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Nepal

LABOUR ACT, 2048 (1992)
DATE OF ROYAL SEAL OF ASSENT: 2049/2/2/6   
(MAY 16, 1992)
Preamble:

     Whereas it is expedient to make timely provisions relating
     to labour for making provisions for the rights, interests,
     facilities and safety of workers and employees working in
     enterprises of various sectors.

     Now, therefore, be it enacted by Parliament on the twenty
     first year of the reign of His Majesty King Birendra Bir
     Bikram Shah Dev.

CHAPTER - 1:  Preliminary

1.   Short Title and Commencement:

     (1)  This Act may be called as "Labour Act, 2048 (1991)".

     (2)  This Act shall come into force immediately.

2.   Definitions:

     Unless the subject or context otherwise requires in this
     Act-

     (a)  "Production Process" means any of the following
          process-

          i.   Works relating to making altering repairing,
               engraving, finishing, packing, oiling, washing,
               cleaning,breaking-up, dismantling or other kinds
               of activity given to any article or substance
               with a view to bringing it to use, sale,
               distribution, transportation or disposal; or
          
          ii.  Pumping oil, water or sewerage; or

          iii. Generating, transforming or transmitting energy;
               or

          iv.  Printing lithography, photography, book-binding
               or similar other works.

     (b)  "Enterprise" means any factory, organisation,
          association, film or a group thereof established under
          the prevailing law for the purpose of operating any
          industry, profession or service where ten or more
          workers or employees are engaged and this word shall
          also include -

          i.   Tea estates established under the law for
               commercial purpose;

          ii.  Enterprise operating within the industrial
               district established by His Majesty's Government
               where less than ten workers or employees are
               engaged.

     (c)  "Employee" means a person engaged in administrative
          functions of the enterprises.

     (d)  "Workers" means a person employed on the basis of
          salary or wage to work in any building, premises,
          machinery or any part there of used for any
          productions process or providing service, or any act
          relating to such work or for any unscheduled works and
          this word shall also include any worker working at
          piece-rate, contract or agreement.

     (e)  "Manager" means a person appointed for performing the
          functions in the Enterprise.

     (f)  "Proprietor" means the person having final authority
          on the activities of the Enterprise and this word
          shall also include any person appointed as the Chief
          of any part or unit of the Enterprise with powers to
          exercise final responsibility or authority in respect
          thereof.

     (g)  "Factory Inspector" means the Factory Inspector
          appointed by His Majesty's Government and this word
          shall also include the Senior Factory Inspector.

     (h)  "Child" means a person who has not attained the age of
          fourteen years.

     (i)  "Minor" means a person who has attained the age of
          fourteen years but has not completed the age of
          eighteen years.

     (j)  "Major" means a person who has completed the age of
          eighteen years.

     (k)  "Energy" means electrical or mechanical energy.

          Provided this word shall not include any energy
          generated for human or animal sources.

     (l)  "Seasonal enterprise" means an Enterprise which cannot
          be operated or which is not feasible to operate in any
          season other than the specific season and this word
          shall also include a Seasonal enterprise which cannot
          operate more than one hundred and eighty days in one
          year.

     (m)  "Day" means period of twenty four hours starting from
          any midnight and ending at another midnight.

     (n)  "Week" means a period of seven days starting from
          midnight on saturday or from midnight or such other
          days as prescribed by the Department of labour.

     (o)  "Welfare Officer" means the welfare officer appointed
          under this act.

     (p)  "Labour Officer" means the Labour Officer appointed
          under this act and the word shall also include the
          senior Labour Officer.

     (q)  "Labour Court" means the Labour Court under this act.

     (r)  "Remuneration" means the salary or wage to be received
          in cash or kind from the Enterprise by the worker or
          employee for the works performed in the enterprise and
          this word shall also include any amount to be received
          in cash or kind for the works done under piece-rate or
          contract.

          Provided that this word shall not include any kind of
          allowance or facility.

     (s)  "Prescribed" or "as prescribed" means prescribed or as
          prescribed in the Rules made under this act.

CHAPTER - 2:  Employment and Security of Service

3.   Classification of Job:
     
     (1)  The Proprietor shall have to classify the job of the
          workers and employees of the Enterprise according to
          the nature of production process, service or functions
          of the Enterprise and shall provide the information
          thereof to the concerned Labour Office.

     (2)  If the classification done pursuant to Sub-section (1)
          requires any amendment, the Labour Officer may,
          stating the reasons thereof, issue a directive to the
          Proprietor and it shall be the duty of the Proprietor
          to abide by such directive.

4.   Appointment of Worker and Employee:

     (1)  The Proprietor shall provide a letter of appointment,
          where any worker or employee is being engaged in any
          post within the classification of job prepared
          pursuant to Section 3. While making such appointment,
          priority shall be given to the Nepalese Citizens.

     (2)  The worker and employee appointed under Sub-section
          (1) shall be appointed permanently after completion of
          the continuous service of one year on grounds of his
          efficiency, sincerity, discipline, diligence towards
          works, punctuality, etc. An appointment letter shall
          be provided with the name of the post of the worker or
          employee and his remuneration and conditions of
          service  while making such appointment. An information
          thereof shall also be provided to the Labour Office. 
     
     (3)  The worker or employee engaged on piece-rate or
          contract in the works of permanent nature of an
          Enterprise, shall also be appointed permanently under
          Sub-section (2).

     (4)  The workers or employee engaged under Sub-section (3)
          shall be entitled to facilities provided in this Act
          according to the scale of his post.

     (5)  Notwithstanding anything mentioned in Sub-section (2)
          and (3), if the Enterprise has to temporarily increase
          its production or service, it may appoint for a fixed
          period necessary worker or employee specifying the
          period thereof.

5.   Engagement in work:

     (1)  No child shall be engaged in work in any Enterprise.

     (2)  Minors and females may be engaged in the works
          normally from 6 o'clock in the morning till 6 o'clock
          in the evening, except in the prescribed conditions.

     (3)  By making an appropriate arrangement with mutual
          consent between the Proprietor and the worker of
          employee, the females may also be engaged in the works
          similar to the males.

6.   Computation of period of works:

     For the purpose of computing the period of works performed
     in the enterprise by any worker on employee, the following
     period shall also be counted.

     (a)  the period remained in reserve under Section 11; and 

     (b)  the period stayed during paid leave.

7.   Employee in Contract Service:

     Keeping in the view of the nature of function of the
     Enterprise , in case any person has to be employed for
     certain time in a specific job such person may be appointed
     in contract service specifying the remuneration, tenure and
     conditions of service.

8.   Change of ownership shall not Adversely Affect:

     Any change in the ownership of the Enterprise shall not be
     deemed to have affected on the terms and conditions of
     service of the workers and employees of the enterprise.

9.   Separates Registers of the Workers and Employee to be kept:

     (1)  In each Enterprise, the Proprietor shall maintain
          separate registers of the workers and employees
          mentioning the following particulars:-

          (a)  Name of the worker or employee,

          (b)  Nature of job,

          (c)  Remuneration and method of its payment,

          (d)  Other prescribed particulars.

     (2)  The register maintained under sub-section (1) shall
          have to be submitted when demanded by the Labour
          Officer, Factory Inspector or any other person 
          designated by the Labour Office.

