Chapter-1 Preliminary

1. Short title and commencement:

(1) This Act may be cited as the “Labour Act, 2017 (2074).”

(2) This Act shall commence forthwith.

2. Definitions:

Unless the subject or the context otherwise requires, in this Act:

(a) Basic remuneration: means the basic remuneration to be received by a labour for employment, and this term also includes the amount of increment in remuneration after completion of one year of the employment period.

(b) Chief Executive: means a person who bears the final responsibility for the activities of the enterprise.

(c) Workplace: means the place or location where a labour works, and this term also includes a place or situation where a labour has to stay or visit in the course of the work.

(d) Office: means the Labour Office.

(e) Lockout: means the closure of any enterprise or workplace by the employer to prevent fully or partly the labours from performing their regular work. Provided that this term does not refer to a situation where the labours are held in reserve or where the work is stopped because of the occurrence of an immediate danger.

(f) Prescribed or as prescribed: means prescribed or as prescribed in the rules framed under this Act, and this term also includes a notice published in the Nepal Gazette as provided for in this Act or the rules framed under this Act.

(g) Inspector: means the senior labour inspector, labour inspector, senior occupational safety and health inspector, and occupational safety and health inspector, and this term also includes any other employee deputed for inspection.

(h) Council: means the Central Labour Advisory Council formed pursuant to Section 102.

(i) Remuneration: means the basic remuneration to which a labour is entitled, and this term also includes an allowance.

(j) Enterprise: means any company, private firm, partnership firm, cooperative organization or association or other organization which is established, incorporated, registered or formed or operated in accordance with the prevailing law with the objective to carry on any industry, business or service, with or without profit motive.

(k) Ministry: means the Ministry of Labour and Employment, Government of Nepal.

(l) Main employer: means an employer who employs labours through a labour provider.

(m) Employer: means any person or enterprise that employs labours, and this term also includes a manager in the case of an enterprise, and a labour provider in the case of a labour supplied pursuant to this Act.

(n) Employment contract: means an agreement entered into between an employer and a labour in relation to the service, conditions and benefits of employment, and this term also includes the letter of appointment given by the employer to the labour.

(o) Employment period: means the period during which a labour is employed with an employer, and this term also includes the following period:

(1) Period held in reserve,

(2) Period of leave with remuneration,

(3) Period of unpaid leave taken for maternity or maternity care,

(4) Period of leave taken for medical treatment in case of accident during or while working for the employer.

(p) By-law: means the by-law relating to conditions of service of the labours framed by an enterprise pursuant to Section 108, and this term also includes the financial administration by-law of the enterprise.

(q) Department: means the Department of Labour.

(r) Manager: means the chief executive of an enterprise, and this term also includes the chief of any section or unit so appointed as taking or exercising the final responsibility or authority.

(s) Managerial level labour: means a labour appointed to a post at the managerial or higher level thereof entrusting the authority to evaluate, control and supervise the work of labours on behalf of the employer, and this term also includes the manager.

(t) Social Security Fund: means the Social Security Fund established pursuant to the prevailing law.

(u) Collective agreement: means an agreement entered into between the employer or employers’ association and the trade union or Collective Bargaining Committee on remuneration, conditions of service, benefits of the labours or matters of common concern to the employer and the labours.

(v) Collective Bargaining Committee: means the Collective Bargaining Committee referred to in sub-section (1) of Section 116.

(w) Labour Court: means the Labour Court formed pursuant to Section 151.

(x) Labour: means a worker or employee or a person employed with any job title who performs physical or intellectual work for the employer.

(y) Labour supplier: means a person or body having obtained the license pursuant to Chapter 11 to supply labours.

(z) Strike: means a situation where labours collectively refuse to perform their regular work partially or completely. Provided that a situation where labours are on leave or stopped the work as a result of the occurrence of an immediate danger or have become unable to attend or perform the work due to a situation beyond the control of labours shall not be considered as a strike.