Labour Act, 2017

Chapter-20

Provisions Relating to Conduct and Penalties

130. Observance of discipline and duty: It shall be the duty of every worker to observe discipline and duty under this Act or the rules or by-laws made under this Act. 131. Misconduct and Penalty: (1) If a worker commits the following misconduct, a warning may be given:-
(a) absent from work without approved leave,
(b) leaving the workplace without the permission of the manager,
(c) repeatedly late for work without approval,
(d) failing to obey an order given by the employer or a higher-level worker in relation to work,
(e) committing other misconduct specified in the by-laws.

(2) If any of the following misconduct is committed, a deduction of up to one day's equivalent remuneration may be made:-
(a) refusing to receive a notice or letter given by the employer or the punishing officer,
(b) participating in an illegal strike or being compelled to participate, or collectively slowing down work,
(c) causing loss or damage to the enterprise by reducing production or service due to negligence or carelessness,
(d) attempting to obtain facilities by submitting false details,
(e) if a worker required to use safety equipment fails to use the equipment provided by the employer,
(f) committing other misconduct of a similar nature specified in the by-laws.

(3) If any of the following misconduct is committed, an increment of the annual salary for one year may be withheld or promotion for one year may be withheld:-
(a) taking the property of the enterprise outside or allowing unauthorized persons to use it without the approval of the authorized person,
(b) attempting to misappropriate the employer's business,
(c) causing damage to the employer's property through negligence or carelessness,
(d) stopping the supply of food, water, telephone, electricity inside the workplace or preventing entry and exit within the workplace,
(e) deliberately misusing or damaging items or arrangements made for the interest, safety, or health of workers,
(f) committing other misconduct of a similar nature specified in the by-laws.

(4) If any of the following misconduct is committed, the worker may be dismissed from service:-
(a) assaulting or causing physical injury, with or without using any kind of weapon, against the employer or any worker or client or any person related to the workplace, or taking hostage, or committing rioting or vandalism within the premises of the enterprise,
(b) engaging in bribery (giving or taking),
(c) stealing anyone's property at the workplace,
(d) misappropriating the finances of the enterprise,
(e) deliberately causing damage to the property of the employer or property in his/her custody or use,
(f) being absent from work continuously for more than thirty days without approved leave,
(g) doing any act that breaches the confidentiality of the production formula or special technology of the enterprise with the intention of causing loss or damage to the enterprise or workplace in which he/she is employed,
(h) working with a competing employer that matches the work nature of the enterprise, or conducting competing work oneself, or giving confidential information of the enterprise in which he/she works to a competing employer,
(i) being convicted by a court on a criminal charge involving moral turpitude during the period of service,
(j) forging and submitting false educational or other certificates required for appointment,
(k) consuming or coming under the influence of drugs or intoxicants during working hours,
(l) receiving more than two penalties under sub-sections (1), (2), and (3) for misconduct within three years,
(m) committing any misconduct for which there is a provision of dismissal from service under the prevailing Nepal law.