TyroCity: Labour Law Notes

Main Features of Foreign Employment Act 2064 , Gaps and Challenges

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

This act was enacted in order to make foreign employment business safe, managed and decent and protect the rights and interests of the workers who go for foreign employment and the foreign employment entrepreneurs, while promoting that business.

Specification of countries for carrying on foreign employment business
Power to make a bilateral agreement
Selection of institution
Power to send workers by making a treaty or an agreement
Prohibition on sending a minor for employment: Any minor who has not completed eighteen years of age shall not be sent for foreign employment.
Prohibition on gender
To provide special facility and reservation
Prohibition on carrying on foreign employment business without a license:
Prohibition on transfer of or change in ownership or liability:
Notwithstanding anything contained in the prevailing laws, no licensee shall, without the approval of the Department, transfer or change the ownership or liability of the institution.
Prior approval to be obtained
Power to specify minimum remuneration
Service charge and promotional costs specify the upper limit
Offense and Punishment –on several issues

Gaps and Challenges

How can the potential of remittances be maximized as a driver for economic growth and poverty reduction.
What should be the institutional response and structure for instigating workers to use the formal remittance service outreach,
making destinations countries comply with the relevant conventions, recommendations and protocols concerning the safe and decent employment of migrant workers?
IT application to maximize the effective flow of remittances through innovative payment systems, like cards, mobile telephones and branchless banking?
Should Nepal develop remittance-linked debt securities?
What policies, acts, regulations and investment environments are needed for remittance-based infrastructure and other development programmes and projects?
What options specific to development policy, plans, programmes and projects should be considered to minimize the remittance economy’s vulnerability to external economic crises and migration policies being adopted by destination countries?
What legal and administrative mechanisms should regulate overseas study and foreign employment, considering how intertwined they have become and considering the potential for fraudulent activities?
How can issues of foreign employment be incorporated into major sectors related to education, health, finance, women, children and social welfare (especially with respect to human trafficking), home affairs, tourism, agriculture and finance to ensure a coordinated and harmonized approach in policy, plans, programmes and projects?
What is the magnitude of health-related concerns and issues of migrant workers and what specific actions can be taken to remedy these problems, including among irregular workers?
Foreign employment, over the years, has become associated with social costs, such as family disintegration, children growing up without the benefit of parental care and senior citizens not receiving proper care. The increasing trend in suicide among migrants and returned workers is a concern. Family stress levels are often heightened by the absence of one or more members. What can be done to mitigate the social costs?
The agrarian economy is negatively impacted in the absence of human resources for agriculture. Nepal imports food grains and other agricultural products due to reduced agricultural activities. Can this be turned around?

Welfare and Social security

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

Social security means security against any unfavorable condition. Social security primarily refers to a social insurance program providing social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others.

Primarily social security means the security of income up to a minimum. Social security may provide for the welfare of person who became incapable of working by reason of old age sickness and invalidity and are unable to earn anything for their livelihood. It has been considered essential for workers, though with the development of the idea of welfare state, its scope should be widened to cover all sectors of society.

With the introduction of the industrialization and growth of society, it has been increasingly felt that the institution of social security should be established. Today, social insurance has spread throughout the world. It is an integral feature of social democracy.

According to Beveridge, social security means the security of an income to take the place of earning when they are interrupted by unemployment, sickness or accident to provide for retirement through age, to provide against loss of support by the death of another person and to meet exceptional expenditure such as these connected with birth’s death and marriage.

Meaning of Social Security

Social security is the security which the society as whole provides to its individual against the commons risks of life such as employment injury occupational disease invalidity or disablement ill health or sickness maternity or childbirth old age burial or funeral, widowhood orphans and unemployment etc which leads to income and their earning capacity without security, an average citizen can never live rather die peacefully because such risks are not only numerous but their incident is also fairly high in modern complex society.

The formal definition of ILO on social security read like this: basically, it can be taken to mean the protection which society provides for its members through a series of public measures, against the economic and social distress that otherwise would be caused by the stoppage or substantial reduction of earning resulting from (1) sickness, (2) maternity, (3) employment injury, (4) unemployment, (5) invalidity, (6) old age and (7) death; (8) the provision of medical care; and (9) the provision for families with children (ILO 1984).

Social Security Provided By
LABOR ACT, 2074

Weekly Holiday – 1 day every week
Public Holiday – 13 days including May day. Additional 1 day to female employees including Intl Women Labor Day. Annual Leave – 1 day for every 20 worked days.