10.  Security of Service:

     The service of any permanent worker or employee may not be
     terminated without following the procedures prescribed by
     this Act or the Regulations or Bylaws made under this Act.

11.  Keeping on Reserve:

     (1)  In case where the curtailment of production or service
          in any Enterprise for some period is necessary or
          where operation of the Enterprise cannot be continued
          for some special circumstance, the Proprietor, under
          sub-section (2), may curtail its production or service
          or may close the Enterprise or a part of thereof.

     (2)  Permission from the Labour Office in case of a period
          upto fifteen days and from the Department of Labour in
          case of a period for more than that shall have to be
          taken while curtailing the production or service or
          closing the Enterprise or any part thereof as
          mentioned in Sub-section (1). The Labour Office shall,
          inform the Department of Labour of such permission in
          case it has given a permission.
     
     (3)  While doing curtailment in the production or service
          pursuant to Sub-section (1), any worker working on
          shifts or on wages or any worker or employee who being
          enroled in the attendance register of the Enterprise
          has completed the continuous service of one year shall
          be kept in reserve on the condition receiving half of
          his salary.

          Provided that such worker or employee shall continue
          to receive the facilities which he was receiving.

     (4)  If any worker or employee kept in reserve pursuant to
          Sub-section (3) refuse to work on another assignment
          or similar nature on equal pay offered by the
          Proprietor in the same Enterprise or another
          Enterprise under his control or if he does not come in
          the Enterprise once a day during office hours or on
          other situations as prescribed, the Proprietor may
          withheld the salary and facility of such worker and
          employee.

 12. Retrenchment and reinstatement:

     (1)  If, for any special circumstances, the production or
          service of the Enterprise has to be curtailed or the
          Enterprise has to be closed partly or wholly for more
          than three months, the Proprietor may, with the
          approval of His Majesty's Government through the
          Department of Labour, retrench in the number of the
          workers or employees, partly or wholly, of the
          Enterprise.

     (2)  While retrenching the workers or employees under Sub-
          section (1), engaged in similar type of works, those
          workers or employees who have completed one year of
          continue service and who were appointed in the last
          shall be retrenched first.

          Provided that if it is required to retrench some of
          the workers or employees appointed earlier, not
          following the prescribed order of retrenchment, such
          retrenchment may be made by specifying the reasons
          thereof.

     (3)  While doing retrenchment as per Sub-section (2), it
          shall be done as follows :-

          (a)  By providing the notice with the reasons or
               retrenchment either one month in advance or
               paying the salary of one month in case of worker
               or employee who is permanent or who has served
               continuously for one year, and 

          (b)  By paying the lump sum compensation to each
               worker or employee of the amount of salary
               calculated by multiplying the number of each year
               of service performed at the Enterprise by the
               amount of his present salary for 30 days.

               Explanation:   For the purposes of this Clause,
               the work performed for at least six months in any
               year shall be counted as one year of service.

     (4)  The provisions of Sub-section (3) shall not applicable
          to any worker or employee appointed under contract
          service.

     (5)  If anybody has to be engaged in the job of worker or
          employee retrenched earlier, priority shall be given
          to the retrenched workers or employees.
 
          Explanation:   For the purposes of Section 11 and 12
          the "Special Circumstance" shall mean damage, break
          down or failure of machines of the Enterprise and
          thereby causing stoppage in the production or failure
          in the supply in fuel, electricity, coal or similar
          energy or due to any kind of force majeure or
          insufficient supply of raw materials or stock piling
          of the produced goods due to loss of sale or other
          similar situations.

13.  Seasonal Enterprise:
     
     (1)  The workers or employees of a seasonal Enterprise
          shall not be deemed to be on reserve during off-season
          period.

     (2)  The beginning and closure of operation of seasonal
          Enterprise shall be informed to the Labour Office.

     (3)  The worker or employee, who has continuously served
          for one year shall have to be paid with at least
          twenty five percent of his remuneration as retaining
          allowance for the period of closure of a seasonal
          Enterprise during off-season.

     (4)  The decision of the Department of Labour shall be
          final in relation to any dispute as to whether any
          Enterprise is seasonal or not.

14.  Continuous Service of One Year:

     Any worker or employee who has served for two hundred and
     forty days in a period of twelve months in any Enterprise
     or who has continuously worked during the entire period of
     operation in a season in any seasonal Enterprise shall be
     deemed to have continuously served for one year.

     Explanation:   While computing the period of two hundred
     and forty days, the public holidays and weekly holidays
     shall also be counted.

15.  Compulsory Retirement:

     The Proprietor may compulsorily retire any worker or
     employee who has crossed the age of fifty five years.

     Provided that he may extend the period of service of any
     worker or employee by five years, in case the worker or
     employee is indispensable for the operation of the
     functions Enterprise.

                               
CHAPTER - 3:  Working Hours

16.  Working Hours:

     No worker or employee shall be deployed in work for more
     than eight hours per day or forty eight hours per week and
     they shall be provided one day as weekly holiday for every
     week.

17.  Computation of Commencement of Working Hour:

     The time for starting of week by worker or employee shall
     be as prescribed by the Proprietor.               

18.  Intervals for Refreshment and Rest:

     In any Enterprise where work may be interrupt, no worker or
     employee shall be deployed in work for more than five hours
     continuously without providing an interval of half an hour
     for tiffin. In any Enterprise where works have to be
     carried out continuously without interruption, such
     intervals shall be provided on rotation basis. Such
     interval of half an hour shall be deemed to have been
     included within the daily working hours.

19.  Extra Wages to be Provided:

     (1)  Where any worker or employee is engaged to work for
          more than eight hours in a day or forty eight hours in
          week, he shall be paid overtime wages at the rate of
          one and one-half time of his ordinary rate of wages.

          Provided that no worker or employee shall be compelled
          to work overtime.

     (2)  While deploying any worker or employee to work
          overtime, generally the duration shall not exceed four
          hours per day and twenty hours per week.

20.  Attendance Register to be Kept:

     Each Enterprise shall keep attendance register of its
     workers and employees.  

                               
CHAPTER - 4: Remuneration

21.  Minimum Remuneration Fixation Committee:

     (1)  His Majesty's Government shall fix the minimum
          remuneration of workers or employees of Enterprise on
          the recommendation of Minimum Remuneration Fixation
          Committee and the notice of such fixation shall be
          published in Nepal Gazette.

     (2)  For Fixation of remuneration, His Majesty's Government
          shall constitute a Minimum Remuneration Fixation
          Committee consisting of the equal number of the
          representatives of workers or employees, Proprietors
          and His Majesty's Government.

     (3)  The Minimum Remuneration Fixation Committee
          constituted as per Sub-section (2) may submits its
          recommendation also in related to annual increment
          rate of remuneration, dearness allowance or other
          facilities to His Majesty's Government.

     (4)  The powers, functions and duties of the Committee to
          be constituted pursuant to Sub-section (2) shall be as
          prescribed.

     (5)  The rate of minimum remuneration fixed pursuant to
          this Section shall not be effective earlier than two
          months from the date of its publication in the Nepal
          Gazette.

     (6)  Where the Minimum Remuneration Fixation Committee
          could not be constituted or, where it could not submit
          its recommendation after being constituted, nothing
          mentioned in the foregoing Sub-section shall be deemed
          to have prevented His Majesty's Government from fixing
          the minimum remuneration of the workers or employees
          of Enterprise.

