[THE] LABOUR ACTS (1992)

DATE OF ROYAL SEAL OF ASSENT: 2049/2/2/6

(MAY 16, 1992)

Preamble:

Whereas it is expedient to make timely provisions relating to labour by

making provisions for the rights, interests, facilities and safety of workers and
employees working in enterprises of various sectors.

Now, therefore, be it enacted by parliament on the twenty first year of the

reign of His Majesty King Birendra Bir Bikram Shah Dev.

CHAPTER – 1

Preliminary

1. Short Title and Commencement:

(1) This Act may be called as "Labour Act, 2048 (1992)"

(2) This Act shall came into force immediately.

2. Definitions: Unless the subject or context otherwise requires in this Act –

(a) "Production Process" means any of the following process –

i. Works relating to making altering repairing, engraving,

finishing, packing, oiling, washing, cleaning breaking-up,
dismantling or other kinds of activity given to any article or
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 substance with a view to brining it to use, sale, distribution,
transportation or disposal; or

ii. Pumping oil, water or sewerage; or

iii. Generating, transforming or transmitting energy; or

iv. Printing lithography, photography, book-binding or similar

other works.

(b) "Enterprise" means any factory company, organization, association,

film or group there of established under the prevailing laws for the
purpose of operating any industry, profession or service where ten
or mare worker or employees are engaged and this word shall also
include –

i. Tea estates established under the law for commercial purpose;

ii. Enterprise operating within the industrial district established

by His Majesty's Government where less than ten workers or
employees are engaged.

(c) "Employee" means a person engaged in administrative functions of

the Enterprise.

(d) "Workers" means a person employed on the basis of salary to work

in any building, premises, machinery or any part there of used for
any productions process or providing service, or any act relating to
such work or for any unscheduled works and this word shall also
include any worker working at piece-rate, contract or agreement.

(e) "Manager" means a person appointed for performing the functions

in the Enterprise.

(f) "Proprietor" means the person having final authority on the

activities of the Enterprise and this word shall also include any
person appointed as the Chief of any branch or unit of the Enterprise
with powers to exercise final responsibility or authority in respect
thereof.

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(g) "Factory Inspector" means the Factory Inspector appointed by His
Majesty's Government and this word shall also include the Senior
Factory Inspector.

(h) "Child" means a person who has not attained the age of fourteen
years.

(i) "Minor" means a person who has attained the age of fourteen years
but has not completed the age of eighteen years.

(j) "Major" means a person who has completed the age of eighteen
years.

(k) "Energy" means electrical or mechanical energy.

Provided this word shall not include any energy generated for
human or animal sources.

(l) "Seasonal Enterprise" means an Enterprise which cannot be

operated or which is not feasible to operate in any season other than
the specific season and this word shall also include a Seasonal
enterprise which connot operate more than one hundred and eighty
days in one year.

(m) "Day" means period of twenty-four hours starting from any

midnight and ending at another midnight.

(n) "Week" means a period of seven days starting from midnight on

Saturday or from midnight or such other days as prescribed by the
Department of Labour.

(o) "Welfare Officer" means the welfare officer appointed under this
Act.

(p) "Labour Officer:" means the Labour Office appointed under this act
and the word shall also include the Senior Labour Officer.

(q) "Labour Court" means the Labour Court under this Act.

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 (r) " Remuneration" means the salary or wage to be received in cash or
kind from the Enterprise by the worker or employee for the works
performed in the Enterprise and this word shall also include any
amount to be received in cash or kind for the works done under
piece-rate or contract.

Provided that this word shall not include any kind of allowance or
facility.

(s) "Prescribed" or "as prescribed" means prescribed or as prescribed in

the Rules made under this Act.

CHAPTER - 2

Employment and Security of Service

3. Classification of Job:

(1) The Proprietor shall have to classify the job of the workers and
employees of the Enterprise according to the nature of production
process, service or functions of the Enterprise and shall provide the
information thereof to the concerned Labour Office.

(2) If the classification done pursuant to Sub-section (1) requires any

amendment, the Labour Officer may, stating the reasons thereof,
issue a directive to the Proprietor and it shall be the duty of the
Proprietor to abide by such directive.

4. Appointment of Worker and Employee:

1. In cases where it is required to appoint a worker or employee in any

post classified pursuant to Section 3, the Manager Shall have to
advertise in order to select such a worker or employee in order to
select such a worker or employee and the worker or employee so
selected shall have to be provided with appointment latter and be
engaged at work..
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2. The worker and employee appointed under Sub-section (1) shall be
appointed permanently the employee shall be kept on probation
period unless he completes the continuous service period of one
year and, during such period, his efficiency, sincerity discipline,
diligence towards works, punctuality, etc. An appointment letter
shall be provided with the name of the post of the worker or
employee and his remuneration and conditions of service while
making such appointment. An information thereof shall also be
provided to the Labour Office.

Clarification: for the purpose of this sub-section, the words " the
continuous service period of one year" mean the period of two
hundred forty days engaged at work during a period of twelve
months in an Enterprise, or the period served continuously in a
Seasonal Enterprise during the period of such a running season, by a
worker or employee and, while calculating the said two hundred
forty days, public and weekly holidays shall also be counted.

3. The worker or employee engaged on piece-rate or contract in the

works of permanent nature of an Enterprise shall also be appointed
permanently under Sub-section (2).

4. The workers or employee engaged under Sub-section (3) shall be

entitled to facilities provided in this Act according to the scale of his
post.

(A) Prohibition of Engaging Non-Nepalese Citizens at Work:

(1) Non-Nepalese citizens shall not be permitted to be

engaged at work in any of the posts classified pursuant
to Section 3.

(2) Notwithstanding anything contained in sub-Section (1)

above, if a Nepalese citizen could not be available for
any skilled technical post even after publishing an
advertisement in national level public newspapers and
journals, the Manager may submit an application to the
Department of Labour along with the evidence of such
fact for the approval to appoint a non-Nepalese citizen.
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 (3) If it is found, in conduction an inquiry upon the
submission of any application pursuant to sub-section
(2), that a Nepalese citizen would not be available for
the skilled technical post mentioned in the application,
the Department of Labour may, on the recommendation
of the Labour Office, grant approval to engage a non-
Nepalese citizen at work years for a maximum period
of upto five years not exceeding two years at a time
and, in the specialized kind of skilled technical post, for
a period upto seven years.

(4) The Manager, who engages non-Nepalese citizens at

work pursuant to sub-section (3), shall have to make
arrangements for making the Nepalese citizens skilled
and for replacing the non-Nepalese citizens gradually
by them. "

5. Engagement in Work:

(1) No child shall be engaged in work in any Enterprise.

(2) Minors and females may be engaged in the works normally from 6
o'clock in the morning till 6 o" clock in the evening, except in the
prescribed conditions.

(3) By making an appropriate arrangement with mutual consent

between the proprietor and the worker of employee, the females
may also be engaged in the works similar to the males.

(4) The Manager may transfer a worker or employee to any branch or

unit of the Enterprise without causing any difference in the nature or
standard of work. .

6. Computation of period of Works: For the purpose of computing the

period of works performed in the Enterprise by any worker on employee,
the following period shall also be counted.

The word "with salary" appearing in clause (b) of section 6 of the principal
Act has been substituted by the words "with remuneration".
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 (a) the period remained in reserve under Section 11; and

(b) the period stayed with remuneration leave.

