It deals with the labour law of Nepal and international practices.

1. Employment Relation
Advocate Bishow Raj Joshi

2. Presentation Preview
• Introduction of employment relation in hospitality industry
• Intake process of permanent workers and employees in hospitality
industry
• Reward and incentives as prescribed for workers and employees
• Working condition and discrimination in jobs
• Misconduct and punishment
• Gender Discrimination in hospitality business and its remedies
• Settlement of labor disputes
• Special provision for women and children

3. Introduction of Employment Relation in Hospitality Industry (1)
 There are employers and employees in hospitality industry
 Job providers are employers and job holders are employees
 Owners and management is employer
 There are employees and workers in hospitality industry
 Those who perform mental work (paper work) are employees and
who perform physical work are workers.
 Employment relation is fixed and guided by law, the law of the state
and the law of the particular institution.
 Employment relation is bound by right and duty.

4. Introduction of Employment Relation in Hospitality Industry (2)
• The term 'employee relations' refers to a company's efforts to manage
relationships between employers and employees. An organization with a
good employee relations program provides fair and consistent treatment to
all employees so they will be committed to their jobs and loyal to the
company. Such programs also aim to prevent and resolve problems arising
from situations at work.
• Employee relations programs are typically part of a human resource
strategy designed to ensure the most effective use of people to accomplish
the organization's mission. Human resource strategies are deliberate plans
companies use to help them gain and maintain a competitive edge in the
marketplace. Employee relations programs focus on issues affecting
employees, such as pay and benefits, supporting work-life balance,
and safe working conditions.

5. Introduction of Employment Relation in Hospitality Industry (3)
• The most important part of any business is its people. No business can run
effectively without them. But people don't work in a vacuum; they need to
communicate and work with others to get their jobs done. Employers need
to manage relationships in the workplace to keep the business functioning
smoothly, avoid problems, and make sure employees are performing at
their best.
• One of the most effective ways for a company to ensure good employee
relations is to adopt a human resource strategy that places a high value on
employees as stakeholders in the business. Stakeholders are people who
are committed, financially or otherwise, to a company and are affected by
its success or failure. When employees are treated as more than just paid
laborers, but as actual stakeholders with the power to affect outcomes,
they feel more valued for the job they do.

6. Better Employment Relation can Create Better Result
• Happy employees are productive employees. Successful businesses
know how to manage relationships to build lasting employee
satisfaction. Learn the meaning of employee relations and understand
the essential elements of an effective employee relations program.
• An effective employee relations program starts with clearly written
policies.
• An employee relations program is not a one-size-fits-all solution.
Strategies for good employee relations can take many forms and vary
by a number of factors, including industry, location, company size,
and even individual leadership philosophies.

7. Intake process of workers and employees
Labor Act 2074 and labor rules 2075 has managed job intake system
Modes of Hiring (Section10):
- Regular Employment,
- Work Based Employment: for completion of certain work or
rendering certain service,
- Time Bound Employment: employment for certain time period
determined,
- Casual/Emergency Employment: employment for seven or less days
in a month,
- Part time Employment: employment for 35 or less hours in a week.
• When there is an agreement or job entitled from the management,
employment relation starts.
• Six months probation period. (Labor Act 2074)

8. Modes of Hiring Trainees: (Section18) Labor Act 2074
- Trainee: An employee may be appointed as trainee.
- Training Period: not exceeding 1 year, except where time period
has been prescribed by law
- Entitlement to benefits: to all social security benefits including
provident fund, gratuity etc.
- Appointment as regular employee: Employer does not have an
obligation to appoint the trainee as regular employee, however if
appointed, he/she should not be put on probation.

9. Modes of Hiring Foreign Nationals
(Section22 & 23) Labor Act 2074
• No, foreign national cannot work in Nepal without obtaining work
permit
• According to Section 22 & 23 of labor Act 2074, Work Permit Compulsory
except in following conditions:
- Foreign nationals who are provided diplomatic immunity.
- Arrangement as per treaty or agreement with the Government of
Nepal.
• Similarly section 22 of same Act if no skilled human resource Nepali
citizen is found, employer should submit an application to obtain
work permit to employ foreigners in their orgniztion.

