Nepal: Labor Rules, 1993

In exercises of the power conferred by Section 86 of the 1992 Labor Act, His Majesty's Government has framed the following rules:

Chapter 1
Preliminary

1.Short Title and Commencement

(1)These rules shall be known as the Labor Rules, 1993.

(2)These rules shall come into force at once.

2.Definitions

Unless otherwise meant with reference to the subject or context, in these rules,

(a)Act means the 1992 Labor Act.

(b)Factory means an establishment where manufacturing work is carried out.

Chapter 2
Employment and Security of Service

3.Hours of Work for Liners

(1)Subject to Sub-Section (2) of Section 5 of the act, no minor in the age-group of 14-16 shall be employed in any establishment for more than six hours a day and 36 hours a week.

(2)Miners above the age of 16 years may be employed as workers or employees during hours other than between 6:00 PM through mutual agreements between such workers or employees and the General Manager (Vyabasthapak).

4.Hours of Work for Women

(1)Women may be employed as workers or employees in establishments other than those mentioned in Clause (a) of Section 48 of the act during hours other than between 6:00 AM and 6:00 PM only through mutual agreements between such women workers or employees and the General Manager.

(2)While employing women workers or employees under Sub-Rule (1), the General Manager must make appropriate arrangements for their security.

(3)The General Manager of the establishment which has engaged any woman worker or employee in the work of the establishment under Sub-Rule (1) must notify the concerned Labor Office as soon as possible about such employment.

5.Other Particulars to be Mentioned in the Register of Workers or Employees

In addition to the particulars mentioned in Sub-Section (1) of Section 9 of the act, the General Manager must mention the following particulars in the register of workers or employees:

(a)Date of initial appointment of the worker or employee, as well as his designation and address.

(b)Date of birth of the worker or employee.

(c)Citizenship of the worker or employee.

(d)Name of the Department or Section where the worker or employee is to work.

(e)Particulars relating to leave.

(f)Particulars relating to other facilities.

6.Circumstances in Which Non-Nepali Nationals may be Employed

(1)In case no skilled Nepali national is available for employment in the establishment under Sub-Section (1) of Section 4 of the act, the General Manager of the concerned establishment may appoint any skilled non-Nepali national on a contract basis and engage him in work for a term not exceeding two years at a time after obtaining the approval of the Labor-Department on the recommendation of the concerned Labor Office.

(2)The General Manager who employs non-Nepali nationals under Sub-Rule (1) must make arrangements for gradually replacing them by training Nepali workers or employees for their jobs.

7.Other Circumstances in Which Remunerations and Other Facilities Will Not Provided to Workers or Employees Kept in Reserve

In case the General Manager and the workers or employees kept in reserve under Section 11 of the act sign an agreement which does not require the latter to attend the establishment, the concerned workers or employees shall not entitled to remuneration and other facilities as mentioned in the agreement.

8.Priority in Retrenchment of Workers or Employees

In case it becomes necessary to retrench workers or employees who have been appointed first as mentioned in the restrictive clause of Sub-Section (2) of Section 12 of the act, the General Manager shall do so in the following order:

(a)In case the worker or employee who has been appointed first is a non-Nepali national, he shall be retrenched instead of the Nepali national who has been appointed last.

(b)In case any worker or employee has remained absent for health reasons for a longer period than others.

(c)In case there is any other necessary person.

Chapter 3
Remunerations and Welfare Arrangements

9.Formation of Minimum Remunerations Determination Committee

For the purpose of determining the remunerations of workers or employees, His Majesty's Government shall form a Minimum Remunerations Determination Committee from time to time according to need by notification in the Nepal Rajapatra, in such a manner that workers or employees, General Managers and His Majesty's Government are equally represented in it.

10.Functions, Duties and Powers of the Minimum Remunerations Determination Committee

The Minimum Remuneration Determination Committee shall have the following functions, duties and powers in addition to those mentioned in Sub-Section (3) of Section 21 of the act:

(a)To make necessary recommendations to His Majesty's Government in connection with the determination of the minimum remunerations of workers or employees.

(b)To make recommendations under Clause (a) above after studying and reviewing the situation in respect to current market price, and keeping in view the current economic, monetary and social conditions of the country, and the paying capacity of establishments.

(c)The opinion of the concerned experts may be obtained while offering recommendations and suggestions to His Majesty's Government in connection with the determination of the minimum remunerations, the rates of annual increments in remunerations, dearness allowance, or other facilities of workers or employees.

11.Prohibition to Discriminate in the Payment of Remunerations

In case male or female workers or employees are engaged in any work of the same nature in the establishment, they shall be paid equal remuneration without any discrimination.