Sick Leave
– Half paid up to 15 days. – Eligibility : Completion of 1 year of service.

Mourning Leave – 13 days

Leave in lieu – For the laborers put in work on a public holiday or weekly off.

Maternity Leave – Fully paid up to 60 days.

Paternity Leave – 15 days.

Leave is not a right! Under the Labour Rules, no employee can claim a leave as a matter of right. It should only be treated as a facility, which could be permitted by an employer. However, the court has by interpretation established that some kind of leave can be taken by an employee even if it is not authorized by the employer.

Change by collective bargaining: An employee working in the organization has the right to union. Ten or more employees working in an organization can form a Plant Level union. The Plant Level union has the right to submit a charter of demand and bargain collectively with the management. The collective agreement may change social security provisions of a particular organization. This can be settlement shall be valid for up to two year.

BENEFITS
LABOR ACT, 2074

Provident Fund Section: 52

– Employers Contribution: 10% of basic remuneration.

– Employees Contribution: 10% of basic remuneration. – Deposited to Social Security Fund. – Eligible since the first day of employment.

Gratuity Section: 53
– There is no such restriction for the duration of service in the entity for the calculation of the amount of Gratuity as per the new act.

– Rate: 8.33% of basic remuneration every month – Eligible from the first day of employment. – Amount to be deposited to the Social security Fund.

Leave Encashment Section:49

– Accumulated annual leave up to 90 days and sick leave up to 45 days can be encashedat the time of discontinuation of service

Severance Compensation Section: 145

– Rate: 1 month salary for every year of service – Eligible on a proportionate basis. – Not entitled to severance compensation if he/she is entitled to unemployment allowance under Social Security Act

OTHER BENEFITS
LABOR ACT, 2074

Festival Expenses Section: 37

– Amount equivalent to the monthly remuneration once a year. The employee not completing one year is entitled to the expenses on a proportional basis.

Compensation against injury

– Compensation is to be provided from the insurance amount.

Disability Compensation
– Employee or worker shall be paid from an insurance amount on the basis of the degree of disability.

Death Compensation

– The nearest successor is entitled to the amount of accident insurance as per the act.

Medical Insurance

– Coverage: At least 1 Lakh per year for every worker. Premium to be paid equally by the employer and worker. Accident Insurance

– Coverage: At least 7 Lakh for every worker. Premium to be paid fully by the employer.

Bonus – 10% of Net Profit.

Hours of Work

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

Meaning of Hours of Work

ILO – Hours of Work (Commerce and Offices) Convention, 1930 (No. 30)

For the purpose of this Convention the term hours of work means

–the time during which the persons employed are at the disposal of the employer; it does not include rest periods during which the persons employed are not at the disposal of the employer.

The Working Time Regulation, 1998 (UK)

“working time”, in relation to a worker, means—

any period during which he is working, at his employer’s disposal and carrying out his activity or duties,
any period during which he is receiving relevant training, and
any additional period which is to be treated as working time for the purpose of these Regulations under a relevant agreement;

The rationale behind the standardizing working hours

“working excessive hours poses a danger to workers’ health and to their families” – ILO

-Individual health

physical

Mental

-Social capital

Time for family

Socio-cultural activity

-Industrial prosperity

direct – productivity (enhanced efficiency/industrial peace)

Indirect- employment generation

International Standards

Hours of Work (Industry) Convention, 1919 (No. 1)

Article 2 – The working hours of persons employed in any public or private industrial undertaking or in any branch thereof, other than an undertaking in which only members of the same family are employed, shall not exceed eight in the day and forty-eight in the week.

Hours of Work (Commerce and Offices) Convention, 1930 (No. 30)

Article 1 – This Convention shall apply to persons employed in the following establishments, whether public or private:

commercial or trading establishments, including postal, telegraph and telephone services and commercial or trading branches of any other establishments;
establishments and administrative services in which the persons employed are mainly engaged in office work;
mixed commercial and industrial establishments, unless they are deemed to be industrial establishments.

Hours of Work (Commerce and Offices) Convention, 1930 (No. 30) ….

Article 3 – The hours of work of persons to whom this Convention applies shall not exceed forty-eight hours in the week and eight hours in the day

Hours of Work (Commerce and Offices) Convention, 1930 (No. 30) ….

Article 3 – The hours of work of persons to whom this Convention applies shall not exceed forty-eight hours in the week and eight hours in the day.

