COUNTRY

Employment contracts in Nepal are an agreement between an employer and employee for labor, which includes the terms and conditions of employment and the letter of appointment. Employment contracts must be in writing. However, a written contract is not required for casual employment. Employers are required to hire Nepal citizens if possible and may only hire a foreign employee if a Nepal citizen cannot be found. When entering into an employment contract with a foreigner, the contract must be in a language understood by the employee or English.

The standard work period in Nepal is 48 hours or eight hours a day over six days. Employees are entitled to a half-hour of rest after five hours of work. Overtime is paid at 1.5 times the employee’s normal wages. Overtime is limited to four hours a day and at 24 hours a week. Employers must provide female employees working between sunset and sunrise with transportation to and from work.

Employees receive 12 days of fully paid sick leave in Nepal after a year of service and 13 days of bereavement leave. Employees can accumulate up to 45 days of sick leave. Employers must pay employees for any unused sick leave exceeding the 45 days at the end of each year. Any accrued or accumulated sick leave that is unused when an employee separates from service must be paid by the employer.

Female employees are entitled to 60 days of paid maternity leave in Nepal. Female employees can request an additional 38 days of unpaid maternity leave. Male employees are entitled to 15 days of paid paternity leave in Nepal.

Employees in Nepal are entitled to a profit bonus. Nepal also has a minimum wage.

Employees receive one day of paid annual leave in Nepal for every 20 worked days worked.

In Nepal, the public holidays are:

• Maghe Sankranti

• Sonam Losar (Tamang New Year)

• Gyalpo Losar

• Nari Dibas

• Majdoor Divas

• Ramjan Edul Fikra

• Buddha Jayanti

• Ubhauli Parva

• Ganatantra Diwas (Republic Day)

• Edul Aajaha

• Janai Purnima

• Gaura Parba

• Hartalika Teej

• Jitiya

• Constitution Day

• Chhat Parwa

• Udhauli Parva

• Christmas Day

• Tamu Lhosar

Employees must enroll in Nepal's public healthcare system and pay nominal premiums to receive care in the public system.

An employment contract in Nepal can be terminated at the end of the contract period (if for a fixed term), upon completion of the work (if work-based), by the employee, or by the employer. Employers must have a valid reason for dismissing an employee. An employer may terminate an employee based on poor performance, however, the employee should be provided at least seven days to submit an explanation to the employer.

If an employee in Nepal has been declared disabled by a medical practitioner, then the employer may terminate the employment based on ill health after six months. However, if the worker suffered injury in a workplace accident and is undergoing treatment, the employment cannot be terminated for one year.

An employee can terminate their employment voluntarily by submitting a written resignation letter. The employer must approve the resignation within 15 days. If the employer fails to accept the resignation within the 15 days, it will be deemed accepted. The resignation can be canceled by mutual consent or if the employee continues working after the last day. Both employers and employees are required to provide notice of termination or resignation, except for dismissals for misconduct. The notice requirement is linked to the length of service.