12.Limit, Procedure and Time-Limit for Making Deductions From Remunerations

(1)In case it becomes necessary to make deductions from the remuneration of any worker or employee under Section 24 of the act, this shall be done subject to the following provisions:

(a)If it is necessary to deduct fines, this shall be done in such a manner that not more than 33 percent of the remuneration is deducted each time until the fine or the total amount to be deducted is fully realised.

(b)If it is necessary to make deductions in consideration of any damage caused to the property, in cash or in kind, of the establishment deliberately or due to negligence, or in consideration of loss of any material, this shall be done in such a manner that not more than 25 percent of the remuneration is deducted each time until the amount to be deducted is fully realised.

(c)If it is necessary to make deductions in order to adjust advance or excess remunerations or facilities paid, this shall be done in accordance with the conditions stipulated, if any, between the General Manager of the establishment and workers or employees in connection with such deductions, and if no such conditions have been stipulated, such deductions shall be made in such a manner that not more than 25 percent of the of the remuneration is deducted each time until the advance or excess remuneration is fully realised.

(d)If it is necessary to make deductions in accordance with the orders of any government office or court, this shall be done at the rate required to fully realise the amount within the time-limit prescribed in the concerned order, if any. In case no such time-limit has been prescribed, such deductions shall be made in such a manner that not more than 50 percent of the remuneration is deducted each time until the amount mentioned in the order is fully realised.

(e)If it is necessary to make deductions in other circumstances prescribed by His Majesty's Government by notification in the Nepal Rajapatra, this shall be done in such a manner that not more than 50 percent of the remuneration is deducted each time until the total amount to be deducted is fully realised.

(2)Notwithstanding anything contained in Sub-Rule (1), in case any worker or employee dies or retires from the service of the establishment for any reason before the entire amount due from him is fully realised, the balance due from him shall be realised from the amounts due to him from the establishment, if any.

13.Welfare Fund

(1)The establishment must establish a Welfare Fund under Section 37 of the act in order to carry out activities for the benefit and welfare of workers or employees.

(2)Seventy percent of the balance left after distributing bonus from the amount allocated for the purpose under Section 5 of the 1974 Bonus Act shall be credited to the Fund established under Sub-Rule (1).

(3)The amount credited to the Fund established under Sub-Rule (1) shall be deposited in an account opened in any commercial bank.

(4)The Welfare Fund shall be operated in the manner prescribed by the Labor Relations Committee under its direct control and direction. The accounts of the Fund shall be operated through the joint signatures of the two members of the Labor Relations Committee designated by itself.

14.Use of Welfare Fund

(1)The Labor Relations Committee may spend the amounts deposited in the Welfare Fund in order to carry out the following activities for the benefit and welfare of workers or employees:

(a)To provide emergency financial assistance in the event of any worker or employee or any member of his family falling ill or meeting an accident.

(b)To make necessary arrangements of the education of workers or employees or their children.

(c)To make arrangements for sports, entertainment, libraries, clubs, etc. for workers or employees.

(d)To lend money to workers or employees in extraordinary circumstances at concessional rates of interest.

(e)To spend money for providing emergency assistance to workers or employees in the event of emergencies such as natural calamities.

(f)To spend money for other welfare activities which provide collective benefits to workers or employees.

(2)Notwithstanding anything contained in Sub-Rule (1), an establishment which is fully or partially owned by His Majesty's Government must formulate action plans and obtain the prior approval of the Labor Department in order to spend money from the Welfare Fund for welfare activities of the type which provide collective benefits to its workers or employees.

(3)Workers or employees may not distribute among themselves, or spend for any purpose other than those mentioned in Sub-Rule (1), the amounts deposited in the Welfare Fund.

15.Compensation in the Event of Injuries

(1)In case any worker or employee of the establishment sustains any physical injury while discharging the duties assigned to him by the establishment, the General Manager must pay in the form of compensation the entire expenses require for his treatment according to the recommendation made by a physician recognised by His Majesty's Government.

(2)In case any worker or employee who has sustained physical injuries while discharging the duties assigned to him by the establishment is unable to resume work immediately and is required to undergo treatment at a hospital or at his own home according to the recommendation of the physician, the General Manager must pay, in addition to the compensation payable under Sub-Rule (1), full remuneration for the period of his stay in the hospital if he has been hospitalised for treatment, or half of his remuneration if he has undergone treatment at home, for the period of such treatment.

Provided that in case it becomes necessary to undergo treatment for a period exceeding one year, the General Manager need not pay any remuneration for the excess period.

16.Compensation in the Event of Physical Disability

(1)In case any worker or employee is physically disabled as a result of an accident while discharging the duties assigned to him by the establishment, the General Manager must pay him in a lump sum an amount equal to his five years' remuneration calculated at the rate of remuneration being drawn by him if his physical disability is found to be 100 percent on the basis of the percentage of physical disability mentioned the schedule relating physical disability.

