ServicesEmployer of Record (EOR) Service in Nepal

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Employer of Record (EOR) Service in Nepal

Employer of record (EOR) services in Nepal become crucial as a company grows. Companies can’t handle human resources responsibilities when handling other major organizational activities. Similarly, outsourcing the Employer of Record or EOR service helps you save time, money, and resources in the best way possible.

EOR services extend to all HR management and outsourcing activities, including management of employee payrolls, taxation, necessary legal submissions, recruitment, staff management, executive hunt, HR consulting, and required selection service.

What is Employer of Record (EOR) Service?

Employer of Record service is an important aspect of a company with a lot of work. When you hire professionals to perform all the necessary HR management jobs, you get much time to handle other work in your company. Usually, those business or corporate professionals who have a company with busy individuals with different set of responsibilities other than HR, management tend to outsource HR professionals through the Employer of Record service.

The EOR service provider is responsible for outsourcing workers from a different country for your company, paying them, and managing them. Throughout your time working with the employees, you will be spared from any type of accountability associated with these employees.

Moreover, using the EOR service, you will not have to worry about retirement plans, healthcare, or other perks that come in an employer’s benefits package. EOR manages all the HR Management, HR procedure outsourcing, head-hunting, HR consulting, selection, and payroll management duties.

What are the benefits of Employer of Record (EOR) Service in Nepal?

There are several benefits associated with Employer of Record (EOR) service. The companies that provide EOR services are always aware of the country’s labor laws and other applicable legal compliances. Hence, you are assured of the quality service you find when you work with professionals.

Another major reason you should hire professionals providing EOR service is that a minor mistake here and there in fulfilling the legal compliances may result in a bigger outcome, which companies are always looking to avoid. Hence, with an outsourcing and HR management service readily available for your company, you can free yourself of any chances of putting yourself in a negative light.

Companies that are not founded in Nepal have the potential to grow their business in Nepal when they hire employees from here. Similarly, if an international company hires without any outsourcing channel, the chances of violating local employment laws are always there. This is never the case with Employer of Record service.

For companies looking for employees in a rush, EOR services help them find suitable candidates in as little as 24 hours. Hiring professionals from Nepal is not limited to companies in Nepal itself.

Why hire talents for Employer of Record (EOR) Service from Nepal?

Nepal is an ever-growing country with just as much growth in the number of educated workers. Outsourcing or hiring talents for Employer of Record service from Nepal will help you find reliable professional who will take accountability and mitigate any challenges you may have with HR management.

Similarly, many youngsters in the country have information technology or IT expertise. It makes you accessible to finest IT support, IT development, IT recruitment, IT staff outsourcing, software development, UX/UI design, and social media management domains.

Regardless of whether you are from Nepal or outside the country, you can converse with the hardworking workers in Nepal easily. Language barriers are never a problem since English is a second language for many workers in Nepal. Further, it is vital not to overlook the importance of going easy on your company’s budget. When you hire talents from Nepal, you will also cut labor costs in return for high-quality help.

How do you hire employees through an Employer of Record (EOR) from Nepal?

While international companies can hire employees through an Employer of Record service from Nepal, having your company’s legal entity in the country is important. Smaller companies and businesses often struggle to own a legal entity in a different country. Since having one is not an easy, affordable, or time-friendly process, you should consider owning a legal entity only if you want to rapidly grow your company in the Nepali market in the long run. For EOR services in Nepal, companies such as the Kantipur Management Private Limited are the experts to connect with.

Everything you need to know about outsourcing human resources in Nepal

According to Nepal’s Labor Act 2074, all employees must sign a contract before signing up for work. The contract usually includes one’s job position, job description, salary, bonuses, remuneration, and duration of the contract.

Applicability New Labour Law applies to company, private firm, partnership firm, cooperatives, association or other organization in operation, or established, incorporated, registered or formed under prevailing laws, regardless of its objectives to earn profit or not and entity registered in foreign country but engaged in promotion of business, sale of its products or other work in Nepal (Section 90).

Non-Applicability: The non-applicability sections are civil service, Nepal Army, Nepal Police, Armed Police Force, entities incorporated under other prevailing laws or in situated in Special Economic Zones and working journalists, unless specifically provided in the contract.

Overtime working hours: Maximum overtime (Section 30) is 4 hours a day and 24 hours a week (previously, 20 hours a week).