     (7)  No agreement shall be entered into between Proprietor
          and worker or employee in a way fixing the salary at
          a figure below the minimum prescribed by His Majesty's
          Government under Sub-section (1).

22.  Payment of Remuneration:

     It shall be the responsibility of the Proprietor to provide
     the remuneration to the workers or employees of the
     Enterprise.

23.  Period of Remuneration:

     The Proprietor may fix the period of payment of
     remuneration to the workers or employees on weekly,
     fortnightly or monthly basis in way not exceeding the
     period of one month.

     Provided that this provision shall not apply in respect of
     the persons who are working on daily wages, piece-rate or
     contract basis.

24.  Prohibition on Deduction on salary:

     (1)  The remuneration of workers or employees shall not be
          deducted expect under the following circumstances :-

          (a)  In case it is required to realise any fine;

          (b)  In case it is required to deduct against absence;

          (c)  In case it is required to deduct against loss or
               damage of cash or kind of the Enterprise caused
               intentionally or negligently;

          (d)  In case it is required to deduct in respect of
               providing prescribed facilities;

          (e)  In case it is required to deduct in respect of
               advance or over payment of remuneration.

          (f)  In case it is required to deduct in respect of
               period of suspension;

          (g)  In case it is required to deduct under the order
               of government office or court;

          (h)  In case it is required to deduct as per the
               notification of His Majesty's Government
               published in the Nepal Gazette; or 

          (i)  In case it is required to deduct in respect of
               income tax or any other tax lived under
               prevailing laws.

     (2)  The limit of amount to be deducted as per Sub-section
          (1), the method of deduction, the period of deduction
          and other related matters shall be as prescribed.

25.  Petition may be filed Against Undue Deduction or Delay in
     Payment:

     (1)  Expect where remuneration had not been paid in time by
          mistake, or due to not fixation of the amount of
          remuneration, or due to occurrence of an unexpected
          incident or any other special reasons, or if the
          worker or employee himself has failed or disagreed to
          receive the remuneration, the concerned worker or
          employee either himself or through his legal
          representative may file a petition at the Labour
          Office against such activity of the improper deduction
          of remuneration or delay in payment.

     (2)  The petition as per Sub-section (1) shall have to be
          failed within six months from the date of such
          deduction or delay in payment.

     (3)  Upon investigation on such petition filed under Sub-
          section (1), if it gets proved that the remuneration
          has been improperly deducted or delayed, the Labour
          Office may issue an Order directing to pay such
          remuneration to the concerned worker or employee and
          compensation of an amount upto three times or the
          amount in default.

     (4)  If the petition under Sub-section (1) is to proved to
          have been filed with malafide intention or with
          intention to give unnecessary trouble to the
          Proprietor, the Labour Office may order the petitioner
          to pay the Proprietor a compensation of upto one
          thousand rupees.

     (5)  The Labour Office may realize the amount to be paid
          under its Order issued as per Sub-section (3) or (4)
          like the governmental dues and them over to the
          concerned party.

26.  Appeal:

     The party dissatisfied with the Order issued as per Sub-
     section (3) or (4) may file an appeal to the Labour Court
     within thirty five days of the receipt of information of
     such order and the decision of the Labour Court shall be
     final.

CHAPTER - 5:  Health and Safety

27.  Provisions Relating to Health and Safety:

     The Proprietor shall make the arrangements in the
     Enterprise as mentioned below :-

     (a)  To keep each Enterprise clean and tidy by cleaning
          daily including with germicidal medicines, necessary
          arrangements of proper drainage and colouring from
          time to time and preventing from odour;

     (b)  To make arrangements for adequate supply of fresh air
          and light as well as proper temperature in the working
          room;

     (c)  To make arrangements of removal and disposal of solid
          waste during production process;

     (d)  To make arrangements of prevention of accumulation of
          dust fume vapour and other impure materials in working
          rooms which would adversely affect the health;

     (e)  To male arrangements of necessary preventive personal
          devices for protection of health from adverse effects
          of noise emanating during work process or from any
          other source, and make provisions which would produce
          less noise during the work process;

     (f)  To avoid any congestion in the work-room or work place
          leading to injurious to the health of workers or
          employees and to avail working space to each worker or
          employee, according to the nature of job, or normally
          fifteen cubic meters and, the height above four meters
          from the floor surface shall not be counted for such
          purposes.

     (g)  To make provisions for sufficient of pure potable
          water  during the working hours, and to make
          arrangement for sufficient water in the enterprise
          where chemical substances, are used or produced which
          may be injurious to the health, for the purpose of
          extinguishing fire or washing and cleansing during
          emergency situations;

     (h)  To make provisions for separate modern type toilets
          for male and female workers or employees at convenient
          place;

     (i)  To declare as non-smoking zone in all or some parts of
          the Enterprise, according to the nature of its works;
          and 

     (j)  To cause to conduct compulsory health check-ups of the
          workers or employees once every year in the
          Enterprises where the nature of works is likely to
          affect the health adversely.

28.  Protection of Eyes:

     (1)  Necessary protective means shall have to be arranged
          for the protection of eyes of the workers or employees
          from injuries likely to be caused by dust or pieces
          while working in the Enterprise using glass, mercury,
          magnet, pallets, iron, concrete, cement, lime, stone
          and explosive substances.

     (2)  Necessary protective devices shall have to be arranged
          to protect the eyes from harmful rays coming from
          during the process of welding or gas-cutting, or other
          similar works.

29.  Protection from Chemical Substance:

     The Proprietor shall have to make provisions for necessary
     personal protective devices for the protection of workers
     or employees handling chemical substances.

30.  Provisions for Safety Against Fire:

     (1)  The Proprietor shall have to make arrangements for
          necessary modern equipment for safety against fire in
          each Enterprise.

     (2)  Provision shall have to be made for easy exit from the
          Enterprise during emergency.

     (3)  Other Provisions to be made by the Enterprise in
          relation to safety from fire including fire fighting
          devices shall be as prescribed.

31.  Hazardous Machines to be fenced:

     (1)  Strong or every parts of fences shall have to be
          placed around hazardous machines, instruments and
          equipment operated by energy.

     (2)  In case it is required to do inspecting, lubricating
          or adjusting any part of hazardous machines during its
          running condition, only experienced and well trained
          adult worker or employee shall have to be engaged to
          perform such works.

32.  In relation to Lifting of Heavy Weight:

     (1)  No worker or employee shall be engaged in the works of
          lifting, loading or transporting any load likely to
          cause physical injury or harm to the health.

     (2)  The maximum load to be lifted, loaded or transported
          by an adult, minor, male or female workers or
          employees shall be as prescribed.

33.  Pressure Plants:

     (1)  In case a machine has to be operated at a pressure
          more than the atmospheric pressure in course of the
          productions process of any Enterprise, necessary
          effective measures shall have to be adopted in a way
          that such machine will not be operated at a pressure
          heavier than safe working pressure.

     (2)  Provisions in relating to testing, certifying and
          licensing for the operation of the machines mentioned
          in Sub-section (1) shall be as prescribed.

34.  Orders to Provide Safety:

     (1)  In the situation where no provision of safety has not
          been made which was required to be done as per this
          Act, in any Enterprise, the Labour Office may issue a
          written order to the Enterprise giving a reasonable
          time limit in order to provide and make necessary
          arrangements thereon within such period.

