What is Employee Relations?

Employee Relations involves the body of work concerned with maintaining employeremployee relationships that contribute to satisfactory productivity, motivation, and
morale. Essentially, Employee Relations is concerned with preventing and resolving
problems involving individuals which arise out of or affect work situations.
Trade unions
A trade union (British English) or labor union (American English) is an organization of
workers that have banded together to achieve common goals such as better working
conditions. The trade union, through its leadership, bargains with the employer on
behalf of union members (rank and file[1] members) and negotiates labour contracts
(collective bargaining) with employers. This may include the negotiation of wages, work
rules, complaint procedures, rules governing hiring, firing and promotion of workers,
benefits, workplace safety and policies. The agreements negotiated by the union
leaders are binding on the rank and file members and the employer and in some cases
on other non-member workers.
Trade unions of Nepal

The trade union wing of the party is named the All Nepal Trade Union Federation
(Revolutionary). The students' wing of the CPN (M) is known as All Nepal National
Free Students Union (Revolutionary).
Nepal Trade Union Congress (NTUC) was established in 1947. With the overthrow
of Panchayat polity in 1990 following popular movement for the restoration of
democracy, freedom of expression and organization became a part of national
life. Nepal Trade Union Congress also revived its organization in 1990 and now
works closely to ruling Nepali Congress party in general and current prime
minister Girija Prasad Koirala in particular.
Democratic Confederation of Nepalese Trade Unions (DECONT) is established on
May 1, 1997 after it broke away from NTUC. It is not affiliated to Nepali Congress
party but works closely with former Prime ministers Krishna Prasad BhattaraiSher Bahadur Deuba group in particular. This division extends to the grassroots
level on factional lines of the political party.
General Federation of Nepalese Trade Unions (GEFONT) was established in July
20, 1989 with four founder federations: Nepal Independent Workers Union
(NIWU), Independent Transport Workers Association of Nepal (ITWAN), Nepal
Independent Workers Union (NIHWU) and Trekking Workers Association of Nepal
(TWAN). It is affiliated to Communist Party of Nepal Unified Marxist-Leninist party
(CPN-UML). A small faction splinted from GEFONT formed Independent
Confederation of Nepalese Trade Unions (ICONT) on March 14, 1998. ICONT is
affiliated to CPN Marxist-Leninist party (CPN-ML).

Process of Union Formation

There are three tiers of Union. At enterprise level, formation of union requires 25
percent of the total members and a minimum of 10 persons. Five thousands members

from similar type of enterprise can enter into contract and can form a union. Those
outside enterprises, such as trade, commerce, self-employment or service sector can
also form a union if they have 500 members and enter into agreement for this purpose.
In informal and agriculture sectors 5000 members from 20 districts (not less than 100
person from each district) are required to form a union. Fifty-enterprise level union can
form a National Level Union. While 10 national level unions out of which 6 should be
from organized sector can form Trade Union Federation.
Union Activities
These programs mainly include, education (both formal and informal), training (both
training of trainees and trainers), occupational health and safety programmes (fixed
and mobile), campaigning for the unionisation of informal sectors, campaigning against
the use of child labour and some regular and occasional publication. Trade unions have
achieved a lot, at least, to impart the knowledge about trade union rights and duties to
the workers. Consequently, the unionisation process is on rise in the organised sector.
They are also strongly lobbying for the social security bills, which have already been
tabled in the parliament. And, recently amended Labour Act has opened up the scope of
union formation even in the unorganised sector which is also the outcome of unified
efforts of the unions. All the major trade union federations (GEFONT, DECONT and
NTUC) are concentrating their efforts to form union in the agriculture sector.
Nepal & Core Labour Standards
Nepal became the member of International Labor Organization in 1966. Until now, it has
ratified the following seven conventions:
Discrimination ( Employment and Occupation) convention No. 111
Equal Remuneration Convention no. 100
Minimum wage Fixation Convention No. 131
Weekly Rest convention No. 14
Tripartite Consultation Convention No. 144
Right to Organise and Collective Bargaining Convention No. 98 and,
Minimum Age Convention 138.
Collective bargaining
Collective bargaining is a process of voluntary negotiation between employers and
workers' organizations (generally trade unions) aimed at reaching agreements which
regulate working conditions. Collective agreements usually set out wage scales, working
hours, training, health and safety, overtime, grievance mechanisms and rights to
participate in workplace or company affairs.[1] The term was first used in 1891 by
Beatrice Webb.[2]
During the bargaining process, employees are typically represented by a trade union.[3]
The union may negotiate with a single employer (who is typically representing a
company's shareholders) or may negotiate with a federation of businesses, depending
on the country, to reach an industry wide agreement.
A collective agreement functions as a labor contract between an employer and one or
more unions. Collective bargaining consists of the process of negotiation between