Termination Policy: Employer can even terminate their regular employees if he/she does not perform well or there is no sign of performance upgrade in certain specific time period.

Benefits for trainees: The benefits for trainees are same as for the regular employees of the company.

Retirement ageRegular employment ends at 58 years of age now. And, employer can also hire an employee of 64 years of age if he/she is eligible to work.

Work experience certificate: Work experience is a must for every distinct organization.

Minimum Wages:  Rs. 17300 per month and Rs. 89 per hour (average) Plus SSF

Eligible for Provident Fund and Gratuity (Section-52): An employer becomes eligible for Provident Fund (10% of Basic Salary) and Gratuity (8.33% of Basic Salary) from his/her first day of joining and it should be deposit in social security fund compulsory.

Leave and Holidays (Section 40-48):  

  • Weekly holiday: 1 day every week.
  • Public holidays: 13 days including May Day, one additional day to female employees on International Women’s Day.
  • Annual Leave: 1 day for every 20 worked days.
  • Sick Leave: Fully paid up to 12 days (previously half paid up to 15 days) – For those who have not completed one year of service, sick leave is provided on a proportional basis.
  • Maternity Leave & Paternity Leave: 98 days Fully paid up to 60 days and 15 days Fully paid
  • Mourning Leave: 13 days.

Disciplinary Action for Misconduct (Section 131): Reprimanded/Warning – Section 131 (1), Deduction of one day’s remuneration – Section 131 (2), Withholding Annual Grade of Remuneration or Promotion – Section 131 (3) and Termination – Section 131 (4)

Sexual Harassment (Section 132): This service may be terminated on the basis of seriousness of offence.

Procedure for Disciplinary Action (Section 132): 

  • Seek an explanation from the employee:
    1. give a letter stating the misconduct and punishment that is likely to be awarded,
    2. provide 7 days time to submit the explanation
  • Time limitation for seeking explanation: within 2 months from the date of committing misconduct
  • Time limitation for Punishment: within 3 months from the date of requiring of explanation. (Previously, within 2 months)
  • Authority to issue Punishment: Chief executive officer or the managerial level employee authorized by the Employee Bylaw

Types of Employment in Nepal:  

  1. Regular Employment
  2. Work-based employment
  3. Time-based employment,
  4. Casual employment,
  5. Part-time employment.
Summary

Forming a dream team is difficult, more often than not. Outsourcing workers does not limit you from imposing necessary guidelines and suggestions to your employees when you take help from an EOR service provide as the Kantipur Management Private Limited. There are many reasons why using Employer of Record service can grow your company while cutting back the time of hiring, which you can instead use to focus on other important strategic tasks in your organization.

Nepal’s outsourcing and recruitment service providers have been working nationally and internationally for business professionals and booming companies. EOR service is very common, especially for businesses operating on a large scale in other countries, specifically where the employees are hired from.

Therefore, it is always a wise choice for a company or a business professional to rely on the HR management services from an outsourcing company rather than spending time and effort on doing so oneself.

Why Kantipur Management for Employer of Record Service in Nepal?

Kantipur management private limited is the No.1 BPO company in Nepal and provides different staff outsourcing services for project outsourcing, offshore outsourcing, onshore outsourcing, IT outsourcing, and more. Depending on the company’s nature, these services can be customized per the needs and demands of the client company.

Kantipur Management helps businesses save time and provides a wide pool of talented individuals with a diverse range of skills and experiences. Kantipur Management handles the overall recruitment process, it further helps businesses mitigate certain risks. While companies work with KMPL for the EOR services, they can completely rely on KMPL to mitigate all the probable challenges they foresee. KMPL is not just an established company but has been managing operations that operate 365 days round the clock.

Apart from this, Kantipur Management has an expert team who help to bridge the gap between employers and job seekers. Their team provides around-the-clock support, handles conflicts, and communicates with clients frequently. Further outsourcing companies like Kantipur Management are often aware of business laws and compliance standards which assist businesses to address complicated legal and regulatory challenges.

One comment

  • Alen Kignesthan

    December 1, 2023 at 2:30 pm

    Good to know about the Employer Of Record Service and compliance in Nepal.

    Reply

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Kantipur Management Private Limited (KMPL) is an ISO certified company. We specialize in Business Process Outsourcing and Talent Sourcing services. We have grown from a Human Resource services company to specialize further in managing contact centers, talent outsourcing, sales, and marketing.

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