated as a misconduct, and the concerned General Manager may dismiss him from service.

Provided that before dismissing any worker or employee from service on that ground, he shall be granted an opportunity to explain his case.

(3)Any person who is dissatisfied with the order issued under Sub-Clause (2) may appeal to the Labor Court within 35 days from the date of receipt of such order.

(g)Commission Agents: Booking or cargo commission agents not registered in the attendance registers of transport enterprises shall not be provided with facilities under this act.

(h)Change in Ownership: In case it becomes necessary for any transport operator to dismiss permanent workers or employees, or those who have completed one year's uninterrupted service, owing to change in ownership through the sale of vehicles owned by him or through any other way, he may do so after paying facilities and compensation to which such workers or employees are entitled under this act, as well as additional compensation, if any, provided for in any agreement concluded between the General Manager and the workers or employees.

(2)For the purpose of this Section, the term "transport enterprise" shall mean a transport service transporting passengers, animals, or goods from one place to another in vehicles operated through mechanical equipment by charging fares or freight.

(3)The provisions contained in this Section, as well as those contained in Sections 4, 10, 72 and 73, and Chapters 4 and 8, shall be applicable to transport enterprises employing less than 10 workers or employees as well.

48.Hotel, Travel, Trekking, adventure, Refting, Jungle Safari, and Other Enterprises

The following special provisions shall be applicable in respect to hotel, travel, trekking, adventure rafting, jungle-safari, and other enterprises:

(a)Women May Be Employed: In the case of hotel or travel agencies, women may be employed at any time after making special arrangements for their security according to the nature of their work.

(b)Safety of Workers or Employees Employed in Trekking or Rafting Enterprises

(1)The General Manager of a trekking, rafting, or other adventure enterprise shall arrange for personal protective equipment according to need, as well as clothes, shoes, etc. required by workers or employees engaged in such work to protect their health according to the season.

(2)It shall be the responsibility of the concerned General Manager to undertake or make arrangements for undertaking rescue operations according to need.

(c)Accident Insurance: The General manager shall insure workers or employees engaged in trekking, rafting, jungle-safari, or other adventure enterprise for accidents in the prescribed manner on a compulsory basis.

(d)Field Allowance. Etc. to the Paid: While deputing workers or employees employed in trekking, rafting, or other adventure enterprise to the field of their work, the General Manager shall pay field allowance, food allowance, or similar other allowances. In case such allowances are paid, the concerned workers or employees need, not be paid remunerations for overtime work under this act.

(e)Arrangements for First Aid: While deputing workers or employees employed in trekking, rafting, or other adventure enterprise to the field of their work, the General Manager shall supply first aid medicines and equipment in adequate quantities according to need.

49.Other Provisions Also to be Applicable

In the case of establishments mentioned in Section 45, 46, 47, and 48, the provisions of this act and the rules framed hereunder shall also be applicable, in addition to the provisions mentioned in this Chapter.

Chapter 8
Conduct and Penalties

50.Forms of Penalties

The General manager may punish as follows any worker or employee for misconduct:

(a)Warning; (b) Withholding of annual increment in remuneration; (c) Suspension; or (d) Dismissal from service.

51.Misconduct

For the purpose of Section 50, the following actions of a worker or employee shall be regarded as misconduct:

(a)In case (any worker or employee) causes physical injury or harm with or without using any kind of weapon, or ties up or detains the Manager, the General manager or any employee, or engages in rioting, assault or destructive activities within the establishment, on the issue of any labor dispute or any other issue;

(b)In case he takes or instigates other to take any action in such a way as to adversely affect the production or service process of the establishment or stops the supply of food or water, or cuts telephone or electricity service, or obstructs movement within the establishment;

(c)In case he steals any property of the establishment.

(c1)In case he commit irregularities in the business of the establishment.

(c2)In case he remains absent from the establishment for more than 30 days consecutively without furnishing any notice thereof.

