Payroll, Labour & SSF
Occupational Safety and Health in Nepal — Employer Compliance Guide
Primary law: Labour Act, 2074 — Sections 68–81 Primary Rules: Labour Rules, 2075 — Rules 34–44
Primary authority: Department of Labour and Occupational Safety
An employer covered by the Labour Act must maintain a safe and healthy workplace and prepare and implement an occupational safety and health policy appropriate to its operations.
Section 68 requires the employer to prepare and implement the policy and register it with the Labour Office. Section 69 requires a safe working environment, appropriate handling of chemical, physical and biological hazards, worker information and training, safe access and exit, and necessary personal protective equipment. The employer cannot charge workers for required safety equipment.
Where an establishment has: 20 or more workers
the employer must constitute a:
1. Policy and employer safety duties
Safety and Health Committee
and workers supplied through a labour supplier are also counted when determining whether the 20-worker threshold is met.
Occupational Safety and Health Policy
The employer must prepare a written OSH policy appropriate to the nature of the workplace.
Rule 34 requires the policy to address matters such as:
workplace hazards;
possible accidents;
worker health;
machinery/equipment safety;
chemical risks;
preventive measures;
other relevant occupational risks.
Where a Safety and Health Committee exists, the employer should consult the Committee when preparing the policy. Where no Committee is required, workers or trade-union representatives should be consulted.
The policy should not be a generic document copied from another company.
A factory, hospital, construction company and accounting office have very different risk profiles.
Employer's Core Duties
Section 69 requires the employer to provide a safe and healthy working environment.
Core obligations include:
Safe Workplace
Provide appropriate safety and health arrangements.
Hazardous Substances
Manage chemical, physical and biological substances so that they do not adversely affect worker health and safety.
Information and Training
Provide workers with appropriate:
information;
instruction;
training;
guidance.
Information relating to equipment and hazardous materials should be given in an appropriate language.
Safe Entry and Exit
Maintain safe means of entering and leaving the workplace.
Personal Protective Equipment
Provide necessary PPE without charging the worker.
Examples can include:
helmet;
gloves;
eye protection;
respirator;
safety footwear;
hearing protection;
fall-protection equipment.
The correct PPE depends on the actual hazard.
Employer Cannot Recover PPE Cost From Worker
Section 69 expressly prohibits the employer from charging the worker for safety facilities or equipment required under the occupational safety framework.
Therefore:
PPE should not be deducted from salary merely because it is expensive.
Loss or deliberate misuse may raise a separate disciplinary/accountability question, but the employer's statutory obligation to provide required protective equipment remains.
Safety of Visitors and Other Persons
The employer's duty is not limited only to employees.
Section 70 requires appropriate measures so that persons:
entering;
leaving;
passing through; or
otherwise present at the workplace
are not exposed to unreasonable health or safety risk.
Where a process creates danger, the employer should provide appropriate:
warning;
signs;
barriers;
information.
2. Chemicals, worker duties and committee operation
Chemicals and Hazardous Materials
Manufacturers, importers and suppliers of equipment, substances and materials have separate obligations under Section 72.
For chemical substances, appropriate information including:
Chemical Safety Data Sheet / Safety Data Sheet
must be provided as required.
Employers should therefore maintain, where relevant:
SDS/MSDS;
chemical inventory;
storage instructions;
exposure controls;
spill procedures;
PPE requirements;
disposal procedure.
Worker Duties
OSH is not solely the employer's responsibility.
Section 73 requires workers to:
avoid intentional or negligent unsafe conduct;
cooperate with employer safety requirements;
use equipment/materials properly;
follow safety instructions; and
use employer-provided PPE.
Repeated deliberate refusal to follow legitimate safety rules can therefore become an employment-management issue.
Safety and Health Committee — 20 Workers
Where: 20 or more workers work in an establishment, a Safety and Health Committee must be constituted.
Workers supplied through a labour supplier are counted for this purpose.
Rule 37 prescribes a representative structure including management, worker/trade-union representation, health personnel and workplace safety representation.
Committee Meetings
The Safety and Health Committee must meet at least: 4 times each year.
CMA recommends maintaining:
meeting calendar;
agenda;
attendance;
minutes;
hazards raised;
corrective-action owner;
due date;
closure evidence.
A Committee existing only on paper will provide little protection during an accident investigation.
Committee Responsibilities
The Committee should:
monitor implementation of the OSH policy;
evaluate workplace safety arrangements;
recommend improvements;
review compliance with the Act/Rules;
review the OSH policy annually;
follow Department/Labour Office directions.
3. Safety concerns and immediately dangerous work
Worker Protection for Raising Safety Concerns
Section 75 prevents an employer from disciplining a worker merely because the worker:
reports inadequate safety arrangements;
makes a safety complaint;
participates in the Safety and Health Committee; or
stops dangerous work in accordance with Sections 76–77.