7. Appointment in Contract Service: If an Enterprise needs to increase in

production or service immediately, any person may be appointed in
contract, by fixing a time period and setting forth the remuneration to be
received by him and the terms of service, for any specified work other than
the works of the Enterprise which are permanent in nature.

8. Change of Ownership shall not Adversely Affect: Any change in

the ownership of the Enterprise shall not be deemed to have affected on
the terms and conditions of service of the workers and employees of the
Enterprise.

9. Separate Registers of the Workers and Employee to be Kept:

(1) In each Enterprise, the Proprietor shall maintain separate registers of

the workers and employees mentioning the following particulars –

(a) Name of the worker or employee,

(b) Nature of job,

(c) Remuneration and method of its payment,

(d) Other prescribed particulars.

(2) The register maintained under Sub-section (1) shall have to be

submitted when demanded by the Labour Officer, Factory Inspector
or any other person designated by the Labour Office.

10. Security of Service: The service of any permanent worker or employee

may not be terminated without following the procedures prescribed by this
Act or the Regulations or Bylaws made under this Act.

11. Keeping on Reserve:

(1) In case where the curtailment of production or service in any

Enterprise for some period is necessary or where operation of the
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 Enterprise cannot be continued for some special circumstance, the
Proprietor, under Sub-section (2), may curtail its production or
service or may close the Enterprise or a part of thereof.

(2) Permission from the Labour Office in case of a period up to

fiftdxjeen days and from the Department of Labour in case of a
period for more than that shall have to be taken while curtailing the
production or service or closing the Enterprise or any part thereof as
mentioned in Sub-section (1). The Labour Office shall, inform the
Department of Labour of such permission in case it has given
permission.

(3) While doing curtailment in the production or service pursuant to

Sub-section (1), any worker working on shifts or on wages or
permanent worker or employee of the Enterprise except the
employee shall be kept reserve on the condition of receiving half of
his salary.

Provided that such worker or employee shall continue to receive the

facilities which he was receiving.

(4) If any worker or employee kept in reserve pursuant to Sub-section

(3) refuse to work on another assignment or similar nature on equal
remuneration offered by the proprietor in the same Enterprise or
another Enterprise under his control or if he does not come in the
Enterprise once a day during office hours or on other situations as
prescribed, the Proprietor may withheld the salary and facility of
such worker and employee.

12. Retrenchment and reinstatement:

(1) If, for any special circumstances, the production or service of the
Enterprise had to be curtailed or the Enterprise has to be closed
party or wholly for more than three months, the Proprietor may,
with the approval of His Majesty's Government through the
Department of Labour, retrench in the number of the workers and
employees, partly or wholly, of the Enterprise.

(A) If the Manager makes a demand to His Majesty's Government

for approval in respect of the retrenchment of workers or
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 employees pursuant to sub-Section (1), His Majesty's
Government shall have to make decision within two months
on whether such retrenchment of employees to be made or
not.

(2) While retrenching the workers or employees under Sub-section (1),

engaged in similar type of works, those permanent workers or
employees who were appointed in the last shall be retrenched first.

Provided that if it is required to retrench some of the workers or

employees appointed earlier, not following the prescribed order of
retrenchment such retrenchment may be made by specifying the
reasons thereof.

(3) While doing retrenchment as per Sub-section (2), it shall be done as

follows –
(a) By providing a notice with the reasons or retrenchment either
one month in advance or paying the salary of one month in
case of worker or employee who is permanent and

(b) By paying a lump sum compensation to each worker or

employee of the amount of salary calculated by multiplying
the number of each year of service performed at the
Enterprise by the amount of his present salary for 30 days.

Explanation: For the purposes of this Clause, the work

performed for at least six months in any year shall be counted
as one year of service.

(4) The provisions of Sub-section (3) shall not applicable to any worker
or employee appointed under contract service.

(5) If anybody has to be engaged in the job of worker or employee

retrenched earlier, priority shall be given to the retrenched workers
or employees.

Explanation: For the purposes of Section 11 and 12 the "Special

Circumstance" shall mean damage, break down or failure of
machines or the Enterprise and thereby causing stoppage in the
production or failure in the supply of fuel, electricity, coal or similar
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 energy or due to any kind of force majeure or insufficient supply of
raw materials or stock piling of the produced goods due to loss of
sale or other similar situations.

13. Seasonal Enterprise:

(1) The workers or employees of a seasonal Enterprise shall not be

deemed to be on reserve during off-season period.

(2) The beginning and closure of operation of seasonal Enterprise shall

be informed to the Labour Office.

(3) The permanent worker of employee shall have to be paid with at

least twenty five percent of his remuneration as retaining allowance
for the period of closure of a seasonal Enterprise during off-season..

(4) The decision of the Department of Labour shall be final in relation

to any dispute as to whether any Enterprise is a seasonal or not.

Explanation: While computing the period of two hundred and forty

day, the public holidays and weekly holidays shall also be counted.

14. Compulsory Retirement: The Proprietor may compulsorily retire any

worker or employee who has crossed the age of fifty five years.

Provided that he may extend the period of service of any worker of

employee by five years, in case the worker or employee is indispensable
for the operation of the functions Enterprise.

CHAPTER – 3

WORKING HOURS

15. Working Hours: No worker or employee shall be deployed in work for

more than eight hours per day or forty eight hours per week and they shall
be provided one day as weekly holiday for every week.
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16. Computation of Commencement of Working Hour: The time for
starting of work by worker or employees shall be as prescribed by the
Proprietor.

17. Intervals for Refreshment and Rest: In any Enterprise where work may
be interrupt, no worker or employee shall be deployed in work for more
than five hours continuously without providing an interval of half an hour
for tiffin. In any Enterprise where works have to be carried out
continuously without interruption, such intervals shall be provided on
rotation basis. Such interval of half an hour shall be deemed to have been
included within the daily working hours.

18. Extra Wages to be Provided:

(1) Where any worker or employee is engaged to work for more than
eight hours in a day or forty eight hours in a week, he shall be paid
overtime wages at the rate of one and one-half time of his ordinary
rate of wages.

Provided that no workers or employee shall be compelled to work

overtime.

(2) While deploying any worker or employee to work overtime,

generally the duration shall not exceed four hours per day and
twenty hour per week.

19. Attendance Register to be Kept: Each Enterprise shall keep attendance

register of its workers and employees.

20. Minimum Remuneration Fixation Committee:

(1) His Majesty's Government may fix the minimum remuneration,

dearness allowances and facilities of workers or employees or
Enterprises on the recommendation of the Minimum Remuneration
Fixation Committee and the notification on rates so fixed shall be
published in the Nepal Gazette.

(2) His Majesty's Government shall, in order to fix the minimum

remuneration, dearness allowances and facilities, constitute a
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 Minimum Remuneration Fixation Committee consisting of the equal
number of representatives of workers or employees, Managers and
His Majesty's Government.

(3) While making recommendation in regard to dearness allowances

and facilities of workers or employees, the Minimum Remuneration
Fixation Committee constituted under sub-section (2) may do so on
the basis of geographical areas.

(4) The rates of minimum remuneration, dearness allowances and

facilities fixed pursuant to sub-section (1) shall be effective only
from the date of publication of a notification to that effect in the
Nepal Gazette.

(5) In cases where the Minimum Remuneration Fixation Committee

could not be constituted or even if it is constituted, it could not make
recommendation, nothing contained in the foregoing sub-sections
shall be deemed to have barred fixing the minimum remuneration,
dearness allowances and facilities of workers and employees of
Enterprises by His Majesty's Government.

