The termination of employment in Nepal is governed by the Labour Act 2074 (2017). This act outlines the lawful grounds for dismissal, notice requirements, and severance pay protocols.

Lawful Grounds for Dismissal

Employment can be terminated on the following grounds:

• Mutual Consent: Both employer and employee can reach a mutual agreement to terminate the employment contract.
• Completion of Contract: If the employment was on a fixed-term contract basis, the employment naturally ends upon the completion of the specified period.
• Unsatisfactory Performance: An employer can terminate employment after three or more consecutive years of unsatisfactory performance evaluations. These evaluations must adhere to procedures outlined in the Labour Act.
• Misconduct: Employers can dismiss employees for serious misconduct as per Section 55(1) of the Labour Act. Examples include physical assault during work hours, theft, fraud, or damage of company property, habitual absenteeism without permission, and serious breach of employment contract and company rules.
• Redundancy: Termination due to economic downturn, business reorganization, or technological changes rendering positions obsolete.
• Retirement: Employees are generally retired upon reaching the age of 58.

Notice Requirements

Except for cases of misconduct, employers must give a notice period before termination:

• Employment up to 4 weeks: 1 day's notice
• Employment between 4 weeks and 1 year: 7 days' notice
• Employment exceeding 1 year: 30 days' notice

Severance Pay

While severance pay isn't mandatory in all circumstances under the Labor Act, it may be required in certain scenarios:

• Redundancy: Employees terminated due to redundancy are often entitled to severance packages as decided through mutual agreement or collective bargaining.
• Compulsory Retirement: Employers might offer severance packages upon compulsory retirement as per company policy or agreements.

Important Notes

Employers must always state the reason for termination of employment in writing. An employee has the right to challenge an unlawful termination at the Labour Office within 45 days of the dismissal. It is highly recommended to consult a legal professional specializing in Nepali labor law for specific guidance on your individual case.

In Nepal, anti-discrimination laws protect individuals from discrimination based on several characteristics. These include caste, as outlined in the Caste-Based Discrimination and Untouchability (Offence and Punishment) Act, 2068 (2011). Gender equality is guaranteed by the Constitution of Nepal, which also prohibits gender-based discrimination. The country has ratified the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW).

Religious freedom is also guaranteed by the Constitution, and discrimination on the basis of religion is prohibited. The Rights of Persons with Disabilities Act, 2017 prohibits discrimination on the basis of disability and mandates the creation of accessible environments for persons with disabilities. The HIV and AIDS (Control and Treatment) Act, 2010 prohibits discrimination against individuals with HIV/AIDS. However, despite increasing activism and some legal challenges, there are currently no explicit legal protections for LGBTQ+ individuals in Nepal.

Redress Mechanisms

Individuals who feel they have faced discrimination on the basis of protected characteristics have several avenues of redress in Nepal. Certain types of discrimination, including those related to caste and untouchability, are considered criminal offenses. Victims can file criminal complaints with the police. Victims of discrimination may also file civil complaints in court seeking damages or other remedies.

The National Human Rights Commission (NHRC) is an independent body established to protect and promote human rights in Nepal. The NHRC can investigate complaints of discrimination and make recommendations to the government. The National Dalit Commission (NDC) is a government body mandated to address issues of caste-based discrimination, promote policies for upliftment, and investigate complaints.

Employer Responsibilities

Employers in Nepal have a legal and ethical responsibility to uphold anti-discrimination laws. Some key responsibilities include adopting and enforcing clear policies prohibiting discrimination on the basis of protected characteristics. Employers must implement objective, non-discriminatory processes for hiring and recruitment. They must ensure equal pay for equal work, provide equal opportunities for promotion, and prevent harassment or a hostile work environment based on protected characteristics.

Employers must make reasonable accommodations to facilitate persons with disabilities to perform their roles. They should also conduct regular training and awareness programs on anti-discrimination policies for all employees.

In Nepal, minimum requirements for working conditions have been established to ensure the fair treatment and well-being of employees.

Work Hours

The Labor Act, 2068 (2011) defines a standard workweek as 48 hours, with a maximum of 9 hours per day. Overtime work is permitted with the employee's consent, but cannot exceed 100 hours per month. Overtime pay must be at least double the regular rate. Every worker is entitled to a one-hour rest period after every five hours of work.

Leave Provisions

All employees are entitled to at least 15 days of paid annual leave after one year of service. Workers are entitled to 10 days of casual leave per year, which can be used for emergencies or personal reasons. Additional leave provisions exist for sick leave, maternity leave, and paternity leave.

Ergonomic Requirements

While there aren't extensive regulations on ergonomics in Nepal, the Factories and Establishments Act, 1959 emphasizes the importance of providing a safe and healthy work environment. This can be interpreted to include elements of ergonomics, such as ensuring proper workstation setup and minimizing physical strain.

In Nepal, the well-being of workers is prioritized through health and safety regulations. The Labor Act of 2074 is the primary legislation governing this area, outlining the responsibilities of employers, safeguarding employee rights, and empowering enforcement bodies.

Employer Obligations

The Labor Act emphasizes the creation of a safe work environment. Employers are obligated to:

• Establish and maintain a safe and healthy work environment that minimizes risks of accidents and injuries.
• Identify and address potential hazards in the workplace, including implementing control measures to mitigate risks associated with machinery, chemicals, and work processes.
• Form a safety and health committee in workplaces with a specific number of employees. This committee plays a crucial role in identifying and addressing safety concerns.
• Provide workers with adequate information and training on health and safety protocols, equipping employees to recognize and respond to hazards effectively.
• Provide appropriate Personal Protective Equipment (PPE) to safeguard workers from work-related health risks. This may include items like gloves, masks, respirators, or safety glasses depending on the job nature.

Employee Rights

The Labor Act empowers employees with the right to a safe and healthy work environment. Key employee rights include:

• The right to refuse work deemed unsafe or hazardous without fear of retaliation.
• The ability to report safety concerns to their employers or the relevant authorities without repercussions.
• The right to participate in workplace safety committees, allowing them to contribute to creating a safer work environment.

Enforcement Agencies

The Department of Labor is the primary government agency responsible for enforcing occupational health and safety regulations in Nepal. They conduct workplace inspections to ensure compliance and hold employers accountable for any violations.

It's important to note that Nepal's occupational health and safety (OSH) sector is evolving. While the Labor Act provides a framework, further development and implementation are needed for comprehensive enforcement.