According to Nepal's
Labor Act 2074 (2017) (hereinafter referred to as "Labor Act"),
termination of employment is a serious subject that must be handled legally. An
employer may terminate an employee's employment under the following
circumstances as per the Labor Act:
- Mutual consent: An employer and employee may mutually agree to end their work relationship.
- Contract Termination: If the employment is for a definite time or a specified assignment, it shall end upon the expiry of the contract or completion of the assignment.
- Retirement: An employer may terminate the employment of an employee who has reached retirement age as per the Social Security Act, 2017.
- End of Contract: If the employment is for a definite period of time or a specific task, it shall end upon the expiry of the contract or completion of the task.
- Retirement: An employer may terminate the employment of an employee who has reached retirement age as per the Social Security Act, 2017.
- Performance-based Termination: With three written warnings, an employer may terminate the employment of an employee who has failed to meet the performance requirements.
- Misconduct: An employer may terminate the employment of an employee who has committed misconduct, such as theft, fraud, dishonesty, or violent behavior, among others.
- Redundancy: An employer may terminate the employment of an employee due to redundancy, which is the situation when the employer no longer requires the employee's work due to changes in the business or economic conditions.
It is crucial to remember that the Labor Act of 2017 must be followed when terminating an employee's job. The employee must get a written notice of termination from the employer along with a justification. In some cases, the employer may be required to provide severance pay or other benefits.
By submitting a complaint to the Labor Office within 45 days after the termination, an employee in Nepal may contest the termination of their job in accordance with the Labor Act. The Labor Office will investigate the complaint and attempt to resolve the issue through conciliation.
The employee has 35 days after obtaining the Labor Office's decision to file a lawsuit with the Labor Court if the Labor Office is unable to address the matter. The Labor Court will then look at the situation and render a judgment.
If the employee is not satisfied with the decision of the Labor Court, they can appeal to the Supreme Court within 35 days of the decision.
AHN Legal holds expertise in representing parties in relation to various labor-related issues with representing clients in Labor Office and Labor Court in Nepal.
Note: The information provided in this content is for general informational purposes only and should not be taken as legal advice or legal opinion. It is not intended to create an attorney-client relationship or substitute for legal counsel. The content may not reflect the most current legal developments, and laws and regulations vary by jurisdiction. Therefore, the information provided may not be applicable to your specific situation.