(6) No agreement may be entered into between the manager and

workers or employees in a way to make the minimum remuneration,
dearness allowances and facilities lesser than those fixed pursuant to
sub-section (1).

(7) The other functions, duties and powers of the Minimum

Remuneration fixation Committee shall be as prescribed.

A. Annual Increment in Salary:

(1) The worker and employee appointed permanently

pursuant to sub-section (2) of Section 4 shall receive an
increment in salary each year.

(2) The amount of increment in salary to be received

pursuant to sub-section (1) shall be equal to the half
day's remuneration of the concerned worker or
employee.

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 (3) Notwithstanding anything contained in sub-section (1)
above, such increment in salary shall not be provided in
cases where the salary is withheld pursuant to sub-
section (2) of Section 52.

21. Payment of Remuneration, Allowances and Facilities: It shall be the

responsibility of the concerned Manager to provide the remuneration,
allowances and facilities to be received by a worker or employee of the
Enterprise.

22. Period of Remuneration: The Proprietor may fix the period of payment
of remuneration to the workers of employees on weekly, fortnightly or
monthly basis in way not exceeding the period of one month. Provided
that this provision shall not apply in respect of the persons who are
working on daily wages, piece-rate or contract basis.

23. Prohibition on Deduction of Salary:

(1) The remuneration of workers or employees shall not be deducted

expect under the following circumstances –

(a) In case it is required to realize any fine.

(b) In case it is required to deduct against absence;

(c) In case it is required to deduct against loss or damage of cash

or kind of the Enterprise caused intentionally or negligently;

(d) In case it is required deduct in respect of providing

prescribed facilities;

(e) In case it is required to deduct in respect of advance or over

payment of remuneration;

(f) In case it is required to deduct in respect of the period of

suspension;

(g) In case it is required to deduct under the order of government

office or court'

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 (h) In case it is required to deduct as per the notification of His
Majesty's Government published in the Nepal Gazette; or

(i) In case it is required to deduct in respect of income tax or any

other tax leved under prevailing laws.

(2) The limit of amount to be deducted as per Sub-section (1) the

method of deduction, the period of deduction and other related
matters shall be as prescribed.

24. Petition to be Filed in cases a Deduction in Remuneration Made or

Delay Caused in Payment or other Facilities not provided or Delay
Caused in providing such Facilities in an Undue Manner:

(1) Except in cases of happening of a mistake or failure to fix the

remuneration amount or inability to pay the remuneration due to the
occurrence of an unforeseen incident or of special circumstance or
failure on part of the concerned worker or employee to come to
receive his remuneration or his refusal to receive the same; if, in an
undue manner, a deduction in remuneration is made or a delay is
caused in payment or in case of release from suspension or
annulment of expulsion by a judgment of a court, the remuneration
for the period of such expulsion or suspension is not paid or a delay
is caused in such payment or the allowance, gratuity or the amount
of provident fund or compensation to be received by a worker or
employee is not paid or delay is caused in such payment, the
concerned worker or employee himself or through his attorney may
file a petition in the Labour Office.

(2) The petition as referred to in sub-section (1) shall have to be filed

within six months from the date of deduction in remuneration or
causing delay in payment or non payment of allowance, gratuity,
amount of provident fund or compensation or causing delay in such
payment.

(3) While conducting necessary inquiry and examination on the petition

filed pursuant to sub-section (1), if it is proven that the remuneration
has been deducted in an undue manner or a delay has been caused in
payment or the amount of allowance, gratuity, provident fund or
compensation has not been paid or a delay has been caused in such
14
 payment, the Labour Office may give order requiring to make
payment of such remuneration, allowance, gratuity,. Amount of
provident fund or compensation to the concerned worker or
employee and to pay the concerned worker or employee amount
upto three times of such amount in default for atonement thereof.

(4) If it is proven that the petition under sub-Section (1) has been filed
with a malicious motive or with an intention of causing unnecessary
trouble or distress to the Manager, the Labour Office may give order
requiring the petitioner to pay not exceeding one thousand rupees
for compensation to the Manager.

(5) The Labour Office shall make available to the concerned party the
amount to be paid or handed over in accordance with the order
issued under sub-section (3) or (4) by getting recovered and realized
the same by taking all or any of the following action:-

(a) By keeping withheld the movable and immovable properties

of the concerned Enterprise, worker or employee in
accordance with the prevailing law,

(b) By keeping withheld the deposit amount of the concerned

Enterprise, worker or employee being kept in any
Government Office or in any Corporate body with the
ownership of His Majesty's Government or the amount to be
paid or handed over the concerned Enterprise, worker or
employee by such Office or corporate body,
(c) By keeping withheld the import or export of the concerned
Enterprise, worker or employee.

(d) By keeping withheld the discount, facilities or concessions of

the concerned Enterprise, worker or employee to be obtained
under the prevailing law.

25. Appeal: The party dissatisfied with the Order issued as per Sub-section (3)
or (4) may file an appeal to the Labour Court within thirty five days of the
receipt of information of such order and the decision of the Labour Court
shall be final.

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 CHAPTER – 5

Health and Safety

26. Provisions Relating to Health and Safety: The Proprietor shall make the
arrangements in the Enterprise as mentioned below –

(a) To Keep each Enterprise clean and tidy by cleaning daily including
with germicidal medicines, necessary arrangements of proper
drainage and coloring from time to time and preventing from odor;

(b) To make arrangements for adequate supply of fresh air and light as
well as proper temperature in the working rooms;

(c) To make arrangements of removal and disposal of solid waste

during production process,

(d) To make arrangements of prevention of accumulation of dust fume

vapour and other impure materials in working rooms which would
adversely affect the health;

(e) To make arrangements of necessary preventive personal devices for

protection of health from adverse any other source, and make
provisions which would produce less noise during the work process;

(f) To avoid any congestion in the work-room or work place leading to

injurious to the health of workers or employees and to avail working
space to each worker or employee, according to the nature of the
job, or normally fifteen cubic meters and, the height above four
meters from the floor surface shall not be counted for such purposes.

(g) To make provisions for sufficient supply of pure potable water

during the working hours, and to make arrangement for sufficient
water in the Enterprise where chemical substances, are used or
produced which may be injurious to the health, for the purpose of
extinguishing fire or washing and cleansing during emergency
situations;
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 (h) To make provisions for separate modern type toilets for male and
female workers or employees at convenient place;

(i) To declare as non-smoking zone in all or some parts of the

Enterprise, according to the nature of its works; and

(j) Too cause to conduct compulsory health check-ups of the workers

or employees once every year in the Enterprises where the nature of
works is likely to affect the health adversely.

27. Protection of Eyes:

(1) Necessary protective means shall have to be arranged for the

protection of eyes of the workers and employees from injuries likely
to be caused by dust or pieces while working in the Enterprise using
glass, mercury, magnet, pallets, iron, concrete, cement, lime, stone
and explosive substances.

(2) Necessary protective devices shall have to be arranged to protect the

eyes from harmful rays coming from during the process of welding
or gas-cutting, or other similar works.

28. Protection from Chemical Substance:The Proprietor shall have to make

provisions for necessary personal protective devices for the protection of
workers or employees handling chemical substances.

29. Provision for Safety Against Fire:

(1) The Proprietor shall have to make arrangements of necessary

modern equipment for safety against fire in each Enterprise.
(2) Provision shall have to be made for easy exit from the Enterprise
during emergency.

