Nepal to criminalize labour exploitation as economic offence

KATHMANDU: The government has announced that labour exploitation will now be treated as an economic crime under the legal system.

Presenting the national budget in the joint sitting of both houses of Parliament on Friday, Finance Minister Dr. Swarnim Wagle said that contract violations, wage fraud, and labour exploitation will be brought under the scope of economic offences.

He said that labour disputes will be resolved swiftly through labour tribunals within the month of Poush (mid-January).

The government will make written employment contracts, minimum wage compliance, workplace safety standards, insurance coverage, and salary payments through banks mandatory in the labour sector.

Dr. Wagle also informed that both workers and employers will be required to register in a national labour registry.

This system will help regulate service standards provided by licensed agencies supplying workers in sectors such as security services, domestic work, construction, agriculture, hospitality, transport, and industry—ensuring insurance, housing, and digital grievance mechanisms.

He further stated that workplace accident compensation and insurance claim systems will be made more effective, while a special campaign will be launched to integrate informal and unorganized sector workers into the national social security system.