(d)In case ho offers or accepts bribes;

(e)In case he is convicted of any criminal offense involving moral turpitude and is punished with imprisonment;

(f)In case he participates or compels others to participate in a strike which has been declared irregular or illegal;

(g)In case he goes on strike without fulfilling the legal formalities, or wilfully slows down his work so as to harm the interests of the establishment;

(h)In case he wilfully destroys or damages any asset of the establishment, or carries outside the premises of the establishment and uses or allows unauthorised persons to use such asset without obtaining permission from the authorised person.

(i)In case he frequently violates any order or directive issued under this act or the rules framed hereunder, or any bye-rules framed by the establishment, intentionally, or misbehaves with the clients of the establishment;

(j)In case he absents from work or arrives late for work frequently without obtaining permission;

(k)In case it is certified by a physician that he has consumed in intoxicants during office hours, or that he has come to the office by consuming intoxicants.

(l)In case he commits any action which violates the secrecy of the establishment production formula or relating to any special technology with the objective of causing losses to the establishment where he is employed; or

(m)In case he wilfully misuses or damages any object kept to ensure the welfare, health, and safety of workers or employees.

52.Penalties

(1)Any worker or employee who behaves in the manner mentioned in Clauses w, (j), or (m) of Section 51 may be issued a warning.

(2)The annual increment in the remuneration of a worker or employee who behaves in the manner mentioned in Clauses (e1), (f), (g), or (h), of Section 51 may be withheld.

(3)Any worker or employee who behaves in the manner mentioned in Clause (b), (d), or of Section 51 may be suspended for a period not exceeding three months.

(4).Any worker or employee who behaves in the manner mentioned in Clause (a), (c), (e2), (e) or (l) may be dismissed from service.

(5)In case any worker or employee commits any act of misconduct mentioned in Sub-Section (1), (2), or (3) even after being twice punished for the same, he may be dismissed from service.

Provided that the punishment inflicted under Sub-Section (1) shall not be taken into account after three years.

(6)Nothing contained in this Section shall be deemed to have prejudiced the power of the General Manager to inflict lesser punishment than the punishment prescribed under this Section.

53.Working Procedure

(1)Before punishing any permanent worker or employee under Section 52, he must be given a time-limit of at least seven days explicitly mentioning his act of misconduct and the punishment that may be inflicted on him if the same is proved, to submit his explanations.

Provided that no action may be initiated in connection with such misconduct after two months from the date of its commission.

(2)In case the concerned worker or employee does not submit his explanations within the time-limit prescribed under Sub-Section (1), or in case the explanations submitted by him are not found to be satisfactory, be may be punished under Section 52 for misconduct.

Provided that a decision on inflicting such punishment must be taken within two months from the date when explanations were demanded.

(3)In case the concerned worker or employee does not accept the time-limit provided under Sub-Section (1), or remains absent, he shall be deemed to have been notified about the time-limit after it is sent to his address by registered post, and a copy thereof is affixed at the public notice board of the establishment, a statement of such affixature prepared and witnessed by at least three persons, and another copy sent to the concerned Labor Office.

54.Power of the Department to Dismiss From Service

(1)Any worker or employee who illegally engages in rioting or gherao, or directly or indirectly instigates others to do so, in an establishment other than the one in which he is working, or in any government office, may be inflicted any of the punishment mentioned in Section 52 by the Department.

(2)In case it becomes necessary to punish a worker or employee under Sub-Section (1), the procedure laid down in Section 53 shall be adopted.

55.Misconduct of Manager or General Manager

(1)The following actions shall be regarded as misconduct of a manager or General Manager:

(a)If he wilfully violates or disregards this act, or the rules framed or orders or directives issued hereunder;

(b)If he shuts down the establishment, or retrenches workers or employees in contravention of this act;

(c)If he continues a lock-out which has been declared illegal;

(d)If he beats up or manhandles workers or employees; or

(e)If he provokes or instigates workers or employees with the objective of fomenting distrust or illwill among them.

