Nepal's labour-law framework — Labour Act 2074, Social Security Act 2074, Bonus Act 2030, Trade Union Act 2049 — has made employer obligations significantly more structured since 2017. Alpine Law Associates advises employers, HR teams, and FDI-invested companies on contract drafting, SSF and bonus compliance, lawful terminations, labour audits, work permits for foreign hires, trade-union negotiation, and Labour Court defence. We work alongside our Company Compliance retainer so the whole legal stack — corporate + labour + tax — sits with one firm.
What does labour law advisory cover for employers in Nepal?
Labour law advisory under Alpine covers four buckets. Documentary infrastructure: compliant employment contracts (Labour Act Sec. 30), HR policies, leave records, attendance registers. Statutory compliance: SSF registration and monthly contribution (31% combined), Bonus Act accruals, gratuity (Sec. 157), minimum-wage adherence, festival expense allowance. Lifecycle events: hiring (including work-permit for foreign nationals), probation, increments, transfers, terminations. Dispute defence: Labour Office mediation, Labour Court representation, Supreme Court appeals under Sec. 161, response to trade-union notices.
What is the current minimum wage in Nepal?
The minimum wage applicable from Shrawan 1, 2082 (mid-July 2025) is NPR 19,550 per month (NPR 752 per day), set by the Ministry of Labour's Minimum Wage Determination Committee. The wage is the combined basic plus dearness allowance — common breakdown is NPR 12,690 basic + NPR 6,860 dearness. Payment below this threshold violates Labour Act 2074 Sec. 106 and exposes the employer to back-wage liability plus penalty. Sector-specific minimums (tea, garment, hotel) may apply higher rates per sub-sector notifications.
Who must register for SSF?
Every employer with one or more employees in formal employment must register under the Social Security Act 2074 within 3 months of starting operations. SSF contribution is 31% of basic salary — 11% employee + 20% employer — funded through monthly contributions to the Social Security Fund. The contributions buy the employee five protection schemes: medical and maternity, accident and disability, dependent's pension, old-age (pension), and unemployment. Late registration or short payment triggers penalty interest. Alpine handles SSF registration, monthly contribution coordination, and dispute response with the Fund.
How can an employer terminate an employee correctly?
Labour Act 2074 Sec. 145 recognises eight termination grounds: theft and dishonesty, repeated absence without leave, gross negligence, breach of trust, criminal conviction, persistent misconduct after warning, retrenchment after due process, and end of fixed-term contract. Procedural fairness under Sec. 130 requires written notice, an opportunity to explain (show-cause), an investigation, and a reasoned termination order. Severance pay (3 months' salary if termination is without grounds), gratuity, and unused leave encashment are paid. Skipping the procedure exposes the employer to wrongful-dismissal claims at the Labour Court — reinstatement plus back-wages is the typical remedy.
What is a labour audit and when do you need one?
A labour audit is a comprehensive review of an employer's compliance with the Labour Act 2074, SSF Act, Bonus Act, and Trade Union Act. It covers: employment contracts (Sec. 30 elements present), working-hours and overtime records, minimum-wage compliance (NPR 19,550/month for FY 2082/83), SSF contribution accuracy, gratuity accrual, bonus calculations, leave records, termination history, foreign-worker permits, and trade-union recognition. Audits are typically run annually, pre-acquisition (due diligence), or post-dispute (after a Labour Court case exposes gaps). Alpine completes a full labour audit and delivers a remediation roadmap within 2–4 weeks.
How are labour disputes resolved in Nepal?
Labour Act 2074 sets a six-step dispute chain. Step 1: internal HR resolution under company grievance procedure. Step 2: Labour Office mediation, mandatory under the Mediation Act 2068. Step 3: Labour Office decision within 15 working days. Step 4: appeal to the Labour Court within 35 days. Step 5: Labour Court decision within 90 days. Step 6: further appeal to the Supreme Court on questions of law under Labour Act Sec. 161, within 35 days. Alpine represents employers at every stage — from drafting the show-cause response, through mediation positioning, to Labour Court argument.
Can foreign nationals work in Nepal?
Yes, with Department of Labour clearance under Labour Act Sec. 19. The employer applies for a work permit demonstrating: that no qualified Nepali candidate is available; the foreign hire's qualifications and experience; the employment contract; the foreign-national-to-total-workforce proportion limit (typically capped at 5%, sector-specific). The work permit is issued for 1 year and renewable. Salary above a notified threshold is mandatory. Alpine handles work-permit applications, renewals, and the underlying employment contract drafting for the FDI client.
What does our labour-advisory retainer cover?
Standard retainer (paired with Company Compliance or standalone): all Labour Act 2074 and SSF Act statutory filings, monthly SSF contribution coordination, annual labour audit, quarterly contract-and-policy review, drafting of employment contracts and HR policies, response to Labour Office notices, advisory on terminations and dismissals, work-permit applications for foreign hires, trade-union liaison, and Labour Court representation when required. Three tiers: basic (statutory filing + 2 contract reviews/year), standard (basic + annual audit + 4 reviews + dispute response), full HR (standard + on-call HR-policy advisory + termination process management).
What does labour-law advisory cost?
Per-engagement: contract drafting NPR 8,000–25,000, labour audit NPR 50,000–1,50,000 depending on workforce size, work-permit application NPR 35,000–60,000 per foreign hire, Labour Court representation NPR 75,000 and up per matter. Retainer: basic NPR 40,000–70,000/year, standard NPR 70,000–1,20,000/year, full HR NPR 1,20,000–2,50,000/year. Government fees and contribution amounts pass through. Fixed-fee quote at intake based on workforce size and FDI status.
Labour-compliance issue or termination decision?
Free first consultation. Fixed-fee labour audit available. FDI-invested companies and NRN-owned firms welcome — we coordinate remotely with HR teams abroad.
Free consultation+977 9841114443Frequently asked questions
The FAQ section below covers the questions employers and HR teams most often raise in initial labour-advisory consultations — Labour Act scope, minimum wage, SSF registration, termination procedure, labour audit, employment contract clauses, bonus, dispute resolution, working hours, foreign-worker permits, gratuity, total cost burden, retainer model, and trade unions.
Related guides: Labour Law in Nepal · Social Security Fund (SSF) · Minimum Wages in Nepal · Labour Audit · Salary Law in Nepal · Labour Law practice area · Company Compliance service.