Weekly Rest (Industry) Convention, 1921 (No. 14)

The whole of the staff employed in any industrial undertaking, public or private, or in any branch thereof shall … enjoy in every period of seven days a period of rest comprising at least twenty-four consecutive hours.
This period of rest shall, wherever possible, be granted simultaneously to the whole of the staff of each undertaking.
It shall, wherever possible, be fixed so as to coincide with the days already established by the traditions or customs of the country or district.

Weekly Rest (Commerce and Offices) Convention, 1957 (No. 106)

All persons to whom this Convention applies shall be entitled to an uninterrupted weekly rest period comprising not less than 24 hours in the course of each period of seven days.
The weekly rest period shall, wherever possible, be granted simultaneously to all the persons concerned in each establishment.
The weekly rest period shall wherever possible, coincide with the day of the week established as a day of rest by the traditions or customs of the country or district.
The traditions and customs of religious minorities shall, as far as possible, be respected.

As per section 28 of the labor act, 2074 Working hours shall be 8 hours a day and 48 hours a week.

As per sec 31, The overtime wages is to be one and half time of his/her ordinary rate of wages.

As per sec 30 of the new act, the maximum overtime has been increased to 24 hours a week.

श्रम ऐन, २०७४

दफा २९. बढी समय काम गर्न बाध्य गर्न नहुने :
(१) रोजगारदाताले दफा २८ को उपदफा (१) मा उल्लिखित समयभन्दा बढी समय हुने गरी श्रमिकलाई काम गर्न बाध्य पार्नु हँुदैन ।
(२) उपदफा (१) मा जुनसुकै कुरा लेखिएको भए तापनि कुनै काम सम्पन्न नहुँदा कसैको जीवन, सुरक्षा तथा स्वास्थ्यमा प्रतिकूल असर पर्न सक्ने वा रोजगारदातालाई गम्भीर हानी नोक्सानी हुने भएमा दफा ३० को उपदफा (१) को अधीनमा रही सम्बन्धित श्रमिकलाई अतिरिक्त समय काममा लगाउन सकिनेछ ।

दफा ३२. काम गर्ने समयको निर्धारण:
(१) श्रमिकको काम शुरु हुने र काम समाप्त हुने समय रोजगार सम्झौतामा उल्लेख भएकोमा सोही बमोजिम र नभएमा रोजगारदाताले निर्धारण गरे बमोजिम हुनेछ ।
(२) काम गर्ने समय सम्बन्धी अन्य व्यवस्था तोकिए बमोजिम हुनेछ ।
दफा ३३. यातायातको व्यवस्था मिलाउनु पर्नेः सूयासर््त भएपछि वा सूर्योदय हुनुभन्दा अघि कार्य समय प्रारम्भ वा समाप्त हुने गरी महिला श्रमिकलाई काममा लगाउँदा कार्यस्थलमा आउन तथा कार्यस्थलबाट फर्की जान रोजगारदाताले यातायातको आवश्यक व्यवस्था मिलाउनु पर्नेछ ।

दफा ३०. बढी समय काम लगाउने सम्बन्धी व्यवस्था:
(१) रोजगारदाताले कुनै श्रमिकलाई दफा २८ को अधीनमा रही निर्धारण गरेको कार्य समयभन्दा बढी समय काममा लगाउनु परेमा प्रतिदिन चार घण्टा र एक हप्तामा चौबीस घण्टाभन्दा बढी नहुने गरी लगाउन सकिनेछ ।
(२) रोजगारदाताले कुनै श्रमिकलाई दफा ४२ बमोजिम सट्टा बिदा नदिई लगाएको कामलाई बढी समय काम गरेको मानिनेछ ।

दफा ३१. अतिरिक्त पारिश्रमिक दिनु पर्ने:
(१) रोजगारदाताले श्रमिकलाई दफा ३० बमोजिम बढी समय काममा लगाउँदा नियमित रुपमा काम गर्दा पाउने आधारभूत पारिश्रमिकको डेढी पारिश्रमिक दिनु पर्नेछ ।
(२) उपदफा (१) मा जुनसुकै कुरा लेखिएको भए तापनि बढी समय काम गरेबापत पाउने अतिरिक्त पारिश्रमिकको सट्टामा सामूहिक सम्झौताले निश्चित सुविधा पाउने व्यवस्था गर्न वा व्यवस्थापकीय श्रेणीको श्रमिकको हकमा रोजगार सम्झौतामा उल्लेख भए बमोजिम सुविधा दिन यस दफामा लेखिएको कुराले बाधा पु¥याएको मानिने छैन ।

Probation Meaning and Legal Provisions

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

Meaning:
“A probationary period is a stretch of time during which a new or existing employee receives extra supervision and coaching, either to learn a new job or to turn around a performance problem. The probationary period can be as short as a month or as long as a year, depending on the situation.“

Employers may require probationary periods for:

new employees (in this situation, it might be called an “introductory” period)
current employees who are promoted to a new position (particularly if it’s the employee’s first time serving in a supervisory or managerial position), or current employees with significant performance problems.