10. Facilities
reward and incentive as prescribed for workers and employees
• Remuneration (Section 34) : Each will be entitled to get facilities and
remuneration from the date of work started.
• As per the employment agreement but not less then labor law of Nepal
• There will no deduction on present/regular payments.
• Management should pay in time.
• Yearly salary increment (grade) (Section 35): After completion of one
years service, one day’s half salary amount should be raised for each year
as grade.
• Festival incentives (Section 37): Each year amount equivalent to one
month’s salary should be given in their respective festival as per their
religious, cultural traditions.

11. Leave and Holidays (Section 40-48)
• Weekly Holiday: 1 day every week
• Public Holidays: 13 days including May Day
- 1 day additional to female employees including International Women
Labor Day
• Annual Leave: 1 day for every 20 worked days
• Sick Leave: Fully paid up to 12 days (previously half paid up to 15
days)
- For those who have not completed one year of service, sick leave is
provided on a proportional basis.
• Mourning Leave: 13 days

12. Leave and Holidays
Heading Labor Act, 1992 New Labor Act,
2074
Maternity Leave 52 days
Fully paid
98 days
Fully paid up to 60
days
Paternity Leave Not Provisioned 15 days
Fully paid

13. Leave and Holidays
• General Principles (Section 51):
- Leave is not regarded as matter of right but privilege. The
approving authority may accept or decline leave request or
curtail approved leave.
- Prior approval is required except in case of urgency.
- Going for leave without approval is misconduct.

14. Provident fund, Gratuity and Insurance
 Each employer should maintain provident fund by deducting 10%
salary and adding 10% from enterprise.
 It should start from the beginning of service and be kept on social
security fund on the name of each employee

15. Gratuity
 Employer must deposit 8.33% of basic salary of each employee for
each month.
 Should be deposited from the first day of service on the social
security fund of employee.
 Those who enjoy pension will not get gratuity.

16. Insurance and Other
• Medical Insurance (Section 54):
• - Coverage: at least one hundred thousand rupees (Rs. 100,000) per year for
every worker
- Premium: equally paid by the employer and worker
• Accident Insurance (Section 55):
- Coverage: at least seven hundred thousand rupees (Rs. 700,000) for every worker
- Premium: fully paid by employer
• Death Compensation: the nearest successor is entitled to the amount of accident
insurance.
• Bonus: 10% of net profit
 If employee died money goes to his/her successor and if injured and became incapable
s/he will get compensation as per incapability percentage as prescribed by labor law.
 For this purpose 7 lakh rupees is identical for 100% incapability and from this amount
sealing as per incapability % compensation is liable.

17. Incapability percentage
 Loss of both limbs = 100%
 Total blindness = 100% , one eye loss = 40%
 Total paralysis = 100?% , total immovability = 100%
 Loss of one eye, hand, leg of single eye, hand, leg having person = 100%
 Loss of total hearing capacity = 70% , one ear's hearing loss-20%
 Amputation of one arm, elbow = 70% , amputation of sciatic nerves-70%
 Loss of one paws = 60%
 All four fingers except thumb = 40% ,
 Thumb amputation = 30% from one fold of thumb = 20%, one fold of
small finger = 5%, two folds of toe = 10%, other fingers except toe = 3%
for each.

