Labour Act, 2074: What Every Employer in Nepal Needs to Know

What this law means for your business, in 3 points

• It applies the moment you hire, regardless of company size: there's no small-business exemption for the core protections.
• Social Security Fund (SSF) enrollment is mandatory for employees, alongside the employer's own contribution.
• Written employment contracts and probation terms are legally required, not just best practice.

Core obligations for employers

• Written appointment letter for every employee
• Registration with the Social Security Fund
• Minimum wage compliance
• Working hour limits and overtime rules
• Termination procedure and notice requirements

Where this connects to company compliance

Labour Act obligations sit alongside, not instead of, your Companies Act filings. A compliant company still needs a compliant HR setup once it starts hiring, including Bonus Act obligations once the business is profitable.

Need this handled for you?

We draft compliant employment contracts and advise on Social Security Fund registration as part of our retained advocate service. See advocate services →