The process under prevailing legal provision:

Probation period as per the Section 16 of the Civil Service Act, 2049, While making fresh appointment to any permanent post of the civil service, such appointment shall be made on probation for a period of Six months in the case of a female civil employee, and one year, in the case of a male civil employee.

If his/her performance is not satisfactory during the probation period, his/her appointment may be canceled. The appointment of a civil employee whose appointment has not been so canceled shall be deemed to have ipso facto been confirmed on the expiration of the probation period.

Provided that, any employee who has already completed the probation period upon being once appointed permanently to a post in the civil service is appointed to another post and obtains the dispatch letters shall not be required to undergo the probation period again.

Under the Labor Act 2074, the Probationary period is Six months.

An appointment letter shall be provided with the name of the post of the worker or employee and his/her remuneration and conditions of service while making such an appointment. Information thereof shall also be provided to the Labour Office.

How long probation period of an employing entity will be -see the Writ No. 2866 of Sambat 2062 (Certiorari) decided by Joint Bench of Supreme court comprising of Hon. Justices Balaram K. C and Pawan Kumar Ojha. (Decision No. 7849. Ne.Ka.Pa. 2064).

Labour welfare draft

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

Social Welfare connotes the welfare of the entire Society.

Labour Welfare is a narrow concept concerned with welfare of workers.

Labour Welfare is an important dimension of industrial relation. It includes overall welfare facilities designed to take care of the well being of employees and in order to increase their living standards.

It can also be provided by government, non-government agencies, and trade unions.

Employee Welfare

To give expression to philanthropic and paternalistic feelings.
To win over employees loyalty and increase their morale.
To combat trade unionism and socialist ideas.
To build up stable labour force, to reduce labour turnover and absenteeism.
To develop efficiency and productivity among workers.
To save oneself from heavy taxes on surplus profits.
To earn goodwill and enhance public image.
To reduce the threat of further government intervention.
To make recruitment more effective (because these benefits add to job appeal).
The service should satisfy the real needs of the workers.

Scope of Labour Law

Work Environment
Health Facilities
General Welfare Programs
Economic Welfare Programs
Labour Welfare Programs

Disciplinary action, Misconducts and Punishments

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

The New Labor Act 2075 has redefined the punishment as it removed suspension as punishment and included salary deduction or withholding promotion as one of the forms of disciplinary action. The list of misconducts and disciplinary action will be as follows:

Chapter 20 Section 130 to 145
Reprimand/Warning (Section 131(1))

absence from the work without obtaining permission,
leaving the workplace without obtaining permission from the Managerial level,
coming late frequently without obtaining permission,
not abiding the order of the senior or employer with regard to work,
other misconducts as prescribed in Bylaws.

Deduction of one day’s remuneration (Section 131(2))

not accepting the letter or notice of punishment,
participation or compelling to participate in an illegal strike,
collectively delaying in the work,
causing loss to the entity by reducing the production or service recklessly or negligently,
trying to take facilities by submitting false details,
not using the security instruments provided by the employer,
Other similar misconducts as prescribed in Bylaws.

Withholding Annual Grade of Remuneration or Promotion (Section 131(3))

taking the entity’s property outside the entity or allowing an unauthorized person to use such without the permission of the competent person,
embezzlement with the entity’s transactions,
destroying the entity’s property due to negligence or recklessness,
preventing the supply of food and water in entity or obstructing movement in the entity,
abusing any items kept or arrangements made for interest, health and safety of the workers or employees or causing damage to them intentionally,
Other misconducts as prescribed in Bylaws.

Termination upon Misconduct (Section 131(4))

causing bodily harm or injury to Proprietor, Manager or Employee of the entity,
accepting or offering a bribe,
stealing the property of anyone in the entity,
embezzlement of property of the entity,
causing damage to the entity’s property knowingly
absence from entity for more than a consecutive period of 30 days without getting the leave approved
causing damage to secrecy relating to special technology of the Entity

Termination upon Misconduct (Section 131(4))

convicted on a criminal offense involving the moral turpitude,
presenting false documents for the appointment,
consuming psychotropic drugs or alcoholic drinks,
Having been punished twice for other misconducts within 3 years,
Other similar misconducts as prescribed in prevailing Nepal laws.

