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Nepal

Working Hours and Overtime Regulations

Understand the laws governing work hours and overtime in Nepal

Standard working hours

In Nepal, the Labor Act 2074 (2018) sets the regulations for standard working hours. The key points are as follows:

  • Daily: A worker should not be employed for more than 8 hours a day.
  • Weekly: The maximum workweek is set at 48 hours.

There are also specific regulations for minors:

  • Workers under 18 years old have reduced working hours. They cannot be employed for more than 6 hours a day and 36 hours a week.

Overtime

In Nepal, labor laws regulate overtime work to ensure fair treatment for employees and limitations on extended hours.

The Nepal Labor Act 2074 (2017) dictates the maximum overtime allowed. Employees cannot be asked to work more than 24 hours per week in overtime. Additionally, overtime should not exceed 4 hours per day. However, in emergency situations where a company's operations or employee safety might be at risk, exceeding the overtime limit is permissible. This, though, requires approval from the labor office.

Nepal's labor laws also safeguard minors from excessive work hours. Employees under the age of 18 are strictly prohibited from working overtime.

Employees are entitled to fair compensation for overtime work according to the Labor Act. Employers must pay 1.5 times the basic salary for each overtime hour worked. However, there are exceptions. Managerial level employees might have alternative compensation arrangements outlined in their employment contracts, replacing the standard overtime pay. These benefits should be mutually agreed upon.

Furthermore, if a company has a collective bargaining agreement with its employees, the agreement might supersede the standard overtime pay with different benefits.

Rest periods and breaks

Nepal's Labour Act, 2017, provides clear guidelines for rest periods and breaks for workers.

Daily Breaks

  • Standard Break: Employers are required to provide a minimum of 30 minutes of break after every 5 hours of continuous work. This break is considered working time and is included in the total working hours.
  • Minors: Employees under 18 years old are entitled to breaks every 3 hours, with a minimum duration not specified by the Act.
  • Pregnant/New Mothers: Pregnant women or those with a child under 3 years old are entitled to an additional 30 minutes of break on top of the standard break.

Weekly Breaks

  • One Day Off: Every worker is entitled to one day of weekly holiday.

It's important to note that there might be variations depending on the specific employment contract or industry regulations. For clarification on any details or disputes, consulting the Department of Labor or seeking legal advice is recommended.

Night shift and weekend regulations

In Nepal, labor laws provide a structure for night shift and weekend work, ensuring employees are treated fairly while also providing businesses with some operational flexibility.

Night shift work is defined as work performed between 10 pm and 8 am. The maximum duration of a night shift cannot exceed 7 hours. Night shift work mandates a wage premium, meaning employees must be paid at least double their regular rate for each hour worked during the night.

Weekend work refers to a weekly rest day designated by the employer in consultation with the employees. It's typically Saturday or Sunday. Every employee has the right to one full day of rest per week. If an employee is required to work on their designated weekly rest day, they must be compensated with either a substitute rest day within the following week or double their regular wages for the hours worked on the weekend.

These are the general provisions outlined in the Labor Act. Specific exceptions or variations might apply depending on the industry, nature of work, and any collective bargaining agreements in place.

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