• Insights

New Labour Law Implemented

December 22, 2017

insight-news-default

Country / Territory

  • NepalNepal

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Executive Summary

​The Nepalese government has introduced a new labour law that:

  • codifies rules previously governed by various agencies;
  • relaxes eligibility rules for hiring foreign workers; and
  • requires an employer of a foreign worker to contribute 8.33 percent of the employee's monthly income to the employee’s pension fund, among other changes.

 

The revised provisions are effective immediately.


The situation

​The Nepalese government has introduced a new labour law that amends several provisions of the previous labour law and introduces new provisions that aim to eliminate existing ambiguities.  The changes are effective immediately.

  • Scope of applicability. The new law has a broader scope of applicability than the previous law, and now covers the below categories:
    • Any entity operating in any industry, profession or service, with or without profit, regardless of number of workers; and
    • Representatives or workers hired by an overseas entity undertaking promotion, sales and marketing activities in Nepal.
  • New employment categories. The new law introduces several new categories of employment based on the nature of work performed, including regular employment, work-based employment (those hired for a specific project), time-based employment (those hired for a specific amount of time), casual employment (those hired for an unspecified amount of time), and part-time employment.
    • Impact.  Although this expansion will regulate more foreign nationals under the labour law, the effect of this will be minimal as the rules surrounding the validity of stays will not change.
  • Employment period now mandatory in contract.  The period of employment must now be prescribed in the employment agreement. If the period of employment is not stipulated in the employment agreement, the contract will be deemed to be valid for three years.
    • Impact.  This requires employers to ensure that they negotiate the duration of the contract with the employee prior to the start date.
  • Relaxed eligibility. The type of position for which a foreign national can be hired has been changed from "skilled technical position" to "skilled position". Therefore, foreign workers without technical skills can now work in Nepal.
    • Impacts. This increases the pool of eligible foreign nationals who seek to enter Nepal to work. 
      • Since the rules relating to labor market testing remain the same, foreign nationals and their employers will still be subject to the same processes to be able to work in Nepal. 
      • Since the maximum period for employment for a foreign national is yet to be prescribed by the new law, the rule that allows foreign nationals to work for up to five to seven years still applies.
  • Repatriation of salaries earned. Work Permit holders may now send 75 percent of their remuneration earned in Nepal to their home country in convertible foreign currency. This issue was previously governed by the rules of various Nepalese government agencies. However, the provision has now been codified by the new labor law.
    • Impact. While this makes repatriation of remuneration earned in Nepal by foreign nationals a statutory right, the requirements for availing this right remain the same as per the previous law, which include certain restrictions.
  • Mandatory contribution to employee pension fund. The employer must contribute 8.33 percent of the employee's monthly income to the employee’s pension fund, starting from the date the employee was hired. This requirement only applies to employees hired on or after September 4, 2017 who continue to remain employed as of December 22, 2017.  This requirement does not apply retroactively to employees who worked until September 4, 2017.
    • Impact. This requires employers to set aside funds for a new set of monthly contributions.

 

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected]. 

Country / Territory

  • NepalNepal

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Bloomberg Law: Justices’ Migrant TPS Ruling Undercuts Pending Court Challenges

Partner Daniel Pierce discussed the implications of the US Supreme Court's latest Temporary Protected Status ruling.

Learn more

Blog post

The EU Pay Transparency Directive: What Global Mobility Leaders Need to Know

In this blog, Senior Counsel Jo Antoon explores what multinational employers need to know about pay transparency, cross-border workers and mobility-related compensation differences as implementation unfolds across the EU. 

Learn more

Media mentions

The PIE: UK Unis Must Treat Compliance as “Strategic Institutional Risk”

Immigration Supervisor Sanjay Parmar discussed how recent UK Basic Compliance Assessment changes are driving universities toward more data-led, proactive compliance management.

