Freedom of Association
Database 2024

Freedom of Association
Indicator
Freedom of Association
Countries
LRI 2024
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Nepal

Freedom of Association Indicator

The Labour Rights Index 2024 (LRI 2024) is a de-jure index covering 145 economies and structured around the working lifespan of a worker. In total, 46 questions or evaluation criteria are scored across 10 indicators. The overall score is calculated by taking the average of each indicator, with 100 being the highest possible score. The Index uses a rating system, ranging from “Total Lack of Decent Work” to “Decent Work”. The Labour Rights Index aims at an active contribution to the Sustainable Development Goals, by providing necessary (complementary) insights into de jure provisions on issues covered in particular by SDG8 (Decent Jobs), SDG 5 (Gender Equality), SDG 10 (Reduced Inequalities) and SDG 16 (Strong Institutions). The Index is based on national labour legislation, applicable on 1 January 2024.

Nepal’s overall score is 64.5 out of100. The overall score for Nepal is greater than the regionalaverage observed across South Asia (57). Within the South Asianregion, the highest score is observed for India (65).

Nepal ratified Convention No. 98 on the Right to Organise and Collective Bargaining in 1996 but has not ratified Convention No. 87 on Freedom of Association and Protection of the Right to Organise (1948).

Labour Rights Index 2024

64.5/100

LRI Country Score

0/100

Freedom of Association Indicator

30.17 %

Trade union density rate (%)

. %

Collective bargaining coverage rate (%)

3.95

SDG indicator 8.8.2

3

ITUC Global Rights Index 2024 Ratings

Question

Answer

Score

Legal Basis

More Info

Does the law allow workers to form and join unions of their own choice?

No

0

§3(4) & 7(b) of the Trade Unions Act, 2049 (1992); ITUC Global Rights Index 2024 (Nepal Profile); USDOS CRHRP 2023

A,C,D

Does the law allow workers to bargain collectively with employers through their representative unions?

No

0

§116 of the Labour Act 2017; USDOS CRHRP 2023 (Nepal)

D

Does the law provide for the right to strike?

No

0

ITUC Global Rights Index 2024 Nepal Profile; USDOS CRHRP 2023 (Nepal)

C,D

Does the law prohibit imposing of excessive sanctions against striking workers?

No

0

§4 of the Essential Services Mobilisation Act, 2014 (1957); §126 of the Labour Act 2017; ITUC Global Rights Index 2024 (Nepal Profile); USDOS CRHRP 2023 (Nepal)

A,C

Textual sources

A : National Law

National Labour Legislation

B : CEACR

CEACR: ILO Committee of Experts on Application of Conventions and Recommendations (latest report)

C : ITUC

ITUC: ITUC Global Rights Index

D : USDOS

USDOS: US Department of States' Country Reports on Human Rights Practices

LRI Country Score
The Labour Rights Index has 10 indicators and 46 sub-indicators. The LRI Country score averages 10 indicators and ranges between 0 and 100. The lowest and highest scorers are Nigeria (29/100) and Belgium/Greece (96/100). https://labourrightsindex.org/  

Freedom of Association Indicator
The Freedom of Association indicator is composed of 4 sub-indicators. Scoring is done through the binary method (0 or 1). The score ranges between 0-100. 

Trade union density rate (%)
The trade union density rate conveys the number of union members who are employees as a percentage of the total number of employees in the country. For updated statistics on trade union density, please check ILOSTAT. 

Collective bargaining coverage rate (%)
The collective bargaining coverage rate conveys the number of employees whose pay and/or conditions of employment are determined by one or more collective agreement(s) as a percentage of the total number of employees in the country. For updated statistics on collective bargaining coverage, please check ILOSTAT. 

SDG indicator 8.8.2
SDG indicator 8.8.2 measures national compliance with fundamental labour rights (freedom of association and collective bargaining or FACB). It ranges from 0 to 10, with 0 being the best possible score (indicating higher levels of compliance with FACB rights) and 10 the worst (indicating lower levels of compliance with FACB rights). It is based on six ILO supervisory body textual sources and national legislation.
For an updated assessment on SDG indicator 8.8.2, please check ILOSTAT. 

ITUC Global Rights Index 2024 Ratings
The ITUC Global Rights Index depicts the world’s worst countries for workers by rating 148 countries on a scale from 1 to 5+ on the degree of respect for workers’ rights. Violations are recorded each year from April to March.  For a detailed description of ratings and methodology, please follow the link. 

