Ministry of Labor Issues Stern Warning to Employers Over Minimum Wage Violations

Kathmandu. The Ministry of Labor, Employment and Social Security has issued a stern warning to employers and organizations that fail to provide the government-mandated minimum wage and legal benefits to workers and employees.

In a press release issued on Monday, the Ministry expressed serious concern over ongoing legal violations, particularly within hospitals, health institutions, and private and institutional schools.

The Ministry took this action following an increase in complaints from healthcare workers and nursing staff working as 'trainees,' private school teachers, and other employees who reported not receiving their entitled minimum wages and benefits.

Reminding stakeholders of the legal provisions under Section 18, Sub-section (3) of the Labor Act, 2074, the Ministry clarified that employers are mandatory required to provide benefits to individuals hired as interns.

The Ministry emphasized that according to the law, trainee workers must also receive at least the minimum wage, sick leave, gratuity, provident fund, insurance, and other social security benefits without compromise.

In a statement issued by the Ministry's Joint Secretary and Spokesperson, all employers are requested to fully comply with the minimum wage and social security provisions as stipulated by the Labor Act and prevailing laws.

Furthermore, the Ministry has warned that those who defy the law will face legal action. The statement reads, 'We inform all concerned establishments, organizations, and stakeholders that if anyone is found depriving workers of their minimum wage and other benefits, legal action will be taken under prevailing laws, and we urge for voluntary compliance.'

The Ministry issued this strict directive amid growing complaints regarding the trend of employing trainees at low or no wages, particularly in private schools and health institutions.