(2)While paying compensation to the concerned worker or employee under this rule in consideration of his physical disability, the amount of physical disability as mentioned in the schedule shall be determined by the General Manager on a proportionate basis by taking five years' remuneration for a 100 percent disability as the basis.

17.Compensation in the Event of Death

In case any worker or employee dies instantly or in the course of treatment as a result of an accident while discharging the duties assigned to him by the establishment, an amount equal to his three years' remuneration calculated at the rate of remuneration being drawn by him shall be paid in a lump sum to his nearest heir as compensation.

18.Determination of Percentage of Physical Disability

In case any worker or employee becomes physically disabled as a result of an accident while engaged in the work of the establishment, the Factory Inspector shall have the percentage of his physical disability determined by a physician recognised by His Majesty's Government according to the percentage of physical disability mentioned in the schedule, and also have the General Manager pay him compensation under Rule 16.

Provided that the percentage of physical disability of any such worker or employee shall not be determined at more than 100 percent.

19.Circumstances When Compensation is not Paid

In case any worker or employee hies or becomes physically disabled while discharging the duties assigned to him by the establishment as a result of a natural calamity, he or his heir shall not be entitled to compensation under these rules.

20.Double Compensation Not to be Paid

In case any establishment has insured its workers or employees in any way in respect to compensation, the concerned workers or employees shall be entitled to the amount of compensation payable under these rules or the amount payable under the compensation insurance, whichever is higher.

21.Power to Retire From Service After Paying Compensation and Gratuity

In case any worker or employee sustains physical injuries as a result of an accident while engaged in the work of the establishment and does not recover ever after a year-long treatment, or becomes physically disabled as a result of such accident and a physician recognised by His Majesty's Government certifies that he is incapable of working in the establishment, the General Manager may retire him from service after paying him the amount of compensation payable under Rule 16 and the amount of gratuity payable under these rules.

22.Priority in Employment

In case there is a vacancy in any post of the establishment which conforms to the qualifications of any member of the dependent family of any worker or employee who has been retired from the service of the establishment under Rule 21 or who has died as a result of an accident while engaged in the work of the establishment, priority shall be given to such member for employment.

23.Gratuity

(1)In case any permanent worker or employee of the establishment who has completed three years or more of service retires because of age or after having his resignation approved, or leaves the service of the establishment in any other way, he shall be entitled to gratuity in a lump sum at the following rates:

(a)For each year of the first seven years of service, half of the monthly salary drawn by him in the concerned year.

(b)For each year between seven and fifteen years of service, two-thirds of the monthly salary drawn by him in the concerned year.

(c)For each year of service exceeding fifteen years, one month's salary drawn by him in the concerned year.

(2)In the case of gratuity payable to workers or employees of factories or establishments which are liable to pay gratuity under the 1963 Factories and Factory Workers Rules for the period before the commencement of these rules, action shall be taken according to the 1963 rules.

(3)Notwithstanding anything contained in Sub-Rule (1), no worker or employee who has been removed from service under Sub-Section (4) or Section 52 or Section 54 of the act shall be entitled to gratuity under the said rule.

24.Gratuity Fund

(1)For the purpose of depositing the amounts of gratuity payable to workers or employees under Rule 23, each establishment shall establish a separate Gratuity Fund.

(2)The establishment must maintain separate accounts clearly showing the amounts of gratuity to which each worker or employee is entitled.

(3)The amounts of gratuity payable to workers or employees under Sub-Rule (2) of Rule 23 shall also be credited by the establishment to the Gratuity Fund established under Sub-Rule (1).

25.Right to Choose Between Compensation and Gratuity

Any worker or employee who is retrenched under Section 12 of the act may choose either the compensation payable under the said Section or the gratuity payable under Rule 23.

26.Provident Fund

(1)The establishment must deduct 10 percent of the monthly remuneration of a permanent worker or employee, make a matching contribution to it, and credit the entire amount to the provident fund mentioned in Sub-Rule (2) in the name of the concerned worker or employee.

(2)For the purpose of crediting the amounts mentioned in Sub-Rule (1), the General Manager of each establishment must establish a separate Provident Fund at the establishment itself.

Provided that the establishment may open separate accounts in the names of its workers or employees in the Provident Fund established under the 1962 Employees Provident Fund Act, and deposit the entire amount in such accounts.

(3)In case the establishment establishes its own Provident Fund under Sub-Rule (2), the accounts of each worker or employee shall be maintained separately.

(4)The Provident Fund established under Sub-Rule (2) shall be operated by the Labor Relations Committee, if there is such a committee, and by a committee comprising representatives of the General Manager, workers and employees if there is no Labor Relations Committee. In the case of an establishment which has a Welfare Officer, the Welfare Officer shall function as the Member-Secretary of that committee.

