Labor Law HRM Presentation

Presentation
about Labor Law

in Nepal
GROUP - 4
INTRODUCTION
Labor is the amount of physical, mental and social effort used to
produce goods and services in an economy. It is one of the four factors
of production that drive supply.
Labor law (also known as labor law or employment law) mediates the

relationship between workers, employing entities, trade unions and the
government. Collective labor law relates to the tripartite relationship
between employee, employer and union.
Labor Relation
Labor relations encompasses a set of phenomena, both inside and
outside the workplace, concerned with determining and regulating
employment relationship between management and employees or
among employees and their organization that characterize and grow
out of employment.
Labor relation refers to a system that makes a social dialogue

possible among employees, employers and government
representative.
Objectives of Labor Relations
1. To enhance economic status of worker.
2. To avoid industrial conflicts and their consequences.
3. To extend and maintain industrial democracy.
4. To provide an opportunity to the worker to have a say in the
management decision making.
5. To regulate production by minimizing conflicts.
6. To provide forum to the workers to solve their problems through
mutual negotiations and consultations with management.
7. To encourage and develop trade union in order to develop workers
collective strength etc.
Labor Law
About labor law 2017(2074)
Major provision of the Labor law 2017(2074)
Working hours
Social security
Collective bargaining agreement
Process of collective bargaining agreement
Labor Law 2017
The new Labour law 2017 (Act) applies to companies, private firms,
partnership firms, cooperatives, associations or other organizations
(“entity”) in operations, or established, incorporated, registered or
formed under prevailing laws to undertake industry or business or
provide service with or without profit motive.
It is also applicable to entities registered in foreign countries and
engaged in the promotion of business, sale of products or promotion of
other works in Nepal. (Section 90)
Applicable to
The Act is applicable to all entities regardless of the number of
laborers/workers. However, the threshold of 10 or more laborers/
workers are required to constitute a collective bargaining committee,
labor relations committee, etc.
Not Applicable to
THE ACT IS NOT APPLICABLE TO (SECTION 180):
• Civil Service
• Nepal Army, Nepal Police
• Armed Police Force
• Entities incorporated under other prevailing laws or situated in Special
Economic Zones (SEZ) to the extent separate provisions are provided
• Working Journalists, unless specifically provided in the contract
Types of employment
(Section10)
• Regular: Persons hired for work or service other than work based, time
bound, casual or piece rate employment.
• Work Based: Persons hired for rendering a specific service.
• Time Bound: Persons hired for rendering service for a definite time
period.
• Casual: Persons hired for seven days or less than seven days a month.
• Part-time: Persons hired for 35 hours or less than 35 hours a week.
Types of employment
(Section10)
• PART TIME WORKERS (SECTION 19-21): Part-time workers shall be
remunerated based on hours worked, unless otherwise specified in the
employment contract. They cannot be prohibited from working
elsewhere and shall be entitled to social security benefits.
• INTERN (SECTION 16 & 17): Any person may be allowed to work as an
intern pursuant to the approved syllabus of an educational institution,
and after concluding an agreement with that educational institution.
• TRAINEE (SECTION 18): A trainee may be appointed for a period of
training not exceeding 1 year, unless otherwise prescribed by law. All
trainees shall be entitled to social security benefits including provident
fund and gratuity
ABOUT LABOR LAW 2017(2074)
The new labor law was certified by the president on 4 September, 2017 (19
Bhadra, 2074) and has been effective immediately upon certification.
The New Labor Act has repealed the Labor Act 1992 (2048) (the "Previous Act").
The New Labor Act has brought complete change in employment regime in Nepal.
New labor act applies to company, private firm, partnership firm, cooperatives,
association or other organization (“entity”).
The New Labor Act has repealed the following Acts:

Labor Act, 1992 (2048)
Industrial Trainee Training Act, 1982 (2039)
Retirement Fund Act, 1985 (2049)
MAJOR PROVISIONS OF THE
LABOR LAW 2017
Hiring
Working Hours
Leave & Holidays
Terminal Benefits
Other Benefits (Housing Fund, Festival Expenses, Disability Compensation, Compensation
against Injury, Death Compensation, Medical Insurance, Accident Insurance)
Safety and Health Arrangement
Disciplinary Action
Termination of Employment
Collective Bargaining
Social Security

