Amendment on Compulsory Retirement Age

The Government of Nepal has promulgated few Ordinances including the Ordinance to Amend Certain Acts relating to the Promotion of Good Governance and Public Service Delivery (“Ordinance”). The Ordinance has amended Section 147 of the Labor Act, 2017 (2074), among other things. Section 147 of the Labor Act deals with the compulsory retirement age of employees. The Ordinance has amended the compulsory retirement age of employee from completion of 58 years to 60 years.

The Ordinance  is published in Nepal Gazette dated January 13, 2025 (2081-09-29 BS) which has been made available on January 16, 2025 (through the website of Department of Printing). The Ordinance is issued with immediate effect. It means that the Ordinance is effective from January 13, 2025.

The Ordinance has the same effect as an Act enacted by the Parliament pursuant to Article 114 of the Constitution. Thus, it should be implemented as law from January 13, 2025.

The Ordinance will cease to be effective in certain situations. It will cease to be effective if it is (a) rejected by both Houses of the Federal Parliament held after the promulgation of the Ordinance, or (b) repealed by the President at any time, or (c) expiry of sixty (60) days from the date on which the meeting of both Houses is held even if it is not rendered ineffective or repealed as per (a) and (b) above.

Link to the Ordinance published in the Nepal Gazette: http://rajpatra.dop.gov.np/welcome/book/?ref=25822