The Department of Labour and Occupational Health and Safety, Government of Nepal, released an official notice on 8 August 2023 inviting reports of labour law non-compliance directly to the Department.
Reports may be sent through communication platforms such as Viber or WhatsApp on the Department’s number, 9851350451. The notice sets out eight categories of non-compliance it wants brought to its attention.
The Eight Instances of Non-Compliance
| No. | Instance of non-compliance |
|---|---|
| 1 | Employment that lacks proper employment agreements or appointment letters, in contravention of Section 11 of the Labour Act, 2074 (2017). |
| 2 | Non-compliance with minimum wage regulations. |
| 3 | Institutions supplying labour without the requisite permits, as per Sections 58 and 59 of the Labour Act, 2074 (2017). This applies equally to establishments that employ labour sourced from such suppliers. |
| 4 | Employment of workers through suppliers for significant tasks of a regular employment nature. |
| 5 | Cases involving the engagement of child labour. |
| 6 | Non-submission of balance sheets related to profit and loss, as mandated by Section 4 of the Bonus Act, 2030 (1974), to the relevant Labour and Employment Office. This holds if deposits into the National Welfare Fund have not been executed. |
| 7 | Entities not enlisted and, consequently, not contributing to the Contribution Based Social Security Fund. |
| 8 | Foreign citizens employed without valid labour permits. |
Who the Directive Targets
The notice states that the directive is aimed specifically at institutions employing a minimum of 500 workers. Larger employers are therefore the intended focus of the reporting channel, though the underlying statutory obligations apply irrespective of headcount.
What It Signals for Employers
Read together, the eight categories map closely onto the core compliance obligations of an employer in Nepal: written employment terms under the Labour Act, minimum wage, lawful use of labour suppliers, the prohibition on child labour, bonus and welfare fund reporting, Social Security Fund enlistment and contribution, and work permits for foreign nationals.
The significance of the notice lies less in creating new duties than in the Department opening an informal channel through which failures in any of these areas can be reported to it directly.
Speak to Our Team
If you would like your employment documentation, labour supply arrangements or Social Security Fund position reviewed against these categories, get in touch, or read more about our HR and labour law services. Our related commentary on outsourcing jobs in Nepal and the Employee Welfare Fund covers several of the obligations listed above.
This summary is general information, not legal advice. It reflects the notice as issued on 8 August 2023, and its application depends on your circumstances, so take advice on the facts before acting.