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Trade Union Effort

to
Develop Labor Law in Nepal
By
Bishnu Rimal
Worker News and AMRC, 2002

Reviewed by
Rabin Dungana

Case Facts
History of Formation of Labor Acts
Various Changes made throughout the creation,
amendment and reforms of the Factory & Factory
Workers Act - 1959
Changes made through the Popular Peoples
Movement in 1990
Role of GEFONT and founder Mr. Mukunda Neupane
for the formation of Labor Act
Formation of Labor Act 1993, its amendments and
other series of Acts then after
Various addressed and lacking part of the Labor Acts
in Nepal

Factory & Factory Workers Acts - 1959


Formed to maintain the peace and tranquility and economic welfare
to the society
Focused on the proper management of factories, safety & welfare of
employees and settle disputes between factory and its workers
First Amendment Dec, 1960

Banned Politics Parties


Increased working hours to 54 from 48 hours, with no justification
No room for any kind of labor at any level

Second Amendment Mar, 1973

Reduced working hour from 54 to 33 hours


One and half day leave
Allow to strike if all legal means are failed

Third Amendment 1977

Increased 44 hours to 48 hours a week


One day leave in a week

Peoples Movement -1990 & Role of GEFONT


Factory & Factory Workers Act became obsolete
During Peoples Movement, GEFONT lead the
movement to protect workers right
GEFONT Chairperson Mukunda Neupane, as a
parliament member under first NC Government, filed
Bills in House of Representative
Nepal Trade Union Bill- 2048
Nepal Industrial Relations Bill -2048 and
Nepal Labor Bill- 2048

NC parliamentarians protested against the bills in House


Big Chaos in the House of Representative, all the
oppositions left the house meeting

The Bills were tabled again in Jan, 1992 Winter Session


With the high pressure from GEFONT Bills, Labor Act 2048 BS
was tabled through the then Labor Minister in the House
Labor Act -2048 BS

Employment and security of service


Provision of Overtime Pay
8 Hours work a day, 48 hours a week & a day off in a week
Minimum Remuneration, Health & Safety
Compensation, Gratuity, Provident Fund, Medical Expenses, leave,
canteen etc.
Applicable in special types of enterprises tea states, construction,
transportation, hotels etc.
Provisions of settlement of disputes and CBA Procedures

However, since the points in Act were ambiguous, amendment to


the act was done while GEFONTs Chairman was Labor Minister

Labor Act -2048 BS First Amendment


Addressed the issue of compulsory permanent, contract labor,
clarification of minimum wages, grades, conduct and punishment, work
permit to migrant etc.
Rights of unionization in different sectors & special provision for
agricultural workers
It gave right to Labor court to punish employees if they declined to
implement labor court decisions
Provisions and Process of registration of Trade Unions
Responsibility of Trade Unions and Process of Functioning
Recognition of small federations in non-enterprise trade and occupations

Amendment started early 1997, Prepared in a form of Bill via


Ministry of Labor
Passed and adopted by Parliament in 1998
Final Seal from then Royal Palace in 31 March, 1999.

Labor Law Facts

Working Hours : 48 Hrs a week


Overtime pay : 150% / hr, Limit 20 hrs/week
Annual Holidays : Public Holidays 13 days, House Holiday 18 days
Maternity Leave : 52 days, Govt. Offices 60 days
Paternity Leave : No Provision, can be granted on agreement
Sick Leave
: 15 days

Good Provisions BUT


Effective Implementation & Monitoring??

Other Related Supplementary Laws in the field of


Labor in Nepal

1957: Essential Services Maintenance Act


1974: Bonus Act
1981: Bonus Rules
1982: Industrial Apprenticeship Training Act
1986: Foreign Employment Act
1992: Industrial Enterprise Act
1994: Privatization Act
1995: Childrens Act

Foreign Employment
1986: Foreign Employment Act was amended in 1998
Regulation announced by Government on 1999, September
Government to establish Labor Representative in the countries with
more than 5,000 Nepali Labors for their security and safety
Foreign business to publish the advertisement in the daily
newspapers through agents to hire and select labors
Payment to foreign labors no less than $ 125 per month
Update government about the labors in every six months
Allowed to take 25% of the first month salary of labor
Required to buy insurance worth at least NRS 100,000.

However
Welabor
Have
longlike
way
go..we
Many unfair
practices
childto
labor,
low wages, death of
labor
dont
Legislation
Acts
Right to
strike need
but longonly
process
66 days withor
60%
support
voting
in paper.we need proper
Easy to lockout employees 7 days prior notice
mechanism
application,
No clear provision
to punish for
employers
for misconduct to the
labors
monitoring
and
adherence
of
Contract labor provisions are not clear
related
bodies
EqualityGovernment
between men andand
women
in law but
not implemented
NO properfor
working
environment
forof
differently
enabled
all
the
clauses
Labor
&
employees
7 ILO conventions are
ratified, 4Laws
in the process
of ratifications but
related
!!
several cases of violation

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