| Nepal has
an easily trainable and keen work force. Unskilled
labour is cheap and abundant. Semiskilled and skilled
labour are available in sufficient numbers. The
government has established technical institutions
to develop skills at the technical level in civil
and electrical engineering, electronics, air conditioning/refrigeration,
general mechanics and auto mechanics. Training programmes
are also geared to industrial and vocational training
in wood working, metal working, leather working,
general fitters, tailoring and so on. The programmes
on entrepreneurial and management development and
the colleges of higher learning provide educated
persons to be groomed for managerial positions on
both public and private sector industries.
Industrial Relations
Nepal has a history of maintaining good industrial
relations during the past few decades when industrial
activity gradually expanded in the country. Labour
unrest, lockouts and strikes do not occur as frequently
as they do in other developing countries. The Labour
Act lays down guidelines and procedures for the
settlement of disputes between employers and employees.
These guidelines and procedures provide a favourable
environment for the harmonious development of industrial
relations.
Legal Framework
The Labour Act, 1992 lays down the legal framework
and the basis for the rules, regulations and guidance
on the proper management of any establishment employing
10 persons or more. It deals with matters relating
to employment and security of employment, working
hours and minimum wages, welfare of employees, employer
employee relations and the settlement of labour
disputes. Labour Regulation, 1993 complements the
Labour Act with further clarification in issues
such as security of profession and service, remuneration
and welfare provision, health, cleanliness and safety,
etc. The Bonus Act of 1974, as amended subsequently,
provides a legal basis for the payment of bonus
to the workers and employees of factories and commercial
establishments.
Wages and Salaries
The wages payable to workers in Nepal are comparatively
very low. The low cost of living enables workers
to offer their services at relatively low wage rates.
The minimum wage rates set by the government are
generally lower than the going wage rates for workers.
Salaries of middle management executives, technical
grade officers, engineers and other professionals
are generally lower than in other developing countries.
Permanent employees of a factory should contribute
10 percent of the monthly salary to a provident
fund and the management should make a matching contribution.
Gratuities are payable to workers who have worked
for over 3 years.
Working Hours, Holidays
Normal working hours are fixed at 48 hours per week,
8 hours a day. Continuous working hours should not
exceed 5 hours. There should be a break of half
an hour. Overtime work is remunerated at one and
a half times the normal wage.
In addition to 13 public holidays, permanent workers
are entitled to one day's home leave for every 20
days, 15 days medical leave with half pay and one
month special leave without pay every year. Female
employees are entitled to 52 days maternity leave
with full pay. Such maternity leave shall be granted
only twice during the entire period of service.
The compulsory retiring age for workers is 55. However,
in the case of a skilled worker whose service is
indispensable, the retirement age could be extended
upto 60 years
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