(3) Other provisions to be made by the Enterprise in relation to safety

from fire including fire-fighting devices shall be as prescribed.

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30. Hazardous Machines to be fenced:

(1) Strong or every part of fences shall have to be place around

hazardous machines, instruments and equipment operated by
energy.

(2) In case it is required to do inspecting, lubrication or adjusting any

part of hazardous machines during its running condition only
experienced and well-trained adult worker or employee shall have to
be engaged to perform such works.

31. In relation to Lifting of Heavy Weight:

(1) No worker or employee shall be engaged in the works of lifting,

loading or transporting any load likely to cause physical injury or
harm to the health.

(2) The maximum load to be lifted, loaded or transported by an adult,

minor, male or female workers or employees shall be as prescribed.

32. Pressure Plants:

(1) In case a machine has to be operated at a pressure more than the

atmospheric pressure in course of the productions process of any
Enterprise, necessary effective measures shall have to be adopted in
a way that such machine will not be operated at a pressure heavier
than safe working pressure.

(2) Provisions in relation to testing, certifying and licensing for

operation of the machines mentioned in Sub-section (1) shall be as
prescribed.

33. Orders to Provide for Safety :

(1) In the situation where no provision of safety has not been made
which was required to be done as per this Act, in any Enterprise, the
Labour Office may issue a written order to the Enterprise giving a

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 reasonable time limit in order to provide and make necessary
arrangements thereon within such period.

(2) If the order issued as per Sub-section (1) has not been followed the
Labour Office May order the closure of such unsafe portion, plant or
machinery or the Enterprise and it shall be the duty of the Enterprise
to abide by such order.

34. Notice to be Provided:

(1) Each Enterprise shall have to inform the Labour Office within three
days if any worker or employee dies or is injured making him
disabled to work for more than forty eight hours, from an accident
occurred in the Enterprise or for any other reason, and within seven
days if such worker or employee has been caught by any disease
resulting from the profession.

(2) The authority empowered to investigate the accident or disease

mentioned in the information given pursuant sub- section (1), his
powers, functions, duties, and the procedures relating thereto shall
be as prescribed.

35. Powers to Determine the Standards:

(1) His Majesty's Government may prescribe the standards of safety

required under this chapter as per necessity by publishing a notice in
Nepal Gazette.

(2) Except those mentioned in Sub-section (1), other provisions relating

to health and safety to be adopted while using machinery,
instruments or equipment in the Enterprise shall be as prescribed.

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 CHAPER – 6

Welfare Provision

36. Welfare Fund: The Enterprise shall have to establish a Welfare Fund, as
prescribed for the welfare and benefit of the workers or employees.

37. Compensation: In case any worker or employee of the Enterprise is

physically wounded or seriously hurt or dies in course of his work, the
compensation shall be paid to him or to his family, as prescribed.

38. Gratuity, Provident Fund and Medical Expenses: The gratuity,

provident fund and facilities relating to medical expenses to be provided to
the workers and employees shall be as prescribed.

39. Leave: The public holidays, sick leave, annual leave, maternity leave,
obsequies leave, special leave, with remuneration or without remuneration
leave, etc. to be enjoyed by the workers and employees of each Enterprise
shall be as prescribed.

40. Provision of Quarters:

(1) The proprietor shall each year allocate not less than five percent of
the gross profit of the Enterprise to provide healthy quarters for the
workers and employees and shall gradually build such quarters.

(2) A separate fund shall have to be maintained for depositing such

amount allocated pursuant to Sub-section (1).

(3) The operation of the fund as mentioned in Sub-section (2) shall be

as prescribed.

41. Provisions Relating to Children:

(1) Where fifty or more female workers and employees are engaged in
the work the Proprietor of the Enterprise shall have to make
provisions of a healthy room for the use of children of such female
workers and employees.

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 (2) A trained nurse, including some necessary toys, shall also be
arranged for the children as mentioned in Sub-section (1).

(3) The female workers and employees shall be provided time, as

necessitated, to feed their suckling babies.

42. Relaxing Room: Where fifty or more workers and employees are engaged
at work the Proprietor of the Enterprise shall have to make provisions for
relaxing room with minimum amenities.

43. Canteen: Where fifty or more workers and employees are engaged in
work at one time the Proprietor of the Enterprise shall have to make
provisions for a canteen.

CHAPTER – 7

Special Provisions to be Applicable to Special Type of Enterprise.

44. Tea-Estate:

(1) The Special provision mentioned as below shall be applicable in

respect of the tea estates –

(a) Formation of Committee: His Majesty's Government may

constitute, as prescribed, a Committee to provide necessary
advice on promotion, policy formulation and other related
matters in respect of the tea estates.

(b) Provision of Quarter: The Proprietor shall have to make

arrangements for appropriate quarters within the tea-estate for
the workers who do not have their residence nearby.

(c) Provisions of Primary Health Care: The Proprietor shall have

establish a primary Health Care Center under the
responsibility of a trained employee in order to provide free
21
 primary treatment of minor injuries to the workers and
employees engaged within the tea-estate and to the members
of their family.

(d) Safety Devices : The Proprietor shall have to provide safety

devices and equipment required for personal protection of the
workers of the tea-estate.

(e) Provisions of Primary School: The Proprietor of a Tea-estate

shall run a primary school if there are fifty or more children
of the age between five and fourteen years, receiving primary
education, of the workers residing in the quarters provided by
the tea-estate and in case there is no school within a distance
of one kilometer from the tea-state.

(f) Daily Consumer Goods: The Proprietor shall have to arrange

to make the daily consumer goods easily available to the
workers and employees, if there is no market near the tea-
estate.

(g) Provision for Entertainment: The Proprietor shall have to

make necessary arrangements for appropriate sports facilities
within the tea-estate for physical and mental development of
the workers of the tea-estate.

(h) To get the works done on contract: This Section shall not be
deemed to prevent from entering into agreement between the
Proprietor and the workers of the tea-estate in respect of
doing certain specified works of the tea-estate under contract.

(2) For the purpose of this Section –

(a) "Tea-estate" means tea-estate registered under prevailing laws

with commercial objective and this word shall also include
the factory established therein.

(b) "Worker of tea-estate" means any person engaged in the tea-

estate for digging, ploughing, levelling, picking, spraying,
sowing, cutting, reaping, plucking, derooting and doing other
similar works and this word shall also include any person
22
 engaged for cleaning any house, land or machinery or its parts
inside the tea-estate or any person doing any other works
related to the tea- estate.

45. Construction Business : The following special provisions shall apply in

respect of the construction business –

(a) Provisions for Construction Tools: The Proprietor shall have to

avail from its own side all necessary tools and material in sufficient
quantity for the workers engaged in the construction works at
construction site.

Explanation: For the purpose of this Section, "construction work"

means the construction work of building, road, bridge, canal, tunnel,
internal or interstate waterways or railways, or installing of
telecommunication equipment or machine including those of
electricity, telephone or telegraph or other works relating to
construction.

(b) Special Arrangements at Temporary Construction Sites:

At the temporary construction work sites, where fifty or more

workers are engaged, the Proprietor shall have to make
arrangements for quarters, food stuffs, drinking water, etc. for the
workers who do not have residence nearby.

(c) Accident Insurance: The Proprietor shall have to insure all workers
engaged in the construction site against accident in the way as
prescribed.