(5)No worker or employee may fully withdraw the amount deposited in the Provident Fund in his name under Sub-Rule (1) until he is retired from the service of the establishment.

(6)In case any worker or employee dies while in service, the amount deposited in his name in the Provident Fund shall be handed over to the person willed by him. In case the concerned worker or employee has not willed anyone, or in case the person willed by him has also died, the amount the members of his family. In case there are several heirs, all of them shall receive on a proportionate basis the amount deposited in the Provident Fund in the name of the deceased worker or employee.

(7)The concerned worker or employee may borrow not more than 50 percent of the amount deposited (in his name) in the Provident Fund under this rule in accordance with the bye-rules of the establishment. One-fourth of the monthly remuneration of the concerned worker or employee shall be deducted to repay the loan until it is fully repaid.

27.Medical Treatment

(1)The General Manager must make arrangements for medicines and other necessary materials required for emergency treatment of any worker or employee who sustains injuries while working in the establishment.

(2)The General Manager of an establishment where 50 or more workers and employees work simultaneously must appoint a person possessing general knowledge about emergency treatment in order to provide emergency treatment to any worker or employee who sustains injuries while working in the establishment.

(3)The General Manager of an establishment where 400 of more workers and employees work must arrange for a medical treatment centre equipped with necessary medicines and first aid kits under the responsibility of a trained or experienced health assistant.

(4)The General Manager of an establishment where 1000 or more workers and employees work must arrange for a health Center equipped with necessary medicines and first-aid kits, as well as a physician and a health assistant.

28.Leave

Workers or employees may obtain leave of the following categories:

(a)Public holidays;

(b)Home leave;

(c)Sick leave;

(d)Mourning leave;

(e)Special leave; and

(f)Maternity leave.

29.Public Holidays

(1)Workers or employee shall be granted 13 days of public holidays with full pay each year.

(2)At the beginning of each year, the Labor Relations Committee shall determine public holidays to be granted to workers or employees under Sub-Rule (1), and inform the workers or employees immediately.

(3)In the case of an establishment which has no Labor Relations Committee, public holidays shall be determined through mutual agreement among the representatives of the General Manager, workers and employees.

30.Home Leave

(1)Every worker or employee of the establishment shall be granted home leave with full pay at the rate of one day's leave for every 20 days' work. The concerned worker or employee must have such leave sanctioned in advance.

(2)The home leave to be granted to workers or employees under Sub-Rule (1) may be accumulated for not more than 60 days.

(3)For the purpose of determining the (period of) home leave to be granted to workers or employees under this rule, the term "period of service" shall include weekly holidays, public holidays, and other categories of paid leave within the concerned period.

(4)In case any worker or employee leaves the service by resigning voluntarily, or retires from service in any other way, he shall be entitled to a lump sum amount calculated at the rate of the last pay drawn by him in lieu of his accumulated home leave.

31.Sick Leave

(1)All workers or employees who have completed one year of service in the establishment without any interruption shall be granted sick leave with half pay for not more than 15 days in a year.

(2)While sanctioning sick leave to any worker or employee for more than three days, the General Manager may ask the concerned worker or employee to present a certificate worker or employee to present a certificate issued by a physician recognised by His Majesty's Government.

(3)In case any worker or employee falls ill suddenly and so needs sick leave, he must inform the General Manager accordingly through the quickest available means.

32.Mourning Leave

(1)All workers or employees who have completed one year of service in the establishment without any interruption may obtain mourning leave for not more than 13 days in case they have to remain in mourning themselves according to their family custom.

(2)All workers or employees who have obtained mourning leave under Sub-Rule (1) shall be entitled to full pay for the period of such leave.

33.Special Leave

(1)In case any permanent worker or employee who has no leave due needs leave for special reasons, he may obtain special leave for a period not exceeding 30 days in a year after having it sanctioned in advance.

(2)Workers or employees who have obtained special leave under Sub-Rule (1) shall not be paid remuneration for the period of such leave.

(3)The total duration of special leave which a worker or employee may obtain under this rule shall not exceed six months during the entire period of his service.

34.Maternity Leave

A pregnant woman worker or employee shall be granted maternity leave with full pay for a total of 52 days before or after delivery. Such leave may be obtained for not more than two times during the entire period of service.

Provided that in case two children of a woman who has already utilised leave twice do not survive and in case she becomes pregnant again, she may obtain maternity leave under this rule at the birth of two more children.

35.Authority Empowered to Sanction Leave

The General Manager, or the authority designated in the bye-rules of the establishment, shall sanction the different categories of leave mentioned in this Chapter.

36.Leave is Not a Matter of Right

Leave is not a matter of right. It is only a facility. The authority empowered to sanction leave may reject (the application for) leave, postpone it, reduce its duration, or postpone a leave which has already been sanctioned, according to the requirements of the work of the establishment by mentioning the reason.

