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Nepal

A BILL MADE TO PROVIDE FOR THE
MANAGEMENT OF TRADE UNION

Preamble:

     Whereas it is expedient to make legal provision regarding
registration, operation of Trade Union and other necessary
provisions relating to it for the protection and promotion of
professional and occupational rights of the workers of
Enterprise.

     Now, therefore the parliament has made this Act in the 21st
year of the rule of His Majesty's King Birendra Bir Bikram Shah
Dev.

CHAPTER - 1: Preliminary

1.   Short title and commencement:

     (1)  This act may be called "Trade Union Act, 2049 (1992)".

     (2)  This Act shall come into force on such date of His
          Majesty's Government may be notification published in
          Nepal Gazette, specify.

2.   Definition:
     Unless the subject or context otherwise requires in this
     Act :-

     (a)  "Enterprise" means the Enterprise established pursuant
          to section 2(b) of Labour Act, 2048 (1991).

     (b)  "Workers" means the workers engaged in any enterprise
          on permanent, temporary, piece rate or contract basis
          in the Enterprise and this expression shall also mean
          other personnel except those personnel who are engaged
          in Supervision, Administrative Control or Management
          work of the Enterprise.

     (c)  "Manager" means the Manager appointed pursuant to
          section 2(f) of the Labour Act, 2048 (1991).

     (d)  "Trade Union" means the Enterprise level Trade Union
          registered under this Act for the protection and
          promotion of the occupational rights of the workers
          and this expression shall also mean Trade Union
          Association and Trade Union Federation.

     (e)  "Enterprise level Trade Union" means the Enterprise
          level Trade Union registered pursuant to section 3.

     (f)  "Trade Union Association" means the Trade Union
          Association registered pursuant to section 4.

     (g)  "Trade Union Federation" means the Trade Union
          Federation registered pursuant to section 5.

     (h)  "Authorised Trade Union" means the Enterprise level
          Trade Union recognised pursuant to section 11  to
          protect the rights of workers through collective
          bargaining with the management.

     (i)  "Working Committee" means the working committee
          constituted under the construction of the Trade Union.

     (j)  "Member" means the worker of the concerned Enterprise
          who has taken the membership of the Enterprise level
          Trade Union.

     (k)  "Official" means the Chairman, Vice-Chairman, General
          Secretary and Treasurer of the working committee and
          the expression shall mean the members of the working
          committee.

     (l)  "Registrar" means the registrar appointed pursuant to
          section 4 and this expression shall mean the officer
          authorized to use the registrar's power by His
          Majesty's Government in a notification published in
          the Nepal Gazette.

     (m)  "Register Book" means the Register book maintained
          pursuant to section 16 for the registration of Trade
          Union.

     (n)  "Labour Court" means the Labour Court pursuant to
          Labour Act, 2048 (1991).

     (o)  "Prescribed" or "as Prescribed" means prescribed or as
          prescribed in the Rules framed or the order declared
          by His Majesty's Government in a notification
          published in the Nepal Gazette.

CHAPTER - 2: Registration of Trade Union

3.   Registered of Enterprise Level Trade Union:

     (1)  The workers of concerned Enterprise may constitute and
          Enterprise Level Trade Union to protect and promote
          their occupational rights.

     (2)  In order to register an Enterprise Level Trade Union
          constituted pursuant to sub-section (1) an application
          in the prescribed form signed by at least 10 members
          of the Trade Union recommended by the working
          committee alongwith the Constitution of the Trade
          Union, prescribed fee and other prescribed particulars
          should be submitted to the Registrar.

     (3)  The Registrar after receiving an application pursuant
          to sub-section (2) if finds complied with the Act
          shall register the Trade Union within 15 days from the
          date of receipt of additional particulars as demanded
          pursuant to section 6 and provide certificate to the
          applicant in the prescribed form.

     (4)  Notwithstanding anything contained in sub-section (3)
          the Enterprise Level Trade Union shall not be
          registered if at least twenty five percent workers of
          the concerned Enterprise are not members.

     (5)  No workers shall be eligible to be member of more than
          one Enterprise Level Trade Union at the same time.

4.   Registration of Trade Union Association:

     (1)  At least fifty Enterprise Level's Trade Union or five
          thousands workers of similar nature Enterprise, may
          constitute a Trade Union Association by mutual
          agreement.

     (2)  Notwithstanding anything contained in sub-section (1)
          at least 250 workers working with similar nature
          industrial occupation from outside may constitute
          Trade Union Association by mutual agreement.

     (3)  In order to register a Trade Union Association
          constituted pursuant to sub-section (1) an application
          in the prescribed form by the official recommended by
          the working committee along with a copy of mutual
          agreement, the constitutions of the trade unions,
          prescribed fee and other prescribed particulars should
          be submitted to the Registrar.