WORKING HOURS
Working Hours continue to be 8 hours a day and 48 hours a week. Overtime has
been increased to 24 hours per week from 20 hours a week. Overtime pay (section
31): 1.5 times the basic remuneration.
The New Labor Act simply requires to make arrangement for transportation while
engaging a female employee in such a way that the working period begins or ends
before the sunrise or after the sunset.
Break (section28): 30 minutes break after working 5 hours where the work can
be interrupted. Where work cannot be interrupted, break is arranged in shifts.
SOCIAL SECURITY
The Labor Act requires the retirement fund such as (a) gratuity, and
(b) provident fund to be deposited in the Social Security Fund.
There has been separate law on social security. The parliament has
enacted the Social Security Act, 2017 (2074) which has also been also
obtained the accord of assent of the President on August 16, 2017.
Rest Of the Labor Laws
Subjects Information on Prevailing Labor Law of Nepal
1 Strategic HRM Reinforcement of national economic administration and elimination of poverty with the provision
of invariance, safety, and healthy working environment by creating employment and self-
employment opportunities through the expert and skilled manpower capable for the competitive
national and international labor market.
2 Human Resource Provision of the flexibility in the modes of hiring as per the requirements of the entity.
Planning, Recruitment 1.Regular Employment
and Selection 2.Work Based Employment: for completion of certain work or rendering certain service.
3.Time Bound Employment: employment for certain time period determined.
4. Casual Employment: employment for seven or less days in a month.
5. Part time Employment: employment for 35 or less hours in a week.
3 Training and Quality vocational training and skill development training shall be made more effective and
Developing developed as a means of fulfilling the requirements of the economic system and labor market as
Employees well as to create opportunities for employment and self-employment.
Subject-matter-specific short-term training shall be conducted within and outside the workplace
for the development of skills and personality of workers
4 Appraising and The system of the person being evaluated holding consultations and discussions on the evaluation
Managing of her or his strong and weak aspects while performing work shall be developed and work
Performance performance evaluation shall be linked to training, and the worker’s work performance evaluation
system shall be made transparent and systematic.
Subjects Information on Prevailing Labor Law of Nepal
5 Compensation 1. Provident Fund (Deposited to Social Security Fund ,10% employee’s contribution and 10%
Management employer’s contribution)
2. Gratuity (8.33% of basic remuneration every month)
3. Leave Encashment (Accumulated annual leave up to 90 days and Sick-leave up to 45 days
can be in cashed at the time of discontinuation of service)
4. Severance Compensation (1-month salary for every year of service Eligible on a
proportionate basis.
5. Festival Expenses (Amount equivalent to the monthly remuneration once a year)
6. Compensation against injury (provided from the insurance amount)
7. Disability Compensation
8. Death Compensation
6 Labor Relations, In order to maintain harmonious labor relations, labor disputes shall be resolved through bipartite
Safety and Health dialogue after building a favorable environment; strikes and lockouts shall be used as the last
resort. The Labor Act has taken a great step in making workplace more safe and inclusive.
Introduction of paternity leave, increased days of maternity leave, provision of medical and
accident insurances will all contribute in creating a favorable working condition.

7 Employee Discipline Any worker performing the prescribed misconduct can be punished with any of the following
punishments:
1) Warning
2) Deduction of remuneration equivalent to minimum one day
3) Withholding annual salary increment and grade increments for one year, or
4) Dismissal from employment
COLLECTIVE BARGAINING AGREEMENT
Following arrangement may be done through collective agreement:
1. To reduce the remuneration of the employees (section 34(3))
2. Arrangement for interim management during the transfer of ownership
(section 14(2))
3. To agree on certain facilities in lieu of overtime payment (section 31(2))
4. To determine facilities for which the employer may deduct the
remuneration (section 38)4
5. To determine to ground of transfer of employees (section 109(1))
6. Determination of rate of remuneration during the period of legal strike or
lock out (section 127(3))
7. To add the ground of termination upon misconduct (section 133(2))
Process of Collective
bargaining
• Prepare
This phase involves composition of a negotiation team.
The first thing to be done is to determine whether there is actually any
reason to negotiate at all
• Discuss
Here, the parties decide the ground rules that will guide the negotiations
bargaining
• Propose
This phase involves the initial opening statements and the possible
options that exist to resolve them. In a word, this phase could be
described as ‘brainstorming’
• Bargain
This stage comprises the time when ‘what ifs’ and ‘supposals’ are set
forth and the drafting of agreements take place
bargaining
• Settlement
Once the parties are through with the bargaining process, a consensual
agreement is reached upon wherein both the parties agree to a
common decision regarding the problem or the issue
References
 Agrawal, Dr. GR. (2004). Foundation of Human Resource Management
in Nepal. Bhotahity, Kathmandu, Nepal: M.K. Publishers & Distributers
Adhikari, D. R. (2002). Fundamentals of Human Resource Management
Text and Cases. Kathmandu: Manakamna Books
Labor Law Act 2074
Google

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Labor Law HRM Presentation

Uploaded by

Copyright:

Available Formats

Presentation

about Labor Law

Labor law (also known as labor law or employment law) mediates the

Labor relation refers to a system that makes a social dialogue

The New Labor Act has repealed the following Acts:

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