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FOREIGN EMPLOYMENT ACT, 2042 (1985)

Date of Royal Seal and Publication
2042/7/14/4           

Act No. 26 of the year 2042

Foreign Employment (First Amendment) Act, 2049
(1992)

An Act made to provide for the matters relating foreign
employment:

Preamble:

     Whereas it is expedient to control and manage as well as to
     maintain economic interests and conveniences of the general
     public.

     Now, therefore, His Majesty's King Birendra Bir Bikram Shah
     Dev has made this Act on the advice and with the consist of
     the National Panchayat.

(1)  Short Title and Commencement:

     (1)  This Act may be called the "Foreign Employment Act,
          2042 (1985)".

     (2)  This Act shall come into force on such date as His
          Majesty's Government may, by notification published in
          the Nepal Gazette, prescribe 

(2)  Definitions:

     Unless the subject or context otherwise requires, in this
     Act :-

     (a)  "Worker" means a Nepali Citizen employed in accordance
          with this Act in a foreign country specified in the
          notification published by His Majesty's Government.

     (b)  "Foreign Employment" means the employment to be
          obtained by a worker to aboard.

     (c)  "Foreign Employment Enterprises" means the Act or
          providing foreign employment to Nepali citizens and
          the meaning of this expression also includes the
          solecion act of workers by the representative of
          employment providing or cause to be given institution.

     (d)  "Licence-holder" means the institution obtaining the
          licence pursuant to section 6.

     (e)  "Employment Providing Institution" means the
          institution providing foreign employment to workers.

          (e1) "Association" means any association established
               under prevailing laws having industrial,
               commercial or service conducting purpose.

          (e2) "Department" means the Department of Labour of
               His Majesty's Government.

     (f)  "Prescribed" or "As prescribed" means prescribed or as
          prescribed in Rules framed under this Act.

(3)  Restriction to operate Foreign Employment Enterprises
     without Licence:

     No one shall be entitled to operate Foreign Employment
     Enterprise without obtaining licence under this Act.

(4)  Countries relating to Enterprising to be prescribed:

     Operation of Foreign Employment Enterprise under this Act
     shall be permitted only in the foreign countries specified
     in the notification published in the Nepal Gazette by His
     Majesty's Government.

(5)  Licence not to be issued except for Institution:

     Except for institution established under the existing laws,
     no licence shall be issued for the operation of Foreign
     Employment Enterprise.

(5a) Ownership and liability of the Association:

     Notwithstanding anything contained in the prevailing laws,
     the Association conducting the foreign employment can not
     transfer or alter its ownership or liability without the
     prior approval of His Majesty's Government.

(6)  Licence:

     (1)  Institution intending to operating Foreign Employment
          Enterprise shall have to submit an application with
          prescribed particulars to His Majesty's Government.

     (2)  His majesty's Government may issue licence with
          conditions after receiving prescribed fee and the
          deposit pursuant to Section 8 from such institution if
          the institution applying for licence in accordance
          with Sub-section (1) is deemed compitent and fit to
          operate Foreign Employment Enterprise.

     (3)  The licence issued pursuant to Sub-section (2) shall
          have to be renewed by the licence-holder in each
          financial year by paying fee as prescribed.

(7)  Licence may be cancelled:

     His Majesty's Government may order to cancel the licence if
     the licence-holder fails to, abide by the conditions or
     fails to abide this Act or the Rules, Orders or Directives
     issued under this Act.

(8)  Deposit to be kept:

     (1)  Institution intending to obtain licence pursuant to
          Section 6 shall have to deposit prescribed amount of
          money to His Majesty's Government before obtaining the
          licence.

     (2)  His Majesty's Government may, as necessary order to
          deposit additional deposit, if the licence obtained by
          depositing the deposit pursuant to Sub-section (1) is
          found to be proportionately insufficient to the
          transaction of the licence-holder. The licence shall
          be cancelled if the additional deposited within the
          prescribed period.

(9)  Prior permission to be obtained:

     (1)  In order to select workers for foreign employment the
          licence-holder shall have to obtain prior permission
          of His Majesty's Government and for such permission an
          application with the following particulars shall have
          to be submitted :-

          (a)  Name and address of the employment providing
               institution.

          (b)  Type of foreign employment.

          (c)  Copy of the agreement entered into between the
               employment providing institution and licence-
               holder regarding sending of workers aboard.

          (d)  Copy of the contract to be entered into between
               the employment providing institution and the
               worker.

          (e)  Others particulars as prescribed.