     (4)  The Registrar after receiving an application pursuant
          to sub-section (2) if finds complied with the Act
          shall register the Trade Union Association within 15
          days from the date of receipt of the application of
          from the date of receipt of additional particular as
          demanded pursuant to section 6 and provide certificate
          to the applicant in the prescribed form.

     (5)  Notwithstanding anything contained in the sub-section
          (1) no trade union of the Enterprise shall be eligible
          to be member of more than one Trade Union Association
          at the same time.

     (6)  After the registration of Trade Union Association
          pursuant to sub-section 4 its registration shall
          remain valid for one year even if the number of
          members of such Trade Union Association declines upto
          10 percent.

5.   Registration of Trade Union Federation:

     (1)  At least ten Trade Union Associations may constitute
          a Trade Union Federation by mutual agreement.

     (2)  In order to register a Trade Union Federation pursuant
          to sub-section (1) an application in the prescribed
          form by the official recommendation by the working
          committee along with a copy of mutual agreement,
          constitution of the Trade Union Federation, prescribed
          fee and other particulars should be submitted to the
          Registrar.

     (3)  The Registrar after receiving an application pursuant
          to sub-section (2) if finds compiled with the Act
          shall register a Trade Union Federation within 15 days
          from the date of receipt of the application or form
          the date of receipt additional particulars as demanded
          pursuant to section 6 and provide certificate to the
          applicant in the prescribed form.

     (4)  Notwithstanding anything contained in sub-section
          (1)no Trade Union Federation shall be eligible to be
          member of more than one Trade Union Federation at the
          same time.

     (5)  After the registration of a Trade Union Federation
          pursuant to sub-section (3) its registration shall
          remain valid for one year even if the number of member
          of such Trade Union Federation declines upto 10
          percent.

6.   Additional particular may be demanded:

     (1)  Regarding the registration of a Trade Union Federation
          if the registrar considers additional particulars
          necessary, he may demand the required particulars
          within 7 days from the date of receipt of the
          application for the registration of Trade Union
          Federation.

     (2)  Notwithstanding anything contained in section 3, 4 and
          5 no Trade Union shall be registered  unless the
          particulars demanded pursuant to sub-section (1) has
          been received.

7.   Refusal of Registration:

     The Registrar may refuse to register a Trade Union in the
     following circumstances :-

     (a)  if necessary particulars are not attached with the
          application.

     (b)  if at least 25 percent worker of the concerned
          Enterprise are not the member of the Enterprise Level
          Trade Union.

     (c)  if the name of the Trade Union coincides with the name
          of the Trade Union which has already been registered.

     (d)  if the particulars mentioned in the section 10 of the
          constitution of Trade Union has not been included.

     (e)  if the particulars mentioned in the section 10 of the
          constitution of the Trade Union has not been included.

CHAPTER - 3:  Operation, Management and Recognition of the Trade Union

8.   Autonomous and Corporate body:

     (1)  The Trade Union shall be an autonomous and corporate
          body having perpetual succession.

     (2)  The Trade Union shall have a seal of its own to carry
          out its activities.

     (3)  The Trade Union may acquire, posses, dispose or manage
          by other means of its movable property as person.

     (4)  The Trade Union may sue or be sued under its name as
          person.

9.   Objectives:

     (1)  The Objectives of the Trade Union shall be as follows
          :-

          (a)  To engage in economic and social development by
               improving the conditions of workers.

          (b)  To make an effort to establish good relationship
               between worker and management.

          (c)  To assist in the development of Enterprise by
               increasing the productivity of Enterprise.

          (d)  Try to make the workers dutiful and discipline.

     (2)  In addition to the objectives mentioned in sub-section
          (1), the Trade Union Association and the Trade Union
          Federation shall have the following objectives :-

          (a)  To conduct activities providing education to the
               worker.

          (b)  To establish relation with International
               institutions for the benefit of the workers.

          (c)  To provide necessary advice to His Majesty's
               Government in formulating the Labour Policy.

          (d)  In order to enhance social and economic standard
               of the workers publish facts beneficial to the
               workers by conducting necessary workshops,
               seminar etc.

          (e)  In order to protect and promote the rights of the
               workers negotiate with His Majesty's Government
               and take other necessary steps within the
               existing law.

