Introduction to work permit

Work permit is a legal authorization for doing a job in a foreign country. If a foreign national wants to do a job in Nepal, it is mandatory to get a work permit.

As per Article 22 of Labor Act, 2017, no employer shall employ any foreign citizen as a labor without obtaining the work permit from the Department of Labor.

1.What are the laws governing the work permit in Nepal

The main laws governing work permit in Nepal are:

1. Labor Act, 2017 (2074) (“Labor Act”)
2. Labor Rules, 2018 (2075) (“Labor Rules”)
3. Foreign Citizen Labor Permission Directive, 2019 (2075)
4. Foreign Investment and Technology Transfer Act 2075 (2019)
5. Immigration Act 2049 (1992)

2.What are the authorities governing the work permit in Nepal?

Following are the governing authorities responsible for the work permit in Nepal:

3.What are the grounds of providing the work permit in Nepal?

As per the Labor Act and Labor Rules, DOL provides the work permit on following two grounds:

a. Work permit through general procedure

b. Obtaining work permit based on recording

a. Obtaining the work permit through the general procedure:

As per the Section 22 of the Labor Act, a foreign national may be engaged in work in Nepal if the local skilled human resource is unavailable. The employer engaging a foreign national should demonstrate that the local skill is not available in Nepal. The employer is required to advertise the vacant positions at the national level daily newspaper and apply for receiving the work permit before DOL.

b. Work permit based on recording:

On work permits based on recording employer need not demonstrate the unavailability of local skilled human resource in Nepal.  Work permit is granted simply on recording at DOL. Special facility is provided to:

(a) entities with foreign investment or operated in foreign aid,

(b) foreign nationals engaged in technical casual work by providing work permits based on recording.

(a) entities with foreign investment or operated in foreign aid

Entities with foreign investment or operated in foreign aid have flexibility in hiring foreign national up to three (3) numbers based on recording. Such entities are exempted from the general procedure to demonstrate the unavailability of local skilled human resources. (Rule 13 of Labor Rules)

(b) foreign nationals engaged in technical casual work by providing work permits based on recording.

Any technician who comes to repair or maintain any machinery object or install any new technology or to do similar other unforeseen work for a period of three months or less than three months. (Sec 24 of Labor Act)

4.Can foreign nationals work in Nepal without any approval?

No, foreign nationals cannot work in Nepal without obtaining a work permit.

5.Are there any exceptions where the work permit is not required for foreign nationals?

Any of the following foreign nationals are exempted from the work permit:

a. who are entitled to diplomatic immunity; or

​​​​​​b. who are exempted from needing a work permit according to any treaty or agreement concluded with the Government of Nepal.

6.What is the general procedure to obtain a work permit for foreign nationals?

7.What are the documents required for obtaining a work permit in Nepal?

Documents required to be submitted for the receiving the work permit through the general procedure are mentioned below:

• Application in the prescribed format,
• Evidence of advertisements published in a national daily newspaper and the online portal established as prescribed by DOL,
• Passport of employee (with minimum 6 months validity period remaining)
• Personal details of the foreign national,
• Tax clearance certificate of the employer,
• Qualification details of the candidate if any application is submitted by Nepalese citizens,
• Company Certificate, MOA/AOA of the employer,
• No objection letter from the Ministry of Home Affairs of Nepal Government and
• Plan of replacing the foreign national with local human resources.

8.What is the Government fee required to obtain a work permit for foreign nationals in Nepal?

The government fee to obtain work permit is;

9.How much time does it take to obtain a work permit in Nepal?

The timeline for obtaining a work permit in Nepal usually takes 30 to 45 days.

However, sometimes it may require additional days to receive the approval from concerned government authority.

10.What is the maximum number of foreign employees that a company can hire?

The maximum numbers of foreign nationals as employees that can be hired by an entity are as follows:

11.For how many years the work permit is valid?

The work permit is granted for the following period of time:

Note: The employer shall submit an application before DOL for renewal at least 30 days before the expiry of the validation of the work permit.

12.Is the work permit sufficient to work in Nepal?

No work permit is not sufficient to work in Nepal. A foreign national must obtain a non-tourist visa from the Department of Immigration, as recommended by the Department of Industry, Government of Nepal, based on the approved work permit.

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