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Employment Laws in Nepal | Global Squirrels
Understand the critical elements of Nepal’s employment law framework to ensure compliance and avoid penalties. This in-depth overview is based on the Labor Act (2017) and Labor Rules (2018), covering everything from employment contracts and wage rules to working hours and leave benefits. Nepal mandates a 6-day, 48-hour workweek with regulated overtime — 4 hours/day, 24 hours/week — paid at 1.5x regular wages. Written contracts are essential for all but casual jobs, detailing key employment terms. Employers must provide public holidays, weekly rest, annual leave, 14 weeks maternity leave (at least 60 days paid), and 15 days of paternity leave. Special provisions exist for substitute leave and bereavement leave. Minimum wage levels are regulated for all employment types. Safety, anti-discrimination, and social security obligations are strictly enforced. Labor laws apply to organizations employing 10+ workers and require local registration. This guide helps businesses operating in or hiring from Nepal stay compliant, reduce legal risks, and foster a fair, transparent work environment.