10.  Constitution:

     (1)  The following particulars shall be included in the
          Constitution of the Trade Union :-

          (a)  Name and address of Trade Union;

          (b)  Objective of the establishment of Trade Union;

          (c)  Procedure of the formation of the working
               committee as well as the term of office to be a
               maximum period of four years;

          (d)  General Membership, the number of officials and
               the mechanism of their election;

          (e)  Provision that only a worker, who is a Nepali
               Citizen and having served continuously for one
               year to be elected for the official post;

          (f)  Provision regarding fund of the Trade Union and
               its auditing;   

          (g)  Provision regarding inspection and examination of
               the account of the Trade Union;

          (h)  Provision to bring the vote of no confidence
               against the officials;

          (i)  Provision regarding function, duty, right and
               meeting of the working committee and the General
               Meeting of Trade Union;

          (j)  The procedure of amendment of the Constitution of
               Trade Union;

          (k)  Provision regarding dissolution of the Trade
               Union;

          (l)  Provision regarding liability and property of the
               Trade Union after its dissolution.

     (2)  In the Constitution of the Trade Union Association and
          the Trade Union Federation in addition to the
          particulars mentioned in sub-section (1) prescribed
          particulars have to be included.     

     (3)  If any amendment is made in the Constitution of the
          Trade Union, the concerned officer shall inform the
          Registrar with a copy of such amendment within 15 days
          after such amendment has been made and approval of
          such amendment have to be taken from the Registrar.

11.  Recognition of the Authorised Trade Union:

     (1)  The Authorised Trade Union shall be recognised for the
          collective bargaining with the management on behalf of
          the workers of authorised Enterprise Level Trade
          Union.

     (2)  The Authorised Trade Union recognised pursuant to sub-
          section (1) shall inform to the Registrar and the
          Manager within 15 days after such recognition has been
          extended.

     (3)  The Registrar shall provide the certificate of
          Authorised Trade Union as prescribed within 15 days
          from the date of receipt of notice pursuant to sub-
          section (2).

12.  Presentation of Claim:

     (1)  Notwithstanding anything contained in section 74(1) of
          the Labour Act, 2048 (1991) the working committee of
          the Authorised Trade Union on behalf of the workers
          may present claims in written form with the number and
          means of its representative to the management for
          collective bargaining.

     (2)  The Authorised Trade Union shall not go on strike in
          Enterprise or do such action that may assist it in any
          manner without completing the procedure  mentioned in
          section 76 of the Labour Act, 2048 (1991).

13.  Duration of Validity of the Recognition of the Authorised
     Trade Union:

     The duration to bargain collectively on behalf of the
     workers of the Authorised Trade Union recognized pursuant
     to section 11 with the management shall remain valid for
     two years from the date of issue of the certificate by the
     Registrar pursuant to sub-section (3) of the same section.

CHAPTER - 4: Appointment, Functions, Duties and Rights of the Registrar

14.  Appointment of the Registrar:

     (1)  His Majesty's Government shall appoint Registrars as
          necessary for the registration of the Trade Union in
          accordance with this Act.

     (2)  Notwithstanding anything contained in sub-section (1)
          His Majesty's Government may by notification published
          in the Nepal Gazette authorise as necessary any other
          officer to use the power of Registrar.

15.  Functions, Duties and Power of the Registrar:

     The functions, duties and power of the Registrar shall be
     as follows :-

     (a)  To register the Trade Union.

     (b)  To maintain and keep upto date Register Book with
          details particulars of the registered Trade Union and
          other related particulars.

     (c)  To demand additional particular necessary for the
          registration of the Trade Union.

     (d)  To take necessary action if the particulars, report or
          other documents required to be submitted by the Trade
          Union under the Act is not submitted or if false
          particulars are submitted.

     (e)  To specify the procedure of election of the Authorised
          Trade Union.

16.  Register book:

     The Registrar shall maintain a separate Register Book to
     keep upto date the particulars, records etc. of the Trade
     Union.

CHAPTER - 5: Fund and Auditing

17.  Fund:

     (1)  The Trade Union shall have its own separate fund and
          the fund shall obtain the following amounts :-

          (a)  The amount obtained from the membership fee.

          (b)  The amount obtained from the national
               organizations in the form of Aid or Grant.

          (c)  The amount obtained from any other sources.

     (2)  All expenses incurred in the name of Trade Union shall
          be borne out from the fund.

     (3)  The amount to be contained in the fund pursuant to
          sub-section (1) shall be deposited by opening an
          account in any Commercial Bank within the Kingdom of
          Nepal.

18.  Accounts and Auditing:

     (1)  The accounts shall be maintained as mentioned in the
          Constitution of the Trade Union.

     (2)  The accounts maintained pursuant to sub-section (1)
          shall be audited by the auditor appointed by the
          General Meeting of the Trade Union.

CHAPTER - 6: Miscellaneous

19.  Merging of the Trade Union:

     (1)  If two or more than two Trade Unions of any Enterprise
          like to merge into one Enterprise Level Trade Union
          and if the majority of the members of such Trade Union
          casts vote in favour of such merging, such Trade
          Unions may constitute a new Enterprise Level Trade
          Union by mutual agreement.