(d) Safety Arrangements:

(I) The Proprietor shall have to make necessary and adequate

arrangements of safety at the sites of construction works.

(II) The Proprietor shall have to arrange of personal protective

equipment necessary for the workers engaged in construction
works.

23
46. Transportation Business:

(1) The following special provisions shall apply in respect of the

Transportation Business _

(a) Working Hours:

(I) The worker and employee of the transport vehicle may

be deployed in work till reaching the destination.

Provided that in a passenger transport vehicle operating

in long rout, at least two drivers shall be engaged to
drive it alternately.

"Clarification: for the purpose of this Section, "long

route" means the long route as referred to in clause (aa)
of Section 2 of the Motor Vehicle Transport
Management Act, 2049 (1992)."

(II) The driver of a vehicle transporting animals or goods

and operating in the long distance rout, shall be
allowed to take rest at several places before reaching
the destination.

(b) Trip Allowance: In case worker or employee of the

transportation service is engaged for more than eight hours,
he shall be paid overtime at the rate of one and one-half times
of his present amount of salary.

Provided that if the worker or employee engaged in a

operating vehicle is paid with any trip allowance, fooding
allowance or any such other allowance, he shall receive such
allowance or one and half of the amount of remuneration to
be received by him, which one is greater.

(c) … … … … page no. 26

(d) … … … … ,,

24
 (e) First Aid Materials : The operator of transportation business
shall keep sufficient medicines and materials of first-aid
treatment in each vehicle.

(f) Prohibition of Consumption of Alcoholic Drinks:

(I) No worker or employee in any vehicle used for

transportation of passengers, animas or goods shall
consume alcoholic drinks before driving of the vehicle
till reaching to the destination.

(II) In case a vehicle is operated by any worker or

employee after consuming alcoholic drink, the
Proprietor may, on charge of misdemeanor, dismiss
him from the service.

(III) Any person aggrieved by the order issued under Sub-

clause (ii) may appeal in the Labour Court within thirty
five days from the receipt of notice of dismissal from
service.

(g) Commission Agent: The facilities under this Act shall not be
provided to Commission Agent engaged in bookings or
carriage of goods who is not registered in the Register of the
transportation Enterprise.

(h) Change in Ownership: In case the transport vehicle is sold or

there is change in ownership and if it is deemed necessary to
terminate the services of any permanent worker or employee
who has completed one year continuous service, the
transportation businessman, may terminate the service on
payment of compensation and privileges payable under this
Act, including such additional compensation as may be
available pursuant to mutual agreement entered into or
understanding reach between the Proprietor and the worker of
employee.

(2) For the purposes of this Section, "Transportation business" means a

transport service engaged in carriage of passengers, animals or

25
 goods from one place to another taking rents in a vehicle operated
by means of mechanical device.

(3) The Provision set forth in this Section and the provisions of Section
4,10,72,73 and Chapters 4 and 8 shall be applicable in respect of the
Enterprise related with transportation business where less than ten
workers or employee are engaged at work.

47. Business of Hotel, Travel, Trekking, Adeventure, Rafting, Jungle

Safari etc: The following special provisions shall apply in respect of the
business of hotel, travel, trekking, adventure, rafting, jungle safari, etc:-

(a) Females may be engaged in work: Females may be deployed in

works in a hotel or travel agency at any time by making special
arrangements of safety according to the nature of works.

(b) Safety of Workers or Employees engaged in Trekking or Rafting:

(I) The Proprietor shall compulsorily have to make arrangement,

as per necessity, for personal protective equipment and
necessary clothing shoes and other articles for protection of
health of the workers or employees engaged in trekking
rafting or other adventures sports.
(II) It shall be the responsibility of the concerned Proprietor to
rescue or cause to rescue operation as may be required.

(c) Accident Insurance: The Proprietor shall insure all workers and
employees engaged in trekking, rafting jungle safari or other
adventure sport against accident in the way as prescribed.

(d) Payment of Field allowance etc: The Proprietor shall have to

provide field allowance, fooding allowance or other similar
allowance while sending workers or employees engaged in trekking,
rafting or other similar adventure sport to the working place and in
case such allowance have been provided no additional overtime
shall be paid as provided in this Act.

(e) Provisions for First Aid: The Proprietor shall have to avail adequate
supply of medicines and materials of first-aid while sending the

26
 workers or employees engaged in trekking rafting or other
adventures sport to the work-sites.

48. Applicability of other Provisions: The provisions of this Act and the
Rules made hereunder shall also be applicable in respect of the Enterprises
mentioned in Sections 45, 46, 47 and 48, in addition to the provisions
specified in this chapter.

CHAPTER – 8

Conduct and Punishments

49. Type of Punishment: The Proprietor may punish any worker or employee
performing misconduct with any of the following punishments.

(a) To reprimand,
(b) To withheld annual grade increments,
(c) To suspend, or
(d) To dismiss from service.

50. Misconduct: For the purpose of Section 50, the following conduct of the
worker or employee shall be deemed as misconduct:

(a) In case of any bodily harm or injury or fetters, detains or

imprisonment is caused to the Proprietor, Manager or Employee of
the Enterprise with or without use of arms or injury or causes any
violence or destruction or assault within the Enterprise in
connection with the labour dispute or on any other matter;

(b) In case he creates or causes to create any stir within the Enterprise
with an intention or affecting the production process or service
works of the Enterprise, or prevents the supply of food and water, or
connection of telephone and electricity, or obstructs the entry into or
movement within the Enterprise;

(c) (C1) If he commits embezzlement in the transactions of the

Enterprise,
27
 (C2) If he absents himself in the Enterprise more than a
consecutive period of thirty days without notice.
(d) In case (he) accepts or offers brides;

(e) In case (he) is imprisoned on being convicted on a criminal offence

involving moral turpitude.

(f) In case (he) participates or compels any other person to participate

in any authorized strike or in a strike which is declared illegal;

(g) In case (he)strikes without fulfilling the legal requirements or works

slow intentionally against interests of the Enterprise;

(h) In case he destroys intentionally any property of the Enterprise, or

causes damage thereon or takes and uses it outside the Enterprise or
gives its use to unauthorized person without permission of the
competent person;

(i) In case he frequently violates intentionally the orders or directives

issued under this Act or the Rules made hereunder, o0r the Bylaws
made by the Enterprise, or misbehaves with the customers of the
Enterprise;

(j) In case he remains absent from the work frequently without

obtaining permission or comes late after the regular time;
(k) If it is certified by a doctor that he has come to the duty after
consuming or has consumed alcoholic substances during the
working time.

(l) In case he performs any activity with a motive of causing damage to

secrecy relating to special technology of the Enterprise, Production
Formula or;

(m) In case he abuses any training which has been kept for the interest,
health and safety of the workers or employees or causes damage to
them intentionally;

28
51. Punishment:

(1) Any worker or employee, who commits any misconduct as

mentioned in Clauses (i), (j) or (m) of Section 50. may be
reprimanded.

(2) Any one who commits any misconduct as mentioned in (C1), (f), (g)
or (n) of Section 50, may be punished withhelding the annual grade
of salary.

(3) Anyone who commits any misconduct mentioned in Clause (b), (d)
or (k) of Section 50 may be suspended for up to three months.

(4) Anyone who commits any misconduct mentioned in Clauses or

Section (a), (c), (c2) or (l) of Section 50 may be dismissed from
service.

