Complete HR Compliance Checklist for Businesses in Nepal (2026 Guide)
Running a business in Nepal means staying on top of several HR and labour law obligations. Whether you are just setting up or auditing your existing HR, this checklist covers what you need to have in place.
Roshika
Author
1. Employment Contracts and Documentation
✓ Every employee has a signed employment contract
✓ Appointment letters issued to all staff
✓ Employment type correctly classified (regular, part-time, casual, work-based, time-based)
✓ Probation period terms clearly documented
✓ Employee personal files maintained with updated records
2. Payroll and Tax Compliance
✓ Monthly salaries processed on time
✓ TDS calculated correctly and deposited to IRD
✓ Payslips generated and distributed each month
✓ Annual tax reconciliation completed
3. Social Security Fund (SSF)
✓ Employer registered with SSF
✓ All eligible employees enrolled in SSF
✓ Monthly contributions calculated on correct contribution base
✓ Contributions deposited within 25 days after month-end
✓ SSF records reconciled regularly.
4. Leave Management
✓ Home leave policy in place (1 day per 20 days worked)
✓ Sick leave tracked (12 days per year)
✓ Maternity leave policy documented (14 weeks, 60 days paid)
✓ Paternity leave policy in place (15 days paid)
✓ Leave records maintained per employee.
5. Working Hours and Overtime
✓ Working hours capped at 8 hours/day and 48 hours/week
✓ Overtime tracked and approved formally
✓ Overtime paid at 1.5x basic remuneration
✓ Attendance records maintained
6. Internal Committees (Headcount-Based)
✓ Labour Relation Committee formed (required at 10+ employees)
✓ Safety and Health Committee formed (required at 20+ employees)
✓ Committee meetings held and documented
7. Grievance and Dispute Process
✓ Written grievance procedure published and accessible to employees
✓ Response timeline defined (15 days per Labour Act expectation)
✓ Grievance cases logged and tracked
8. HR Policies and Handbook
✓ Employee handbook or bye-laws drafted
✓ Working hour, leave, and overtime policies localized to Nepal law
✓ Handbook registered with the relevant Office if required
✓ Policies communicated to all employees
9. Foreign Employees (If Applicable)
✓ Work permits obtained before employment starts
✓ Nepali citizen advertisement requirement fulfilled prior to foreign hire
✓ Work permit renewals tracked
10. Outsourcing and Labour Suppliers (If Applicable)
✓ Labour suppliers verified as licensed
✓ Supplier worker counts included in headcount thresholds
✓ Main employer obligations documented and monitored
Not Sure Where You Stand?
An HR compliance audit can identify gaps before they become disputes, penalties, or audit findings.
If you are setting up HR from scratch, start with the basics first.
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