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Undoubtedly, payroll is a critical process for any organization. Pay cycle refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

The payroll frequency in Nepal is usually monthly. However, some employers may pay their employees weekly or bi-weekly, depending on their preferences and agreement with the employees. The payroll frequency may also affect the calculation and withholding of taxes and social security contributions from the employees' salaries.

There are no legal requirements for 13th-month wage payments in Nepal.

The government of Nepal has set the minimum monthly salary for the employees at Rs 15,000 ($125) for all workers.

Suppose any worker or employee is engaged to work for more than eight hours on any day or more than 48 hours in any week. In that case, he shall be paid for such overtime at 150 percent of his usual remuneration.

Thus, the maximum overtime is four hours a day and 24 hours a week.

Nepal's Right to Information Act, 2064 (2007) lays down the principles of handling data. The act does not provide for a specific procedure or data retention time. However, filers keepers provide a Nepal data retention schedule that contains over 781 Nepal data retention periods relevant to your company. It includes all data retention periods applicable in Nepal. From the Nepal Civil Code down to the Tax Act. You will know precisely how long to store your data in Nepal, whether it concerns, e.g., your accounting, fiscal, HR, CRM, or personal data.

A company aiming to hire employees in Nepal must implement the local laws and satisfy the criteria laid down by the government. The company's general manager in Nepal must issue an appointment letter to the selected candidate. The government encourages companies to prefer employing Nepalese professionals over international candidates.

Based on performance, work efficiency, attendance, and discipline, the employer must grant a permanent position to the employee after the latter completes one year of service with no interruption.

The appointment letter by the employer must contain the listed details:

• Post of appointment;
• Remuneration
• Any applicable service conditions.

Employees working on a permanent contract are also eligible to become permanent employees of a company.

The Labor Law of Nepal explicitly mentions that an employer must only allow women in the country to work from 6 a.m. to 6 p.m. on any day. The employer has to make the required arrangements to create a comfortable working environment for a woman.

Here are some documents that are needed for hiring an employee in Nepal:

• Completed Nepal Work Visa Application form (obtained online).
• Work Permit obtained from the Department of Labor.
• Letter of Recommendation authorized by the relevant ministry.
• Appointment letter or work contract.
• Tax clearance of the hiring company.
• Passport photocopies.

A company aiming to onboard employees in Nepal must implement the local laws and satisfy the criteria laid down by the government. The company's general manager in Nepal must issue an appointment letter to the selected candidate. The government encourages companies to prefer employing Nepalese professionals over international candidates.

Based on performance, work efficiency, attendance, and discipline, the employer must grant a permanent position to the employee after the latter completes one year of service with no interruption.

The appointment letter by the employer must contain the listed details:

• Post of appointment;
• Remuneration
• Any applicable service conditions.

Employees working on a permanent contract are also eligible to become permanent employees of a company.

The Labor Law of Nepal explicitly mentions that an employer must only allow women in the country to work from 6 a.m. to 6 p.m. on any day. The employer has to make the required arrangements to create a comfortable working environment for a woman.

Here are some documents that are needed for hiring an employee in Nepal:

• Completed Nepal Work Visa Application form (obtained online).
• Work Permit obtained from the Department of Labor.
• Letter of Recommendation authorized by the relevant ministry.
• Appointment letter or work contract.
• Tax clearance of the hiring company.
• Passport photocopies.

The probation period in Nepal is usually six months. During this period, the employer can terminate the employee without notice or compensation if the employee is found unsuitable for the job. The employer can also extend the probation period if necessary.

The following public holidays are observed in Nepal:

• 11 Jan Wednesday Prithvi Jayanti Public Holiday
• 16 Jan Monday National Day of Mourning Public Holiday
• 13 Feb Monday People's War Day Public Holiday
• 18 Feb Saturday Maha Shivaratri Public Holiday
• 19 Feb Sunday National Democracy Day Public Holiday 
• 8 Mar Wednesday Nari Dibas Public Holiday
• 14 Apr Friday Nepali New Year (Tentative Date) Public Holiday
• 1 May Monday Majdoor Divas Public Holiday
• 5 May Friday Buddha Jayanti (Tentative Date) Public Holiday
• 29 May Monday Ganatantra Diwas (Republic Day) Public Holiday
• 30 Aug Wednesday Janai Purnima Public Holiday
• 1 Sep Friday Gai Jatra Public Holiday
• 6 Sep Wednesday Shree Krishna Janmashtami (Tentative Date) Public Holiday
• 19 Sep Tuesday Constitution Day Public Holiday
• 15 Oct Sunday Ghatasthapana Public Holiday
• 21 Oct Saturday Phulpati (Dashain) Public Holiday
• 22 Oct Sunday Astami (Dashain) Public Holiday
• 23 Oct Monday Nawami (Dashain) Public Holiday
• 24 Oct Tuesday Dashami (Dashain) Public Holiday
• 25 Oct Wednesday Ekadashi (Dashain) Public Holiday
• 12 Nov Sunday Laxmi Puja (Tihar) Public Holiday
• 14 Nov Tuesday Gobhardan Pujan (Tihar) Public Holiday
• 15 Nov Wednesday Bhai Tika (Tihar) Public Holiday
• 19 Nov Sunday Chhat Parwa Public Holiday

Every worker and employee who has completed one year of service with the same employer is entitled to 30 days of annual leave with full pay. The annual leave can be accumulated for up to 90 days. The employer can fix the annual leave time in consultation with the worker or employee or their trade union.

Every worker and employee is entitled to 15 days of sick leave with half pay in each year of service. The sick leave can be accumulated for up to 45 days. The employer can ask for a medical certificate as proof of illness.

