Employment and labour law, built around the Labour Act, 2074
Nepal’s employment framework is set by the Labour Act, 2074 (2017) and the Labour Rules, 2075, together with the Contribution-Based Social Security Act, 2074 and the Bonus Act. The Labour Act applies to all enterprises regardless of size and covers employment contracts, working hours, leave, termination, safety and dispute resolution. We help employers stay compliant and handle sensitive workforce matters correctly.
We also advise on engaging foreign nationals — including labour (work) permits through the Department of Labour — and on the interaction between employment terms, tax and Social Security Fund (SSF) contributions.
Our HR & labour services
- Contracts & Policies — employment agreements, employee handbooks and workplace by-laws compliant with the Labour Act, 2074.
- Retrenchment & Restructuring — lawful redundancy, layoff and reduction-in-force processes, with correct notice and dues.
- Social Security & Payroll — SSF registration and contributions, provident fund, gratuity and statutory dues.
- Disputes & Collective Bargaining — representation in labour disputes, union negotiations and settlements.
- Foreign Workers — labour (work) permits and compliant engagement of expatriate staff.
- Labour Audit — health-checks of employment practices to identify and close compliance gaps.
Getting retrenchment right
Workforce reductions carry real legal risk if handled poorly. The Labour Act, 2074 sets requirements for notice, selection, consultation and payment of dues. We design a defensible process — documentation, timelines and communications — that reduces the risk of reinstatement claims and disputes while treating employees fairly.
Fix the paperwork before the dispute. Most labour disputes in Nepal turn on missing contracts, policies or records. A short labour audit now is far cheaper than a tribunal claim later — and keeps your business audit-ready.
Frequently asked questions
Does the Labour Act, 2074 apply to small businesses?
Yes. Unlike the previous law, the Labour Act, 2074 (2017) applies to all enterprises regardless of the number of employees, so even small businesses must comply with its contract, contribution and termination requirements.
What are Social Security Fund (SSF) obligations?
Employers must register with and contribute to the Social Security Fund under the Contribution-Based Social Security Act, 2074, alongside payroll tax withholding. We handle registration, contribution set-up and ongoing compliance.
Related insight: Labour Law in Nepal: Redundancy & Retrenchment