37.Action Against Workers or Employees Who Remain Absent Without Obtaining Leave

(1)No worker or employee shall remain absent from the establishment without having his leave sanctioned.

(2)In case any worker or employee remains absent from the establishment for more than 30 consecutive days without furnishing notice of leave, or without having his leave sanctioned, he may be marked absent and removed from the service of the establishment.

(3)Notwithstanding anything contained in Sub-Rules (1) and (2), in case any worker or employee is required to go on leave without having his leave sanctioned due to an emergency, and in case leave for the concerned period is sanctioned later, this rule shall not be deemed to have been violated.

Chapter 4
Arrangements Relating to Health, Sanitation and Safety

38.Arrangements for Safety From Fire

The General Manager must make the following arrangements in order to ensure safety from fire in the establishment:

(a)Fire fighting equipment must be kept at appropriate places according to need in order to ensure safety from fire.

(b)Arrangements must be made in the factory for hydrant points as well as hose pipes by ensuring a sufficient supply of pressurised water according to need.

(c)Arrangements must be made for emergency doors for use in the events of fire. No object may be placed around such doors in such a way as to hinder or obstruct movement.

(d)Arrangements must be made for fire alarms or any other sound-making equipment in order to warn everybody in the event of fire.

(e)Arrangements must be made to inspect and test fire-fighting equipment at least once each year, and records thereof must be maintained.

(f)Establishments which use explosives such as gunpowder, nitro-glycerine, dynamite, gun-cotton, blasting-power, fulminate of mercury or other metals, of signals, fuses, rockets, percussion caps, detonators, cartridges or any other explosives prescribed by His Majesty's Government from time to time by notification in the Nepal Rajapatra, must store them in a safe manner at places outside the densely-populated areas and have them used or transported safely by skilled persons possessing special knowledge about them.

39.Carrying of Loads

(1)Workers shall not ordinarily be employed to lift or carry or move any load heavier than the following:

(a)Adult male: 55 kg.

(b)Adult female: 45 kg.

(c)Minor male (16-19 years): 25 kg.

(d)Minor female (16-18 years): 20 kg.

(e)Minor male or female (14-16) years: 15 kg.

(2)Notwithstanding anything contained in Clause (1) of Sub-Rule (1), the limit of load shall not be applicable in respect to lifting, carrying or moving any load packed in bags by an adult male worker.

40.Testine of Pressure Plants

(1)The following points shall be taken into consideration while testing any pressure plant under Section 33 of the act:

(a)The make is good and sufficiently strong.

(b)The pressure plant must be maintained and kept safe in an appropriate manner.

(c)The pressure plant must be fitted with the following equipment:

(1)Safety valve or any other similar equipment meant for preventing the operation of the plant at a pressure higher than the permitted one.

(2)An appropriate pressure guage must have been fitted to monitor the operating pressure of the pressure vessel.

(3)The prescribed operating pressure must be marked in the pressure guage with a red sign.

(4)An appropriate drain cock or valve equipment must have been fitted at the bottom of the pressure vessel to take out liquid material contained in it.

(5)The water level indicators of the pressure vessel must have been fitted in an appropriate manner.

(6)There must be appropriate stop valves so as to separate the pressure vessel system from other vessels or pressure-generating source at any time.

(7)Safety valves and pressure guages must be fitted on a compulsory basis in all seizing cylinders, digesters, steam exhuast fans, and other vessels used in pressure.

(8)In addition to the above-mentioned arrangements, other appropriate equipment must have been fitted in the pressure plant according to its type.

41.License to be Obtained for a Pressure Plant

The Factory Inspector shall test a pressure plant in the manner mentioned in Rule 40, prescribe the maximum operating pressure on the basis of the capacity and condition of the equipment fitted in it, and issue a license for operating it for a period not exceeding one fiscal year. Such license shall be renewed each year only after retesting the plant.

42.Particulars to be Mentioned in the License

(1)The license of a pressure plant shall mention the following particulars:

(a)Name and address of the establishment.

(b)Trademark, model number and date of manufacture of the pressure vessel.

(c)Type of the pressure vessel, and fuel to be used for its operation.

(d)Condition of equipment fitted in the pressure vessel.

(e)Date of issue of the license, and its term.

(f)Hydraulic test pressure.

(g)Condition of fusible plugs.

(h)Other necessary matters.

(2)A copy of the license issued by the Factory Inspector under Sub-Rule (1) must be forwarded to the concerned Labor Office and the Labor Department.

(3)The pressure plant must be operated under the supervision of a trained or experienced person.

(4)The establishment must not operate any boiler, pressure vessel or other equipment which is to be operated at a pressure higher than the atmospheric pressure without obtaining a license from the Factory Inspector.

