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How to hire remote employees in
Want to hire someone in Nepal? Excellent. But, no matter where you’re from, labor laws in Nepal are different from those in your home country (unless you’re from Nepal, of course). Read on to learn about your options, plus as the easiest way to make remote hires in Nepal.
If you want to successfully hire in
Nepal
, you have two options:
Laws about hiring contractors are significantly more simple in
Nepal
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Nepal
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Nepal
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Nepal
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Nepal
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Nepal than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Nepal.
Annual leave days in Nepal are decided based on the number of days an employee works with a company.
At present, for every 20 days worked, an employee is eligible for one day of annual leave.
Each employee is eligible for one weekly holiday. This can be a Sunday, but if the employer cannot have all employees off on the same day, they may provide a break on a rotational basis.
All employees are eligible for a total of 13 days off for annual public holidays, including May Day. Women are given an extra day off for Women’s Labor Day holiday.
There are 25 public holidays.
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
Pregnant or nursing mothers are allowed a total of 98 days off from work based on their maternity leave.
They are fully paid for up to 60 days.
The newly introduced Labor Act requires employers to provide 15 days of paid paternity leave.
There are no provisions in the law regarding paternity leave.
Home leave - one day's leave for every 20 days' work.
Special leave - 30 days a year after having it approved in advance.
None.
Employees are allowed up to 13 days of leave from work.
The employee can terminate the employment voluntarily by submitting a resignation letter.
The employment of the worker on work bound employment is terminated after the completion of the work provided in the employment agreement.
If the performance of the employee is found to be unsatisfactory or below the standard in the performance appraisal for three or more times, the employment of such worker may be terminated by the employer.
However, prior to terminating the employment the performance appraisal as per the Regulation under the Act or Bylaws should have been conduct.
Such employee should be provided an opportunity to submit explanation giving at least seven (7) days by the employer where ten (10) or more people work.
In case any employee is physically or mentally disabled or injured rendering him/her unable to work or requiring a long period for medical treatment effecting in the work of the entity, the employer, on recommendation of a medical practitioner may terminate his/her employment.
The employee or employer terminating the employment should provide a notice except in the situation of termination by dismissal.
The notice requirement is linked to the length of service which is as follows.
The notice period in Nepal is:
The employee or employer terminating the employment should provide a notice except in the situation of termination by dismissal.
The severance payment is of 30 days per year if an employee is not entitled to unemployment allowance under Social Security Act.
Probation period Under the Labor Act 2074, the probationary period is six months.
Nepalese rest on Saturday and work from Sunday to Friday.
Nepal generally has a 48 hour working week.
If any worker or employee is engaged to work for more than eight hours in any day, or for more than 48 hours in any week, he shall be paid remuneration for such overtime work at the rate of 150 per cent of his usual remuneration.
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