     (2)  If the order issued as per Sub-section (1) has not
          been followed the Labour Office may order the closure
          of such portion, plant or machinery or the Enterprise
          and it shall be the duty of the Enterprise to abide by
          such order.

35.  Notice to be Provided:

     (1)  Each Enterprise shall have to inform the Labour Office
          within three days if any worker or employee dies or is
          injured making him disabled to work for more than
          forty eight hours, from an accident occurred in the
          Enterprise or for any other reason, and within seven
          days if such worker or employee has been caught by any
          disease resulting from the profession.

     (2)  The authority empowered to investigate the accident or
          disease mentioned in the information given pursuant
          Sub-section (1), his powers, functions,duties and the
          procedures relating thereto shall be as prescribed.

36.  Powers to Determine the Standards:

     (1)  His Majesty's Government may prescribe the standards
          of safety required under this chapter as per necessity
          by publishing a notice in Nepal Gazette.

     (2)  Except those mentioned in Sub-section (1), other
          provisions relating to health and safety to be adopted
          while using machinery, instruments or equipment in the
          Enterprise shall be as prescribed.

CHAPTER - 6: Welfare Provision

37.  Welfare Fund:

     The Enterprise shall have to establish a Welfare Fund, as
     prescribed for the welfare and benefit of the workers and
     employees.

38.  Compensation:

     In case any worker or employee of the Enterprise is
     physically wounded or seriously heart or dies in course of
     his work, the compensation shall be paid to him or to his
     family, as prescribed.

39.  Gratuity, Provident Fund and Medical Expenses:

     The gratuity, provident fund and facilities relating to
     medical expenses to be provided to the workers and
     employees shall be as prescribed.

40.  Leave:

     The public holidays, sick leave, annual leave, maternity
     leave, obsequies leave, special leave, paid and unpaid
     leave, etc. to be enjoyed the workers and employees of each
     Enterprise shall be as prescribed.

41.  Provision of Quarters:

     (1)  The Proprietor shall each year allocate not less than
          five percent of the gross profit of the Enterprise to
          provide healthy quarters for the workers or employees
          and shall gradually build such quarters.

     (2)  A separate fund shall have to be maintained for
          depositing such amount allocated pursuant to Sub-
          section (1).

     (3)  The operation of the fund as mentioned in Sub-section
          (2) shall be as prescribed.

42.  Provisions Relating to Children:

     (1)  Where fifty or more female workers or employees are
          engaged in the work the Proprietor of the Enterprise
          shall have to make provisions of a healthy room for
          the use of children of such female workers or
          employees.

     (2)  A trained nurse, including some necessary toys, shall
          also be arranged for the children as mentioned in Sub-
          section (1).

     (3)  The female workers or employees shall be provided
          time, as necessitated, to feed their suckling babies.

43.  Relaxing Room:

     Where fifty or more workers and employees are engaged at
     work the Proprietor of the Enterprise shall have to make
     provisions for relaxing room with minimum amenities.

44.  Canteen:

     Where fifty or more workers and employees are engaged in
     work at one time the Proprietor of the Enterprise shall
     have to make provisions for a canteen. 
     

CHAPTER - 7: Special Provisions to be Applicable to Special Type of
Enterprise. 

45.  Tea - Estate:

     (1)  The special provision mentioned as below shall be
          applicable in respect of the tea estates :-

          (a)  Formation of Committee:

               His Majesty's Government may constitute, as
               prescribed, a Committee to provide necessary
               advice on promotion, policy formulation and other
               related matters in respect of the tea estates.

          (b)  Provision of quarter:

               The Proprietor shall have to make arrangements
               for appropriate quarters within the tea-estate
               for the workers who do not have their residence
               nearby.

          (c)  Provisions of Primary Health Care:

               The Proprietor shall have to establish a Primary
               Health Care Center under the responsibility of a
               trained employee in order to provide free primary
               treatment of minor injuries to the workers and
               employees engaged within the tea-estate and the
               members of their family.

          (d)  Safety Devices:

               The Proprietor shall have to provide safety
               devices and equipment required for personal
               protection of the workers of the tea-estate.

          (e)  Provisions of Primary School: 

               The Proprietor of a tea-estate shall run a
               primary school if there are fifty or more
               children of age between five and fourteen years,
               receiving primary education, of the workers
               residing in the quarters provided by the tea-
               estate and in case there is no school within a
               distance of one kilometer from the tea-estate.

          (f)  Daily Consumer Goods:

               The Proprietor shall have to arrange to make the
               daily consumer goods easily available to the
               workers and employees, if there no market near
               the tea-estate.

          (g)  Provision for Entertainment:

               The Proprietor shall have to make necessary
               arrangements for appropriate sports facilities
               within the tea-estate for physical and mental
               development of the workers of the tea-estate.

          (h)  To get the works done on contract:

               This Section shall not be deemed to prevent from
               entering into agreement between the Proprietor
               and the workers of the tea-estate in respect of
               doing certain specified works of the tea-estate
               under contract.

     (2)  For the purpose of this Section :-

          (a)  "Tea-estate" means tea-estate registered under
               prevailing laws with commercial objective and
               this word shall also include the factory if
               established therein.

          (b)  "Worker of tea-estate" means any person engaged
               in the tea-estate for digging, ploughing,
               levelling, picking, spraying, sowing, cutting,
               reaping, plucking, derooting and doing other
               similar works and this word also include any
               person engaged for cleaning any house, land or
               machinery or its parts inside the tea-estate or
               any person doing any other works related to the
               tea-estate.

46.  Construction Business:

     The following special provisions shall apply in respect of
     the construction business :-

     (a)  Provisions for Construction Tools:

          The Proprietor shall have to avail from its own side
          all necessary tools and material in sufficient
          quantity for the workers engaged in the construction
          works at construction site.

          Explanation:   For the purpose of this Section,
          "construction work" means the construction work of
          building, road, bridge, canal, tunnel, internal or
          interstate waterways or railways, or installing of
          telecommunication equipment or machine including those
          of electricity, telephone or telegraph or other works
          relating to construction.

     (b)  Special Arrangements at Temporary Construction Sites:

          At the temporary construction work sites, where fifty
          or more workers are engaged, the Proprietor shall have
          to make arrangements for quarters, food stuffs,
          drinking water, etc. for the workers who do not have
          residence nearby.

     (c)  Accident Insurance:       

          The proprietor shall have to insure all workers
          engaged in the construction site against accident in
          the way as prescribed.

     (d)  Safety Arrangements:

          (i)  The Proprietor shall have to make necessary and
               adequate arrangements of safety at the sites of
               construction works.

          (ii) The proprietor shall have to arrange of personal
               protective equipment necessary for the workers
               engaged in construction works.

47.  Transportation Business:

     (1)  The following special provisions shall apply in
          respect of the Transportation Business :-

          (a)  Working Hours:

               (i)  The worker and employee of the transport
                    vehicle may be deployed in work till
                    reaching the destination.

                    Provided that in a passenger transport
                    vehicle operating in a long distance route,
                    at least two drivers shall be engaged to
                    drive it alternately.

                    Explanation:   For the purpose of this
                    section, "Long distance" means a distance of
                    upto 250 kilometers in case of vehicle
                    operating at night and, in case of day time
                    vehicle, a distance to be covered within at
                    least ten hours.