(2)The concerned Labor Office may punish any General Manager or Manager who commits any of the acts of misconduct mentioned in Sub-Section (1) with a fine not exceeding Rs 10,000, have him pay an appropriate compensation to any worker or employee who has suffered a loss or damage, if any, as a result of such misconduct, and order him to reinstate any worker or employee who has been retrenched under Clause (b) of Sub-Section (1).

56.Punishment for Obstruction to Government Officers

If anybody causes any obstruction to any government employee engaged in any function under this act, or does not submit any register or other document which the government employee wants to be produced before him, or does not produce or let him examine any worker or employees whom he wants to examine or to be produced before him, he may be punished by the Labor Office with a fine not exceeding Rs 5,000.

57.Other Penalties

Except when specific provisions for punishment have been made in other Sections of this Act, any person who acts in contravention of any provision of this act, or the rules or written orders or directives issued hereunder, may be punished by the Labor Department with a fine not exceeding Rs 10,000 for each such offense according to the nature and gravity of the offense; and in case he continues to commit the offense after it has been proved that he has once committed it, he shall be punished with an additional fine amounting to Rs 100 for each day of the continuation of such offence.

58.Action to be Invalid

Except otherwise provided for in this act or the rules framed hereunder, in case any action has been taken in contravention of this act and the rules framed hereunder, it shall become invalid through the order of the Labor Department.

59.Filing of Cases and Time-Limit

(1)Cases relating to offenses punishable under this act may be filed through complaints of the Labor Office or of any person authorised by it or by the aggrieved person, the concerned persons or by the Trade .Union.

(2)Cases relating to offenses punishable under this act shall be filed within three months from the date of such offense.

(3)Cases relating to offenses punishable under this act shall be filed with the authority designated as the penal authority in different sections of this act, and cases relating to other offenses shall be filed with the Labor Court.

60.Appeal

Any party which is dissatisfied with the punishment awarded or order issued under this Chapter may file an appeal as follows within a period of 35 days from the date of receipt of notice of such punishment or order:

(a)Appeals against orders issued by His Majesty's Government or the Labor Department may be filed with the Appellate Court.

(b)Appeals in respect to cases in which original action is taken and which are disposed of by the Labor Court may be filed with the Appellate Court.

(c)Appeals against punishment inflicted or orders issued by the General manager, or other officers or offices, may be filed with the concerned Labor Court.

61.Collection of Fines

Fines imposed under this act shall be recovered from the concerned person as arrears due to the government according to current law.

Chapter 9
Board, Officers and Other Provisions

62.Central Labor Advisory Board

(1)His Majesty's Government may form a tripartite Central Labor Advisory Board with the representation of workers or employees, General Managers, and His Majesty's Government, to obtain recommendations in matters concerning the formulation of policies and enactment of laws relating to labor.

(2)The composition, as well as the functions, duties, and powers of the Board mentioned in Sub-Section (1) shall be as prescribed.

(3)The Board may itself regulate the working procedures of its meetings.

63.Labor Relations Committee

(1)In every establishment, the General Manager shall form a Labor relations Committee for the purpose of building up a cordial atmosphere between or employees and the management, and thus developing healthful labor or industrial relations based on mutual participation and coordination.

(2)The composition, as well as the functions, duties, and powers of the Committee mentioned in Sub-Section (1), shall be as prescribed.

(3)The Committee mentioned in Sub-Section (1) may itself regulate its working procedures.

64.Appointment of Labor Officer.

His Majesty's Government may, by notification in the Nepal Rajapatra, appoint one or more Labor Officers for any specific area according to need, or designate any officer to perform the functions of a Labor Officer.

65.Powers of Labor Officers

(1)Labor Officers shall have powers as follows:

(a)To enter into places being used for the purpose of the establishment according to need.

(b)To inspect documents and registers relating to workers or employees kept at the establishment.

(c)To perform necessary functions or offer advice for improving labor relations.