(5) Any workers or employee, who has been punished twice for any
offence of misconduct according to Sub-section (1), (2) or (3)
commits again the same offence, may be dismissed from service.
Provided that the punishment received under sub-section (1) shall
not be counted after the expiry of three years.

(6) Nothing contained in this Section shall be deemed to have barred

the Manager from imposing a punishment lesser than those
prescribed under this Section.

52. Procedures:

(1) Before imposing punishments under Section 51 upon a permanent

worker or employee, a notice of at least seven days with setting
forth in a obvious manner the fact of conduction a misbehavior and
the punishment as may be imposed if such fact is proven, shall have
to be given to such a worker or employee to submit his clarification
thereof.

Provided that, after the expiry of two months from the date of such
misbehavior, no action may be taken in this respect.

29
 (2) If the worker or employee does not submit his clarification within
the time limit as referred to in sub-section (1) or the clarification so
submitted is not satisfactory, he may be punished under Section 51
for conducting misbehavior.

Provided that in making decision in respect of imposing such

punishment, it shall have to be made within two months from the
date of seeking clarification.

(3) If the notice send to the concerned worker or employee is not

accepted by him or, in case of his absence, if the notice is sent by
post under registered post at his address and a copy of such notice is
kept in the public notice board of the Enterprise, and the service
document is prepared on the witness of at lease three person and if a
copy of such notice is also provided to the concerned Labour Office,
the concerned worker or employee shall be deemed to have been
duly provided of such notice.

53. Department of Labour may dismiss from service:

(1) The Department of Labour may impose any punishment pursuant to

Section 51 any worker or employee who causes violence illegally in
any Enterprise, other than his Enterprises or in any government
office, or if he directly or indirectly encouraged others to do so.

(2) In case any worker or employee has to punish, the procedures as

laid down in Section 52 shall have to be followed.

54. Misconduct of Proprietor or Manager:

(1) If the Proprietor or Manager commits any of the following acts, it

shall be deemed as misconduct:

(a) In case he contravenes or disobeys this Act or the Rules made

hereunder or any order or directive issued thereunder.

(b) In case the Enterprise is closed or the workers or employees

are retrenched in contravention of this Act;

30
 (c) In case a lock-out declared illegal is continued;

(d) In case any worker or employee is assaulted or manhandled;

or

(e) In case he performs any activity to incite or provoke the

workers or employees in order to create dissension or enmity
among the workers or employees.

(2) The concerned Labour Office may fine the Manager or proprietor,
who conducts any misbehavior under sub-section (1) above, upto
ten thousand rupees, may make available proper compensation if
any damage or loss is caused to any worker or employee and may
give an order to reinstate the worker or employee retrenched
pursuant to clause (b) of sub-section (1) above.

55. Punishment for Obstruction to Government Employee : In case any

person obstructs to any government employee engaged in any function
under this Act, or refuses to submit any Register Book or any document
required to be submitted to him, or fails to produce or presents to the
examination of any worker or employee ordered to be produced or
examined by him, the Labour Office may punish such person with a fine
upto five thousand rupees.

56. Other Penalties: Except those punishments as provided in other Sections

of this Act, any person contravening any other matter mentioned in this
Act or the Rules made hereunder or the written order or directives issued
thereunder, the Department of Labour may punish, for each offence and
according to the gravity of such offence, a fine from upto ten thousand
rupees, and if such offence is committed again after it is proven, he may be
punished with an additional one hundred rupees for each of such offence,
except those punishment as mentioned in other sections of this Act.

57. Quashing of Illegal Acts : Except as provided to the contrary in this Act
or in the rules made hereunder, if any activity contrary to this Act or the
Rules made hereunder has been performed such activity shall be quashed
by the order of the Department of Labour.

31
58. Instituting of case and Limitation :

(1) Any case relating to the offence punishable under this Act may be
instituted only on the complaint lodged by the Labour Office or a
person authorized by such office. or by the aggrieved or the
concerned person or the concerned Trade Union.

(2) Any case relating to the offenses punishable under this Act shall
have to be instituted within three months thereof.

(3) In case any particular authority of punishment has been specified

under various Section of this Act in respect of trail of any offence
committed under this Act, the case relating to such offence shall be
lodged before such authority and, excepting thereto, all other cases
relating to other offence lodged before Labour Court.

59. Appeal: Any party not satisfied with any punishment awarded under this
Chapter may file an appeal within thirty five days from the date of such
punishment or receipt of order in the following manner -

(a) At the Appellate Court against the orders of His Majesty's

Government or Department of Labour;

(b) At the Appellate Court in respect of the case tried and decided in
original jurisdiction by the Labour Court;

(c) At the concerned Labour Court in respect of the punishment or

order given by the Proprietor or other office or Authority.

60. Realizations of Fines: Fines, Punishments awarded under this Act shall be
realized in the manner as governmental dues under prevailing laws.

32
 CHAPTER – 9

Committee, Officers and Other Provisions

61. Central Labour Advisory Board:

(1) His Majesty's Government may constitute a Central Labour

Advisory Board consisting of representatives from workers or
employees, Proprietors and His Majesty's Government to receive
necessary opinion and advice in relation to formulating policies and
drafting of laws with regards to labour.

(2) The method of composition of Board pursuant to Sub-section (1) its

powers, functions and duties shall be as prescribed.

(3) The Board itself may regulate the procedures of the meeting itself

62. Labour Relation Committee:

(1) The Proprietor shall have to constitute a Labour Relation Committee

in each Enterprise in order to create amicable atmosphere between
the workers or employees and the management and to develop
healthy labour or industrial relation on the basis of mutual
participation and co-ordination.

(2) The method of composition of the Committee pursuant to Sub-

section (1), its powers, functions and duties shall be ad prescribed.

(3) The committee constituted as per Sub-section (1) may regulate its
own procedures.

63. Appointment of Labour Officer: His Majesty's Government by

publishing a notice in the Nepal Gazette may appoint one or more Labour
Officers, as per necessity or designate any other officer to perform the
functions of a Labour Officer for one region.

64. Powers of Labour :

(1) The Labour Officer shall have the following powers –

33
 (a) To enter into the premises of the Enterprise as per necessity;

(b) To examine the documents and registers of the Enterprise

relating to workers and employees;

(c) To function or advise as per necessity for improving labour

relations;

(d) To attempt for solving disputes arising between workers or

employees and the Proprietor;

(e) To implement welfare provisions, if it does not exit and

where if exist, to supervise whether or not it is operated
property;

(f) To supervise the implementation of minimum remuneration

prescribed by His Majesty's Government;

(g) To record statement, of anybody to fulfil the objectives of this

Act, as per necessity;

(h) To Performs tasks of the Factory Inspector in his absence,

except technical tasks; and

(i) To perform other tasks as per the directives of His Majesty's

Government and Department of Labour.

(2) Other powers, functions, and duties of the Labour Officer shall be as
prescribed.

65. Appointment of Factory Inspector: His Majesty's Government may, by a

publishing a notice in Nepal Gazette, appoint one or more Factory
Inspector, as per necessity for one region or may appoint one Chief
Factory Inspector for whole of the Kingdom of Nepal.

66. Powers of the Factory Inspector:

(1) The Factory Inspector shall have the following powers –

34
 (a) To enter into the premises of the factory as per necessity;

(b) To examine building, land, plant, machine, health and safety

features of the factory, to collect the samples of finished or
semi-finished materials used in the factory and to examine
them or caused to be examined, to inspect the registers and
document relating to the factory and, if necessary, to record
statements of any person, as per necessity;

(c) To examine the boilers and pressure vessels and to permit the
operations thereof;

(d) To provide necessary advice and assistance to the Proprietor

on making arrangements of training of workers or employees;

(e) To exercise the powers, functions and duties to the Labour

Officer during this absence; and

(f) To perform other tasks as per the directives of His Majesty's

Government and Department of Labour.

