Labour Act, 2074 (2017)

Employment may be regular, work-based, time-bound, casual or part-time. The type of employment must be stated in the written employment contract.

An employer must provide every worker with a written employment contract stating the remuneration, benefits, working conditions and type of employment. Casual workers may be engaged without a written contract for up to seven days.

A worker may be kept on probation for no more than six months. During probation either party may end the employment on shorter notice, but the worker is entitled to full remuneration for the period worked.

No person may be compelled to work against their will, and no person below fourteen years may be employed. Employment of persons between fourteen and eighteen is permitted only in non-hazardous work under the conditions set out in separate rules.

A worker may not be required to work more than eight hours a day or forty-eight hours a week. A rest interval of at least half an hour must be given after five hours of continuous work.

Work beyond the normal hours is overtime and must be paid at one and a half times the ordinary hourly rate. Overtime may not exceed four hours a day or twenty-four hours a week and requires the worker's consent.

The Government of Nepal fixes a minimum wage on the recommendation of a tripartite committee, ordinarily every two years. No employer may pay less than the minimum wage regardless of the type of employment.

Wages must be paid at least once a month and within the following month. Deductions are permitted only for tax, social security contributions, advances and other items allowed by law.

Every worker is entitled to one paid day off each week and to thirteen paid public holidays a year, including International Labour Day. Women workers are entitled to an additional holiday on International Women's Day.

A worker earns one day of paid home leave for every twenty days worked and twelve days of paid sick leave each year. Unused home leave may be accumulated up to ninety days.

A woman worker is entitled to ninety-eight days of maternity leave, of which sixty days are fully paid. A male worker is entitled to fifteen days of paid paternity leave.

Employment may end by resignation, expiry of a fixed term, retirement at fifty-eight years, poor performance after warnings, misconduct, or redundancy following a lawful retrenchment procedure.

The party ending the employment must give written notice of one day for service under four weeks, seven days for service up to one year, and thirty days for longer service. Payment in lieu of notice is permitted.

An employer facing financial difficulty may retrench workers after consulting the trade union and giving thirty days' notice to the Labour Office. Retrenched workers receive one month's pay for each year of service.

A worker dismissed without following the required procedure may complain to the Labour Office within thirty-five days. The Office may order reinstatement or compensation.