LABOR AUDIT IN NEPAL

WHAT IS LABOR AUDIT?

Every entity, company, industry, organization, institution, firm, bank and financial institution, insurance company, cooperative are responsible to conduct labor audit according to the policies and procedures of the company in respect of labor, applicability of labor laws and other relevant laws, compliance and non-compliances of such laws. It helps to maintain affable relation between employees and employers. It leads to the better corporate governance.

Relevant Laws:

i. Labor Act 2074 (2017)- Section 100

ii. Labor Rule 2075 (2018)- Rule 56 and Schedule 11

iii. Labor Audit Standards 2075 (2018)

WHY SHOULD LABOR AUDIT BE DONE?

The main objective of labor audit is to establish good industrial relations by effectively implementing the existing legal provisions in the enterprise to ensure the rights and interests of the workers and to help increase the overall production and productivity.

WHAT ARE THE PROCEDURES OF LABOR AUDIT?

  • Collection and analysis of brief details of concerned enterprise.
  • On-site inspection and observation.
  • Interview.
  • Audit Team.
  • Other suitable methods as required.

WHO CAN CONDUCT LABOR AUDIT?

  • The enterprise may conduct the labor audit from the managerial level employees working in its own enterprise, or,
  • From a person or organization outside the enterprise with following qualification:
QUALIFICATION OF PERSON QUALIFICATION OF ORGANIZATION
  1. Nepali Citizen;
  2. Having at least a bachelor’s degree;
  3. Having at least two years of experience in the managerial work of an enterprise.
  1. Registered in accordance with the law.
  2. Subject of labor issues mentioned in the objective of an organization.
  3. When an organization has to appoint a person as an auditor, such person shall possess all the qualification of person as mentioned.

WHEN AND WHERE SHOULD LABOR AUDIT BE SUBMITTED?

The labor audit shall be submitted by the end of Poush each year. Institutions should submit one copy of labor audit to the Labor and Employment Office, Labor Relations Committee, Labor Inspector and the concerned regulating authority as mentioned below:

ENTITIES REGULATING AUTHORITIES
Bank and Financial Institutions Nepal Rastra Bank
Insurance Companies Insurance Board of Nepal
Non-Governmental Organization  Concerned District Administration
Other Enterprises Authorities providing approval to establish or operate

Disclaimer: This writing is prepared to share general information only and for legal purposes, advice of legal professionals is must. 

RELATED PROFESSIONALS: 

  • ADVOCATE AJAYA SHRESTHA
  • ADVOCATE PRABIN SHRESTHA

FOR DETAIL INFORMATION:

Worldwide Legal Service

Anamnagar, Kathmandu

Phone: +977-9841095964, 

Mail to: [email protected]

[email protected]