Procedure for Disciplinary Action

Seek an explanation from the employee: -give a letter stating the misconduct and punishment that is likely to be awarded, - provide 7 days time to submit the explanation
Time limitation for seeking explanation: within 2 months from the date of having obtained the knowledge of the occurrence of misconduct
Time limitation for Punishment: within 3 months from the date of requiring explanation. (Previously, within 2 months)
Authority to issue Punishment: Chief Executive Officer or the managerial level employee authorized by the Employee Bylaws.

Labour Law Meaning

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

Labour law is the term used to described the varied body of law applied to such matters as employment, remuneration, condition of work, trade unions, and labour management relations. In its most comprehensive sense it also included old age and disability insurance. Again unlike the laws of contract, tort, or property, the elements of labour laws are less homogeneous then the rule governing the particular legal relationship. Labour law, which is also a branch of sociological jurisprudence, is essentially an abridgement on the right of freedom of contract. It was to regulate the industrial sector and balance the labour and management relations.

Labour law is the term used to describe the varied body of law applied to such matter as employment, individual employment, wages and remuneration, conditions of work, trade unions, health safety and welfare, social security and labour management relation, the administration of labour law and special provision for particular occupational or other group.

However, there are two broad categories of labour law. First, collective labour law relates to the tripartite relationship between employee, employer and union. Second, individual labour law concerns employees’ rights at work and through the contract for work. The labour movement has been instrumental in the enacting of laws protecting labour rights in the 19th and 20th centuries. Labour rights have been integral to the social and economic development since the Industrial Revolution. Employment standards are social norms for the minimum socially acceptable conditions under which employees or contractors will work.

The labour law helps to protect the weaker section of people in the employment contract so that no employees get exploited by the employer being subordinate in the contractual relationship. Labour law protects working environment, ensures rights of the employees, console the clashes between employees and employers.

In addition to individual contractual relations growing out of the traditional employment situation, labour laws deals with the statutory requirements and collective contractual relation that are increasingly important in mass- production societies, the legal relation between organized economic interests and the state, and the various rights and obligation relating to some type of social services.

Occupational Health and Safety – Meaning, Rationale

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

Occupational health and safety is a discipline with a broad scope involving many specialized fields. In its broadest sense, it should aim at:

the promotion and maintenance of the highest degree of physical, mental and social well-being of workers in all occupations;
the prevention among workers of adverse effects on health caused by their working conditions;
the protection of workers in their employment from risks resulting from factors adverse to health;
the placing and maintenance of workers in an occupational environment adapted to physical and mental needs;
the adaptation of work to humans.
In other words, occupational health and safety encompass the social, mental and physical well-being of workers, which is the “whole person”.

Poor working conditions affect worker health and safety

Poor working conditions of any type have the potential to affect a worker’s health and safety.
Unhealthy or unsafe working conditions are not limited to factories — they can be found anywhere, whether the workplace is indoors or outdoors. For many workers, such as agricultural workers or miners, the workplace is “outdoors” and can pose many health and safety hazards.
Poor working conditions can also affect the environment workers live in, since the working and living environments are the same for many workers. This means that occupational hazards can have harmful effects on workers, their families, and other people in the community, as well as on the physical environment around the workplace.
A classic example is the use of pesticides in agricultural work. Workers can be exposed to toxic chemicals in a number of ways when spraying pesticides: they can inhale the chemicals during and after spraying, the chemicals can be absorbed through the skin, and the workers can ingest the chemicals if they eat, drink, or smoke without first washing their hands, or if drinking water has become contaminated with the chemicals. The workers’ families can also be exposed in a number of ways: they can inhale the pesticides which may linger in the air, they can drink contaminated water, or they can be exposed to residues which may be on the worker’s clothes. Other people in the community can all be exposed in the same ways as well. When the chemicals get absorbed into the soil or leach into groundwater supplies, the adverse effects on the natural environment can be permanent.