(d)To make efforts for the settlement of disputes between the General Manager and the workers or employees.

(e)To arrange for the enforcement of welfare provisions where these have not been enforced yet, and in case these have already been enforced, check whether or not such arrangements are operating smoothly.

(f)To check whether or not the minimum remunerations prescribed by His majesty's government have been enforced.

(g)To record statements of any person according to need to fulfill the objectives of this act.

(h)To discharge the functions of the Factory Inspector, other than technical functions, in his absence.

(i)To discharge other functions according to the directives of His Majesty's Government and the Labor Department.

(2)The other functions, duties, and powers of a Labor Officer shall be as prescribed.

66.Appointment of Factory Inspectors

By notification in the Nepal Rajapatra, His Majesty's Government may appoint one or more Factory Inspectors for any specific area according to need. It may also appoint a Chief Factory Inspector for the entire Kingdom of Nepal.

67.Powers of a Factory Inspector

(1)The powers of a Factory Inspector shall be as follows:

(a)To enter into places being used for the purpose of the factory according to need.

(b)To inspect factory buildings, lands, plants and machinery, and health and safety arrangements, take samples of finished and semi-finished goods used in the factory and test or arrange for testing them, inspect factory registers and documents, and record statements, of any person, according to need.

(c)To inspect boilers and pressure vessels, the give permission for their operation.

(d)To offer necessary advice and cooperation to the General Manager to arrange for training for workers or employees.

(e)To discharge the functions, duties, and powers of the Labor Officer in his absence.

(f)To discharge other functions according to the directives of His Majesty's Government and the Labor Department.

(2)The other functions, duties, and powers of a Factory Inspector shall be as prescribed.

68.Welfare Officer

(1)A Welfare Officer shall be appointed in every establishment employing 250 or more workers or employees. In the case of an establishment employing more than 1,000 workers or employees, an Assistant Welfare Officer shall also be appointed.

(2)The General Manager of an establishment employing less than 250 workers may designate any officer of the establishment as Welfare Officer.

(3)In case both Welfare Officer and Assistant Welfare Officer are appointed under Sub-Section (1), the Labor Department must be notified accordingly.

(4)The functions, duties, and powers of the Welfare Officer and the Assistant Welfare Officer appointed or designated under Sub-Section (1) or (2) shall be as prescribed.

69.Notice to be Given to establish an Establishment

(1)In case it becomes necessary to establish or build an establishment, or expand an existing establishment, in any land or building, the General Manager shall despatch a notice to the Labor Office explicitly mentioning the prescribed particulars.

(2)In case the Labor Office considers it necessary in the course of an investigation into the particulars submitted under Sub-section (1) to make any alterations in them from the viewpoint of health, safety, and the environment, it may direct the concerned General Manager to do so. It shall be the duty of the concerned General Manager to comply with such directives.

70.Notice to be Given by the General Manager

(1)In case the General Manager is required to use or occupy any new land or building for the establishment, he shall despatch a written notice to the concerned Labor Office at least 15 days in advance explicitly mentioning the prescribed particulars.

(2)The Manager or the General Manager who assumes charge for the first time shall despatch a notice thereof to the Labor Office within seven days.

71.Notices and Posters

The Labor Officer or the Factory Inspector may direct the manager or General Manager of the establishment to display notices and posters provided for in this act or the rules framed hereunder, as well as those concerning health, safety, and welfare provisions relating to employees, in such a way that everybody can see and understand them.

Chapter 10
Settlement of Labor Disputes

72.Formation of Labor Court

(1)For the purpose of this act, His Majesty's Government may form a Labor Court by notification in the Nepal Rajapatra. The jurisdiction and venue of such court shall be as prescribed in the concerned notice.

(2)The working procedures of the Labor Court formed under Sub-Section (1) shall be as prescribed.

(3)Notwithstanding anything mentioned in Sub-Sections (1) and (2) until and formation of the Labor Court, the Appellate Court shall discharge the functions to be discharged by the Labor Court under this act.