Information

Source: §3(4) & 7(b) of the Trade Unions Act, 2049 (1992); ITUC Global Rights Index 2024 (Nepal Profile); USDOS CRHRP 2023

A : National Law

National Labour Legislation

"3. Registered of Enterprise Level Trade Union: ........... (4) Notwithstanding anything contained in Sub-section (3), the Enterprise Level Trade Union shall not be registered if at least twenty five percent workers of the concerned Enterprise are not members. ....."

C : ITUC

ITUC Global Rights Index (country legal profile)

"Non-Nepalese are allowed to join trade unions, but only Nepalese nationals can be elected to the trade union leadership (Section 10(1)(e) of the Trade Unions Act, 2049 (1992)."

D : USDOS

USDOS: US Department of States' Country Reports on Human Rights Practices

"The law stipulated that unions had to represent at least 25 percent of workers in a workplace to be considered representative. "

Information

Source: §116 of the Labour Act 2017; USDOS CRHRP 2023 (Nepal)

D : USDOS

USDOS: US Department of States' Country Reports on Human Rights Practices

"Certain workers had the right to strike and bargain collectively, except for employees in what the government defines as essential services, including public transportation, banking, security, and health care. Members of the armed forces, police officers, and government officials at the undersecretary level or higher also were prohibited from forming or taking part in union activities."

Information

Source: ITUC Global Rights Index 2024 Nepal Profile; USDOS CRHRP 2023 (Nepal)

C : ITUC

ITUC Global Rights Index (country legal profile)

"A strike can be held, but only after a secret ballot is held by 60% of the union members. The legislation does not grant the right to strike to employees of essential services. In recent years the government has used this legislation to ban strikes in numerous sectors, notably in banking, telecommunications, water and electricity supply, road, air and sea transport, printing activities, government, the press, hotels and restaurants. "

D : USDOS

USDOS: US Department of States' Country Reports on Human Rights Practices

"To conduct a legal strike, more than 60 percent of a registered union’s membership had to sign in favor, and unions were required to give 30 days’ notice before striking. If the union was unregistered, did not have majority support, or called a strike prior to issuing 30 days’ notice, the strike was considered illegal."

Information

Source: §4 of the Essential Services Mobilisation Act, 2014 (1957); §126 of the Labour Act 2017; ITUC Global Rights Index 2024 (Nepal Profile); USDOS CRHRP 2023 (Nepal)

A : National Law

National Labour Legislation

"Art 4. Punishment to a Person Committing the Restricted Strike or Participating or Continuing to Participate in the Same: In case a person commits any strike restricted under this Act or participates or continues to participate in the same, he shall be punished with an imprisonment up to 6 months or fine up to Rs. 200.00 (Rs. two hundred) or both. Art 5 . Punishment to an Encourager: If a person encourages to others to commit strike restricted under this Act or participate or continue to participate in the same, he shall be punished with an imprisonment up to one year or fine up to Rs. 1000.00 (Rs. one thousand) or both. Art 6. Punishment to a Person Contributing in Cash to a Restricted Strike: If a person intentionally contributes in cash to any strike restricted under this Act, he shall be punished with an imprisonment up to one year or fine up to Rs. 1000.00 (Rs. one thousand) or both. "

C : ITUC

ITUC Global Rights Index (country legal profile)

"Articles. 4 of the Essential Services Mobilisation Act, 2014 (1957): “Penalty for employees who organise, participate in or hold strike: Under this Act, if an employee organises, participates in or holds a strike, he shall be imprisoned for six months and/or fined Rs. 200. 5. 5. Penalty for incitement: Under this Act, any person who induces or incites an employee to organise, participate in or hold a strike during a prohibited period shall be imprisoned for one year and/or fined Rs. 1,000. 6. Penalty for providing cash assistance to prohibited strike: Under this Act, if a person knowingly provides cash assistance to a prohibited strike, he shall be imprisoned for one year and/or fined Rs. 1,000. 7. Whether this Act is inconsistent with other laws of Nepal: Without prejudice to anything contained in any other Nepalese law in force, any order notified under this Act shall be governed in accordance with the provisions of this Act.” this Act and, if not, with other Nepalese laws in force." "