This is an important protection against retaliation.
Immediate Danger — Work Can Be Stopped
If continuing work creates an immediate danger of:
physical injury;
serious health impact;
danger to another person; or
unexpected serious damage to equipment/material,
the worker must inform the employer or responsible person.
The Labour Act provides a process allowing dangerous work to be stopped until the immediate risk is addressed.
The Labour Office can also order work to stop where inspection shows immediate danger.
4. Machinery, workplace facilities and health checks
Machinery Safety
The Labour Rules require appropriate safeguards for dangerous:
machinery;
tools;
equipment.
Only appropriately trained and experienced workers should perform dangerous operation, inspection, lubrication or repair functions where required by the Rules. Protective barriers, clothing and other safeguards must be used according to the hazard.
Special Safety Areas
Section 78 and the Rules contain special requirements concerning matters such as:
eye protection;
chemical exposure;
pressure plants;
boilers;
machinery guarding;
lifting;
other hazardous work.
Sector-specific directives may impose additional requirements.
The Department of Labour currently publishes occupational-safety material, including sector-specific guidance and current safety notices.
Workplace Facilities
The Labour Rules also require appropriate workplace arrangements such as:
safe drinking water;
sanitation;
adequate workplace space;
health examination in specified hazardous work;
other occupational-health facilities.
Rule 44, for example, requires annual health examination for workers in establishments undertaking work that may adversely affect health.
5. Accidents, reporting and responsibility
Workplace Accident / Occupational Disease
Where:
a workplace accident occurs;
a person is injured;
a person dies; or
an occupational disease occurs,
Section 79 requires the employer to notify the Labour Office: immediately.
The employer should therefore have a formal accident-reporting process.
Accident Response
Immediately after a material workplace accident: protect life
- → provide first aid/emergency treatment
- secure the area
- prevent further injury
- notify responsible management
- notify Labour Office where required
- preserve evidence
- notify SSF/insurer where applicable
- investigate root cause
- implement corrective action.
Rule 35 also requires the employer to arrange immediate transport of an injured/sick worker to a hospital or health centre where necessary.
SSF and Workplace Accident
Where the worker is enrolled in SSF, employment-related accident or disability can trigger SSF benefits.
That does not eliminate the employer's separate obligations under:
Labour Act;
occupational-safety law;
accident reporting;
workplace investigation.
OSH compliance and SSF compensation are related but separate systems.
Criminal / Compensation Exposure
Serious negligent or intentional violation of occupational safety provisions can have consequences beyond an ordinary administrative penalty.
Section 164 permits serious consequences where breach of OSH provisions causes:
death;
loss of limb;
occupational disease;
serious physical/mental harm,
including imprisonment and appropriate compensation where another law does not provide the applicable punishment.
Therefore occupational safety should not be treated merely as a Labour Audit documentation item.
6. Labour audit and employer checklist
Labour Audit
The statutory Labour Audit specifically asks whether:
an OSH policy has been prepared and implemented under Section 68; and
a Safety and Health Committee has been constituted and operates under Section 74.
OSH documentation should therefore be ready before the annual Labour Audit.
Employer OSH Checklist
Prepare workplace risk assessment
Prepare OSH policy
Consult workers/committee
Register policy with Labour Office
Appoint responsible safety persons
Provide safety training
Provide PPE free of charge
Maintain SDS for chemicals
Guard dangerous machinery
Maintain emergency exits
Maintain first-aid/emergency procedure
Provide drinking water/sanitation
Conduct required health examinations
Form Safety & Health Committee where 20+ workers
Include outsourced workers in threshold count
Hold at least four Committee meetings annually
Maintain accident register
Report qualifying accidents/disease immediately
Investigate accidents
Implement corrective action
Include OSH in Labour Audit
Common Errors
Thinking only factories need an OSH policy
Charging employees for required PPE
Ignoring outsourced workers when counting the 20-worker Committee threshold
Creating a Safety Committee but never meeting
Failing to report serious accidents
Treating SSF accident benefits as a substitute for workplace-safety compliance
Using generic safety documentation unrelated to actual workplace risks
Further guidance and practical checks
Occupational safety should operate as a management system: identify hazards → control risks → train workers → monitor compliance → investigate incidents → improve controls. Documentation should support actual workplace practice rather than merely satisfy an annual audit.
Official sources
Before using this guide
Source review: 12 October 2026
The sources support the scope of this general guide. Before applying it, check the actual entity, transaction, reporting period and any later amendment.
Checks for your case
- Actual workplace hazards, covered sector directives, committee population and incident facts.
Latest update
- 13 October 2026
Editor: C.M. & Associates
Grouped the article into major reading sections while preserving the original section links. Reviewed the complete article wording and its stated source scope. Clarified source labels and public wording where needed. Earlier source-check dates and any stated limitations remain applicable.