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Process of Obtaining a Work Permit in Nepal
This article explains detail process for obtaining work permit in Nepal. Any foreign national willing to work in Nepal must receive the work permit and employer have to ensure that the foreign employees have the required permits before engaging the employee on work.
1. Governing law for Nepal
The principal law governing work permits in Nepal are as mentioned:
a. Labor Act, 2017 (2074) (the “Labor Act”)
b. Labor Rules, 2018 (2075) (the “Labor Rules”)
c. Foreign Citizen Labor Permission Directive, 2019 (2075).
2. Governing authority
Following are the governing authorities responsible for the work permit in Nepal:
| S.N. | Governing Authority | Regulatory Approval |
|---|---|---|
| 1 | Department of Labor and Occupational Safety ("DOL") | Authority to issue the work permit |
| 2 | Ministry of Home Affairs | Authority to Provide the No Objection Letter |
| 3 | Department of Immigration("DOIM") | Authority to issue working visa i.e., non-tourist visa for the work permit |
3. Grounds for obtaining a work permit:
Governing authority provides the work permit on the following conditions:
a) Unavailability of Skill Manpower
b) Obtaining Work Permit by Direct Recording
| S.N. | Grounds for providing work permit | Details |
|---|---|---|
| 1 | Unavailability of Skill Manpower | Unavailability of Skilled Human Resource in Nepal |
| 2 | Special Privilege to company having foreign investment in Nepal and project operating through foreign aid ("Obtaining Work Permit By Direct Recording") | Maximum of 3 (three) employees of entities with foreign investment or operated in foreign aid projects. |
| 3 | Short Term Work Permit for Technical Casual Work ("Obtaining Work Permit By Direct Recording") | Technician who comes for a period of 3 months or less to repair any machinery or to install new technology or to do other similar emergency work. |
4. Exception of the work permit
Any of the following foreign nationals are exempted from the work permit:
a. who are entitled to diplomatic immunity; or
b. who are exempted from needing a work permit according to any treaty or agreement concluded with the Government of Nepal.
5. Process of obtaining a work permit in case of unavailability of skill manpower
Following steps are required to be followed to obtain work permit:
5.1. Documents required for obtaining a work permit in case of unavailability of skill manpower
The following are the documents required to obtain a work permit from the DOL through the general procedure:
| S.N. | Documents |
|---|---|
| 1. | Application in the prescribed format |
| 2. | Copy of advertisements published in a national daily newspaper and the online portal established as prescribed by DOL (www.jobkhoj.gov.np) |
| 3. | Passport of employee (with minimum 6 months validity period remaining) |
| 4. | Personal details of the foreign national (Bio-data) |
| 5. | Tax clearance certificate of the employer |
| 6. | Qualification details of the candidate if any application is submitted by Nepalese citizens |
| 7. | Action plan to replace foreign workers by making Nepali citizens skilled |
| 8. | No-objection letter from the Ministry of Home Affairs of Nepal Government (if necessary) |
| 9. | Company Certificate, MOA/AOA of the company |
| 10. | Labor Audit |
| 11. | Certificate of affiliating with the Social Security Fund (if any) |
6.Timeline to obtain a work permit
The timeline for obtaining a work permit in Nepal is usually takes 30 to 45 days. Sometimes it may require additional days to receive the approval from concerned government authority.
7. Obtaining Work Permit by Direct Recording
The prevailing law of Nepal provides facility of providing the work permit based on recoding the foreign employee at Department of Labor on the following conditions:
7.1.Local Subsidiary Company with Foreign Investment and Project Operated by Foreign Aid:
Pursuant to Rule Number 13 of Labor Rules entities with foreign investment or operated in foreign aid have flexibility in hiring foreign national. They can hire 3 foreign national by directing submitting the application to Department of Labor.
7.2. Short Term Work Permit for Technical Casual Work
Technician who are hired in Nepal comes for a period of 3 months or less to repair any machinery or to install new technology or to do other similar emergency work can receive the work permit by direct recording. ( Pursuant to Rule Number 24 of the Labor Rules).
8. Government Fee Applicable For Work Permit
Government Fee to obtain work permit in Nepal are as follows:
| S.N. | Months | Government Fee at DOL (NPR per person) |
|---|---|---|
| 1. | Up to 6 months | 15,000 |
| 2. | Above 6 months | 20,000 |
9. Maximum numbers of Foreign employees
The maximum numbers of foreign nationals as employees that can be hired by an entity are as follows:
| S.N. | Conditions | Number of foreign employee |
|---|---|---|
| 1. | If there is any special agreement made between the employer and the government of Nepal | As per the agreement. |
| 2. | Except in the case of diplomatic immunity or not required to obtain a labor permit in accordance with any special agreement with the Government of Nepal | Up to 5% (five percent) of the total number of workers required |
10. Validity of work permit
The work permit is granted for the following period of time:
| S.N. | Types of Labor | Validity Period |
|---|---|---|
| 1. | Foreign national with high skills, technical knowledge | up to 5 years |
| 2. | Other foreign nationals | up to 3 years |
Note: The employer must submit an application before DOL for renewal at least 30 days before the expiry of the validation of the work permit.
11. Consequence of Non-Compliance
If a foreign national is found to be working without obtaining a labor permit or without keeping records, the governing authority shall immediately remove such foreign national from work. Further the governing authority may impose a fine not exceeding two hundred thousand rupees on the basis of the number of such laborers and an additional fine at the rate of five thousand rupees per person per month in case such a person continues to employ such a foreigner in spite of the punishment so imposed.
Date of Publication: 12 September 2023
Disclaimer: Bhandari Law and Partners is one of the leading law firm in Nepal with team of best professional lawyers in Nepal.This article published on website of the law firm is just for information purpose only. It shall not be taken as the legal advice, advertisement, personal communication, solicitation or inducement. Bhandari Law and Partners or any of the team members of the firm shall not be liable for the consequence arising of the information provided. As the factual situation may be different on your case, thereof if you need further legal advice on the subject matter, please Contact Us.
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