representatives of a union and employers (generally represented by management, in

some countries[which?] by an employers' organization) in respect of the terms and
conditions of employment of employees, such as wages, hours of work, working
conditions and grievance-procedures, and about the rights and responsibilities of trade
unions. The parties often refer to the result of the negotiation as a collective bargaining
agreement (CBA) or as a collective employment agreement (CEA).

Provision for labor act 1992(Labor Act, 2048)

1. Appointment letter: The general manager shall issue a letter of appointment.
Priority shall be given to Nepali nationals when making such appointments.
2. No child shall be employed in any establishment.
3. Any change in the ownership of an establishment shall not have a negative
impact on the service and conditions of workers and employees working in the
establishment.
4. Appointment on contract basis in the necessity.
5. The service of a permanent worker or employee of any establishment shall not be
terminated
6. On reserve with employee will receive half the salary they had been normally
receiving
7. One month's advance notice and Lump sum compensation at the rate of 30 days'
salary for every year of service need to be paid for laying off.
8. If any worker or employee has worked in any establishment for 240 days during a
12month period hall be deemed to have served the establishment for one year
without any interruption.
9. No worker shall be engaged to work for more than eight hours a day or 48 hours
a week. Every worker shall be given one day's leave each week.
10.Provision of minimum revision committee
11.Every workers are subject to Protection of eyes, Protection from chemical
substances, Arrangements for protection from fire, Dangerous machinery to be
fenced, Lifting and carrying of excessive loads.
12.Welfare fund, Compensation. Bonus, provident fund, and medical benefits, Leave
provisions
13.10 % provisions on gross profit for arrangements for quarters,
14.healthful nursery for their babies for the employees 50 or more female
employees.
15.Rest rooms for the employee if employed 50 or more employed.
16.Arrangements for tools relating to construction works, Accident insurance, Safety
arrangements:
17.Forms of penalties. The general manager may punish any worker or employee for
misconduct in the following manner:
a. (a)warning;
b. (b)withholding of annual increment in salary;
c. (c) suspension; or
d. (d)dismissal from service.
2. Central Labor Advisory Board, Labor Relations Committee, Appointment of Labor
Officer, appointment of Factory Inspectors.

3. Welfare Officer for employing 250 or more workers or employees

4. Formation of Labour Court
5. Procedures for making individual claims or complaints
Application by individual

Application by Collective bargaining

51% or more workers signed

General manager(within 15 days to

be settled)

General manager(within 21 days to

be settled)

Labor office to mediate(7 days time

to settle)

Labor office to mediate(15 days time

to settle)

Chief labor office decides (7 days

time to settle)

Arbitrator (15 days)

Appeal with the labor court within 35

days

Appeal with the labor court within 35

days

6. Notice of strike with 60 % secret ballot, if not satisfied by above means

7. Lockout by receiving approval from the government
Provisions of Trade Union (First Amendment) Act, 2055
1. In order to register an Enterprise Level Trade Union constituted pursuant to Subsection(1) an application in the prescribed form signed by at least 10 members of
the Trade Union recommended by the working committee along with the constitution
of the Trade Union, prescribed fee and other prescribed particulars should be
submitted to the Registrar.
2. At least 50 Enterprise Levels Trade Unions or 5000 agriculture laborers constituting
one hundred laborers per district drawn from a minimum of twenty districts or 5000
workers from similar nature Enterprise*, may constitute a Trade Union Association by
mutual agreement.
3. At least ten Trade Union Associations may constitute a Trade Union Federation by
mutual agreement.
4. Enterprise level Trade Union shall be renewed after every two years and Trade Union
Association and Federation shall be renewed after every four years.
5. The Objectives of the Trade Union shall be as follows:
a. To engage in economic and social development by improving the condition of
workers.
b. To make an effort to establish good relationship between worker and
management.
c. To assist in the development of Enterprise by increasing the productivity of
Enterprise.
d. Try to make the workers dutiful and discipline.