1. The General Manager shall classify the post of the workers and employees of the establishment according to the nature of the manufacturing process, service, or work of the establishment and notify the labor office accordingly.
   
   
2. In case it becomes necessary to make any amendment in the classification of posts made under Sub-Section (1), the Labor Office may direct the General Manager to do so by explicitly mentioning the reasons. It shall be the duty of the General Manager to comply with such directives.

1. While appointing a worker or employee in any post classified under Section 3, the General Manager shall issue a letter of appointment; priority shall be given to Nepal nationals, while making such appointments.
   
   
2. Workers and employees appointed under Sub-Section (1) shall be granted permanent appointment after they complete one year of uninterrupted service on the basis of their performance, honesty, discipline, dedication to work, attendance, etc. While making such appointments, letters of appointment shall be ................ this post, remuneration, and service conditions of the concerned worker or employee, and the Labor Office shall be notified accordingly.
   
   
3. Workers or employees engaged in any place rate or contract work of a permanent nature in any enterprise shall also be made permanent as mentioned in Sub Rule (2).
   
   
4. Workers or employees engaged in any work as mentioned in Sub-Section (3) shall be paid facilities provided for in this act according to their post and scale.
   
   
5. Notwithstanding anything contained in Sub-Section (2) and (3), in case any establishment is required to increase production or service for a short period of time, it may appoint workers or employees according to need for a certain period by specifying such period.

1. No child shall be employed in any establishment.
   
   
2. Except in prescribed circumstances, miners and women may ordinary
   
   
3. Women too may be employed like men after making appropriate arrangements on the basis of mutual agreements between the General Manager and the employees or workers.

1. Period during which a worker or employee is kept in reserve under Sector 11.
   
   
2. Period during which a worker or employee remains on paid leave.

• The General Manager of each establishment shall maintain separate registers of its workers and employees indicating the following particulars:
  
  
  1. Name of workers or employee;
     
     
  2. Nature of his work;
     
     
  3. Remuneration's and mode of payment , and
     
     
  4. Other prescribed particulars.
  
  
• The registers maintained under Sub-Section (1) shall be produced at the request of the Labor Officer, or Factory Inspector, or any other person prescribed by the Labor Office.

1. In case it becomes necessary to curtail production or service of an establishment for some time, or in case it is not possible to continue operating an establishment due to special circumstances, the General Manager may curtail production or service or close down the Ontario establishment or a part thereof subject to Sub-Section (2).
   
   
2. In case it becomes necessary to curtail production or service, or close down the entire establishment or a part thereof under Sub-Section (1) the permission of the Labor Office shall be obtained if the period of such curtailment or closure is 15 days or loss, and of the Labor Department if the period exceeds 15 days. The Labor Office shall inform the Department if it grants any such permission.
   
   
3. While curtailing production of service under Sub-Section (1), all workers working in shifts or on a wage basis, or all workers or employees who have completed one year of uninterrupted services after being registered in the attendance register of the establishment, shall be kept in reserve on half-day. Provided that all such worker or employees shall be entitled to all appropriate facilities which they have been enjoying.
   
   
4. The General Manager may not provide remuneration's and facilities to workers or employees kept in reserve under Sub-Section (3) if they refuse to do any similar work offered by him with similar remuneration's in the same establishment or in any other establishment under his control, or if they fail to present themselves at the establishment once every day during working hours, of in other prescribed circumstances.

1. In ....... It becomes necessary the curtail production or service of an establishment, or to close down the entire establishment or a part thereof, for more than three month due to special circumstances, the General Manager may fully or partially retrench its employees after obtaining the permission of Nepal Government through the Labor Department.
   
   
2. While retrenching its workers or employees under Sub-Section (1), those appointed last among workers and employees performing similar work who have completed one year of uninterrupted service shall be removed first. Provided that in case it becomes necessary to retrench those who have been appointed first instead of those who have been appointed last according to the prescribed order, this may be done after explaining the reasons.
   
   
3. The following procedure shall be observed while retrenching workers or employees under Sub-Section (1):
   
   
   1. By serving one month's advance notice indicating the reasons for retrenchment, or paying one month's remunerations in lieu of such notice, while retrenching a permanent worker or employee, of a worker or employee, who has completed one year of uni......... service.
      
      
   2. By paying compensation in a lump sum at the rate of 30 day's salary of the concerned worker or employee for every year of service completed by him in the establishment.

(4) Sub-Section (3) shall not be applicable in respect to workers or employee appointed in contract service.

(5) In case it becomes necessary to again fill up the posts vacated by retrenched workers or employees, priority shall be given as for as possible to the workers or employees who have been so retrenched.

Explanation: For the purpose of Sections 11 and 12, the term "special circumstances" means circumstance in which production in any establishment is ........ Owing to breakage or damage of machinery, or fuel, electricity coal or similar other sources of energy is not available, or there has been any natural disaster, or necessary raw materials are not available in sufficient quantities, o-stocks accumulate cause of lack of sale, or similar other circumstances. 13. Seasonal Establishments

1. Workers or employees of a seasonal establishment shall not e considered to have been kept in reserve when the establishment is closed during off-season.
   
   
2. Notices of the commencement of closure of operations of seasonal establishments shall be furnished to the Labor Office.
   
   
3. When a seasonal establishment is closed during off-season, those workers or employees who have completed one year of uninterrupted service shall be paid a retaining allowance amounting to at least 25 percent of the remunerations to which they are untitled.
   
   
4. In case any dispute arises on the issue of whether or not an establishment is a seasonal one, the decision made by the Labor Department shall be final.

Explanation: Public and weekly holidays shall also be taken into account while calculating the period of 240 days.

15. Compulsory Retirement
The General Manager may compulsory retires any worker or employee who has completed the ago of 55 years.

Provident that the terms of service of any worker or employee who is indispensable for the operation of the establishment may be extended for an additional five years.