(5)In case it is suspected that the equipment for whose operation a license has been obtained is not operating properly during the period covered by the license, the concerned Factory Inspector must be notified about the same immediately.

43.Use of Machinery, Apparatus or Equipment

(1)Action shall be taken as follows while using machinery, apparatus or equipment under Sub-Section (2) of Section 36 of the act:

(a)Hydraulic and other machine-operating presses, milling machines, circular saws, slaton printing machines, etc. must be operated by trained and experienced persons.

(b)An appropriate fence must be constructed around power generator motors which operate wheels, lathes, lathe driving accessories, gears, drums, clutches, driving belts, or other dangerous power-generating equipment.

(c)Gas or are welding or similar other work shall be undertaken at a safe place in such a manner that the public is not adversely affected.

(d)Only apparatus and equipment which are not damaged or broken shall be used for under taking repair and maintenance works.

(e)The electrical wires installed for operating equipment must be in good shape and must not have suffered any damage.

(f)Workshops shall be operated in such a way that a separate parking or a sage place for storing goods is arranged for in such a manner as to avoid any adverse impact on the public.

(2)Minors who have not attained 16 years of age shall not be employed in machines mentioned in Clause (a) of Sub-Rule (1) or in dangerous machines or in operations which are hazardous to health.

44.Investigations Into Occupation-Related Diseases or Accidents

(1)On receipt of a notice regarding an occupation-related disease or accident under Section 35 of the act, the Labor Office may designate an Investigating Office if it becomes necessary to conduct investigations in that connection.

(2)The functions and duties of the Investigation Officer designated under Sub-Rule (1) shall be follows:

(a)To obtain necessary details from the site of the incident, or the concerned persons, collect necessary evidence, have necessary documents submitted, record statements, etc.

(b)To conduct investigations as mentioned in Clause (a), and submit a report to the Labor Office within the time-limit prescribed by it.

(3)In case it is found that the use of any material required in the manufacturing process of the establishment is likely to harm the health of workers or employees, the official designated by the Labor. Department or the Labor Office may collect a sample of such material, bottle or pack it properly, and have it tested by an expert. If it is proved that the material is likely to harm the health of workers or employees, His Majesty's Government may issue necessary directives to the General Manager of the establishment.

Chapter 5
Arrangements Relating to Committees and Officers

45.Composition of the Central Labor Advisory Board

(1)The Central Labor Advisory board to be formed under Section 62 of the act shall comprise the following Chairman and members:

(2)The members nominated under Clause (8) of Sub-Rule (1) shall have a term of two years.

(3)His Majesty's Government may, if it so deems necessary, make necessary changes in the size or composition of the Central Labor Advisory Board.

(4)The Central Labor Advisory Board may invite any local or foreign expert to participate in its meeting in the capacity of an observer.

46.Functions, Duties and Powers of the Central Labor Advisory Board

The functions, duties and powers of the Central Labor Advisory Board shall be as follows:

(a)To offer advice to His Majesty's Government on issues concerning labor policy.

(b)To offer necessary advice to His Majesty's Government in connection with timely reforms in the Labor Law.

(c)To offer necessary advice to His Majesty's Government in connection with the construction of quarters for workers or employees.

(d)To offer advice to His Majesty's Government in connection with the formulation of policies relating to apprenticeship training.

(e)To offer necessary advice to His Majesty's Government in connection with the operation of basic vocational training.

(f)To offer necessary advice to His Majesty's Government in connection with increasing the opportunities of employment.

(g)To offer necessary advice to His Majesty's Government for the purpose of achieving industrial development by promoting relations among His Majesty's Government, General Managers, and Workers and employees.

(h)To offer necessary advice to His Majesty's Government for the purpose of achieving industrial development by maintaining industrial peace.

47.Composition of the Labor Relations Committee

(1)A Labor Relations Committee shall be formed in each establishment by ensuring an equal representation of the General Manager and the workers.

(2)The Labor Relations Committee to be formed under Sub-Rule (1) may have at least four but not more than 20 members depending on the total number of workers of the establishment.

(3)The procedure of nominating representatives of the General Manager and the workers in the Labor Relations Committee shall be as mentioned in Rules 48 and 49.

(4)The General Manager must immediately inform the concerned Labor Office after the formation of the Labor Relations Committee under this rule.

48.Nomination of Representatives of the General Manager

While nominating the representatives of the General Manager to the Labor Relations Committee, only the employees who are directly involved in the management of the establishment shall be nominated as far as possible.

49.Nomination of Workers' Representatives

(1)The establishment-level trade union, if any, or the workers themselves, if there is no establishment-level trade union, shall nominate workers' representatives to the Labor Relations Committee.

