Observation (CEACR) - adopted 2025, published 114th ILC session (2026)

Right to Organise and Collective Bargaining Convention, 1949 (No. 98) - Nepal (Ratification: 1996)

The Committee notes the observations of the International Organisation of Employers (IOE), received on 1 September 2025, relating to the discussions held in the Committee on the Application of Standards of the International Labour Conference (the Conference Committee) on the application of the Convention by Nepal. The Committee also notes the observations of the International Trade Union Confederation (ITUC) and the International Trade Union Confederation – Nepal Affiliated Council (ITUC-NAC), received on 1 September 2025, referring to the issues examined by the Committee below.

Follow-up to the conclusions of the Committee on the Application of Standards (International Labour Conference, 113th Session, June 2025)

The Committee notes the discussion that took place in the Conference Committee in June 2025 concerning the application of the Convention by Nepal, during which the Conference Committee noted with concern the gaps in the protection against anti-union discrimination and the inadequate measures for the full development and utilization of machinery for voluntary collective bargaining. Taking into account the discussion, the Conference Committee urged the Government, in consultation with the social partners, to take effective and time-bound measures to:

• adopt effective legislative measures to prohibit all acts of anti-union discrimination, including those based on trade union membership;
• ensure that, in law and in practice, there are dissuasive sanctions in cases of anti-union discrimination;
• ensure adequate protection against acts of interference as well as the effective functioning of collective bargaining machinery in line with the Convention;
• ensure that the parties are free to negotiate, at all levels, collective agreements that improve their working conditions;
• amend the legislation so that compulsory arbitration can only take place in the situations covered by the Convention; and
• ensure that the selection procedure of the members of the arbitration bodies is transparent and guarantees their full independence.

The Conference Committee requested the Government to avail itself of the technical assistance of the ILO and to report any progress on the measures taken to implement the above recommendations in line with the Convention to this Committee by 1 September 2025.

Article 1 of the Convention. Adequate protection against anti-union discrimination. The Committee previously requested the Government to take the necessary measures to introduce in the legislation an explicit prohibition of all acts of anti-union discrimination as well as effective and sufficiently dissuasive sanctions in case of violations. The Committee welcomes the Government’s indication that a tripartite committee has already started working on the revision of the Labour Act, 2017 and that another tripartite task force was established in August 2025 to undertake a comprehensive review and revision of the Trade Union Act, 1993 to address existing legislative gaps relating to protection against anti-union discrimination. The Government adds that it also plans to implement awareness-raising programmes and measures to strengthen enforcement mechanisms and grievance handling systems with technical support from the Office. The Committee notes in this regard that the ITUC and the ITUC-NAC acknowledge the initiatives undertaken but express concern as to a lack of a time-bound commitment to implement them and point to the need for effective remedies, including reinstatement. In view of the above, the Committee firmly hopes that the national legislation will be fully aligned with the Convention, including through the introduction of an explicit prohibition of all acts of anti-union discrimination (such as transfers, demotions or refusal of training) at all stages of employment (including recruitment), as well as effective and sufficiently dissuasive sanctions in case of violations. The Committee requests the Government to provide information on any progress made in this respect.

The Committee also requested the Government to continue to provide information on anti-union discrimination cases brought before the competent authorities and on awareness-raising activities. The Committee notes the Government’s indication that there were no cases of anti-union discrimination registered with the competent authorities during the reporting period but that the Government is committed to systematically collecting information on any future cases of anti-union discrimination and raising workers’ awareness about their rights and remedies. The Committee notes the observations of the ITUC and the ITUC-NAC in this regard, pointing to a lack of an accessible and effective complaints mechanism and the need for the Government to establish free legal support services for workers to make the complaint procedure more accessible. The Committee trusts that the Government will take concrete measures to address these concerns and requests it to provide information on the number and nature of cases of anti-union discrimination dealt with by the competent authorities, the length of the proceedings and their outcome.