Learn more

Blog post

UK Immigration Reforms and Their Impact on the Engineering Talent Pipeline

In this blog, Fragomen’s Nadine Barnole, Jonathan Hill, Anastasia Vasiljeva and Nicole Williams examine how higher Skilled Worker salary thresholds, rising sponsorship costs and proposed Graduate Route changes are making it harder for employers to attract and retain international engineering talent.

Learn more

Media mentions

Irish Examiner: Updates to Non-EU Work Permits Will Help Firms Fill Critical Roles

Practice Leader Colm Collins explains how Ireland's employment permit updates can help employers address workforce shortages while strengthening the country's ability to attract global talent.

Learn more

Blog post

Understanding EU-Turkey Association Rights for Workers and Families in Germany

Senior Associate Arta Djahanschiri and Associate Iris Barthel discuss how EU-Turkey Association Law, including Association Council Decision No. 1/80, can provide Turkish employees and their family members in Germany with residence and labor market rights that may extend beyond protections available under the German Residence Act.

Learn more

Media mentions

Konfederacja Lewiatan: Ekspertyza przedstawiająca skutki zmian legislacyjnych oraz ich praktyczne konsekwencje dla osób objętych ochroną czasową

Poland Immigration Strategy Director Tomasz Rogala and Senior Associate Tomasz Rdzanek explain Polish legislative changes affecting residence rights, employment authorization and long-term immigration pathways.

Learn more
Generic Insights

Media mentions

Deutscher AnwaltSpiegel: Internationale Rekrutierung ist eine Compliancefrage

Partner Marius Tollenaere and Associate Jamela Sharrock examine how employers in Germany can strengthen immigration compliance by embedding it into every stage of the employment lifecycle.

Learn more

Podcast

EB5: What Prospective Applicants Need to Know NOW!

In this episode of The Immigration Conversation, Partner Chad Blocker, Senior Counsel Mitchell Wexler and Associate Alex Kim discuss what prospective EB-5 applicants should know now, including source-of-funds documentation, project selection, concurrent filing, retrogression and upcoming program deadlines.

Learn more

Blog post

New EU Social Security Coordination Rules: What Employers Need to Know

In this blog, Partner Jo Antoons and Senior Manager Marina Ocariz discuss the EU’s provisional agreement on revised social security coordination rules and what employers should know about the expected changes to A1 certificate requirements, posted worker rules and short-term cross-border work compliance.

Learn more

Blog post

Approaching EB-5 Grandfathering Deadline: What Investors Need to Know Before September 30, 2026

In this blog, Partner Rahul Soni explains the EB-5 grandfathering provisions under the EB-5 Reform and Integrity Act of 2022 and why prospective investors should consider filing before the September 30, 2026 deadline to help preserve statutory protections and reduce exposure to future program uncertainty.

Learn more

Video

Do You Need a Visa for Thailand? Tourist Visa Rules Explained

In this video, Practice Leader Kate Praphakornphiphat explains the key requirements, documents, fees and processing time for a Thailand tourist visa, as well as stay duration and extension options for short-term travel. 

Learn more

Media mentions

Bloomberg Law: Justices’ Migrant TPS Ruling Undercuts Pending Court Challenges

Partner Daniel Pierce discussed the implications of the US Supreme Court's latest Temporary Protected Status ruling.

Learn more

Blog post

The EU Pay Transparency Directive: What Global Mobility Leaders Need to Know

In this blog, Senior Counsel Jo Antoon explores what multinational employers need to know about pay transparency, cross-border workers and mobility-related compensation differences as implementation unfolds across the EU. 

Learn more

Media mentions

The PIE: UK Unis Must Treat Compliance as “Strategic Institutional Risk”

Immigration Supervisor Sanjay Parmar discussed how recent UK Basic Compliance Assessment changes are driving universities toward more data-led, proactive compliance management.

Learn more

Blog post

UK Immigration Reforms and Their Impact on the Engineering Talent Pipeline

In this blog, Fragomen’s Nadine Barnole, Jonathan Hill, Anastasia Vasiljeva and Nicole Williams examine how higher Skilled Worker salary thresholds, rising sponsorship costs and proposed Graduate Route changes are making it harder for employers to attract and retain international engineering talent.