(2) Other power, functions and duties of the Factory Inspector shall be
as prescribed.

67. Welfare Officer:

(1) One welfare Officer shall have to be appointed in Enterprise where

two hundred fifty or more workers of employees are engaged and
one additional Assistant Welfare Officer shall have to be appointed
where there are more than one thousand workers or employee.

(2) In the enterprise where there are less than two hundred fifty workers
or employees the Proprietor may designate or appoint any officer of
the Enterprise as the Welfare Officer.

(3) Where the Welfare Officer and Assistant Welfare Officer are
appointed as per Sub-section (1) the Department of Labour shall be
informed or such appointment.

35
 (4) The powers, functions and duties of the Welfare Officer and
Assistant Welfare Officer appointed or designated, as per Sub-
section (a) of (1) shall be as prescribed.

68. Notice to be provided of establishment of Enterprise:

(1) If any Enterprise is to be established or constructed or expanded in

any building or land, the Proprietor shall submit the particulars to
that effect as prescribed, to the Labour Office.

(2) The concerned Labour Office may after examination of the

particulars received as per to Sub-section (1), if deemed necessary
to make certain changes on the particulars in view of health, safety
and environment, direct the enterprise to do so and it shall be the
duty of the concerned Proprietor to follow such directive.

69. Information to be provided by Proprietor:

(1) The Proprietor shall inform in writing the concerned Labour Office
including with the prescribed particulars, fifteen days in advance
where any new house or land has to be possessed or used by an
Enterprise.

(2) The Proprietor Manager shall inform the Labour office within seven
days, from the data of assuming his office for the first time.

70. Notices and Posters: The Labour Officer or Factory Inspector may issue
directives to the Proprietor or Manager of the Enterprise to display the
notices and posters relating to health, safety and welfare provisions of the
workers as provided in thia Act or the Rules made hereunder at places in
an easily readable and under sandable manner.

36
 CHAPTER – 10

Settlement of Labour Dispute

71. Establishment of Labour Court:

(1) His Majesty's Government shall, establish Labour Court by

publishing a notice in Nepal Gazette. The Jurisdiction and the
location of such court shall be as prescribed in such notice.

(2) The Procedure of the Labour Court constituted under Sub-section

(1) shall be as prescribed.

(3) Notwithstanding any thing contained in Sub-section (1) and (2) until
the constitution of the Labour Court, all functions to be performed
by the Appellate Court.

(a) Proceedings May Be Initiated in Contempt:

The Labour Court may initiate proceedings against its

contempt and, if it holds that contempt has been committed,
may punish the accused with a fine of upto five thousand
rupees or imprisonment of upto two months or both
punishments.

Provided that if the accused submits an apology to the

satisfaction of the Court, the Court may either pardon him or,
if a sentence is already imposed, remit or commute the
sentence or hold the execution of the sentence on condition
fixed by the Court and may issue order not to execute the
sentence if such condition is fulfilled.

72. Procedures Relating to Personal Claims or Complaints:

(1) If any one or more workers or employees have any personal claim
or complaint against Proprietor relating to the service, the concerned
worker or employee may file it in writing with the concerned
Proprietor.

37
 (2) Upon receipt of the claim or complaint as per Sub-section (1), the
Proprietor shall have to discuss on it with the concerned worker or
employee within fifteen days and settle the problem.

(3) If the Problem, could not be solved through the discussion held as
per Sub-section (2), the worker or employee may file a petition at
the concerned Labour Office specifying clearly their claims.

(4) The Labour Office shall held a discussion between the Proprietor
and the worker or employees and solve the dispute, within fifteen
days of the receipt of a claim pursuant to Sub-section (3).

(5) The Chief of concerned Labour Office shall have to dedide on the
dispute within seven days in case the problem could not be solved as
pre Sub-section (4).

(6) Any of the parties may, appeal to the Labour Court within thirty five
days from the date of receipt of notice of the decision in case not
being satisfied with the decision made as per Sub-section (5).

73. Procedures Relating to Submission of Claims of Collective Dispute:

(1) The claim relating to collective right, interest or privilege shall have
to be presented in writing to the concerned Proprietors signed by at
least fifty one percent of the concerned workers or employees and in
the claims their representatives shall have to be nominated and the
claim shall be presented through such representatives.

(2) Upon receipt of the claim relating to the dispute as per Sub-section
(1), the Proprietor shall hold bilateral discussion with the
representatives as mentioned in the same Sub-section and solve the
dispute within twenty-one days and shall enter into an agreement.
(3) If the dispute could not be solved as per Sub-section (2), the dispute
shall be solved within fifteen days by holding bilateral discussion in
the presence of Labour Office.

(4) If the dispute could not be solved through the bilateral discussion
held as per Sub-section (3), the dispute may be referred to a
mediator appointed, with mutual consent of proprietor and the
workers and employees, or if no such mediator could be appointed,
38
 with mutual consent of proprietor and the workers and employees,
or if no such mediator could be appointed, to a tripartite committee
constituted, with consent of both parties, by His Majesty's
Government having equal representation from the workers or
employees, the Proprietor and the government.

(5) The mediator or the committee appointed as per Sub-section (4)

shall decide the dispute within fifteen days.

(6) Any parties if not satisfied with the decision made pursuant to Sub-
section (5), may appeal to His Majesty's Government within thirty
five days from the date of receipt of notice of the decision.

(7) If the mediator or the Committee does not make a decision within
the time-limit as referred to in sub-section (5) or, in case where an
appeal is filed before His Majesty's Government pursuant to sub-
section (6), a decision thereon is not made by His Majesty's
Government within sixty days from the date of filing such appeal,
the workers or employees may strike by following the procedures
set forth in section 76.

74. Prohibition to Claim: Notwithstanding anything mentioned here above,

the following demand or claim shall not be allowed to submit –

(a) Which is contrary to the Constitution of the Kingdom of Nepal;

(b) Which would affect other's interest due to being based on untestified
or baseless allegation;

(c) Matter which is prejudicial to the personal conduct of any worker or

employee;

(d) Matters unrelated to the Enterprise; and

(e) Where a period of two years has not elapsed since the date of last
collective agreement.

75. Notice of Strike to be Provided: In case the demand are not solved
through the process mentioned in Sub-section (3) of Section 73 the
workers and employees wish to strike in the Enterprise, a notice in writing
39
 stating the claims and their rationale, including with a resolution passed by
at least sixty percent of the total workers and employees through secret
ballot, shall have to be provided to the concerned Proprietor thirty days in
advance3 and an information thereof shall also be given to the Department
of Labour, concerned Labour Office and the local administration and a
strike may be started thereafter only.

76. Lock Out:

(1) If a strike has been started or continued without giving prior notice
as mentioned in Section 75 or if the collective dispute is not solved
through the process mentioned in Sub-section (3) of Section 73, the
Proprietor may declare a lock-out of the Enterprise after submitting
the justifications with its rationale and obtaining the approval of His
Majesty's Government.

(2) Before declaring a lock-out as per Sub-section (1), the Proprietor

shall issue a notice for the information of workers and employees
seven days in advance specifying the date of effecting the lock-lut
and announcing that the Enterprise shall be locked-out if the strike
is not called off.

