Industrial and labour disputes arise between workers and management over issues related to rights and interests such as wages, bonuses, staffing changes, union recognition, leave, and working conditions. The dispute settlement process involves bilateral discussions between employers and workers, potential involvement of labour offices, strikes or lockouts, and mediation or arbitration. If disputes cannot be resolved, they may progress to labour courts. Nepali law outlines provisions for settling individual and collective disputes, including processes for filing complaints, reaching decisions, and appealing verdicts. Some major industrial disputes in Nepal have occurred at facilities like jute mills, textile industries, hotels, and factories manufacturing cement, batteries, beverages and other goods.

1. Industrial / Labour DisputesIndustrial / Labour Disputes
In Industrial Relations “dispute”In Industrial Relations “dispute”
indicates differences betweenindicates differences between
Workers and the ManagementWorkers and the Management
over the issues related to theirover the issues related to their
rights and interests.rights and interests.

2. Industrial / Labour disputesIndustrial / Labour disputes
Causes & Issues of disputesCauses & Issues of disputes
– Wages / SalaryWages / Salary
– BonusBonus
– Staff RetrenchmentStaff Retrenchment
– Union RecognitionUnion Recognition
– LeaveLeave
– Working hoursWorking hours
– IndisciplineIndiscipline
– Working standardWorking standard
– Working conditionsWorking conditions

3. Dispute Settlement ProcessDispute Settlement Process
E m p l o y e r s D I S P U T E S W o r k e r s
M u t u a l l y S e t t l e
S t r i k e s / L o c k o u t s G o v e r n m e n t A r b i t r a t i o n
L a b o u r C o u r t
T r i b u n a l s
F a i l s o t S e t t l e S u c c e e d s
( S e t t l e m e n t )
C o n c i l i a t i o n O f f i c e r
F a i l t o S e t t l e
I n d u s t r y

4. Dispute settlement ProcessDispute settlement Process
(General)(General)
Filing Complaint to the EmployerFiling Complaint to the Employer
Bilateral DiscussionBilateral Discussion
Involvement of Labour OfficeInvolvement of Labour Office
Strikes / Lock outStrikes / Lock out
Mediator / ArbitratorMediator / Arbitrator
Right to AppealRight to Appeal

5. Provisions in Labour Act (Nepal)Provisions in Labour Act (Nepal)
Individual dispute settlementIndividual dispute settlement
-Set claim individually or collectively in written before-Set claim individually or collectively in written before
ManagementManagement
- - Management has to give decision within 15 daysManagement has to give decision within 15 days
- - If not -satisfied with the management's verdict, the employeeIf not -satisfied with the management's verdict, the employee
may submit a complaint in the Labour Officemay submit a complaint in the Labour Office
- - Labour Office may call both the parties within 15 days of suchLabour Office may call both the parties within 15 days of such
complaints and resole the problemcomplaints and resole the problem
- - If the problem is not solved the Labour Office may make aIf the problem is not solved the Labour Office may make a
decision within 7 days which shall be applicable to everyonedecision within 7 days which shall be applicable to everyone
- - Party not accepting the verdict of the Labour Office may got toParty not accepting the verdict of the Labour Office may got to
the Labour Court within 35 day of such decisionsthe Labour Court within 35 day of such decisions

6. Provision in Labour Act (Nepal)Provision in Labour Act (Nepal)
Collective Dispute SettlementCollective Dispute Settlement
Signature of 51%Signature of 51%
Once in two years timeOnce in two years time
management should call the parties and solve the dispute withinmanagement should call the parties and solve the dispute within
21 days21 days
if the problem is not solved the Labour Office has to solve itif the problem is not solved the Labour Office has to solve it
within 15 dayswithin 15 days
then also if the problem is not solved a Mediator may bethen also if the problem is not solved a Mediator may be
appointed or Tribunal is formed with the equal representation ofappointed or Tribunal is formed with the equal representation of
Management, Labour and Labour OfficeManagement, Labour and Labour Office
the mediators or tribunal have to settle the claim within 15daysthe mediators or tribunal have to settle the claim within 15days
the parties not liking the decision may set a claim in Labourthe parties not liking the decision may set a claim in Labour
Office within 35-days of such decisionOffice within 35-days of such decision
if any agreement the decision is not reached then workers mayif any agreement the decision is not reached then workers may
go on strike.go on strike.

7. Some Major industrial Disputes inSome Major industrial Disputes in
NepalNepal
Biratnagar Jute MillsBiratnagar Jute Mills
Soaltee HotelSoaltee Hotel
Balaju Textile IndustryBalaju Textile Industry
Hetauda TextileHetauda Textile
IndustryIndustry
Himal Cement FactoryHimal Cement Factory
Colgate PalmoliveColgate Palmolive
Yak & Yeti HotelYak & Yeti Hotel
Nepal BatteryNepal Battery
•Nepal Liver LimitedNepal Liver Limited
•Shanti BanaspatiShanti Banaspati
GheeGhee
•Momento ApparelsMomento Apparels
•Surya NepalSurya Nepal
•Hulas SteelsHulas Steels
•Bottlers NepalBottlers Nepal
•Dabur NepalDabur Nepal
•Birgunj Sugar MillBirgunj Sugar Mill