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Nepal's New Labour Act 2017

  • 10 September 2017

The Labour Bill 2017 that replaces the Labour Act 1992 has been approved by the Parliament and will soon come into force. The new Act makes key changes to the law such as scope and application, new work permit procedures for companies with foreign investors, more forms of employment types, regulates labour outsourcing companies, and makes changes to holidays, benefits and gratuity regimes. Similarly, the Social Security Bill 2017 has also been approved by Parliament. It aims to create a national social security fund with contribution from both employers and employees.

Once the new laws come into force, all employers are advised to revise their existing employement contracts, and internal policies and procedures relating to employment as per the new requirements. 

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