(3) If there is a situation with possibility of damage to the Enterprise

through riot, violence, destruction, etc. from the workers and
employees during the strike the Proprietor may cause lock-out even
without following the process of Sub-section (1) and (2). If a lock-
out is made in the Enterprise in such situation, the Labour office and
the Department of Labour shall be informed about the lock-out with
reasons within three days.

(4) His Majesty's Government may at any time declare the lock-out of
an enterprise as void, in case it appears irrational or it is likely to
cause a breach in law and order conditions of the country or it is
contrary to the economic interests of country.

77. Prohibition to Strike:

(1) Notwithstanding anything mentioned hereinabove in this Act, if any

existing law has prohibited the strike to be done by workers or

40
 employees the workers or employees of such Enterprise shall not be
entitled to go on strike.

(2) Any employee appointed or deputed on the duty of control, security

and guard of any Enterprise shall also not be entitled to go in a
strike.

(3) The employees prohibited to strike as per Sub-section (1) and (2)
may submit their genuine demands to the Proprietor. If such
demands are not fulfilled and a dispute has been created His
Majesty's Government shall constitute a tribunal for solving it. The
decision of the Tribunal shall be final and binding upon both of the
parties.

(4) No strike or lock-out may be done during the proceeding under

Section 73.

78. Legal Validity of Collective Agreement:

(1) Any agreement entered into between the workers or employees and
the Proprietor in respect solving the dispute shall be deemed to be of
status equal to law upon the concerned parties and such agreement
shall have to be registered in the Labour Office.

(2) An agreement registered as per Sub-section (1) shall come to force

from the date of mentioned in the agreement, if such date is
mentioned therein, and if no such date is mentioned in the
Agreement, it shall come into force from the date in which it is
registered in Labour Office. No demand in relation to the provisions
mentioned in such agreement shall be permitted to put again for two
years from the date of its commencement.

(A) Implementation of Collective Agreement:

(I) In case the collective agreement entered into pursuant

to this Act is not implemented, the concerned party
may lodge a complaint in the Labour Office.

(II) If any complaint is lodged under sub-section (1) above,

the Labour Office may implement the collective
41
 agreement by following, as required the procedures set-
forth in sub-section (5) of section 25 as well.

79. Order may be issued to End the Strike: If any strike announced to be
commenced or already commenced as per this Act or the rules made
hereunder has created an extraordinary situation, which is likely to cause a
breach in the law and order condition of the country or would be contrary
to the economic interest of the country, His Majesty's Government may
issue an order at any time to end such strike or any strike commenced in
the essential services prescribed by the prevailing law.

80. Termination of Lock-out Period: Where any Enterprise has been

locked-out, if the workers or employees are present for work or here the
Proprietor has declared the ending of lock-out or where His Majesty's
Government has declared such lock-out as illegal as per Section 76 or has
order to end the strike under Section 79, such lock-out shall be deemed to
have been ended from the date of the declaration making it illegal or from
the date so ordered.

81. Remuneration for the Period of Lock-out: The remuneration for the
period of lock-out declared illegal shall have to be paid to the workers or
employees.

82. Special Provisions for Settlement of Dispute:

(1) If His Majesty's Government deems that a dispute between workers

or employers and the Proprietor has arisen or there is possibility of
arising His Majesty's Government may constitute a committee of
one of more persons, or tripartite committee consisting of
representatives of the Proprietor, the workers or employees and His
Majesty's Government in order to resolve the dispute. Such
committee may regulate its own procedures.

(2) The decision of His Majesty's Government made on the report of the
committee constituted as per Sub-section (1) shall be final and
binding to both of the parties.

(3) The committee constituted as per Sub-section (1) shall have the
powers of examining the evidence and witnesses, of requiring the

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 presence of witnesses and requiring the production of documents as
per prevailing laws similar to a court, in relation to the dispute.

CHAPTER – 11

Miscellaneous

83. Special Powers of His Majesty's Government:

(1) Notwithstanding anything contained elsewhere in this Act, His

Majesty's Government may, in consultations with the Central
Labour Advisory Board and by publishing a notification to that
effect in the Nepal gazette, grant exemption from application of any
matter provided for in this Act in respect of any Enterprise.

(2) His Majesty's Government may, by publication of a notice in the

Nepal Gazette, fix the minimum remuneration and certain facilities
prescribed in this Act in relation to the Enterprises where less than
ten workers or employees are working.

(a) Special provisions respect of the Workers and Employees

Engaged Outside the Enterprises:

(I) The person or institution, who engages the workers and

employees of outside the Enterprises at work, must pay
the remuneration for the day engaged at work in
accordance with the agreement if such agreement in
writing has been concluded between the two parties
and within seven days if there is no such agreement.

(II) If any person or institution does not make payment of

remuneration to any worker or employee or a delay is
caused in such payment, the worker or employee who
is aggrieved by such act may file a complaint before
the Labour Office, in the districts where Labour Offices
are located, and before the Chief District Officer, in the
districts where Labour Offices are not located, in order
to get the remuneration to be received by him.
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 (III) If any complaint is filed under sub-section (2) above,
the concerned Labour Office or Chief District Officer
shall have to require such person or institution who has
not paid the remuneration to be present at Office
Within 15 days except the time period required for
journey and shall have to recover and make available
the remuneration to be received by such worker or
employee by following the procedures as set-forth in
sub section (5) of Section 25

84. Powers to Remove Obstacles: In case any difficulty arises while

executing this Act His Majesty's Government by publishing an order in
Nepal Gazette may remove such difficulties.

85. Powers 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 powers conferred by Sub-

section (1), such rules particularly, may provide for any of the
following matters –

(a) Matters relating to the safety of the workers;

(b) Conducting of operation of employment service;

(c) Condition relating to overtime works;

(d) Conducting of operation of training in order to enhance the

efficiency of workers and employees;

(e) Procedures relating to Labour Court;

(f) Compensation to be paid to workers and employees;

(g) Compilation of statistics of workers and employees;

(h) Compilation of information to labour market.

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86. Bylaws to be availed: Each Enterprise shall have to send to the concerned
Labour Office a copy of Bylaws framed by its in respect of conditions of
service of its workers and employees.

87. Provisions Relating to Enterprise owned by His Majesty's

Government: With respect to the terms and conditions of service of the
employees of the Enterprises owned wholly or partly by His Majesty's
Government, the provisions of the Rules or Bylaws relating to the terms
and conditions of services of the concerned Enterprises shall apply and in
respect of the workers thereof, the provisions of this Act shall apply.

88. Directive of His Majesty's Government:

(1) His Majesty's Government may issue necessary directives to the

Proprietor for implementing the objectives of this Act.

(2) His Majesty's Government may impose a fine of upto twenty

thousand rupees in each time on the Manager who does not comply
with the directions issued under sub-section (1) above.

89. Delegation of Authority: His Majesty's Government may delegate the

powers conferred to it by this Act to any Officer by publishing a notice in
the Nepal Gazette.

90. Prevalence of this Act: This Act shall apply on matters mentioned herein
and in other the prevailing laws shall apply.

91. Repeal and Saving:

(1) The Factory and Factory Workers Act, 2016 (1959) is repealed.

(2) All acts and proceedings performed or executed under The Factory
and Factory Workers Act, 2016 shall be deemed to have been
performed or executed under this Act.

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