     (2)  His Majesty's Government shall not provided permission
          for selecting workers if the particulars submitted
          pursuant to Sub-section (1), when scrutinised show the
          followings :- 

          (a)  If the person with the qualification demanded by
               the employment providing institution is required
               for the economic development of Nepal,

          (b)  If the proposed foreign employment is to
               regularized by the laws of the concerned country,

          (c)  If the services, terms and facilities are found
               unsatisfactory in proportion to the qualification
               demanded by the employment providing institution,

          (d)  If the proposed foreign employment is against the
               value, dignity or health of the worker, or

          (e)  If other condition as prescribed are found.   

(10) Advertisement:

     After obtained permission of His Majesty's Government
     pursuant to Section 9 the licence-holder shall have to
     advertise publicly with particulars as prescribed for the
     selection of workers.

(11) Selection of Worker:

     (1)  Selection of worker shall have to be done impartially.

     (2)  The licence-holder while selection worker shall have
          to include the representative of His Majesty's
          Government and the representative of foreign
          employment providing institution, if such institution
          wants to be included in the selection.

     (3)  The description alongwith the name list of the
          selected labours shall be submitted to the concerned
          authority within seven days from the date of selection
          of the labour under Sub-section (1).

     (4)  The labours selected under Sub-section (1) shall be
          sent for foreign employment within four months from
          the date of selection. His Majesty's Government may
          extend the period upto two times not exceeding 15 days
          at one time, if there is reasonable cause of being
          failure to send the labours within the given period.

     (5)  In case of failure to send the selected labours within
          the period mentioned in Sub-section (4), the concerned
          agency shall pay back the amount received from such
          labours and the interest thereof at the rate of 18
          percent within fifteen days.

(12) Control in providing Foreign Employment:

     Notwithstanding anything mentioned elsewhere in this Act,
     the licence-holder shall not foreign employment to children
     and to women without the consent of her guardian.

(13) Service Charge:

     The licence-holder is allowed to take service charge as
     prescribed for providing foreign employment.

(14) Contract relating to Foreign Employment:

     (1)  The licence-holder shall have to explain in the
          language understood by the worker the full content of
          the contract and the facilities to be obtained from it
          as well as the consequence thereto, before the
          conclusion of contract between the worker and
          employment providing institution.

     (2)  Only if the worker agrees to the contract explained
          fully to him pursuant to Sub-section (1), one copy of
          such contract shall have to be provided each to the
          worker and His Majesty's Government after the contract
          has been signed by both the parties and the contract.

     (3)  The contract to be entered into between the worker and
          employment providing institution shall not differ from
          the contract submitted by the licence-holder pursuant
          to clause (d) of Sub-section (1) of Section 9.

     (4)  His Majesty's Government may give permission to the
          licence-holder to send worker abroad for foreign
          employment after receiving the contract pursuant to
          Sub-section (2).

(16) Information on the Subject of the Country to be visited for
     Foreign Employment to be given:

     After obtaining licence pursuant to Sub-section (4) of
     section 14, the licence-holder shall inform the worker to
     be sent for foreign employment about the geographical
     location, culture, labour law as well as economic,
     political and social conditions of the concerned country.
     Without giving such information no worker shall be sent for
     foreign employment.

(17) Record to be kept:

     The licence-holder shall keep upto date record of the
     worker sent for foreign employment as prescribed.

(18) Provision relating to worker's income:

     The licence-holder shall make arrangement to deposit
     prescribed amount of money from the income of the workers
     at prescribed place or send to his home country in the
     prescribed way, for the welfare or maintenance of the
     workers and their dependents.

(19) Investigation to be done:

     (1)  His Majesty's Government may investigate or cause to
          be investigated if the worker files a complaint
          regarding the employment providing institution, which
          has not fulfilled its contract responsibility or the
          licence-holder who has not taken necessary and
          appropriate action to make the contract conditions
          fulfilled. 

     (2)  From the investigation conducted pursuant to Sub-
          section (1) if it has been found necessary to call the
          concerned worker back home, His Majesty's Government
          may order the licence-holder to provide necessary
          amount of money for the return of such worker.

     (3)  In case the licence-holder does not abide by the order
          of His Majesty's Government pursuant to Sub-section
          (2) the return fare of the worker shall be met from
          the deposit of the licence-holder deposited pursuant
          to Section 8. The concern licence-holder shall be
          informed as soon as possible to reimburse the amount
          borne as expenditure from the deposit and the licence-
          holder shall deposit that amount within fifteen days
          of receiving notice.

