Disciplinary action, Misconducts and Punishments

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.