               (ii) The driver of a vehicle transporting animals
                    or goods and operating in the long distance
                    route shall be allowed to take rest at
                    several places before reaching the
                    destination.

          (b)  Trip Allowance:

               In case worker or employee of the transportation
               service is engaged for more than eight hours, he
               shall be paid overtime at the rate of one and
               one-half times of his present amount of salary.

               Provided that if the worker or employee engaged
               in a operating vehicle is paid with any trip
               allowance, fooding allowance or any such other
               allowance, he shall not be entitled to receive
               the overtime allowance under this Section.

          (c)  Fifty percent Allowance to be received during
               Breakage or Waiting Period:

               In case any worker or employee engaged in
               operating vehicle has been stayed idle due to
               breakage of the vehicle before reaching
               destination or while the vehicle had been waiting
               for its turn, such person shall receive fifty
               percent of the allowance payable during the
               operating time of the vehicle.

          (d)  Accident Insurance:

               The Proprietor shall insure all workers and
               employees engaged in the vehicle operating
               against accident in the manner as prescribed.

          (e)  First Aid Materials:

               The operator of transportation business shall
               keep sufficient medicines and materials of first-
               aid treatment in each vehicle.

          (f)  Prohibition of Consumption of Alcoholic Drinks: 

               (i)  No worker or employee in any vehicle used
                    for transportation of passengers, animals or
                    goods shall consume alcoholic drinks before
                    driving of the vehicle till reaching to the
                    destination.

              (ii)  In case a vehicle is operated by any worker
                    or employee after consuming alcoholic drink,
                    the Proprietor may, on charge of
                    misdemeanour, dismiss from the service.

                    Provided that the concerned worker or
                    employee shall be provided with an
                    opportunity to defend himself before
                    dismissing him from service.

             (iii)  Any person aggrieved by the order issued
                    under Sub-clause (ii) may appeal in the
                    Labour Court within thirty five days from
                    the receipt of notice of dismissal from
                    service.

          (g)  Commission Agent:

               The facilities under this Act shall not be
               provided to Commission Agent engaged in bookings
               or carriage of goods who is not registered in the
               Register of the transportation Enterprise.

          (h)  Change in Ownership:

               In case the transport vehicle is sold or there is
               change in ownership and if it is deemed necessary
               to terminate the services of any permanent worker
               or employee who has completed one year continuous
               service, the transportation businessman, may
               terminate the service on payment on compensation
               and privileges payable under this Act, including
               such additional compensation as may be available
               pursuant to mutual agreement entered into or
               understanding reach between the Proprietor and
               the worker or employee.

     (2)  For the purposes of this Section, "transportation
          business" means a transport service engaged in
          carriage of passengers, animals or goods from one
          place to another taking rents in a vehicle operated by
          means of mechanical device.

48.  Business of Hotel, Travel, Trekking, Adventure, Rafting,
     Jungle Safari etc:

     The following special provisions shall apply in respect of
     the business of hotel, travel, trekking, adventure,
     rafting, jungle safari etc. :- 

     (a)  Females may be engaged in work:

          Females may be deployed in works in a hotel or travel
          agency at any time by making special arrangements of
          safety according to the nature of works.

     (b)  Safety of Workers or Employees engaged in Trekking or
          Rafting:

          (i)  The Proprietor shall compulsorily have to make
               arrangements, as per necessity, for personal
               protective equipment and necessary clothing,
               shoes and other articles for protection of health
               of the workers or employees engaged in trekking,
               rafting or other adventures sports.

         (ii)  It shall be the responsibility of the concerned
               Proprietor to rescue or cause to rescue operation
               as may be required.

     (c)  Accident Insurance:

          The proprietor shall insure all workers or employees
          engaged in trekking, rafting, jungle safari or other
          adventure sports against accident in the way as
          prescribed.

     (d)  Payment of Field Allowance etc.:

          The Proprietor shall have to provide field allowance,
          fooding allowance or other similar allowance while
          sending workers or employees engaged in trekking,
          rafting or other similar adventure sports to the
          working place and in case such allowance have been
          provided no additional overtime shall be paid as
          provided in this Act.

     (e)  Provisions for First Aid:

          The Proprietor shall have to avail adequate supply of
          medicines and materials of first-aid while sending the
          workers or employees engaged in trekking, rafting or
          other adventure sports to the work sites.

49.  Applicability of other Provisions:

     The provisions of this Act and the Rules made hereunder
     shall also be applicable in respect of the Enterprises
     mentioned in Section 45, 46, 47 and 48, in addition to the
     provisions specified in this chapter.

CHAPTER - 8:  Conduct and Punishments

50.  Type of Punishments:

     The Proprietor may punish any worker or employee performing
     misconduct with any of the following punishments.

     (a)  To reprimand,

     (b)  To withheld annual grade increments,

     (c)  To suspend, or

     (d)  To dismiss from service.

51.  Misconduct:

     For the purpose of Section 50, the following conduct of the
     worker or employee shall be deemed as misconduct :-

     (a)  In case of any bodily harm or injury or fetters,
          detains or imprisonment is  caused to the Proprietor,
          Manager or Employee of the Enterprise with or without
          use of arms or injury or causes any violence or
          destruction assault within the Enterprise in
          connection with the labour dispute or on any other
          matter;

     (b)  In case he creates or causes to create any stir within
          the Enterprise with an intention or affecting the
          production process or service works of the Enterprise,
          or prevents the supply of food and water, or
          connection of telephone and electricity, or obstructs
          the entry into or movement within the Enterprise;

     (c)  In case he steals any property of the Enterprise or
          acts dishonestly in the transaction of the Enterprise
          in its business;

     (d)  In case he accepts or offers brides;

     (e)  In case he is imprisoned on being convicted on a
          criminal offence involving moral turpitude;

     (f)  In case he participates or compels any other person to
          participate in any authorised strike or in a strike
          which is declared illegal;

     (g)  In case he strikes without fulfilling the legal
          requirements or works slow intentionally against
          interests of the Enterprise;

     (h)  In case he destroys intentionally any property of the
          Enterprise, or causes damage thereon or takes and uses
          it outside the Enterprise or gives its use to
          unauthorised person without permission of the
          competent person;

     (i)  In case he frequently violates intentionally the
          orders or directives issued under this Act or the
          Rules made hereunder, or the Bylaws made by the
          Enterprise, or misbehaves with the customers of the
          Enterprise;

     (j)  In case he remains absent from the work frequently
          without obtaining permission or comes late after the
          regular time;

     (k)  In case he come to the duty after consuming alcoholic
          drinks or consumes such drinks during the work-hour;

     (l)  In case he performs any activity with a motive of
          causing damage to secrecy relating to special
          technology of the Enterprise;

     (m)  In case he abuses any training which has been kept for
          the interest, health and safety of the workers or
          employees or causes damage to them intentionally.

52.  Punishment:

     (1)  Any worker or employee, who commits any misconduct as
          mentioned in Clauses j, k, l or m of Section 51,may be
          reprimanded.

     (2)  Anyone who commits any misconduct as mentioned in
          Clauses f, g, h, or i of Section 51, may be punished
          withhelding the annual grade of salary.

     (3)  Anyone who commits any misconduct as mentioned in
          Clause b, c, or d of Section 51, may be suspended for
          upto three months.

