Employment contracts Nepal

What should an employment contract in Nepal include?

An employment contract in Nepal should include the following information:

• The names and contact details of the employer and employee.
• The employee’s job position and responsibilities.
• The designated work schedule.
• The mutually agreed upon salary, extra benefits, and possible incentives.
• The process for ending the employment, including notice periods for both sides.
• A mutual commitment to upholding confidentiality and refraining from revealing confidential information.

Prior to signing, it is crucial for both parties to examine the terms of the employment contract thoroughly.

What types of employment contracts exist in Nepal?

Employment contracts in Nepal can be classified into several categories.

1. Employee contracts

Employee contracts can be further classified into two categories:

• Permanent employment contract. This type of contract establishes a long-term employment relationship between the employer and the employee. It typically does not have a fixed end date and offers greater job security. Termination of employment under this contract usually requires valid reasons and proper procedures.
• Fixed-term employment contract. This contract specifies a predetermined period for the employment relationship. It is used when the work is expected to last for a specific duration, such as a project or seasonal work. The contract ends automatically at the agreed-upon date without the need for further notice.

2. Casual or part-time employment contract

A casual or part-time employment contract is a type of work arrangement where an employee works fewer hours than a full-time employee. This type of contract is often used to cater to specific business needs, temporary workload fluctuations, or to provide employment opportunities for individuals seeking flexibility in their work schedules.

3. Consultancy or freelance contract

While not traditional employment contracts, these agreements are used for individuals who provide services as consultants or freelancers. The contract specifies the scope of work, payment terms, and other relevant details.

How to hire employees in Nepal?

In the process of hiring staff in Nepal, it’s typically necessary to create an official presence within the nation. This involves enrolling your company with the appropriate authorities in Nepal and acquiring an official business identification. It’s also vital to completely adhere to the local laws and regulations of Nepal.

However, by utilising the employer of record services offered by Native Teams, you can direct your attention towards your daily business operations as we handle the remaining obligations. We offer comprehensive assistance for legally hiring employees in Nepal and various other countries worldwide.