Learn more

Media mentions

Irish Examiner: Updates to Non-EU Work Permits Will Help Firms Fill Critical Roles

Practice Leader Colm Collins explains how Ireland's employment permit updates can help employers address workforce shortages while strengthening the country's ability to attract global talent.

Learn more

Blog post

Understanding EU-Turkey Association Rights for Workers and Families in Germany

Senior Associate Arta Djahanschiri and Associate Iris Barthel discuss how EU-Turkey Association Law, including Association Council Decision No. 1/80, can provide Turkish employees and their family members in Germany with residence and labor market rights that may extend beyond protections available under the German Residence Act.

Learn more

Media mentions

Konfederacja Lewiatan: Ekspertyza przedstawiająca skutki zmian legislacyjnych oraz ich praktyczne konsekwencje dla osób objętych ochroną czasową

Poland Immigration Strategy Director Tomasz Rogala and Senior Associate Tomasz Rdzanek explain Polish legislative changes affecting residence rights, employment authorization and long-term immigration pathways.

Learn more
Generic Insights

Media mentions

Deutscher AnwaltSpiegel: Internationale Rekrutierung ist eine Compliancefrage

Partner Marius Tollenaere and Associate Jamela Sharrock examine how employers in Germany can strengthen immigration compliance by embedding it into every stage of the employment lifecycle.

Learn more

Podcast

EB5: What Prospective Applicants Need to Know NOW!

In this episode of The Immigration Conversation, Partner Chad Blocker, Senior Counsel Mitchell Wexler and Associate Alex Kim discuss what prospective EB-5 applicants should know now, including source-of-funds documentation, project selection, concurrent filing, retrogression and upcoming program deadlines.

Learn more

Blog post

New EU Social Security Coordination Rules: What Employers Need to Know

In this blog, Partner Jo Antoons and Senior Manager Marina Ocariz discuss the EU’s provisional agreement on revised social security coordination rules and what employers should know about the expected changes to A1 certificate requirements, posted worker rules and short-term cross-border work compliance.

Learn more

Blog post

Approaching EB-5 Grandfathering Deadline: What Investors Need to Know Before September 30, 2026

In this blog, Partner Rahul Soni explains the EB-5 grandfathering provisions under the EB-5 Reform and Integrity Act of 2022 and why prospective investors should consider filing before the September 30, 2026 deadline to help preserve statutory protections and reduce exposure to future program uncertainty.

Learn more

Video

Do You Need a Visa for Thailand? Tourist Visa Rules Explained

In this video, Practice Leader Kate Praphakornphiphat explains the key requirements, documents, fees and processing time for a Thailand tourist visa, as well as stay duration and extension options for short-term travel. 

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
July 2, 2026 | QatarQatar: Amendments to Labor Law
July 3, 2026 | South AfricaSouth Africa: New Mandatory Pre-Arrival and Pre-Departure Customs Declaration Requirement Implemented
July 3, 2026 | VenezuelaVenezuela: Government Operations and Travel Disruptions Following Earthquakes
July 2, 2026 | DenmarkDenmark: Positive Lists Updated
July 2, 2026 | KuwaitKuwait: Restrictions Implemented for Nationality Law
July 2, 2026 | QatarQatar: Amendments to Labor Law
July 3, 2026 | South AfricaSouth Africa: New Mandatory Pre-Arrival and Pre-Departure Customs Declaration Requirement Implemented
July 3, 2026 | VenezuelaVenezuela: Government Operations and Travel Disruptions Following Earthquakes
July 2, 2026 | DenmarkDenmark: Positive Lists Updated
July 2, 2026 | KuwaitKuwait: Restrictions Implemented for Nationality Law
July 2, 2026 | QatarQatar: Amendments to Labor Law
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.