     (4)  Anyone who commits any misconduct mentioned in Clause
          a or e of section 51, may be dismissed from the
          service.

     (5)  Any worker or employee, who has been punished twice
          for any offence of misconduct according to Sub-
          sections 1, 2 or 3 commits again the same offence may
          be dismissed from the service.

53.  Procedures:

     (1)  Before awarding any punishment under Section 52, any
          worker or employee, who is permanent or has served
          continuously for one year, shall be served a notice,
          mentioning the facts of the misconduct committed by
          him and the type of punishment that may be awarded to
          him if proven, together with an opportunity to submit
          his explanation within five days in case of punishment
          under Clause (a) of Section 51 and within seven days
          in case of punishment under other Clauses.

     (2)  If he does not submit an explanation with the period
          specified under Sub-section 1 or if the explanation
          submitted by him his not satisfactory, he may be
          punished according to Section 50 for the offence of
          misconduct.

     (3)  If the notice send to the concerned worker or employee
          is not accepted by him or, in case of his absence, if
          the notice is sent by post under registered post at
          his address and a copy of such notice is kept in the
          public notice board of the Enterprise, and the service
          document is prepared on the witness of at least three
          person and if a copy of such notice is also provided
          to the concerned Labour Office, the concerned worker
          or employee shall be deemed to have been duly provided
          of such notice.

54.  Department of Labour may dismiss from service:

     (1)  The Department of Labour may dismiss from service any
          worker or employee who causes violence illegally in
          any Enterprise, other than his Enterprise or in any
          government office, or if he directly or indirectly
          encouraged others to do so.

     (2)  in case any worker or employee has to be dismissed
          pursuant to Sub-section (1), the procedures as laid
          down in Section 53 shall have to be followed.

55.  Misconduct of Proprietor or Manager:

     (1)  If the Proprietor or Manager commits any of the
          following acts, it shall be deemed as misconduct :-

          (a)  In case he contravenes or disobeys this Act or
               the Rules made hereunder or any order or
               directive issued thereunder;

          (b)  In case the Enterprise is closed or the workers
               or employees are retrenched in contravention of
               this Act;

          (c)  In case a lock-out declared illegal is continued;

          (d)  In case any worker or employee is assaulted or
               manhandled; or

          (e)  In case he performs any activity to incite or
               provoke the workers or employees in order to
               create dissension or enmity among the workers or
               employees.

     (2)  If any act of misconduct mentioned in Clauses (a), (b)
          or (c) of Sub-section (1) is proved to have been
          committed, His Majesty's Government may punish the
          concerned Proprietor with a fine from one thousand
          rupees upto five thousand rupees.

     (3)  If any act of misconduct mentioned in Clause (d) or
          (e) of Sub-section (1) is proved to have been
          committed, the Labour Office may punish with a fine
          upto one thousand rupees or may cause to pay
          reasonable compensation to the aggrieved worker or
          employee.

56.  Punishment for Obstruction to Government Employee:

     In case any person obstructs to any government employee
     engaged in any function under this Act, or refuses to
     submit any Register Book or any document required to be
     submitted to him, or fails to produce or presents to the
     examination of any worker or employee ordered to be
     produced or examined by him, the Labour Office may punish
     such person with a fine five hundred upto two thousand
     rupees.

57.  Other Penalties:

     Excepts those punishments as provided in other Sections of
     this Act, any person contravening any other matter
     mentioned in this Act or the Rules made hereunder or the
     written order or directives issued thereunder, the
     Department of Labour may punish, for each offence and
     according to the gravity of such offence, a fine from one
     thousand upto five thousand rupees, and if such offence is
     committed again after it is proven, he may be punished with
     an additional one hundred rupees for each of such offence,
     except those punishment as mentioned in other section of
     this Act.

58.  Quashing of Illegal Acts:

     Except as provided to the contrary in this Act or in the
     rules made hereunder, if any activity contrary to this Act
     or the Rules made hereunder has been performed such
     activity shall be quashed by the order of the Department of
     Labour.

59.  Instituting of Case and Limitation:

     (1)  Any case relating to the offence punishable under this
          Act may be instituted only on the complaint lodged by
          the Labour Office or a person authorised by such
          office.

     (2)  Any case relating to the offenses punishable under
          this Act shall have to be instituted within three
          months thereof.

          Provided that the case relating to non-compliance of
          an order issued by Department of Labour or Labour
          Officer or Factory Inspector under this Act may be
          instituted within six months from the date of
          commitment of such offence.

     (3)  In case any particular authority of punishment has
          been specified under Various Section of this Act in
          respect of trail of any offence committed under this
          Act, the case relating to such offence shall be lodged
          before such authority and, excepting thereto, all
          other cases relating to other offence lodged before
          Labour Court.

60.  Appeal:

     Any party not satisfied with any punishment awarded under
     this Chapter may file an appeal within thirty five days
     from the date of such punishment or receipt of order in the
     following manner :-

     (a)  At the Appellate Court against the orders of His
          Majesty's Government or Department of Labour;

     (b)  At the Appellate Court in respect of the case tried
          and decided in original jurisdiction by the Labour
          Court;

     (c)  At the concerned Labour Court in respect of the
          punishment or order given by the Proprietor or other
          office or Authority.

61.  Realizations of Fines:

     Fines, Punishments awarded under this Act shall be realized
     in the manner as governmental dues under prevailing laws.

CHAPTER - 9:  Committee, Officers and Other Provisions

62.  Central Labour Advisory Board:

     (1)  His Majesty's Government may constitute a Central
          Labour Advisory Board consisting of representatives
          from workers or employees, Proprietors and His
          Majesty's Government to receive necessary opinion and
          advice in relation to formulating policies and
          drafting of laws with regards to labour.

     (2)  The method of composition of Board pursuant to Sub-
          section (1) its powers, functions and duties shall be
          as prescribed.

     (3)  The Board itself may regulate the procedures of the
          meeting itself.

63.  Labour Relation Committee:

     (1)  The Proprietor shall have to constitute a Labour
          Relation Committee in each Enterprise in order to
          create amicable atmosphere between the workers or
          employees and the management and develop healthy
          labour or industrial relation on the basis of mutual
          participation and co-ordination.

     (2)  The method of composition of the committee pursuant to
          Sub-section (1), its powers, functions and duties
          shall be as prescribed.

     (3)  The Committee constituted as per sub-section (1) may
          regulate its own procedures.

64.  Appointment of Labour Officer:

     His Majesty's Government by publishing a notice in the
     Nepal Gazette may appoint one or more Labour Officers, as
     per necessity or designate any other officer to perform the
     functions of a Labour officer for one region.

65.  Powers of Labour Officer:

     (1)  The Labour Officer shall have the following powers :-

          (a)  To enter into the premises of the Enterprise as
               per necessity;

          (b)  To examine the documents and registers of the
               Enterprise relating to Workers and Employees;

          (c)  To function or advise as per necessity for
               improving labour relations;

          (d)  To attempt for solving disputes arising between
               workers or employees and the Proprietor;

          (e)  To implement welfare provisions, if it does not
               exist and where exist, to supervise whether or
               not it is operated property;

          (f)  To supervise the implementation of minimum
               remuneration prescribed by His majesty's
               Government.

