National Workshop on ILO Recommendation 204 and developing National Roadmap for Formalizing Informal Economy in Nepal

The ILO adopted the Recommendation No 204 on the transition from the informal to the formal economy at the 104th International Labour Conference on 12 June 2015. The new labour standard provides strategies and practical guidance on policies and measures that can facilitate the transition from the informal to the formal economy. The aim of the new labour standard is three-fold: to facilitate the transition of workers and economic units from the informal to the formal economy, to promote the creation of enterprises and decent jobs in the formal economy, and to prevent the informalization of formal jobs.

The workshop was facilitated by Mr Frédéric Lapeyre, Head of the Informal Economy Unit at the Employment Policy Department, ILO Geneva. Over 70 participants from representatives of government, worker and employer organizations as well as other key actors attended the workshop and expressed their strong commitment towards formalizing formal economy. They worked on different thematic areas for future strategies:

1. Extending social protection mechanism, standards and compliances
2. Creating and formalizing jobs and
3. Strengthening and formalizing small and medium-sized enterprises (SMEs)

Key issues and problems were identified in each thematic areas including main priorities, policies measures and key actors. It set a background to develop National Plan of Actions to address informal economy for future intervention. The National Planning Commission and Ministry of Labour and Employment chaired both opening and closing sessions of the programme.