Article 2. Adequate protection against acts of interference. The Committee notes the Government’s indication that no formal complaints of acts of interference were submitted during the reporting period but that, in response to the concerns about possible underreporting due to lack of awareness or fear of reprisals, several measures were put in place: different types of awareness-raising programmes were conducted or are planned; a budget was allocated to adopt a code of conduct on the rights and duties of workers and employers; and a digital Integrated Labour Management Information System (ILMIS) was launched to make the registration and recording system of complaints more transparent, accessible and capable of capturing acts of interference. The Committee notes that the ITUC and the ITUC-NAC support these initiatives and consider that an independent mechanism should be established to receive and investigate complaints of interference. Welcoming the above initiatives, the Committee encourages the Government to continue to provide awareness-raising programmes and to take the necessary measures to ensure that the procedure for the examination of complaints is independent and efficient. The Committee trusts that the online system for reporting and recording complaints of interference will enable the Government to provide information on the number and nature of complaints related to acts of interference dealt with by the competent authorities and their outcome.

Article 4. Promotion of collective bargaining. Negotiation with trade unions versus negotiation with non-union actors. The Committee notes the Government’s indication that preparations are ongoing to hold inclusive elections of trade unions authorized to bargain collectively, that had been postponed due to the COVID-19 pandemic, so as to resume and regularize such elections in a transparent manner, in consultation with the social partners, and allow for bargaining only with such trade unions (as compared with non-union actors). The Government adds that, in the financial year 2024/25, 8 enterprises already held elections, 10 additional unions were certified to bargain collectively and 96 new enterprise-level collective agreements were registered. The Committee notes however the concerns expressed by the ITUC and the ITUC-NAC that the long-standing issue of elections has not yet been fully resolved, leaving many workplaces without a legitimate bargaining agent. Taking note of the above and in view of the Government’s commitment to promote and institutionalize collective bargaining, the Committee expects the elections of trade unions authorized to bargain collectively to be held without delay and to contribute to promoting collective bargaining in the country. The Committee requests the Government to provide information on any progress made in this regard.

Different levels of collective bargaining. The Committee previously requested the Government to bring section 123 of the Labour Act into full conformity with the Convention to ensure that parties at enterprise level can freely negotiate collective agreements to improve working conditions set in sectoral agreements. The Committee notes the Government’s indication that these concerns will be considered as part of the tripartite review of the Labour Act, which aims to facilitate both sectoral and enterprise-level bargaining, and that directives on collective bargaining are also being developed to promote free and voluntary collective bargaining at all levels. Welcoming these initiatives, the Committee trusts that the ongoing labour law reform will bring section 123 of the Labour Act fully in line with the Convention and will contribute to the promotion of free and voluntary collective bargaining at all levels, including by allowing negotiations at enterprise level to improve working conditions already set out in sectoral agreements.

The Committee also requested the Government to provide information on the number of collective agreements concluded at the sectoral level and the sectors concerned. Observing the lack of any information in this regard, the Committee reiterates its request and trusts that, in view of the Government’s commitment to promote collective bargaining at all levels, it will be in a position to collect the relevant data and provide information to this effect.

Compulsory arbitration. The Committee previously requested the Government to ensure that compulsory arbitration could only take place in the situations compatible with the Convention (in public service involving public servants engaged in the administration of the State; in essential services in the strict sense of the term; or in case of acute national crisis). The Committee notes the Government’s reiteration that the issue is currently under review by the tripartite task force revising the Labour Act and observes the concerns raised in this regard by the ITUC and the ITUC-NAC that the list of essential services is defined too broadly in the legislation and includes banking and transport sectors. In view of the above, the Committee firmly hopes that the ongoing labour law review will result in full compliance with the Convention and requests the Government to provide information in this regard.

Composition of arbitration bodies. The Committee notes the Government’s indication that the development of a new arbitration procedure aims to enhance impartiality, representativeness and alignment with international standards and observes that the ITUC-NAC points to the need to ensure an independent selection process for members of the arbitration bodies. The Committee trusts that the arbitration procedure will be developed in consultation with the social partners and will ensure that the members of the arbitration bodies are selected in a transparent manner and act in full independence. The Committee requests the Government to provide information on any progress made in this regard.

Technical assistance of the Office. The Committee notes the Government’s reiterated interest in continuing to receive technical assistance from the Office concerning anti-union discrimination and collective bargaining, as well as the proposal put forward by the ITUC-NAC to adopt a tripartite action plan to conduct awareness-raising activities and trainings. The Committee hopes that such continued assistance will contribute to the full implementation of the Convention in the country, in line with the comments above.