72A.Power to Initiate Action for Contempt

The Labor Court may initiate action in connection with its contempt. In case it holds the offender guilty of such contempt, is may punish him with a fine not exceeding Rs 5,000, or with imprisonment for a term not exceeding two months, or this both.

Provided that in case the offender apologizes in a satisfactory manner, the court may pardon him, and in case it has already prescribed the punishment, it may exempt him from such punishment or reduce it or keep it pending on conditions prescribed by it and issue an order not to inflict such punishment of such conditions are met.

73.Procedures of Making Individual Claims or Complaints

(1)In case one or more workers or employees have any individual claims or complaints against the General Manager in respect to matters concerning the service, they may submit such claim or complaint to the General Manager in writing.

(2)On receipt of any claim or complaint under Sub-Section (1), the General Manager must settle the problem through discussions with the concerned worker or employee within a period of 15 days.

(3)In case the discussions held under Sub-Section (2) fail to settle the problem the concerned workers or employees may submit an application to the concerned Labor Office explicitly mentioning their claim.

(4)Within seven days from the date of receipt of a claim made under Sub-Section (3), the Labor Office shall settle the problem by arranging for bilateral talks between the General Manager and the concerned workers or employees.

(5)In case the problem is not resolved through the procedure mentioned in Sub-Section (4), the Chief of the concerned Labor Office shall take a decision on the concerned dispute within a period of seven days.

(6)Any side dissatisfied with the decision made under Sub-Section (5) may file an appeal with the Labor Court within a period of 35 days from the date of receipt of such decision.

74.Procedure of Making Claims Relating to Collective Disputes

(1)Workers or employees of an establishment shall explicitly mention their demands or claims relating to their collective rights, interests, and facilities, as well as their representatives, in writing, have the document signed by at least 51 percent of their total strength, and submit it to the general Manager through their representatives.

(2)On receipt of claims relating to disputes under Sub-Section (1), the General Manager shall reach an agreement by settling the problem through bilateral talks with the representatives mentioned in the same Sub-Section within a period of 21 days.

(3)In case the problem is not settled in the manner mentioned in Sub-Section (2), it shall be settled within a period of 15 days through bilateral talks in the presence of the Labor Office.

(4)In case the problem is not settled even through the talks help under Sub-Section (3), the matter shall be referred to an arbitrator to be appointed through the mutual consent of both the General Manager and the workers or employees. In case no such arbitrator can be appointed, the dispute may be presented before the tripartite committee formed with the consent of both sides by His Majesty's Government with an equal number of representatives of workers or employees, the general Manager, and His Majesty's Government.

(5)Th arbitrator appointed or the committee formed under Sub-Section (4) shall take a decision on the matter within a period of 15 days.

(6)Any side dissatisfied with the decision taken under Sub-Section (5) may file an appeal with His Majesty's Government within 35 days from the date of receipt of the decision.

(7)In case the arbitrator or the committee does not take a decision within the time-limit mentioned in Sub-Section (5), or in case an appeal has been filed with His Majesty's Government under Sub-Section (6) and His majesty's government does not take a decision on it within 60 days from the date of such appeal, the concerned worker or employee may go on strike by adopting the procedure laid down in Section 76.

75.Restrictions on Claims

Notwithstanding anything mentioned above, demands or claims of the following types may not be made,

(a)those which contravene the Constitution of the Kingdom of Nepal;

(b)those which are based on unsubstantiated or baseless charges and are, therefore, opposed to the interests or any side;

(c)those which concern matters which may affect the personal conduct of any worker or employee;

(d)those which concern matters which are not connected with the establishment; or

(e)those which concern matters in respect to which a collective agreement has been concluded less than two years previously.

76.Notice of Strike

In case workers or employees of any establishment wish to go on strike because of their failure to settle their demands through the procedures mentioned in Sub-Section (3) of Section 74, they may do so after submitting a resolution to that effect passed by 60 percent of their total strength through secret ballot, as well as a written notice to that effect, to the General Manager explicitly mentioning their demands or claims, and their justification, and forwarding a notice thereof to the Labor Department, the concerned Labor Office, and the local administration.

