Home Labor Laws and ImmigrationKey Labor law provisions Mandatory compensation provision in labor law of Nepal

Mandatory compensation provision in labor law of Nepal

by dbusiness
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Are there any mandatory compensation benefit that we need to pay for employees when we terminate contract?

Organizations can face situation where they need to retrench workers. This question outlines the provisions applicable in those circumstances.  

As per section 145 of Labor Act of Nepal, where an enterprise faces financial problems in its operation or the workers become redundant because of merger of more than one enterprises or because of any other reason the enterprise needs to be closed down partially or completely, the employer may retrench workers.

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