Employ Candidates Compliantly in Nepal

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  1. Overview: Nepal
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global HR Compliance in Nepal

If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Nepal Guide below will help you understand the nuances of labor legislation in the country.

Companies hire international workforce for various reasons but in most cases they are:

  • entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
  • hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.

Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.

If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Nepal, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Nepal and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.

We are experts in global workforce employment in , and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Nepal.

See the guide below for a general overview of labor rules and regulations in Nepal or contact us if you need to employ workers in Nepal or would like to get more details.

Hiring and Firing Workforce in Nepal Guide

# Employment contracts
Labour Act stipulates following types of employment:

  • Regular Employment – that which does not fall under any of the below mentioned categories;
  • Assignment based employment – limited to executing a specific assignment;
  • Time specific employment – limited to work to be done for a specific time period;
  • Ad-hoc employment – limited to less than 7 days of work in a month;
  • Part-time employment – limited to not more than 35 hours of work per week.
  • Employer-employee relation shall be established when – an employment agreement is executed; or if employer verbally hires employee; or in case of ad-hoc employment when the employee commences work.
  • No employer shall hire labour without employment agreement except in case of ad-hoc employment.
  • Any agreement between labourer and employer or the part thereof stipulating salary/benefits less than that prescribed in the Labour Act or having other provisions in contravention of the Labour Act shall be void.

# Minimum (Statutory) Employment Rules and Regulations in Nepal

# Hours of work:
Regular work hours shall not exceed 8 hours per day and 48 hours per week.

# Probation period:
Probation /trial period for labourer shall be 6 months. If the employment agreement is not terminated at the end of probation period, it will be deemed to have been ratified.

# Annual leave:
Every Worker or employee shall be entitled to paid home leave at the rate of One day for every twenty days that he/she works. The worker or employee shall have to take prior approval while going on such leave.

# Parental leave:
A pregnant woman worker or employee shall be granted maternity leave with full pay for a total of 52 days before or after delivery. Such leave may be obtained not more than two times during the entire period of service, provided that in the event two children of a woman who has already utilized maternity leave twice do not survive and in the event that she becomes pregnant again, she may obtain maternity leave under this section upon the birth of two more children.

# Sick leave:
All workers or employees who have completed one year of service in the establishment without any interruption shall be granted sick leave with half-pay for not more than 15 days in a year. While sanctioning sick leave for any worker or employee for more than three days, the general manager may ask the concerned worker or employee to present a certificate issued by a physician recognized by His Majesty’s Government.

In the event that any worker or employee falls ill suddenly and thus needs sick leave, he must inform the general manager accordingly through the quickest available means.

# Overtime:
Overtime may not exceed an additional 4 hours per day and 24 hours per week. Pay for overtime work shall be 1.5 times the regular rate.

# State minimum salary:
Nepal’s minimum wage is 8,000 Nepalese rupees a month ($74) for all workers. Nepal’s minimum wage was last changed in June 2013.

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