Benefits of Effective Safety and Health Program

Reduce work-related injuries and illnesses
Improve morale and productivity
Reduce workers’ compensation costs

*Why is occupational health and safety important? *

Work plays a central role in people’s lives, since most workers spend at least eight hours a day in the workplace, whether it is on a plantation, in an office, factory, etc. Therefore, work environments should be safe and healthy. Yet this is not the case for many workers.
Every day workers all over the world are faced with a multitude of health hazards, such as:
- dusts;
- gases;
- noise;
- vibration;
- extreme temperatures.

Costs of occupational injury/disease

For workers some of the direct costsof an injury or illness are:
- the pain and suffering of the injury or illness;
- the loss of income;
- the possible loss of a job;
- health-care costs.

The costs to employers

Occupational accidents or illnesses are also estimated to be enormous. For a small business, the cost of even one accident can be a financial disaster. For employers, some of the direct costs are:

payment for work not performed;
medical and compensation payments;
repair or replacement of damaged machinery and equipment;
reduction or a temporary halt in production;
increased training expenses and administration costs;
possible reduction in the quality of work;
negative effect on morale in other workers.

Some of the indirect costs for employers are:

the injured/ill worker has to be replaced;
a new worker has to be trained and given time to adjust;
it takes time before the new worker is producing at the rate of the original worker;
time must be devoted to obligatory investigations, to the writing of reports and filling out of forms;
accidents often arouse the concern of fellow workers and influence labour relations in a negative way;
poor health and safety conditions in the workplace can also result in poor public relations.
Overall, the costs of most work-related accidents or illnesses to workers and their families and to employers are very high.

Health and safety programs

For all of the reasons given above, it is crucial that employers, workers, and unions are committed to health and safety and that:
workplace hazards are controlled – at the source whenever possible;
records of any exposure are maintained for many years;
both workers and employers are informed about health and safety risks in the workplace;
there is an active and effective health and safety committee that includes both workers and management;
worker health and safety efforts are ongoing.
Occupational health and safety encompass the social, mental and physical well-being of workers in all occupations.
Poor working conditions have the potential to affect a worker’s health and safety.
Unhealthy or unsafe working conditions can be found anywhere, whether the workplace is indoors or outdoors.
Employers have a moral and often legal responsibility to protect workers.
Work-related accidents and diseases are common in all parts of the world and often have many direct and indirect negative consequences for workers and their families. A single accident or illness can mean enormous financial loss to both workers and employers.
Effective workplace health and safety programmes can help to save the lives of workers by reducing hazards and their consequences. Effective programmes can also have positive effects on both worker morale and productivity and can save employers a great deal of money.

The extent of the problem worldwide

1. Accidents

In general, health and safety in the workplace have improved in most industrialized countries over the past 20 to 30 years. However, the situation in developing countries is relatively unclear largely because of inadequate accident and disease recognition, record-keeping and reporting mechanisms.
It is estimated that at least 250 million occupational accidents occur every year worldwide. 335,000 of these accidents are fatal (result in death). (Since many countries do not have accurate record-keeping and reporting mechanisms, it can be assumed that the real figures are much higher than this.) The number of fatal accidents is much higher in developing countries than in industrialized ones.

2. Diseases

Some occupational diseases have been recognized for many years, and affect workers in different ways depending on the nature of the hazard, the route of exposure, the dose, etc. Some well known occupational diseases include:
asbestosis (caused by asbestos, which is common in insulation, automobile brake linings, etc.)
silicosis (caused by silica, which is common in mining, sandblasting, etc.);
lead poisoning (caused by lead, which is common in battery plants, paint factories, etc.);
and noise-induced hearing loss (caused by noise, which is common in many workplaces, including airports, and workplaces where noisy machines, such as presses or drills, etc. are used).
There are also a number of potentially crippling health problems that can be associated with poor working conditions, including:–heart disease;–musculoskeletal disorders such as permanent back injuries or muscle disorders;
- allergies;
- reproductive problems;
- stress-related disorders.
There are at least 250 million occupational accidents every year worldwide, at least 335,000 of which result in death.
Developing countries have more fatal accidents than industrialized nations, emphasizing the need for health and safety education programs that focus on prevention.
Some occupational diseases have been recognized for many years and affect workers in different ways. Such diseases are still problems in all parts of the world.
The numbers of work-related diseases in developing countries are much higher in reality than the numbers that are reported.
The number of cases and types of occupational diseases are increasing in both developing and industrialized countries.
It is often difficult to identify the cause of both occupational accidents and diseases.

