Labour relations and Labour

Regulations in Nepal
Presentation on Labour relations and Labour
Regulations in Nepal

BY

• Nikesh Pradhan 61
• Sonika Shakya 62
• Nitesh Dubedi 63
• Rina Manandhar 64
 Labour relations and Labour
Regulations in Nepal
Labour Relations:
o Concept
o Objectives
o Actors of Labour Relation
Trade Unions:
o Concept
o Functions
o Types
o Reason for Joining Trade Unions
 Labour relations
• Concept:
Labour relations encompasses a set of phenomena, both inside
and outside the workplace, concerned with determining and
regulating employment relationship between management and
employees or among employees and their organization that
characterize and grow out of employment.

Labour relation refers to a system that makes a social dialogue

possible among employees, employers and government
representative.
 Labour relations and Labour
Regulations in Nepal
Labour Relations:
o Concept
o Objectives
o Actors of Labour Relation
Trade Unions:
o Concept
o Functions
o Types
o Reason for Joining Trade Unions
 Labour relations

Objectives:
1. To enhance economic status of worker.
2. To avoid industrial conflicts and their consequences.
3. To extend and maintain industrial democracy.
4. To provide an opportunity to the worker to have a say in the
management decision making.
5. To regulate production by minimizing conflicts.
6. To provide forum to the workers to solve their problems through
mutual negotiations and consultations with management.
7. To encourage and develop trade union in order to develop workers
collective strength etc.
 Labour relations and Labour
Regulations in Nepal

Labour Relations:
o Concept
o Objectives
o Actors of Labour Relation

Trade Unions:
o Concept
o Functions
o Types
o Reason for Joining Trade Unions
 Labour relations
• Actors of Labour Relation:
 Labour relations
• Actors of Labour Relation:
 Employees/Trade Union :
It includes employees, trade union, which is concerned with

 Employers and their Organization:

 Government:

The Government keeps an eye on. Both the trade unions and
employers' organizations to regulate their behaviors in the
interest of the nation.
 Labour relations and Labour
Regulations in Nepal

Labour Relations:
o Concept
o Objectives
o Actors of Labour Relation

Trade Unions:
o Concept
o Functions
o Types
o Reason for Joining Trade Unions
 Trade Union
Concept:
It is an organization of workers or employees formed mainly

→ to negotiate with the employers on various employment related issues

→ to improve the terms and conditions at their workplace
→ to enhance their status in society.

An organization that represents employees’ interests to

management on issues such as wages, work hours, and working
conditions

An organisation formed by workers to protect the interests of their

members.
 Labour relations and Labour
Regulations in Nepal

Labour Relations:
o Concept
o Objectives
o Actors of Labour Relation

Trade Unions:
o Concept
o Functions
o Types
o Reason for Joining Trade Unions
 Trade Union
Functions:
• Collective bargaining
→Represent members to negotiate with employers, for better wages
and conditions of employment.

• Safeguard jobs
→Protect jobs of members

• Cooperate with employers

→For the benefits of members, resolve disputes in a mutually
acceptable manner

• Political function
→Support pro-union political parties
 Trade Union
Functions:
Social function
→ Support members with recreation facilities and benefits for
unemployment, illness, retirement, death
 Labour relations and Labour
Regulations in Nepal

Labour Relations:
o Concept
o Objectives
o Actors of Labour Relation

Trade Unions:
o Concept
o Functions
o Types
o Reason for Joining Trade Unions
 Trade Union
• Types of Trade Union:
1. Industrial Unions or Employers’ Unions:
Members work in the same industry, e.g. banking (IBOA), PABSON etc.
2. Craft Unions:
Members belong to a particular trade and have served an apprenticeship
e.g. Brick and Stone layers Trade union, Barber’s union etc.
3. White Collar Unions:
Members are usually professional e.g. teachers unions, NELTA etc.
4. House union (company or enterprise union)
Members are from the same company regardless of occupation or job.
 Labour relations and Labour
Regulations in Nepal

Labour Relations:
o Concept
o Objectives
o Actors of Labour Relation

Trade Unions:
o Concept
o Functions
o Types
o Reason for Joining Trade Unions
 Trade Union
• Reason for joining Trade Union:
1. Greater Bargaining Power.
The individual employee possesses very little bargaining power as
compared to that of his employer. If he is not satisfied with the wage and
other conditions of employment, he may join union to have greater
bargaining power.

2. Make their Voices Heard

The desire for self-expression is a fundamental human drive for most
people. All of us wish to share our feelings, ideas and opinions with
others. Similarly the workers also want the management to listen to
them and it is possible through Trade Unions.
 Trade Union
• Reason for joining Trade Union:
3. Minimize Discrimination

4. Sense of Security
The employees may join the unions to secure adequate protection from
various types of hazards and income insecurity such as accident, injury,
illness, unemployment, etc. The trade union secure retirement benefits
of the workers and compel the management to invest in welfare services
for the benefit of the workers.