     (4)  In case the amount deposited under Section 8 is
          insufficient to return back the labours to the native
          country the licence-holder shall pay the due
          expenditure within the time notified by His Majesty's
          Government and if such amount is not paid within the
          time limit it shall be realised with pursuant to
          prevailing laws from the assets of the licence-holder.

(19) Inspection:

     His Majesty's Government may inspect documents and other
     concerned papers kept by the licence-holder regarding the
     compliance of this Act and the Rules framedoor Orders or
     Directives issued under this Act.

(20) Power to Direct:

     (1)  His Majesty's Government may, from time to time issue
          necessary directions to the licence-holder concerning
          foreign employment.

     (2)  It shall be the duty of the licence-holder to abide by
          the direction, given pursuant to Sub-section (1).

(21) Special Power of His Majesty's Government:

     Notwithstanding anything mentioned elsewhere in this Act,
     in special situation His Majesty's Government may, at any
     time cancel the licence provided under this Act.

(22) Advisory Committee:

     An advisory committee shall be constituted as prescribed to
     advise His Majesty's Government concerning foreign
     employment.

(23) No Restriction to go in Personal Capacity:

     Nothing mentioned in this Act shall be considered to
     restrict anyone going for work in any foreign country after
     obtaining work permit.

     Provided that the person going so shall notify to the
     Department explaining the details of the country of
     destination, nature of job and conditions and facilities of
     the employment.

(24) Punishment:

     (1)  His Majesty's Government may fine a sum of rupees five
          thousand to rupees fifty thousand to the licence-
          holder who do not follow the provisions of this Act or
          rule, order or direction issued under this Act.

     (2)  If someone conducts foreign employment business
          without obtaining a licence under this Act or sends
          anybody abroad by providing false assurance or
          attraction by explaining that such person was sent for
          foreign employment or takes any money on such
          pretence, the money so taken and eighteen percent of
          interest to that amount and the two way expenses such
          person shall be reimbursed by the person sending him
          and the same shall be punished with a fine of rupees
          fifty thousand to two lakh or imprisonment of one year
          to five years or both. If such person has not been
          sent abroad half of the above mentioned punishment
          shall be made.

     (3)  Any person knowingly or maliciously, if conceals,
          changes or falsifies facts of any documents, reports,
          audit to particulars to be kept, prepared, or
          submitted under this Act or attempt to do such things
          such person shall be liable to a fine of rupees twenty
          five thousand to one lakh or imprisonment of six
          months to three years.

     (4)  The licence of the licence-holder who has been liable
          for punishment for offence proved, shall be cancelled
          and the offender punished in accordance with Sub-
          section (2) and (3) shall not be provided another
          licence.

     (5)  Person being abetter in the offence under this Act or
          conspiring to commit such offence shall be liable to
          half of the punishment of the offence if such offence
          was committed and such offender shall not be given any
          licence for conducting foreign employment business.

(25) His Majesty's Government to be the Plaintiff:

     His Majesty's Government shall be the plaintiff in cases
     under this Act and the cases under this Act shall be deemed
     to be included in Schedule 1 of State Cases Act, 2017.

(26) Delegation of Power:

     His Majesty's Government may delegate some or all of the
     power conferred upon it by this Act to any official by
     notification published in the Nepal Gazette.

(27) Power to Frame Rules:

     (1)  His Majesty's Government may frame rules to carry out
          the objectives of this Act.

     (2)  Without prejudice to the power conferred by Sub-
          section (1) such rules may provide for the following:- 
          
          (a)  Particulars to be given in the application to be
               submitted for licence.

          (b)  Qualification of institution needed to operate
               Foreign Employment Enterprise.

          (c)  Format of the licence, fee and renewal fee.

          (d)  Conditions to be kept in the licence.

          (e)  Procedure for cancellation and conditions of
               cancellation of the licence.

          (f)  Particulars to be given in the application for
               permission to select workers.

          (g)  Particulars to be mentioned in the advertisement
               by licence-holder.

          (h)  Provision relating to service charge.

          (i)  Conditions to be mentioned in the contract
               relating to foreign employment.

          (j)  Provision relating to the functioning of office
               of the institution operating Foreign Employment
               Enterprise.

          (k)  Investigation procedure relating to the complaint
               of worker.

          (l)  Procedure and provision for returning workers to
               their homes.

          (m)  Procedure relating to inspection.
       

The International Labour Organization is a United Nations specialized agency.

Updated by PAP/SUT/TRS. Approved by BKL. Last updated on 5 March 2001