Every female worker and employee is entitled to 98 days of maternity leave with full pay for the birth of a child. The maternity leave can be taken 15 days before the expected delivery date and 83 days after the delivery. The maternity leave can also be extended by 15 days in case of illness or complications arising from pregnancy or delivery. The employer can ask for a medical certificate as proof of pregnancy or delivery.

Every male worker and employee is entitled to 15 days of paternity leave with full pay for the birth of a child. The paternity leave can be taken within six months from the delivery date. The employer can ask for proof of birth of the child.

Every worker and employee who has completed one year of service with the same employer is entitled to 15 days of home leave with full pay in each year of service. The home leave can be taken for visiting one's ancestral home or place of permanent residence within Nepal. The home leave can be accumulated for up to 45 days.

Every worker and employee is entitled to one day of special leave with full pay in each year of service. Special leave can be taken for celebrating any religious or cultural festival that is not a public holiday. The special leave cannot be accumulated or carried forward to the following year.

Every worker and employee is entitled to one day of casual leave with full pay each month of service. The casual leave can be taken for personal or family reasons. The casual leave cannot be accumulated or carried forward to the next month.

The employee can terminate the employment voluntarily by submitting a resignation letter.  

The worker's employment on work-bound employment is terminated after the completion of the work provided in the employment agreement.  

Suppose the employee's performance is unsatisfactory or below the standard in the performance appraisal three or more times. In that case, the employer may terminate such a worker's employment.  

However, before terminating the employment, the performance appraisal as per the Regulation under the Act or Bylaws should have been conducted.  

Such employees should be provided an opportunity to submit an explanation given at least seven days by the employer where ten or more people work.  

In case any employee is physically or mentally disabled or injured, rendering them unable to work or requiring an extended period for medical treatment affecting the work of the entity, the employer, on the recommendation of a medical practitioner, may terminate their employment.  

The employee or employer terminating the employer should provide notice except in the situation of termination by dismissal.  

The notice requirement is linked to the length of service, which is as follows.  

If the period of employment is up to 4 weeks, then the notice period is one day.  

If the period of employment is from 4 weeks to 1 year, then the notice period is seven days.  

If the period of employment is more than one year, then the notice period is 30 days.

The severance payment in Nepal is 30 days per year if an employee is not entitled to unemployment allowance under Social Security Act.

Only Foreign nationals holding working visas are allowed to accept jobs and work in Nepal.  

Working Visa is issued by the Department of Immigration (Non-Tourist Visa section) only upon the recommendation from the line agency (concerned Ministry of Government of Nepal), Labor Permit from the Department of Labor, and Work Agreement (excluding a few exceptions) from the Ministry of Home Affairs.  

Applicants should go through various Government agencies and finally apply at the Department of Immigration for a Visa.  

Foreign nationals undertaking paperwork and legal formalities for Work Visas with concerned institutions (Ministry/Department) of the Nepal Government can stay in Nepal under 'Tourist Visas.'  

Their category of visa changes from 'Tourists' to 'Non-Tourist' once all necessary paperwork is completed and applied for a 'Working Visa' at DOI.  

Tourist visa gets automatically canceled when the visa category is changed. The length of a Working Visa is determined by the period for which a work/labor permit has been obtained from the Department of Labor.  

The Nepal work visa requirements are listed below. These documents must be submitted to the Department of Immigration in Nepal:

• Completed Nepal Work Visa Application form (obtained online)  

• Work Permit obtained from the Department of Labor   

• Letter of Recommendation authorized by the relevant ministry  

• Appointment letter or work contract   

• Tax clearance of the hiring company   

• Passport photocopies  

• A Nepal visa photocopy  

• Fee: USD 75 per month for Nepal Work Visa   

Legal background checks in Nepal refer to verifying a potential employee or business partner's identity, criminal history, education, employment, or other relevant information. According to the web sources I found, the legal background checks in Nepal may include the following aspects:  

Identity verification  

This involves checking the validity of the personal information and documents provided by the candidate, such as name, date of birth, nationality, passport, etc. The employer can use online platforms such as the Online Police Clearance Registration System¹ to verify the identity and criminal record of the candidate. The employer can also ask for copies of acceptable documents that prove the identity and eligibility of the candidate.  

Criminal record check  

This involves checking whether the candidate has any criminal convictions or pending cases in Nepal or abroad. The employer can use online platforms such as the Online Police Clearance Registration System¹ to obtain a police clearance certificate for the candidate. The employer can also ask for a self-declaration from the candidate regarding their criminal history. The employer should obtain the candidate's consent before conducting a criminal record check and comply with the relevant privacy and discrimination laws.  

Education verification  

This involves checking whether the candidate has obtained the academic qualifications and credentials claimed by them. The employer can use online platforms such as Background Check Group² to verify the education records of the candidate. The employer can also request copies of certificates, transcripts, or diplomas from the candidate or contact the educational institutions directly. The employer should obtain the candidate's consent before conducting an education verification and comply with the relevant privacy and discrimination laws.  

Employment verification  

This involves checking whether the candidate has worked for the previous employers and positions claimed by them. The employer can use online platforms such as Background Check Group to verify the candidate's employment history. The employer can also ask for copies of payslips, contracts, or letters of recommendation from the candidate or contact the previous employers directly. The employer should obtain the candidate's consent before conducting an employment verification and comply with the relevant privacy and discrimination laws.  

Other checks  

Depending on the nature and requirements of the job or business relationship, the employer may conduct other background checks on the candidate, such as credit checks, medical checks, drug tests, psychometric tests, etc. The employer should obtain the candidate's consent before conducting other checks and comply with the relevant privacy and discrimination laws.