Chapter- 11 Provisions Relating to Supply of Labours

58. Labours may be employed through supplier:

(1) The Ministry shall, on recommendation of the Council, publish a list of works in which labours may be employed through labour suppliers, by publishing a notification in the Nepal Gazette.

(2) While employing a labour through a labour supplier pursuant to subsection (1), the employer shall employ him or her in any work other than the core work of the business or service.

(3) While inviting or submitting any kind of proposal or tender for the purpose of supplying or causing to supply a labour through a labour supplier or entering into an agreement for the supply of labour, such proposal or tender or agreement shall be invited or submitted or entered into so that the remuneration and other benefits of the labour to be supplied shall not be less than that specified in this Act.

(4) Any proposal or tender invited or submitted or agreement entered into contrary to subsection (3) shall ipso facto be invalid.

59. License to be obtained:

(1) A company that wishes to supply labours shall obtain a license pursuant to this Act.
Explanation: For the purpose of this Chapter, “company” means any company incorporated in accordance with the law.

(2) A company that wishes to obtain a license shall make an application in the prescribed format, accompanied by such fees, details, and documents as prescribed, to the Office of the concerned area.

(3) If the content of an application received pursuant to subsection (2) seems to be reasonable upon its examination, the Department or Office shall, by taking such a deposit or bank guarantee as prescribed, issue the license to such an applicant on such conditions and in such a format as prescribed not later than fifteen days.

(4) While issuing a license pursuant to subsection (3), the work or service and scope of work relating to the supply of labours shall be mentioned in such a license.
Explanation: For the purpose of this Section, “core work” means the work mentioned while establishing the business and work directly related thereto.

(5) Any organization or person carrying out labour supply related business at the time of commencement of this Act shall, not later than six months from the date of commencement of this Act, incorporate a company carrying out the business of supplying labours in accordance with the prevailing company law and obtain the license pursuant to this Section.

60. Submission of details by licensee:

A licensee who has obtained a license from the Office shall submit to the Office, and a licensee who has obtained a license from the Department shall submit to the Department, such details as prescribed before the last day of the month of Poush (mid-January) each year.

61. Obligations of labour supplier:

(1) The labour supplier shall not perform acts and actions contrary to the conditions or directions as prescribed under this Act or the rules framed under this Act.

(2) The labour supplier shall, in the capacity of the employer referred to in this Act, provide such remuneration and other benefits regularly to the labour it supplies as may not be less than that determined under this Act.

(3) The labour supplier shall regularly obtain information as to whether or not the main employer has taken or made such measures and provisions or arrangements as required to be taken or made in the workplace for occupational safety and health of the labour, and recommend making such arrangements immediately if it is found that such arrangements have not been made.

(4) Where it is found that the main employer has not implemented the recommendation referred to in subsection (3), the labour supplier shall give information thereof to the Department or concerned Office.

62. Revocation, suspension of license or fine:

(1) The Department or Office issuing the license may revoke the licence of a labour supplier in the following circumstance:

(a) If the labour supplier makes an application in writing for the revocation of his or her license, or

(b) If, in spite of the fine imposed pursuant to subsection (6), the labour supplier continues to violate the conditions specified or directions issued pursuant to this Act or the rules framed under this Act.

(2) Prior to the revocation of a license pursuant to clause (b) of subsection (1), the concerned labour supplier shall be provided with an opportunity of at least seven days to furnish his or her explanation.

(3) A notice of the decision made to revoke the license pursuant to this Section shall be published publicly.

(4) Notwithstanding anything contained elsewhere in this Section, if it appears that the labour supplier whose license has been revoked has any financial liability towards the Government of Nepal or any labour, he or she shall not get immunity from the performance of such liability by the reason of the revocation of the license.

63. Payment of remuneration and other benefits:

(1) In the event of revocation of the license of a labour supplier, such a labour supplier shall pay such amount of remuneration and other benefits as is payable to a labour within fifteen days.

(2) In the event of failure to pay the amount of remuneration and other benefits receivable by a labour within the period specified in subsection (1), the Department or Office that has issued the license shall arrange the payment of such amount from the deposit or bank guarantee furnished or given by such a labour supplier to such a labour at the time of obtaining the license.

64. Obligations of the main employer:

(1) The main employer shall, while employing a labour through a licensee labour supplier, so employ him or her in accordance with the agreement entered with such a labour supplier.

(2) The main employer shall, before entering into the agreement, arrange for the provision of such remuneration and benefits as may not be less than that specified in this Act or the rules framed under this Act to the labour.

(3) The main employer shall regularly obtain information as to whether or not the labour supplier has provided the remuneration and benefits regularly to the labour employed through such a labour supplier.

65. To make inspection, supervision and monitoring:

(1) The Office shall regularly make inspection and monitoring as to whether or not the labour supplier has acted in accordance with this Act or the rules framed under this Act and the directions and conditions given and prescribed pursuant to this Act and the rules framed under this Act.

(2) If it is found from an on-site inspection, monitoring or any other means that any labour supplier has not acted pursuant to this Act and the rules framed under this Act or the conditions specified as applicable to him or her, the Office may give necessary direction to the labour supplier.

66. Liability of labours to rest on the main employer:

Where any main employer employs any labour by supplying such a labour through a person or company who has not obtained the license to supply labours pursuant to this Act or contrary to the provisions of this Act, such a labour shall be deemed to be a labour of the main employer.

67. Prohibition on collecting fee from labour:

No labour supplier shall collect any kind of fee or commission from any labour whom it has supplied.