Sinamangal -9, Kathmandu, Nepal

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Labor Law

In Nepal, the Labor Law governs the rights, responsibilities, and working conditions of employees and employers in various industries, including the manpower services sector. Here are some key points regarding the Nepal Labor Law relevant to manpower services:

Employment Contracts:

The Labor Law mandates a written employment contract between the employer and employee. This contract should clearly outline the terms and conditions of employment, including job responsibilities, working hours, wages, benefits, and duration of the contract.
For manpower services, recruitment agencies are responsible for ensuring that proper employment contracts are in place between the employees and the employers they are placed with.

Minimum Age and Working Hours:

The Labor Law sets a minimum age requirement for employment, prohibiting the employment of individuals under the age of 16. Some hazardous or strenuous jobs may have higher age restrictions.
It also establishes maximum working hours for employees, generally set at 8 hours per day and 48 hours per week. Overtime work is allowed but should be compensated as per the law.

Minimum Wages and Benefits:

The Labor Law sets a minimum wage that employers must adhere to. The minimum wage rate is periodically revised by the government.
Employees are entitled to various benefits, including annual leave, sick leave, public holidays, and maternity leave, as specified by the Labor Law. Employers are required to provide these benefits to their employees.

Social Security and Insurance:

Employers are mandated to contribute to social security funds, including the Employees' Provident Fund (EPF) and the Employees' Social Security Fund (ESSF), on behalf of their employees. These funds provide retirement benefits, medical benefits, and insurance coverage.
Manpower services providers must ensure that employees placed with different employers receive the social security and insurance benefits they are entitled to.

Occupational Health and Safety:

The Labor Law emphasizes the importance of ensuring a safe and healthy working environment for employees. Employers are required to provide necessary safety measures, protective equipment, and training to employees.
Recruitment agencies should verify that employers comply with occupational health and safety regulations to safeguard the well-being of the employees they place.

Termination and Dispute Resolution:

The Labor Law outlines provisions for termination of employment, including notice periods, severance pay, and circumstances under which termination is lawful.
In case of disputes between employers and employees, the Labor Law provides mechanisms for resolution, including conciliation, arbitration, and legal recourse through the labor court.