77.Lock-Outs

(1)The establishment may declare a lock-out after the General Manager obtains the approval of His Majesty's Government to do so by furnishing evidence to justify such action in case a strike is started or continued without giving an advance notice as required under Sub-Section (1) of Section 76, or in case a collective dispute fails to be settled according to the procedure mentioned in Sub-Section (3) of Section 74.

(2)Before declaring a lock-out under Sub-Section (1), the General Manager shall issue an notice at least seven days in advance informing all workers and employees that an lock-out shall be declared if they did not discontinue their strike. Such notice shall also specify the date on which the look-out is intended to be declared.

(3)The General Manager may declare a look-out without fulfilling the formalities laid down in Sub-Section (1) and (2) in case the gherao, rioting, or destructive activities of the workers and employees in the course of a strike are likely to harm the establishment. In case a lock-out is declared in that manner, the Labor Office and the Labor Department shall be notified accordingly, along with the reasons, within a period of three days.

(4)In case the lock-out declared in any establishment is found unjustified, or likely to disturb peace and security in the country, or to prove detrimental to the economic interests of the country, His Majesty's Government may declare it illegal at any time.

78.Prohibition to Go on Strike

(1)Notwithstanding anything contained above in this act, in case current law prohibits the workers or employees of any establishment from going on strike, they shall not be entitled to go on strike.

(2)Employees who are appointed or deputed to discharge functions relating to the control, security, or guard duty of an establishment shall also not participate in a strike.

(3)Employees who are prohibited from going on strike under Sub-Sections (1) and (2) may present their legitimate demands before the General Manager. In case any dispute arises because of the failure to settle such demands, His Majesty's Government shall form a tribunal to settle such disputes. The decision of the tribunal shall be final and binding on both sides.

(4)No strike may be started, or lock-out declared, when actions are underway under Section 74.

79.Legal Recognition to Collective Agreements

(1)Agreements concluded between the General Manager and workers or employees to settle their disputes shall be binding as law on the concerned parties. Such agreements shall be registered at the Labor Office.

(2)In case the agreement registered under Sub-Section (1) mentions the date when it is to come into operation, it shall come into operation on such date. In case no such date has been mentioned, it shall come into operation on the date of its registration at the labor Office. No fresh demands may be made in respect to the provisions contained in such agreements before the expiry of two years from the date when they come into operation.

79A.Implementation of Collective Agreements

(1)In case a collective agreement concluded under this act is not implemented, the concerned party may lodge a complaint with the Labor Office.

(2)In case a complaint is filed under Sub-Section (1), the Labor Office may implement the collective agreement by adopting the procedure mentioned in Sub-Section (5) of Section 25 also according to need.

80.Power to Issue Orders to Stop Strikes

His Majesty's Government may issue an order at any time to stop a strike proposed or started under this act or the rules framed hereunder in case it appears likely that it swill create an extraordinary situation and thus disturb the nation's peace and security, or that it will adversely affect the nation's economic interests, or any strike started in essential services prescribed as such according to current laws.

81.End of Lock-Outs

The lock-out declared in an establishment shall be deemed to have ended in case its workers or employees report for work, or incase the General Manager, declares the end of such lock-out, or in case His majesty's government declares a lock-out illegal under Section 77, or issues an order to stop strike under Section 80, from the date of such declaration or order.

82.Remunerations for the Period of Lock-Out

Workers or employees shall be paid remunerations for the periods of illegal lock-outs.

83.Special arrangements for the Settlement of Disputes

(1)In case His Majesty's Government feels that any dispute has arisen or may arise between the General Manager and the workers or employees (of any establishment), it may form a committee consisting of one or more persons, or a tripartite committee consisting of the representatives of the General Manager, the workers or employees, and His Majesty's Government, in order to settle the dispute. The concerned committee may regulate its working procedures itself.

