Gist of Minutes of Working Committee for Payment to Workers during The Lockdown Period

The working committee under the coordination of President of FNCCI – Employers Council, Mr. Chandra Prasad Dhakal, held on April 16^th, 2020 to recommend employement payment for workers working in industries and organisations.

The meeting was attended by representative of FNCCI, CNI, Nepal Chamber of Commerce, HAN, FNCSI, Nepal Freight Forwards Association, Nepal Tea Producer association, FCAN, NATA, Nepal Dairy Association and Nepal Bottle Water Industry Association.

The meeting decided to suggest & recommend the followings:

1. Unimaginable and unfavorable conditions generated due to the lockdown declared by the Nepal Government across the country to prevent the spread of Corona Virus and because of the provision in the Labor Act 2074 to keep the workers in reserve state and pay 50% of the eligible wage payments during emergency conditions, thus it is recommended to pay a maximum of 50% to workers working in industries during the lockdown period.
2. Since the nature of industries in business used to be different for different sectors, therefore the commodity and industries association can discuss and negotiate individually with labors and labor-unions about the wage payment during the lockdown period by not exceeding 50% of the employment payment.
3. In case the lockdown period is extended, further discussion shall be useful to postpone the payment to employees.
4. To postpone for 1 year the Collective Bargaining Authority (CBA) used to be held every 2 year at entity level. i.e. not to carry out any CBA at entity level till next Chaitra end.
5. The employer can call all or some employees in the entity to work during this lockdown period, to carry out essential services and other required industries to operate.
6. To discuss with the concerned parties for payment of wages and salaries during the lockdown period to employees with the equal contribution from all the 3 parties including: employer, employee and the government.

The working committee has discussed the matter with presidents of major industrial and commerce associations in preparing these recommendations.

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