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Summary of Labour act

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Chartered Nepal,

Last Updated: 2023-03-10

 

Special Types Of Industries and Services

Workers of Tea Estate and Dependent Family Members -

1. Make Arrangement for Quarters

2. Provision for medical staff

3. easy availability of daily necessities in case no market near the estate

4. make arrangement for sports and entertainment of workers and family members.

Construction Workers-

1. provide necessary tools and materials for construction

2. arrangement for temporary quarters, clean drinking water and supply of necessary fooding arrangement who do not have houses nearby

3. make necessary safety arrangement.

Transport Workers

1. At least 2 drivers for long routes

2. provision for rest in different places for long route

3. for more than 8 hrs., pay either 1.5 times the salary or other allowances.

4. if vehicle breaks down, pay 50% of the allowances (or 1.5 times salary)

5. medical treatment items in vehicles

6. Not to consume alcohol or drugs at least 12 hrs. before driving

7. if terminated because of sale of vehicle or ownership change - provide termination benefits. also provide opportunity of being heard

Tourism Workers

1. Sufficient medicine and medical treatment

2. rescue in case of accident

3. 1.5 times of remuneration for extra time or similar allowances

4. Shall distribute service fees collected as per collective bargaining agreement

Seasonal Enterprise

• Enterprise which can be operated in one season only or less than 180 days in a year.

• Can keep employees in reserve paying 25% remuneration.

• office shall decide whether an enterprise is seasonal or not



Fair Labour Practice

Unfair Labour practices by employer-

• Not Complying with labour laws or causing others to do so

• Prohibiting the use of rights conferred by the labour law

• Fake evidence to take disciplinary actions against any worker

• Act with intention to harass worker

• Act of continuing unlawful lockout

• assaulting or causing to assault workers

• provocative act to cause rift amongst workers

• intervene the activities of trade union

Unfair Labour practices by employer-

• Pressure on worker to be or not to be member

• collecting donation or other assistance forcefully

• picketing, surrounding private residence or enterprises of the employer other than the concerned workplace

• assaulting employer or his representative

• damaging the property of employer



Disputes

Individual-

Submit claim to the employer. the employer shall give written acknowledgement. shall consult with worker and settle dispute within 15 days. if doesn't acknowledge or no agreement reached, the worker may file complaint to the office. The office shall act as a mediator. Shall be solved by consultation if cannot solve, decision taken by office shall be final

Collective claim

• Form a Collective Bargaining committee (employer with 10 worker or more). Representative from the authorized trade union, if no such trade union then from other unions, if not such unions, then representatives supported with the signatures of more than 60% of workers. 3-11 representatives

• Such committee to submit collective claim in writing to the employer on issues relating to the interest of the workers

• cannot submit claim on a) Against constitution b) without ground or proof c) not related to the enterprise d) matter which may affect the personal behavior of the worker e) collective agreement has been made and the period specified in the agreement has not expired

Procedure-

Consultation with CBC, if cannot be reached, mediation with the office, if cannot be mediated, arbitration.

Strike in the following cases

• no condition for arbitration(section 119)

• arbitrator doesn't perform function

• arbitration panel could not be formed within 21 days from application

• Decision not given within prescribed time

• Employer doesn't enforce decision or challenges decision on legal grounds

• except in case of compulsory arbitration, any party dissents with the decision of the arbitrator.

Validity period for the collective agreement shall be 2 years.

Worker shall receive half remuneration during lockout and strike



Misconduct

Warning -

• absent

• leaving workplace without permission

• late

• disobeying mgmt.

Deduction of One day Remuneration -

• refusing to accept any letter or notice issued by employer or officer with power to punish

• taking part/forcing other in illegal strike or adopting go slow tactic collectively

• causing loss to the enterprise - decreasing production or service negligently

• taking benefit by submitting false documents

• Not using safety equipment

No Increment or no Promotion-

• taking and using property outside the enterprise without permission

• attempting to misappropriate funds

• Causing loss - damaging property negligently

• Stopping food, water, telephone, electricity, obstructing the movement in and out of workplace

• misusing or damaging - objects for safety and health

Dismissal -

• Assaulting or injuring - Employer, worker, customer any other person, keeping in captive causing damage with or without weapons

• bribe - giving or taking

• Stealing property of others

• Financial Misappropriation

• Taking drugs/alcohol during work

• submitting false document to get appointed

• punished more than 2 times for misconduct

• Damaging property of the employer under his control

• convicted for immoral or criminal act

• working in collaboration with competitor or providing confidential info

• leaking production related formula or confidential info

• absent for continuous 30 days

Termination

Time Based - Time Expires

Task Based - Task Completed

Casual - At the will of the Employer or Worker

• Worker to give resignation in writing and the employer shall approve within 15 days.

• Employer can terminate if work is found unsatisfactory for 3 or more consecutive times. Conduct performance evaluation. (give 7 days time to submit clarification if more than 10 or more workers)

• Employer can also terminate because of mental or physical incapacitation of employee. Recommendation from doctor required.

Notice Period

To be given by employer(termination) or worker(resignation)

Employment for max period of four weeks at least 1 day before

Employment for max period of One month at least 7 days before

Employment for max period of 1 year at least 30 days before

Employer doesn't give notice - pay to worker 1 month salary

Worker doesn't give - employer can deduct 1 month salary.

Retrenchment

When? - Financial Problems, Excess employees due to merger or because of other reason enterprise needs to be shut down temporarily or permanently.

Notice - Employer to give notice to office, trade union, or labour relation committee before 30 days. Show reason, number of employees, date of retrenchment. Also, consult with them and reach an agreement on grounds and selection of workers, alternatives. if no agreement is reached, inform the office and retrench

Order of Retrenchment-

1. Foreign Worker

2. Worker with the most punishment for misconduct

3. workers with poor work performance

4. Worker hired at last from the same category of work.(Workers appointed earlier may also be retrenched by stating the grounds)

5. Office bearer of CBC and Trade unions

Compensation - 1 month salary for employee completed 1year. if not completed - proportional

Non Applicability -(Notice, Grounds, Agreement)- Order of GON, Labour court, in pursuance of law, SEZs.

Reinstatement - if resumes operation within 2 years, preference of hiring from the workers retrenched, if cannot, hire new workers. if preference is not given or no notice is issued to retrenched worker, such workers can file a complaint to labour court





Corporate Law

Published By

Chartered Nepal

Category : Corporate Law

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