(2)Nominations of workers' representatives to the Labor Relations Committee shall be made in such a way that all categories of workers are represented.

50.Members and Office-Bears of the Labor Relations Committee

(1)Only a Nepali worker or employee who has completed at least 18 years of age and at least one year's uninterrupted service in the establishment may be nominated as a member of the Labor Relations Committee.

(2)The office-bears of the Labor Relations Committee shall comprise a Chairman, a Vice-Chairman, a Secretary, a Joint-Secretary, and a Treasurer.

(3)The General Manager shall nominate the Chairman of the Labor Relations Committee from among its members.

(4)The Labor Relations Committee shall itself choose its Vice-Chairman and Secretary from among the workers' representatives, and its Joint-Secretary and Treasurer from among the representatives of the General Manager.

(5)The members and office-bearers of the Labor Relations Committee shall have a term of two years.

51.Meetings of the Labor Relations Committee

(1)Meetings of the Labor Relations Committee shall be convened by the Secretary as prescribed by the Chairman.

Provided that such meetings must be held at least once every three months.

(2)The General Manager must make arrangements for meetings to be held under Sub-Rule (1).

(3)The Secretary shall record the decisions of the meetings in the minute book and have them authenticated by the Chairman.

(4)The entire working procedure of the meetings of the Labor relations Committee shall be as determined by the Committee itself.

52.Functions and Duties of the Labor Relations Committee

The functions and duties of the Labor Relations Committee shall be as follows:

(a)To make efforts to maintain quality by promoting and improving the products and services of the establishment.

(b)To perform functions relating to the operation of the Welfare Fund.

(c)To perform functions relating to the operation of the Provident Fund of the establishment.

(d)To perform functions relating to the operation of quarters and funds of workers and employees.

53.Functions, Duties and Powers and Labor Officer

The Labor Officer shall have the following functions, duties and powers in addition to these mentioned in Section 65 of the act:

(a)To play the role of a mediator for resolving any dispute between the workers or employees and the General Manager.

(b)To resolve disputes by arranging for a dialogue in connection with personal claims or complaints of the workers or employees, and, if any dispute is not resolved in that manner, to take necessary decision.

(c)To summon any worker or employee of any establishment appear before to the establishment or the Labor Office and record his verbal or written statements in the course of action by the Labor Office.

(d)To encourage the workers to always concentrate on their work, and create necessary atmosphere for the purpose.

(e)To offer advice and suggestions to the General Manager in connection with the framing of necessary policies in case it is necessary to develop and expand the establishment and make some changes in the functions and duties of the workers, and thus play an active role in maintaining healthy and balanced labor relations.

(f)To acquaint the workers in simple language with the problems they may face in the establishment and matters which protect their rights and interests.

(g)To play the main role in the process of taking decisions through mutual discussions and consultations among representatives of the General Manager and the workers in connection with improvement of the manufacturing or other processes of the establishment.

(h)To make arrangements for maintaining a harmonious relationship through mutual discussions and consultations between the General Manager and the workers for checking the emergence of an atmosphere of discord between them.

(i)To remain active to prevent the workers from going or strike in an illegal manner, avoid any obstruction in the functions and activities of the establishment or prevent the General Manager and the workers from dealing with each other in an unauthorised manner.

(j)To adopt a healthy and impartial policy even in event of a dispute between the General Manager and the workers, and try to normalise the situation in a peaceful and cordial atmosphere.

(k)To obtain advice and suggestions from the local Office and qualified physicians and have the health of the workers examined for their welfare and safety, keep records thereof, make arrangements for protecting their bodies from dangerous operations, testing and examining machines, and cleaning the factory, and make other timely arrangements relating to health and safety.

(l)To offer necessary advice and suggestions to the General Manager in connection with payment of wages and grant of leave and other facilities to the workers.

(m)To arrange for the implementation of welfare arrangements mentioned in the act.

(n)To make arrangements also for entertainment and sports to ensure mental and physical health of the workers.

(o)To encourage the General Manager and the workers and make necessary arrangements for forming the Labor Relations Committee, the Production Committee, the Welfare Committee, the Security Committee, and other committees which can prove helpful in the operation of the establishment.

(d)(Sic). To obtain technical or administrative reports in connection with the implementation of the act in establishments, and take necessary action.

54.Other Functions, Duties and Powers of Factory Inspector

The Factory Inspector shall have the following functions, duties and powers in addition to those mentioned in Section 67 of the act:

(a)To enter into any factory or establishment coming under the jurisdiction of the concerned Labor Office, inspect and examine houses, lands, plants, machines, the raw materials used, finished and semi-finished products, and health and security arrangements, and order the General Manager to make improvements if so deemed necessary.

(b)To issue orders to make necessary arrangements immediately at any place in the factory or establishment which is found to be hazardous from the viewpoints of health and safety.