(2)The decision made by His Majesty's Government on the basis of the report submitted by the committee formed under Sub-Section (1) shall be final and binding on both sides.

(3)The committee formed under Sub-Section (1) above shall have the powers of a court in respect to consulting witnesses or evidence, subpoenaing witnesses, and procuring documents in connection with a dispute as conferred by current Nepal law.

Chapter 11
Miscellaneous

84.Special Powers of His Majesty's Government

(1)Notwithstanding anything contained elsewhere in this act, His Majesty's Government may, in consultation with the Central Labor Advisory Committee, make any provision of this act not applicable to any establishment by notification in the Nepal Rajapatra.

(2)His Majesty's Government may, by notification in the Nepal Rajapatra, make minimum remunerations and some other facilities under this act applicable to establishments employing less than ten workers or employees also.

84A.Special Provisions Relating to Workers and Employees Employed Otherwise Than in Establishments

(1)Every person or institution employing workers and employees otherwise than in an establishment must pay to them remunerations due for the days of their work according to written agreements, If any, signed between the two parties, and within seven days if no such agreements have been signed.

(2)In case any person or institution does not pay or delays payment of remuneration to any worker or employee, the aggrieved worker or employee may lodge a complaint with the Labor Office, in a district where such Labor Office has been established, and with the Chief District Officer, in a district where no such labor Office has been established, requesting payment of remunerations due to him.

(3)In case a complaint is lodged under Sub-Section (2), the concerned Labor Office or Chief District Officer shall summon the person or institution which has failed to pay remuneration in that manner within 15 days, excluding the time required for the journey, and arrange for the payment of remuneration due to the concerned worker or employee by adopting the procedure mentioned in Sub-Section (5) of Section 25.

85.Power to Remove Obstacles

If any obstacle arises in the implementation of this act, His Majesty's Government may, by notification in the Nepal Rajapatra, issue an order to remove such obstacles.

86.Power to Frame Rules

(1)His Majesty's Government may frame rules to implement the objectives of this act.

(2)Without prejudice to the generality of the power conferred by Sub-Section (1) above, such rules may, in particular, provide for the following:

(a)Matters relating to the safety of workers.

(b)Operation of employment services.

(c)Conditions relating to overtime work.

(d).Training programs for promoting the efficiency of workers or employees.

(e)Working procedures relating to the Labor Court.

(f)Compensation to be paid to workers or employees.

(g)Compilation of data concerning workers and employees.

(h)Compilation of information relating to labor markets.

87.Bye-Rules to be Submitted

Every establishment shall submit to the concerned Labor Office a copy of the bye-rules framed by it in respect to the service conditions of its workers or employees.

88.Provisions in Respect to Establishments Owned by His Majesty's Government

In the case of service conditions of employees of establishments fully or partially owned by His Majesty's Government, action shall be taken according to the provisions contained in the rules or bye-rules relating to their service conditions. In the case of their workers, action shall be taken in accordance with this act.

89.Power of His Majesty's Government to Give Directives

(1)His Majesty's Government may issue necessary directives to the General Manager in order to implement the objectives of this act.

(2)His Majesty's Government may punish the General Manager (of an establishment) who does not comply with the directives issued under Sub-Section (1) with a fine not exceeding Rs 20,000 in each case.

90.Delegation of Authority

His Majesty's Government may delegate the powers vested in it under this act to any authority by notification in the Nepal Rajapatra.

91.Action to be Taken according to This Act

Action in matters provided for in this act shall be taken accordingly, and in other matters, action shall be taken according to current law.

92.Repeal and Saving

(1)The 1959 Nepal Factories and Factory-Workers Act has been repealed.

(2)Actions taken under the 1959 Nepal Factories and Factory-Workers act shall be deemed to have been taken under this act.

Royal Seal Affixed on;

Jestha 2,2049

(May 15, 1992).