Identifying the cause of occupational disease

The cause of work-related diseases is very often difficult to determine. One factor is the latency period (the fact that it may take years before the disease produces an obvious effect on the worker’s health).
By the time the disease is identified, it may be too late to do anything about it or to find out what hazards the worker was exposed to in the past. Other factors such as changing jobs, or personal behaviors (such as smoking tobacco or drinking alcohol) further increase the difficulty of linking workplace exposure to a disease outcome.
Although more is understood now about some occupational hazards than in the past, every year new chemicals and new technologies are being introduced which present new and often unknown hazards to both workers and the community. These new and unknown hazards present great challenges to workers, employers, educators, and scientists, that is to everyone concerned about workers’ health and the effects that hazardous agents have on the environment.

3. The range of hazards

There is an unlimited number of hazards that can be found in almost any workplace. There are obvious unsafe working conditions, such as unguarded machinery, slippery floors or inadequate fire precautions, but there are also a number of categories of insidious hazards (that is, those hazards that are dangerous but which may not be obvious) including:
chemical hazards, arising from liquids, solids, dusts, fumes, vapours and gases;
physical hazards, such as noise, vibration, unsatisfactory lighting, radiation and extreme temperatures;
biological hazards, such as bacteria, viruses, infectious waste and infestations;
psychological hazards resulting from stress and strain;
hazards associated with the non-application of ergonomic principles, for example badly designed machinery, mechanical devices and tools used by workers, improper seating and workstation design, or poorly designed work practices.

Holiday and Leave

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

Meaning of holidays:

A holiday is a day set aside by custom or by law on which normal activities, especially business or work, are suspended or reduced. Generally, holidays are intended to allow individuals to celebrate or commemorate an event or tradition of cultural or religious significance. Holidays may be designated by governments, religious institutions, or other groups or organizations. The degree to which normal activities are reduced by a holiday may depend on local laws, customs, the type of job being held or even personal choices.

Concept of holidays:

The concept of holidays often originated in connection with religious observances.
The intention of a holiday was typical to allow individuals to tend to religious duties associated with important dates on the calendar.
In many societies, there are important distinctions between holidays designated by governments and holidays designated by religious institutions. For example, in many predominantly Christian nations, Hindu nations, Buddhist Nations, etc. government-designed holidays may center on Christian holidays, Hinduism, Muslims, Buddhists observe religious holidays associated with their faith.

Eligibility:

The worker or employee is entitled to holidays as per the terms and conditions of his/her employment contract that was concluded with the employer. Generally, such types of holidays shall be as prescribed in the Laws and Regulations. Leave is not a matter of right; it is only a privilege.

The authority to sanction leave may, in the keeping of view the work of the Enterprise, refuse to sanction leave, postpone utilization thereof, make a deduction or cancel any sanctioned leave.

Prevailing legal provision about holidays (leave):

Generally, holidays are given to the worker or employees as per the laws and regulations of the concerned laws and regulations of services. Such as civil servants, security personnel and others are entitled to holidays as per their sector-wise laws and regulations. Worker or labor or employee working in enterprises or productive sectors shall be governed by labor laws and regulations and entitled holidays as per the laws and regulations.

NATURE OF LEAVE LABORACT, 2074

Weekly Holiday – 1 day every week
Public Holiday – 13 days including May day. Additional 1 day to female employees including Intl Women Labor Day. Annual Leave – 1 day for every 20 worked days.
Sick Leave – Half paid up to 15 days. Eligibility for the leave : Completion of 1 year of service.

Mourning Leave – 13 days

Leave in lieu For the laborers put in work on a public holiday or weekly off.

Maternity Leave – Fully paid – 98 days. Fully paid up to 60 days.

Paternity Leave – 15 days. Fully Paid

International standard of working hours:

The regulation of working time is one of the oldest concerns of labour legislation. Already in the early 19th century it was recognized that working excessive hours posed a danger to workers’ health and to their families. The very first ILO Convention, adopted in 1919 (see below), limited hours of work and provided for adequate rest periods for workers. Today, ILO standards on working time provide the framework for regulated hours of work, daily and weekly rest periods, and annual holidays. These instruments ensure high productivity while safeguarding workers’ physical and mental health. Standards on part-time work have become increasingly important instruments for addressing such issues as job creation and promoting equality between men and women.