(c)To inspect once every year boilers, pressure vessels and other dangerous machines, which can be lethal, of the factory or establishment, and issue licenses for their operation for a term not exceeding one year if they are found to be fit for operation.

(d)To offer necessary advice to the General Manager in connection with possible ways for increasing the productivity of the factory or establishment.

(e)To inspect attendance registers of the workers and employees working in the establishment, the particulars of salaries, allowances and overtime payments made to them, and other documents.

(f)To make necessary enquiries or obtain verbal or written statements from any worker or employee of the factory or establishment in connection with its health and safety arrangements.

(g)To conduct investigations in the event of an accident in the factory or establishment.

(h)To initiate action for providing compensation in case any worker or employee sustains injuries and becomes physically disabled while engaged in the work of the factory or establishment.

55.Functions, Duties and Powers of Welfare Officer

The functions, duties and powers of the Welfare Officer shall be as follows:

(a)To establish cordial relations between the General Manager and the workers, and maintain good contacts and relations with both sides.

(b)To inform the General Manager in time in case the workers face any problem or difficulty on an individual or collective basis, and resolve the problem.

(c)To encourage the promotion of trade union activities in respect to matters which serve the occupational rights and interests of the workers, and offer advice and suggestions.

Chapter 6
Miscellaneous

56.Information to be Supplied While Establishing Establishments or Expanding to Existing Ones

(1)In case it is necessary to establish an establishment or expand an existing one, the concerned General Manager must inform the concerned Labor Office along with particulars relating to the following matters at least 15 days before doing so:

(a)Area and type of land, and particulars of boundaries.

(b)Length, breadth and height of the establishment and other related buildings to be constructed.

(c)Particulars of the type and quantity of materials kept at different places in the building, and the type of machinery and tools to be installed for production and construction.

(d)Appropriate arrangements for light as well as ventilation in all the rooms of the building.

(e)Arrangements of the discharge of has from the establishment if has is likely to be emitted from the manufacturing process.

(f)Appropriate arrangements for lavatories.

(g)Arrangements for pure drinking water.

(h)Arrangements for an adequate volume of water if a large volume of water is required in the manufacturing process.

(i)Distance of the establishment from residential areas, and particulars of measures to be adopted to protect the neighborhood from the possible environmental impact.

(j)Type and volume of energy required for manufacturing work.

(k)Names and quantities of raw materials and auxiliary raw materials required for manufacturing work.

(l)Names and quantities of goods to be produced.

(m)Arrangements to be made for the protection of the physical area of the establishment as well as its products from fire.

(2)The Factory Inspector shall conduct necessary enquiries into the particulars received by the Labor Office under Sub-Rule (1). If he sees any possibility of an adverse impact from the viewpoints of health, safety, and the environment, he may direct the General Manager of the concerned establishment to change or amend the particulars according to need. It shall be the duty of the concerned General Manager to comply with such directives.

57.General Manager To Furnish Notice

(1)The General Manager must inform the local Labor Office in writing along with the following particulars at least 15 days before using any new building or land for the purpose of his establishment:

(a)Name and address of the establishment.

(b)Name and address of the General Manager of the establishment.

(c)Address of the establishment for purposes of correspondence.

(d)Name and address of the Manager of the establishment.

(e)Particulars of workers involved in the establishment.

(2)The General Manager must send to the local Labor Office a written notice along with the particulars mentioned in Sub-Rule (1) within 30 days form the date of commencement of these rules.

(3)In case no Manager has been appointed in any establishment, or in case the person who has been appointed as Manager has not yet taken up the responsibility of the management of the establishment, the person discharging the functions of the Manager, or, if there is no such person also, the General Manager himself, shall be treated as the Manager of the concerned establishment for the purpose of this rule.

58.Working Procedure of Labor Court

While initiating action on and disposing of suits, the Labor Court shall adopt the working procedure mentioned in the 1972 Summary Trial Procedure Act.

59.Repeal and Saving

(1)The 1963 Nepal Factories and Factory-Workers Rules have been repealed.

(2)In respect to matters provided for in the labor rules framed exclusively for application in any particular establishment, action shall be taken accordingly, and in respect to other matters, action shall be taken under these rules.

(3)All actions taken and functions performed under the 1963 Factories and Factory-Workers Rules shall be considered to have been taken or performed under these rules.

SCHEDULE

Prescribed Degrees of Physical Disability

Amputation of One Arm

Amputation of One or Both Legs

Other Special Injuries

Total Rigidity of Limbs and Joints As a Result of Injuries

Paralysis of Limbs or Any Part of the Body As a Result of Injuries

Total Paralysis of the Following Organs

The degree of any physical disability not mentioned above shall be determined on the basis of any of the similar conditions mentioned in the schedule.