1. Introduction
This guide provides an overview of the rules and processes governing the recruitment of foreign nationals by Nepalese enterprises. Foreign nationals can be recruited only after obtaining a work permit from the Department of Labor and Occupational Safety (DOL).
For more details on the step-by-step process, download the full document at the top of the page.
2. What is an Enterprise?
An enterprise refers to any company, private firm, partnership, cooperative, or association registered under the laws of Nepal; additionally, the recruitment of foreign nationals by enterprises is subject to strict regulations.
3. Regulatory Framework for Foreign Nationals' Work Permits
The following laws govern the recruitment of foreign nationals in Nepal:
- Labor Act, 2017 (2074 B.S.)
- Labor Rules, 2018 (2075 B.S.)
- Guidelines Relating to Work Permit of Foreign Nationals, 2019 (2075 B.S.)
- Industrial Enterprise Act, 2020 (2076 B.S.)
4. Routes to Obtain Work Permits
Foreign nationals can be recruited through the following three routes:
- General Route:
Requires labor market testing to ensure the job cannot be filled by a Nepalese citizen. - Investment Route:
This applies to enterprises with foreign investment, as they are exempt from labor market tests; however, it also limits the number of foreign nationals to three, excluding the CEO. - Special Route:
For projects under government agreements or short-term employment.
5. Process for Obtaining a Work Permit for Foreigners in Nepal
The general process to obtain a work permit involves several steps:
- Fulfill a Labor Market Test to ensure no Nepalese employee can fill the position.
- Obtain a Letter of Recommendation from the relevant authority.
- Secure Work Authorization from the Ministry of Home Affairs (MOHA).
- Apply for a Work Permit at the Department of Labor and Occupational Safety (DOL).
- Finally, obtain a Non-Tourist Visa from the Department of Immigration.
6. Required Documents for Work Permit Application
The following documents are required to apply for a work permit:
- Copy of the vacancy advertisement
- Notarized copy of the foreign national’s passport
- Bio-data of the foreign national
- Tax Clearance Certificate of the enterprise
- Work Plan for training Nepalese citizens to eventually replace the foreign employee
7. Fees and Validity of Work Permit for Foreign Nationals
The fees for obtaining a work permit depend on the duration:
- NPR 15,000 for less than 6 months
- NPR 20,000 for more than 6 months
The work permit is valid for a maximum of 1 year at a time, with renewal options based on the work authorization from MOHA.
8. Renewal and Revocation of Work Permit for Non-natives
To renew the work permit, you must submit updated documents, including the foreign national's passport, tax clearance, and work performance report, at least 30 days before its expiry; however, the DOL may revoke the permit if issues arise, such as non-payment of taxes or violations of national security.
9. Work Permit for Special Projects and Short-Term Employment
Foreign nationals hired for short-term roles (less than 3 months) or under special government agreements can also obtain work permits, but with modified requirements. These workers are typically hired for technical tasks like repairing or installing machinery.
10. Other Aspects
Foreign nationals employed in Nepal are entitled to the same benefits and remuneration as Nepalese employees, including mandatory enrollment in the Social Security Fund (SSF). Additionally, foreign workers can repatriate up to 70% of their earnings to their home countries.
11. Conclusion
The recruitment of foreign nationals in Nepal is governed by detailed legal frameworks and procedures to ensure transparency and national security. By following the correct procedures, enterprises can benefit from the expertise of skilled foreign workers while complying with Nepalese labor laws.
For more comprehensive details and a step-by-step guide, download the full document from the link provided above.
