The Legislature Parliament Adopts Labour Bill

The Legislature Parliament has adopted the much awaited  Labour Bill-2074 on 11 August, 2017.  Minister for Labour and Employment Farmullha Mansur had presented the bill in the Parliament. The Bill, after signed by the President Bidya Devi Bhandari will be implemented as the Labour Act .

GEFONT individually as well as through JTUCC, has struggled a lot  to make pro worker Labour Act  and has been lobbying to pass the Act since long time.

The New Labour Act will be more beneficial for the workers as it has following major features

  1. Proposed law covers entire world of work including domestic worker.

  2. This law has been agreed as the basic law; all employees will get wage and benefits not less than this law proposes. Nobody shall make agreement breaching this law

  3. All forms of exploitative labour practices including child and forced labour is banned. Employers are restricted to make any agreement banning person to joining the union.

  4. Employment structure is categorised as casual work, time-bound work, task based work and regular work. Whatever structure is made in employment contract- there will be no discrimination in wage and benefits.

  5. Basic Social protection measures such as gratuity, accidental benefits, sickness benefits, Medicare including workers saving– the provident funds is payable from the day one of employment. Trainee and part time workers also covered.

  6. Outsource job is made more responsible, if the non-licensee recruiting agencies supply labour to any workplace; principle employer is responsible to meet all benefits.्र

  7. There is a provision for make work appraisal transparent.

  8. Without valid reasons and fulfilling lawful obligation, no one would be fired by the employment. In case of unlawful firing, it is provisioned of case against such employer. Union leaders are protected during retrenchment

  9. Retiring age is increased to 58 years from 55

  10. Women workers are protected better compare to previous law-

a. There will be transport facilities if women are working in night shift
b. There will 98 days of maternity protection leave, 60 days paid
c. In case of miscarriage of 7 months and above pregnancy, benefit is provided as of maternity
d. There will be no discrimination based on gender
e. A strong disciplinary action proposed against harassment

     11 Social dialogue

a. Every 2 two years of interval, minimum wage is reviewed
b. A provision of common bargaining committee in agreement of multi union in the enterprises is added besides       right to take part in CBA by the authentic union
c. 21 days given for bilateral negotiation and 30 days given for labour office to conciliate the collective dispute. In    case, the agreement is not signed during that time, union may call for strike by giving 30 days notice except          essential service or state of emergency or dispute in EPZ or parties agreed for arbitration or government refer      the case to arbitration. It is given much emphasis on arbitration in labour dispute by providing right to                     government to refer the case to arbitration. However, such arbitration award may be challenge within 5 working     days from the date of award.

d. The collective agreement is valid as equivalent to law till 2 year and remain valid if it is not changed by next           CBA.

e. Strike action should not be prohibited without making alternative mechanism for collective dispute settlement          mechanism.
f. There is no agreement on sectorial central bargaining though Nepal already ratified ILO convention 98.

    12. Leave facilities and Paid public holidays are increased and May Day and 8 March included.
    13. Existing factory inspection system is changed in widen to labour inspection system.
    14. Mechanism such as enforcement of agreement and judgement is included

    15. Few flexible provisions of the Act may invite negative consequences if union became less smart:

a. Contractual, time-bound categories of employment may escalate, though workers of all categories are entitled        to enjoy all benefits and social protection stuffs
b. Period of trainees may extend to 1 years, however there will be no difference in entitlement
c. Retrenchment can be done in consultation of union, here union need to be more responsible
d. Everyone entitle to get minimum facilities enshrine in the law, but more than minimum can be reduced through    CBA- here union needs to be more smart
e. There is fixed list for termination of the workers, however, it can be added through collective CBA. If union              plays foul, there will negative consequences

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