5. Sense of Participation.
The employees can participate in management of matters affecting their
interests only if they join trade unions. They can influence the decisions
that are taken as a result of collective bargaining between the union and
the management.
 Trade Union
• Reason for joining Trade Union:
6. Sense of Belongingness
Many employees join a union because their co-workers are the members
of the union.

7. Other Reasons
At times, an employee joins a union under group pressure; if he does not,
he often has a very difficult time at work.

On the other hand, those who are members of a union feel that they gain
respect in the eyes of their fellow workers. They can also discuss their
problem with’ the trade union leaders.
 Collective Bargaining
• Concept
• Process
 Collective Bargaining
• Concept:

Collective Bargaining is a process in which the representatives of a

Labour organization & the representatives of business organization
meet and attempt to negotiate a contract or agreement, which
specifies the nature of employee-employer union relationship”.

It is the process of negotiation between firm’s and workers’

representatives for the purpose of establishing mutually agreeable
conditions of employment

It is a technique adopted by two parties to reach an understanding

acceptable to both through the process of discussion and
negotiation
 Collective Bargaining
• Concept
• Process
 Collective Bargaining
• Process:
1. Prepare
This phase involves composition of a negotiation team
The first thing to be done is to determine whether there is
actually any reason to negotiate at all
2. Discuss
Here, the parties decide the ground rules that will guide the
negotiations
 Collective Bargaining
• Process:
3. Propose
This phase involves the initial opening statements and the
possible options that exist to resolve them. In a word, this
phase could be described as ‘brainstorming’
4. Bargain
This stage comprises the time when ‘what ifs’ and ‘supposals’
are set forth and the drafting of agreements take place
 Collective Bargaining
• Process:
5. Settlement
Once the parties are through with the bargaining process, a
consensual agreement is reached upon wherein both the
parties agree to a common decision regarding the problem or
the issue
 Collective Bargaining
Process of Collective Bargaining
 Labour Disputes
• Causes
• Settlement Provisions
 Labour Disputes
• Causes
 Wages and Salaries
→ when employees disagree with the process of
determination of wage and salary, dispute begins.
 Bonus
→ employees consider bonus as a part of payment due to
them and thus bonus distribution leads to dispute.
 Personal Cause
→ fines, dismissal, suspension are causes of personal
disputes
 Labour Disputes
• Causes
 Violence and Indiscipline
→violence and undisciplined action of workers create
disputes between workers and management, e.g. fighting,
failure to obey rules, use of drug etc.

 Union affiliated with different parties

→there may be multiple unions in same organization
affiliated with different parties, they all have different ways of
handling issues which often result in dispute.
 Labour Disputes
• Causes
• Settlement Provisions
 Labour Disputes
According to Labour Act of Nepal 1991, the dispute settlement in Nepal
includes following steps:

Filing complaint to the employer

Bilateral discussion

Involvement of Labour office

Appointment of mediator or Constituting

Dispute settlement Committee

Right to appeal
Provisions and Features of Labour Act
Provisions and Features of Labour Act
Labour Act,1992 (as amended in 1998)
Main Features and Provisions
a) Job security: This provision relate to
● Position classification of workers
● Appointment letter to workers
● Generally no employment to foreign workers
● No termination of service of permanent
employees
Provisions and Features of Labour Act
Labour Act,1992 (as amended in 1998)
b) Working Hours
● 8 hours per day or 48 hours per week; one day
holiday per week.
● Overtime for extra hours of at one and half times
of normal wage.
● Attendance register for workers e.t.c.
Provisions and Features of Labour Act
Labour Act,1992 (as amended in 1998)
c) Wages
● Minimum wages must be paid as specified by the
government.
● Annual increment to permanent workers.
● No unauthorized deduction from salary.
d) Health and Safety
●Proper cleanliness of workplace.
● Safety equipments and fire fighting equipment
Provisions and Features of Labour Act
Labour Act,1992 (as amended in 1998)
e) Welfare
● Welfare fund for workers
● Compensation for injury
● Housing, canteen and rest room
 Conclusion

To conclude we can say that labour is lifeblood

of any organization; if we are able to maintain
a good industrial labour relation the
prosperity of both employer(industry) and
employees wil be at extremity.
 Refrences
 Agrawal, Dr. GR. (2004). Foundation of Human
Resource Management in Nepal. Bhotahity,
Kathmandu, Nepal: M.K. Publishers & Distributers

 Adhikari, D. R. (2002). Fundamentals of Human

Resource Management Text and Cases. Kathmandu:
Manakamna Books.

 Labour Act of Nepal 2048

 Google