          (g)  To record statement, of anybody to fulfil the
               objectives of this Act, as per necessity;

          (h)  To perform tasks of the Factory Inspector in his
               absence, except technical tasks; and

          (i)  To perform other tasks as per the directives of
               His Majesty's Government and Department of
               Labour.

     (2)  Other powers, functions and duties of the Labour
          Officer shall be as prescribed.

66.  Appointment of Factory Inspector:

     His Majesty's Government may, by publishing a notice in
     Nepal Gazette, appoint one or more Factory Inspector, as
     per necessity for one region or may appoint one Chief
     Factory Inspector for whole of the Kingdom of Nepal.

67.  Powers of the Factory Inspector:

     (1)  The Factory Inspector shall have the following powers
          :-

          (a)  To enter into the premises of the factory as per
               necessity;

          (b)  To examine building, land, plant, machine, health
               and safety features of the factory, to collect
               the samples of finished or semi-finished
               materials used in the factory and to examine them
               or caused to be examined, to inspect the
               registers and documents relating to the factory
               and, if necessary, to record statements of any
               person, as per necessity;

          (c)  To examine the boilers and pressure vessels and
               to permit the operations thereof;

          (d)  To provide the necessary advice and assistance to
               the Proprietor on making arrangements of training
               of workers or employees;

          (e)  To exercise the powers, functions and duties of
               the Labour Officer during his absence; and

          (f)  To perform other tasks as per the directives of
               His Majesty's Government and Department of
               Labour.

     (2)  Other power, functions and duties of the Factory
          Inspector shall be as prescribed.

68.  Welfare Officer:

     (1)  One Welfare Officer shall have to be appointed in
          Enterprise where two hundred fifty or more workers or
          employees are engaged and one additional Assistant
          Welfare Officer shall have to be appointed where there
          are more than one thousand workers or employees.     
                 
     (2)  In the Enterprise where there are less than two
          hundred fifty workers or employees the Proprietor may
          designate or appoint any officer of the Enterprise as
          the Welfare Officer.

     (3)  Where the Welfare Officer and Assistant Welfare
          Officer are appointed as per Sub-section (1) the
          Department of Labour shall be informed of such
          appointment.

     (4)  The powers, functions and duties of the Welfare
          Officer and Assistant Welfare Officer appointed or
          designated as per Sub-section (a) of (1) shall be as
          prescribed.                             
               
69.  Notice to be provided of establishment of Enterprise:

     (1)  If any Enterprise is to be established or constructed
          or expanded in any building or land, the Proprietor
          shall submit the particulars to that effect as
          prescribed, to the Labour Office.

     (2)  The concerned Labour Office may after examination of
          the particulars received as per to Sub-section (1), if
          deemed necessary to make certain changes on the
          particulars in view of health, safety and environment,
          direct the Enterprise to do so and it shall be the
          duty of the concerned Proprietor to follow the such
          directive.

70.  Information to be provided by Proprietor:

     (1)  The Proprietor shall inform in writing the concerned
          Labour Office including with the prescribed
          particulars, fifteen days in advance where any new
          house or land has to be possessed or used by an
          Enterprise.

     (2)  The Proprietor or Manager shall inform the Labour
          Office within seven days, from the data of assuming
          his office for the first time.

71.  Notices and Posters:

     The Labour Officer or Factory Inspector may issue
     directives to the Proprietor or Manager of the Enterprise
     to display the notices and posters relating to health,
     safety and welfare provisions of the workers as provided in
     this Act or the Rules made hereunder at places in an easily
     readable and understandable manner.

CHAPTER - 10:  Settlement of Labour Dispute

72.  Establishment of Labour Court:

     (1)  His Majesty's Government shall, establish Labour Court
          by publishing a notice in Nepal Gazette. The
          jurisdiction and the location of such court shall be
          prescribed in such notice.

     (2)  The procedure of the Labour Court constituted under
          Sub-section (1) shall be as prescribed.

     (3)  Notwithstanding anything contained in Sub-section (1)
          and (2) until the constitution of the Labour Court,
          all functions to be performed by the Appellate Court.

73.  Procedures Relating to Personal Claims or Complaints:

     (1)  If any one or more workers or employees have any
          personal claim or complaint against Proprietor
          relating to the service, the concerned worker or
          employee may file it in writing with the concerned
          Proprietor.

     (2)  Upon receipt of the claim or complaint as per Sub-
          section (1), the Proprietor shall have to discuss on
          it with the concerned worker within fifteen days and
          settle the problem.

     (3)  If the problem could not be solved through the
          discussion held as per Sub-section (2), the worker or
          employee may file a petition at the concerned Labour
          Office specifying clearly their claims.

     (4)  The Labour Office shall held a discussion between
          Proprietor and the workers or employees and solve the
          dispute, within fifteen days of the receipt of a claim
          pursuant to Sub-section (3).

     (5)  The Chief of concerned Labour Office shall have to
          decide on the dispute within seven days in case the
          problem could not be solved as per Sub-section (4).

     (6)  Any of the parties may, appeal to the Labour Court
          within thirty five days from the date of receipt of
          notice of the decision made as per Sub-section (5).

74.  Procedures Relating to Submission of Claims of Collective
     Dispute:

     (1)  The claim relating to collective right, interest or
          privilege shall have to be presented in writing to the
          concerned Proprietors signed by at least fifty one
          percent of the concerned workers or employees and in
          the claims their representatives shall have to be
          nominated and the claim shall be presented through
          such representatives.

     (2)  Upon receipt of the claim relating to dispute as per
          Sub-section (1), the Proprietor shall hold bilateral
          discussion with the representatives as mentioned in
          the same Sub-section and solve the dispute within
          twenty one days and shall enter into an agreement.

     (3)  If the dispute could not be solved as per Sub-section
          (2), the dispute shall be solved within fifteen days
          by holding bilateral discussion in the presence of
          Labour Office.

     (4)  If the dispute could not be solved through the
          bilateral discussion held as per Sub-section (3), the
          dispute may be referred to a mediator appointed, with
          mutual consent of Proprietor and the workers and
          employees, or if no such mediator could be appointed,
          to a tripartite committee constituted, with consent of
          both parties, by His Majesty's Government having equal
          representation from the workers or employees, the
          Proprietor and the government.

     (5)  The mediator or the committee appointed as per Sub-
          section (4) shall decide the dispute within fifteen
          days.

     (6)  Any parties if not satisfied with the decision made
          pursuant to Sub-section (5), may appeal to His
          Majesty's Government within thirty five days from the
          date of receipt of notice of the decision.

75.  Prohibition to Claim:

     Notwithstanding anything mentioned here above, the
     following demand or claim shall not be allowed to submit :-

     (a)  Which is contrary to the Constitution of the Kingdom
          of Nepal;

     (b)  Which would affect other's interest due to being based
          on untestified or baseless allegation;

     (c)  Matter which is prejudicial to the personal conduct of
          any worker or employee;

     (d)  Matters unrelated to the Enterprise; and 

     (e)  Where a period of two years has not elapsed since the
          date of last collective agreement.

76.  Notice of Strike to be provided:

     In case the demand are not solved through the process
     mentioned in Sub-section (3) of Section 74 and the workers
     and employees wish strike in the Enterprise, a notice in
     writing stating the claims and their rationale, including
     with a resolution passed by at least sixty percent of the
     total workers through secret ballot, shall have to be
     provided to the concerned Proprietor thirty days in advance
     and an information thereof shall also be given to the
     Department of Labour, concerned Labour Office and the local
     administration and a strike may be started thereafter only.