Labour Law

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

Introduction

Recruitment Process

Working Terms and Conditions

Disciplinary Action

Disciplinary action, Misconducts and Punishments

Welfare and Social Security

Occupational Health and Safety

Industrial Disputes

Trade Unions

Foreign Employment

Main Features of Foreign Employment Act 2064, Gaps and Challenges

INDUSTRIAL RELATIONS: Meaning and components

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

INDUSTRIAL RELATIONS:

“Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”.
“Relations” means “the relationships that exist within the industry between the employer and his workmen.”
Industrial relations are the relationships between employees and employers within organizational settings.
The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union.
Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated.
The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels.
Industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers’ participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and Trade unions, when it arises.

Meaning of Industrial Relations:

The simple meaning of the industrial relations is the ways in which business relate to and deal with workers, the government and the public.
The detail meaning of the industrial relation can be given as follows:
- ”The dealings or relationship of a usually large business or industrial enterprise with its own workers, with labour in general, with government agencies or with public.”—Merrian Webster Dictionary
- ”The term “industrial relation” refers to all types of relations that exists in an enterprises, the employer and employee.”———-Fillippos
- “Industrial relation include individual relation and joint consultation between employees and people at the work, the place of work. Collective relations between employer and their organizations and the Unions and the part played by State in regulating those relations.”——-Richardron (Note: (Industrial relation means each employer has relation with their management. Joint consultation means negotiation of whole union)
- Bearing in mind to the above meaning, we can say that industrial relations cover all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations.

Top 4 Major Components of Industrial Relation

1. Employees:

Among the participants to IR, employees are considered as the most affected one by the IR system prevalent in an organization. Employees with their various characteristics such as their commitment to the work and the organization, their educational and social background, their attitudes towards the management and so on affect and are affected by the system of IR.
Generally, employees perceive IR as a means to improve their conditions of employment, voice against any grievances, exchange views and ideas with management and participate in organizational decision making processes.
Employees participate in the IR system through their associations, or say, trade unions. Past evidences indicate that trade unions play a crucial role in making an IR system as effective or otherwise. Trade unions with their strong political and emotional overtones are looked upon as a tool to wrest concessions from employers.
Employees achieve following objectives:
- To redress the bargaining advantage on one-on-one basis, i.e., individual worker vis-a-vis individual employer by way of joint or collective actions.
- To secure better terms and conditions of employment for their members.
- To obtain improved status for the worker in his/her work.
- To increase democratic mode of decision-making at various levels

2. Employer:

Employer is the second party to IR. In the corporate organization, employer is represented by the management. Hence, management becomes responsible to various stakeholders in an organization including employees.
According to Cole, management has to see IR in terms of the following employee-employer relationship:
- Creating and sustaining employee motivation.
- Ensuring commitment from employees.
- Achieving higher levels of efficiency.
- Negotiating terms and conditions of employment with the representatives of employees.
- Sharing decision making with employees.
- Like employees’ associations, employers also form their associations at the local, industry and national levels. Examples of employers’ associations at all Nepal level are Chambers of Commerce’s and Industry (CCI), Federation of Nepalese Chambers of Commerce and Industry (FNCCI), etc.

The said employers organization is constituted for the following purposes:

Represent employers in collective bargaining at the national or industry level.
Develop machinery for avoiding disputes.
Provide feedback on employee relations.
Advise member organizations on the issues relating to IR.

3. Government:

The role of government in the matter of industrial relations has been changing along with changes in an industrial environment and management perspective. For example, till the century, the governments everywhere in the world adopted a policy of laissez-faire.
The IR matters were left to be settled by the employees and employers. But, towards the end of the 19 century, the attitude of the government in the changed conditions of conflicts between employees and employers, changed to some kind of intervention in the matter of IR.
In due course of realization, government intervention became a reality. As of day, government intervention has become widespread in HR matters. In India and Nepal government tries to regulate the relationship of employees and employers, and also keeps an eye on both groups to keep each in line. This relationship is enforced and maintained through labour courts, industrial tribunals, wage boards, investigating and enquiry committees, etc.

4. Consumer:
Ultimately, the user of the commodity or product is consumer. Services to the consumer should be good quality, not sub-standard quality; there should be reasonable price of goods for consumer, not high what they pay for that product. The consumer has the right that can challenge employer for the product in the Court.

Completion of Recruitment Process

Labour Law Notes — Sun, 18 Aug 2013 05:41:42 +0000

The recruitment process deemed to have been completed fulfilling the following process:

Defining the role,
Person specification/job profile,
Attracting applications,
Application forms,
CVs,
Dealing with applications,
The ‘candidate experience,
Selecting candidates,
Making appointments,
References,
Medical examinations,
Employment offer,
Joining the Organization,
Documentation.