Important Updates
Important Updates
January 9, 2026 | United StatesUnited States: Premium Processing Fees Will Increase Effective March 1
January 9, 2026 | Costa RicaCosta Rica: Processing Delays for Residence Card Issuance
January 9, 2026 | United StatesGlobal Mobility Lawyer: Wage-Weighted H-1Bs Will End “Level Playing Field”
January 9, 2026 | BahrainMiddle East: Scheduled Increase in Employer Monthly Contribution Rate
January 9, 2026 | Republic of Korea (South Korea)South Korea: 'Visit Korea Year' Temporarily Exempts 22 Countries from K-ETA
January 9, 2026 | United StatesUnited States: Premium Processing Fees Will Increase Effective March 1
January 9, 2026 | Costa RicaCosta Rica: Processing Delays for Residence Card Issuance
January 9, 2026 | United StatesGlobal Mobility Lawyer: Wage-Weighted H-1Bs Will End “Level Playing Field”
January 9, 2026 | BahrainMiddle East: Scheduled Increase in Employer Monthly Contribution Rate
January 9, 2026 | Republic of Korea (South Korea)South Korea: 'Visit Korea Year' Temporarily Exempts 22 Countries from K-ETA
January 9, 2026 | United StatesUnited States: Premium Processing Fees Will Increase Effective March 1
Subscribe
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
    Navigating Immigration Under the Second Trump AdministrationFragomen Consulting EuropeImmigration 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

  • Navigating Immigration Under the Second Trump Administration
  • Fragomen Consulting Europe
  • 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
  • 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

Global Mobility Lawyer: Wage-Weighted H-1Bs Will End “Level Playing Field”

Partner Bo Cooper explains the impact of wage‑weighted selection on H‑1B registration and compliance.

Learn more

Media mentions

Lexology Pro: H-1B Programme Braces for New Rules and Uncertainty in 2026

Partner K. Edward Raleigh highlights how recent H-1B changes are shaping employer compliance strategies.

Learn more

Media mentions

The Irish Times: Number of Work Permits Issued Last Year Drops by Almost a Quarter

Practice Leader Colm Collins explains that processing delays, shifting demand in information and communication technology (ICT) and renewal cycles contributed to last year’s drop in work permit approvals.

Learn more

Media mentions

Canadian Lawyer Magazine: Canada's Immigration System Is Reaching a Breaking Point: Canadian Immigration Lawyers Association

Partner Rick Lamanna examines current pressures on Canada’s immigration system, including processing delays, reduced admissions and policy uncertainty and the implications for applicants and employers.

Learn more

Blog post

Employer of Record and Body Leasing in Switzerland: Compliance Risks and Key Updates

Manager Mihaela Dumitru outlines how Swiss authorities assess Employer of Record and body-leasing models, highlighting key compliance risks, licensing requirements and a regulatory update affecting EU and EFTA nationals effective 1 January 2026.

Learn more
Generic Insights

Media mentions

Gazeta Prawna: Cudzoziemców też chroni konstytucja

Partner Karolina Schiffter discusses how courts in Poland are reinforcing timely processing and constitutional protections for foreigners.

Learn more

Fragomen news

2025年12月 アメリカ移民法ダイジェストLearn more

Fragomen news

Cosmina Morariu Named Managing Partner of Fragomen’s Canadian PracticeLearn more

Blog post

Ireland Employment Permits Update: 2026 Salary Threshold Changes for Graduate Hiring

Immigration Manager Alice Heron examines Ireland’s updated employment permit salary thresholds taking effect in March 2026, including the reintroduction of graduate-specific Minimum Annual Remuneration bands and what these changes mean for employers planning graduate recruitment in 2026 and 2027.

Learn more

Fragomen news

Fragomen Announces 2026 Partner Class and Counsel ElevationsLearn more

Media mentions

Bloomberg Law: New H-1B Rule Pushes Employers to Rethink Workforce Options

Partner Jill Bloom explains how the new wage-based H-1B selection rule may influence hiring decisions and prompt employers to reassess workforce planning and explore alternative visa options.

Learn more

Media mentions

Business Insider: Immigration Lawyers Say the H-1B Chaos Is Forcing Tough Business Calls

Partner K. Edward Raleigh discusses how companies are rethinking their H-1B strategies amid evolving policies.

Learn more

Media mentions

Global Mobility Lawyer: Wage-Weighted H-1Bs Will End “Level Playing Field”

Partner Bo Cooper explains the impact of wage‑weighted selection on H‑1B registration and compliance.

Learn more

Media mentions

Lexology Pro: H-1B Programme Braces for New Rules and Uncertainty in 2026

Partner K. Edward Raleigh highlights how recent H-1B changes are shaping employer compliance strategies.

Learn more

Media mentions

The Irish Times: Number of Work Permits Issued Last Year Drops by Almost a Quarter

Practice Leader Colm Collins explains that processing delays, shifting demand in information and communication technology (ICT) and renewal cycles contributed to last year’s drop in work permit approvals.

Learn more

Media mentions

Canadian Lawyer Magazine: Canada's Immigration System Is Reaching a Breaking Point: Canadian Immigration Lawyers Association

Partner Rick Lamanna examines current pressures on Canada’s immigration system, including processing delays, reduced admissions and policy uncertainty and the implications for applicants and employers.

Learn more

Blog post

Employer of Record and Body Leasing in Switzerland: Compliance Risks and Key Updates

Manager Mihaela Dumitru outlines how Swiss authorities assess Employer of Record and body-leasing models, highlighting key compliance risks, licensing requirements and a regulatory update affecting EU and EFTA nationals effective 1 January 2026.

Learn more
Generic Insights

Media mentions

Gazeta Prawna: Cudzoziemców też chroni konstytucja

Partner Karolina Schiffter discusses how courts in Poland are reinforcing timely processing and constitutional protections for foreigners.

Learn more

Fragomen news

2025年12月 アメリカ移民法ダイジェストLearn more

Fragomen news

Cosmina Morariu Named Managing Partner of Fragomen’s Canadian PracticeLearn more

Blog post

Ireland Employment Permits Update: 2026 Salary Threshold Changes for Graduate Hiring

Immigration Manager Alice Heron examines Ireland’s updated employment permit salary thresholds taking effect in March 2026, including the reintroduction of graduate-specific Minimum Annual Remuneration bands and what these changes mean for employers planning graduate recruitment in 2026 and 2027.

Learn more

Fragomen news

Fragomen Announces 2026 Partner Class and Counsel ElevationsLearn more

Media mentions

Bloomberg Law: New H-1B Rule Pushes Employers to Rethink Workforce Options

Partner Jill Bloom explains how the new wage-based H-1B selection rule may influence hiring decisions and prompt employers to reassess workforce planning and explore alternative visa options.

Learn more

Media mentions

Business Insider: Immigration Lawyers Say the H-1B Chaos Is Forcing Tough Business Calls

Partner K. Edward Raleigh discusses how companies are rethinking their H-1B strategies amid evolving policies.

Learn more

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
  • UK Regulatory Requirements

Our firm

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

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • 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.