77.  Lock Out:

     (1)  If a strike has been started or continued without
          giving prior notice as mentioned in Section 76 or if
          the collective dispute is not solved through the
          process mentioned in Sub-section (3) of Section 74,
          the Proprietor may declare a lock-out of the
          Enterprise after submitting the justifications with
          its rationale and obtaining the approval of His
          Majesty's Government.

     (2)  Before declaring a lock-out as per Sub-section (1),
          the Proprietor shall issue a notice for the
          information of all workers seven days in advance
          specifying the date of effecting the lock-out and
          announcing that the Enterprise shall be locked-out if
          the strike is not called off.

     (3)  If there is a situation with possibility of damage to
          the Enterprise through riot, violence, destruction,
          etc. from the workers during the strike the Proprietor
          may cause lock-out even without following the process
          of Sub-section (1) and (2). If a lock-out is made in
          the Enterprise in such situation, the Labour Office
          and the Department of Labour shall be informed about
          the lock-out with reasons within three days.

     (4)  His Majesty's Government may at any time declare the
          lock-out of an Enterprise as void, in case it appears
          irrational or it is likely to cause a breach in law
          and order conditions of the country or it is contrary
          to the economic interests of the country.      
     
78.  Prohibition to Strike:

     (1)  Notwithstanding anything mentioned hereinabove in this
          Act, if any existing law has prohibited the strike to
          be done by workers or employees, the workers or
          employees of such Enterprise shall not be entitled to
          go on strike. 
     (2)  Any employee appointed or deputed on the duty of
          control, security or guard of any Enterprise shall
          also not be entitled to go in a strike.

     (3)  The employees prohibited to strike as per Sub-section
          (1) and (2) may submit their genuine demands to the
          Proprietor. If such demands are not fulfilled and a
          dispute has been created His Majesty's Government
          shall constitute a Tribunal for solving it. The
          decision of the Tribunal shall be final and binding
          upon both of the parties.

     (4)  No strike or lock-out may be done during the
          proceeding under Section 74.

79.  Legal Validity of Collective Agreement:

     (1)  Any agreement entered into between the workers or
          employees and the Proprietor in respect solving the
          dispute shall be deemed to be of status equal to law
          upon the concerned parties and such agreement shall
          have to be registered in the Labour Office.

     (2)  An agreement registered as per Sub-section (1) shall
          be come to force from the date of mentioned in the
          Agreement, if such date is mentioned therein, and if
          no such date is mentioned in the Agreement, it shall
          come into force from the date in which it is
          registered in Labour office. No demand in relation to
          the provisions mentioned in such agreement shall be
          permitted to put again for two years from the date of
          its commencement.

80.  Order may be issued to End the Strike:

     If any strike announced to be commenced or already
     commenced as per this Act or the Rules made hereunder has
     created an extraordinary situation, which is likely to
     cause a breach in the law and order condition of the
     country or would be contrary to the economic interest of
     the country, His Majesty's Government may issue an order at
     any time to end such strike or any strike commenced in the
     essential services prescribed by the prevailing law.

81.  Termination of Lock-out Period:

     Where any Enterprise has been locked-out, if the workers or
     employees are present for work or where the Proprietor has
     declared the ending of lock-out or where His Majesty's
     Government has declared such lock-out as illegal as per
     Section 77 or has ordered to end the strike under Section
     80, such lock-out shall be deemed to have been ended from
     the date of the declaration making it illegal or from the
     date so ordered.

82.  Remuneration for the Period of Lock-out:

     The remuneration for the period of lock-out declared
     illegal shall have to be paid to the workers or employees.

83.  Special Provisions for Settlement of dispute:

     (1)  If His Majesty's Government deems that a dispute
          between workers or employees and the Proprietor has
          arisen or there is possibility of arising His
          Majesty's Government may constitute a committee of one
          or more persons, or tripartite committee consisting of
          representatives of the Proprietor, the workers or
          employees and His Majesty's Government in order to
          resolve the dispute. Such committee may regulates its
          own procedures.

     (2)  The decision of His Majesty's Government made on the
          report of committee constituted as per Sub-section (1)
          shall be final and binding to both of the parties.

     (3)  The committee constituted as per Sub-section (1) shall
          have the powers of examining the evidence and
          witnesses, of requiring the presence of witnesses and
          requiring the production of documents as per
          prevailing laws similar to court, in relation to the
          dispute.

CHAPTER - 11:  Miscellaneous

84.  Special Powers of His Majesty's Government:

     (1)  Notwithstanding anything mentioned in this Act, His
          Majesty's Government may, by publication of a notice
          in Nepal Gazette, exempt any Enterprise from
          application of any provision of this Act for a
          specified period of time.

     (2)  His Majesty's Government may, by publication of a
          notice in the Nepal Gazette, fix the minimum
          remuneration and certain facilities prescribed in this
          Act in relation to the Enterprises where less than ten
          workers or employees are working.

85.  Powers to Remove obstacles:

     In case any difficulty arises while executing this Act His
     Majesty's Government by publishing an order in Nepal
     Gazette may remove such difficulties.

86.  Powers to Frame Rules:

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

     (2)  Without prejudice to the generality of the powers
          conferred by Sub-section (1), such rules particularly
          may provide for any of the following matters :-

          (a)  Matters relating to the safety of the workers;

          (b)  Conducting of operation of employment service;

          (c)  Condition relating to overtime works;

          (d)  Conducting of operation of training in order to
               enhance the efficiency of workers and employees;

          (e)  Procedures relating to Labour Court;

          (f)  Compensation to be paid to workers and employees;

          (g)  Compilation of statistics of workers and
               employees;

          (h)  Compilation of information to labour market;

87.  Bylaws to be availed:

     Each Enterprise shall have to send to the concerned Labour
     Office a copy of Bylaws framed by its in respect of
     conditions of service of its workers and employees.

88.  Provisions Relating to Enterprise owned by His Majesty's
     Government:

     With respect to the terms and conditions of service of the
     employees of the Enterprises owned wholly or partly by His
     Majesty's Government, the provisions of the Rules or Bylaws
     relating to the terms and conditions of services of the
     concerned Enterprise shall apply and in respect of the
     workers thereof, the provisions of this Act shall apply.

89.  Directive of His Majesty's Government:

     (1)  His Majesty's Government may issue necessary
          directives to the Proprietor for implementing the
          objectives of this Act.

     (2)  His Majesty's Government may award a fine from one
          thousand to ten thousand rupees to any Proprietor not
          following the directives issued as per Sub-section (1)
          or may issue an order for running the Enterprise by
          making any other arrangement in substitute of such
          Proprietor.

90.  Delegation of Authority:

     His Majesty's Government may delegate the powers conferred
     to it by this Act to any Officer by publishing a notice in
     Nepal Gazette.

91.  Prevalence of this Act:

     This Act shall apply on matters mentioned herein and in
     other the prevailing laws shall apply.

92.  Repeal and Saving:

     (1)  The Factory and Factory Workers Act, 2016 (1959) is
          repealed.

     (2)  All acts and proceeding performed or executed under
          the Factory and Factory Workers Act, 2016 shall be
          deemed to have been performed or executed under this
          Act.   
               

The International Labour Organization is a United Nations specialized agency.

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