18. Other facilities
 Social security fund
 Refreshment trainings
 Promotion as per hotels rules
 Allowances as per hotels rule

19. योगदानमा आधारित सामाजिक सुिक्षा ऐन,
२०७४
१०. सामाजिक सुिक्षा योिना सञ्चालन गने: (१) कोषले यस ऐनको अधीनमा
िही देहायका सामाजिक सुिक्षा योिनाहरु सञ्चालन गनेछ–
(क) औषधध उपचाि तथा स्वास््य सुिक्षा योिना,
(ख) मातृत्व सुिक्षा योिना,
(ग) दुर्घटना सुिक्षा योिना,
(र्) अशक्तता सुिक्षा योिना,
(ङ) वृद्ध अवस्था सुिक्षा योिना,
(च) आधित परिवाि सुिक्षा योिना,
(छ) बेिोिगाि सहायता योिना,
(ि) कोषले तोक
े का अन्य सामाजिक सुिक्षा योिना ।
(२) कोषले नेपाल सिकािले तोक
े को प्राथममकताको आधािमा सामाजिक सुिक्षा
योिना सञ्चालन गनेछ

20. Working condition and discrimination on job
 Working condition in hospitality is very important because in better
working condition only employees can perform better. It is said
better working condition can create better production.
 Working condition requires pyramidal management system. Top
down follow of order and supply and bottom up system of demand.
 It requires better environment, responsible management, devoted
employees, proper response in problems, due settlement of
grievances, job security, appropriate incentives, future security,
healthy and hygienic work place, friendly working environment, etc.
 Well motivated employment relation can create well working
condition.

21. Misconduct and Punishment Following Punishment in
Following Misconducts
 Warning: (a)absent in work without permission (b) absence from
work place without permission (c) frequently late in work (d)
disobey instructions of higher authority (e) any other misconducts
as per laws
 Reduce salary up to one day (a) denary to receive notice given by
employer or punishing authority (b) if involve or compel other to
participate in illegal strike (c) if make loss in service doing negligence
(d) try to get facility by submitting false statement (e) deny to use
security instruments in necessary works (f) any other similar
misconduct as mentioned by rules

22. Annual salary increase or one years’ promotion stoppage
 Unauthorized use of institutional property or give to others to use
so
 Try to misuse in employer’s transaction
 Make loss in employer’s property by negligence or carelessness
 If creates obstacle in work place or in supply of water, electricity or
communication.
 Loss or misuse of any good or management made for the security
health or interest protection of the workers
 Any other similar misconduct as defined by rules

23. Termination from job (1)
 Cause any physical harm to any work related person by using
weapon or without any weapon , make any person hostage, create
any riot or any destruction in institutional materials
 Involving in bribe taking
 Stealing property at work place
 Doing financial misuse
 Causing loss or damage in employer’s property knowingly
 Absent in work continuously more then 30 days
 Disclose the secrecy of Institutional production formula or special
technology with intention to harm or loss to the enterprise

24. Termination from job (2)
 If shares secrete information to any competitors or starts self
competitive business
 Convicted guilty from the court in any moral turpitude cases
 Submits duplicate educational certificates
 Consume alcoholic or intoxicating drugs in work time and place
 If punished more than twice within 3 years in case of above
mentioned misconducts.
 In any other legal provisions as made by current laws of Nepal .

25. Gender discrimination in hospitality business and it’s remedy
 Gender discrimination is not allowed, it is illegal.
 Both male and female should be taken in same way, because every
person is equal before the eye of law. All are equally respected and
equally dignified. Constitution has fundamental right of equality.
 Section 7 of Labor Act 2074, says there should no gender basis
discrimination in payment of equal value of work.
 Similarly equal opportunity in work, respect, post, position, promotion
should be given.
 As per constitutional fundamental rights positive discrimination is
allowed. Protective and promoting legal safeguards can be made for
female workers. It may show discrimination but we must know it is made
for betterment of female, because they are weaker section of human
society.

26. Settlement of Labor Disputes
 If there are any labor disputes it is a duty of management to settle
that.
 Disputes may settled by two ways:
(1) through individual dispute settlement process
(2) through collective dispute settlement process

27. Individual Dispute Settlement (1)
 If anybody has any types of claim on the rights given by the service
agreement made as per the labor laws of Nepal, s/he have to
submit a written application before the employer.
 Employer must give record of registration of such application.
 Employer within 15 days must solve such claim with consultation
 Both parties if agreed can extend this time period
 Concerned party can apply to the labor office to solve issue through
mediation in two conditions (1) if the management did not inform
the applicant to discuss till 7 days of his application. (2) if there is no
result made till 15 day of the application given to management.