     (2)  In order to register a new Enterprise Level Trade
          Union constituted pursuant to sub-section (1), the
          officials authorised by the working committee shall
          apply to the Registrar in the specified form with a
          copy of the agreement mutually entered into by the
          merged Trade Unions, the Constitution of the Trade
          union, prescribed fee and other prescribed
          particulars.

20.  Information of the change in name:

     If any Trade Union changes its own name the Registrar shall
     be informed of such change within 15 days of the change of
     name.

21.  Effect of change in name, merging or dissolution:

     (1)  No effect shall occur in the power to be achieved or
          obligation to be fulfilled by such Trade Union only by
          the reason of change in name of Trade Union.

     (2)  The merging of two or more than two Trade Unions into
          only one Trade Union or the dissolution of Trade Union
          in other Trade Union shall have no effect in the
          obligation to be performed by such Trade Union.      

22.  Obligation to be fulfilled regarding contracts:

     It shall be the duty of such Trade Union to fulfil the
     obligation of the contract entered into by the Trade Union
     itself or by the authorised officials on behalf of the
     Trade Union.

23.  No Case to be filed:

     After complying with the procedure of this Act or the
     Labour Act, 2048 (1991) if the Enterprise Level Trade Union
     or the Official of such Trade Union while doing anything in
     the context of collective bargaining have affected by its
     action to the Enterprise, not case shall be filled against
     Trade Union of the officials in any court regarding such
     action.

24.  Presentation of Yearly Report:

     (1)  The Trade Union shall submit to the Registrar a yearly
          report of each year within three months from the end
          of fiscal year by auditing its account book showing
          clearly all property, loan including obligation of the
          Trade Union.

     (2)  In the yearly report pursuant to sub-section (1) the
          total number of members who pay charges of the Trade
          Union and the particulars of the officials changed
          during the year shall also be included.

25.  Cancellation of the Registration:

     (1)  The Registrar shall cancel the Trade Union registered
          under this Act on the following circumstances :-

          (a)  If the Trade Union applies an application to the
               Registrar for the cancellation of its
               registration.

          (b)  If it is proved that the registration of the
               Trade Union has been made by mistake or
               fraudulent act.

          (c)  If anything is done against this Act or the
               Regulation made under this Act.

     (2)  When cancellation the registration of any Trade Union
          under the condition mentioned in part (b) and (c) of
          sub-section (1) the Registrar shall give notice to the
          concerned Trade Union in written form with the reason
          of cancellation.

26.  Officials of Trade Union Association and Federation:

     Notwithstanding anything contained elsewhere in this Act,
     the Trade Union Association and Trade Union Federation
     shall appoint from their working committees not exceeding
     10% and 25% respectively of the total number of officials
     who are engaged in the protection and promotion of the
     rights of the worker, in the officials of the Trade Union
     Association and the Trade Union Federation.

27.  Notice of Dissolution of Trade Union to be provided:

     (1)  If a Trade Union is to be dissolved in accordance with
          the Constitution, the notice to such dissolution has
          to be provided to the Registrar by the concerned
          official with reason.
  
     (2)  After receiving the notice on dissolution of Trade
          Union pursuant to sub-section (1) the Registrar shall
          register such notice only in the case of the Trade
          Union which has been dissolved in accordance with the
          Constitution.

28.  Offence and Punishment:

     (1)  If any official, misappropriate the property of Trade
          Union or acts to cause loss and damage to such
          property, the Labour Court may fine such officials to
          the extent of Rs. 5000/- or one years imprisonment or
          both and may order to compensate the amount from such
          official of the property lost or damaged.

     (2)  If the particulars, reports, notices or any other
          documents to be submitted on behalf of the Trade Union
          in accordance with this Act or the rules under this
          Act is not submitted or false particulars are
          submitted, the Registrar may fine the concerned
          official to the extent of Rs. 500.

29.  Appeal:

     (1)  An appeal to the case initially decided by the Labour
          Court in accordance with this Act shall lie to the
          Appeal Court.

     (2)  An appeal on the order made by the Registrar under
          this Act may be filled to the Labour Court.

     (3)  An appeal may be filled within 35 days from the date
          of such proceeding and decision made by the Labour
          Court or the order made by the Registrar.

30.  Special Power of His Majesty's Government:

     His Majesty's Government may give necessary order or
     direction to restrict such activity of the Trade Union
     seem, to create extra-ordinary situation thereby disturbing
     the peace and order or to go against the economic
     development of the country.

31.  Power of Frame Rule:

     His Majesty's Government may frame necessary rules to carry
     out the purposes of 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