28. Individual Dispute Settlement (2)
 Labor office must call both parties for discussion with fixed time
schedule
 Office must resolve that issue with in 21 days by consulting either
parties.
 By tri-party understanding this time limit can be extended. If
understanding made, it is final and be executed if understanding is
not made then the office should decide with in 15 days as per the
evidences collected.

29. Collective Dispute Settlement
 Where there are 10 or more workers working in any enterprise
there would be a collective bargaining committee comprising of the
representatives of elected trade union, representatives nominated
with mutual agreement of existing trade unions in case of absence
of such elected representatives, and in absence of this both
representatives the representatives nominated by signature of 60%
workers.( there may be 3-11members in such committee)
 Collective bargaining committee can submit written application
before the management
 Committee can’t put demands which are against law and morality

30. Collective Dispute Settlement
 There must be discussion about collective demands . Management with in 7
days must call for talk with time schedule
 Concerned party can apply to the labor office for mediation in two situations (1)
if management did not call for talk with in 7 days (2) if both parties failed to
resolve issues with in 21 days.
 Labor office should try to resolve problems through mediation process.
Mediator should resolve with in 30 days.
 If issues not resolved by mediation, then through arbitration issues can be
solved.

31. Special Provision for Women and Children
 Additional time for rest : Women, pregnant and having up to 3 years children should
be given additional one hours rest time. (each worker gets half hours rest time against
5 hours work)
 If sent to work more then 8 hours per day and 48 hours in a week, for additional work
one and half time extra salary should be given.
 Pregnant women should be sent for easy and simple work, not hard, difficult and
dangerous work. Female should be kept for day time job, if necessary for night shift,
proper security and pick up and drop facility should be made.
 No body should do any sexual harassment against women workers. Aggrieved person
can go to the court. Guilty may fired from job.
 Child care center be made (where 50 or more female workers it is compulsory )
separate toilet and bath room facility.
 Health check up and protection from job base dieses.
 According to section 33 of the labor Act 2074, management must arrange transport
facility of pick up and drop to female workers whom assigned job before sun rise and
after sun set.

32. Sexual Harassment in Workplace
 Sexual Harassment Prevention Act, 2015 prevents sexual harassment at
“workplace” in the course of conducting their business.
 The Act affords protection to employees, and workers employed by the entities
(including contract workers), as also to customers (and persons accompanying
such customers) who may visit the workplace to avail of any services.
 Unlike the corresponding legislation in some other jurisdiction such as India,
the Sexual Harassment Prevention Act is gender-neutral and is not limited to
female workers.
 Meaning of SH:
a. Physical contact and advances;
b. Showing or displaying of pornographic material,
c. Expressing sexual motives by way of written, verbal, or non-verbal means,
d. Demand or proposal for sexual favours; and
e. Flirting or harassing with sexual motive.

33. Responsibilities and Duties of the Employer against Sexual
Harassment
a. Incorporating the necessary provisions relating to the prevention of
sexual harassment into the internal employment rules;
b. Disseminating information to create awareness on the issues and
implications of workplace sexual harassment;
c. Making necessary arrangements for preventing the recurrence of
sexual harassment;
d. Providing the victims with the necessary psychological treatment;
and
e. Making an arrangement of victims to make anonymous complaints;
f. Providing information to the victims on the procedure for fling of
complaints.

34. Complaint Mechanism against Sexual
Harassment
 Internal Complaint Handling Mechanism:
 Reconciliation between the victim and the accused with mutual consent of
the parties;
 Require the perpetrator to apologize to the victim;
 Arrange for reasonable compensation from the perpetrator to the victim;
and
 Take departmental action against the perpetrator pursuant to the internal
employee service rules.
 Punishment under the Act:
 Section 12 of the Act provides that any person who has committed sexual
harassment under the Act may be punished with imprisonment of up to 6
months, and / or fine of up to Nepalese Rupees 50,000.