Section 12
Retrenchment And Reinstatement
(1) If, for any special circumstances, the production or service of the Enterprise had to be curtailed or the Enterprise has to be closed party or wholly for more than three months, the Proprietor may, with the approval of Government of Nepal through the Department of Labour, retrench in the number of the workers and employees, partly or wholly, of the Enterprise.
? (1A) If the Manager makes a demand to Government of Nepal for approval in respect of the retrenchment of workers or employees pursuant to Sub-section (1),
Government of Nepal shall have to make decision within two months on whether such retrenchment of employees to be made or not.
(2) While retrenching the workers or employees under Sub-section (1), engaged in similar type of works, those ♣ permanent workers or employees who
\were appointed in the last shall be retrenched first.
Provided that, if it is required to retrench some of the workers or employees appointed earlier, not following the prescribed order of retrenchment such
retrenchment may be made by specifying the reasons thereof.
(3) While doing retrenchment as per Sub-section (2), it shall be done as follows –
(a) By providing a notice with the reasons or retrenchment either one month in advance or paying the remuneration of one month in case
of worker or employee who is permanent ? …………… and
(b) By paying a lump sum compensation to each worker or employee of the amount of remuneration calculated by multiplying the number of
each year of service performed at the Enterprise by the amount of his/her present remuneration for 30 days.
Explanation: For the purposes of this Clause, the work performed for at least six months in any year shall be counted as one year of service.
(4) The provisions of Sub-section (3) shall not applicable to any worker or employee appointed under contract service.
(5) If anybody has to be engaged in the job of worker or employee retrenched earlier, priority shall be given to the retrenched workers or employees.
Explanation: For the purposes of Section 11 and 12 the “Special Circumstance” shall mean damage, break down or failure of machines or the Enterprise and
thereby causing stoppage in the production or failure in the supply of fuel, electricity, coal or similar energy or due to any kind of force majeure or insufficient
supply of raw materials or stock piling of the produced goods due to loss of sale or other similar situations.
? (1A) If the Manager makes a demand to Government of Nepal for approval in respect of the retrenchment of workers or employees pursuant to Sub-section (1),
Government of Nepal shall have to make decision within two months on whether such retrenchment of employees to be made or not.
(2) While retrenching the workers or employees under Sub-section (1), engaged in similar type of works, those ♣ permanent workers or employees who
\were appointed in the last shall be retrenched first.
Provided that, if it is required to retrench some of the workers or employees appointed earlier, not following the prescribed order of retrenchment such
retrenchment may be made by specifying the reasons thereof.
(3) While doing retrenchment as per Sub-section (2), it shall be done as follows –
(a) By providing a notice with the reasons or retrenchment either one month in advance or paying the remuneration of one month in case
of worker or employee who is permanent ? …………… and
(b) By paying a lump sum compensation to each worker or employee of the amount of remuneration calculated by multiplying the number of
each year of service performed at the Enterprise by the amount of his/her present remuneration for 30 days.
Explanation: For the purposes of this Clause, the work performed for at least six months in any year shall be counted as one year of service.
(4) The provisions of Sub-section (3) shall not applicable to any worker or employee appointed under contract service.
(5) If anybody has to be engaged in the job of worker or employee retrenched earlier, priority shall be given to the retrenched workers or employees.
Explanation: For the purposes of Section 11 and 12 the “Special Circumstance” shall mean damage, break down or failure of machines or the Enterprise and
thereby causing stoppage in the production or failure in the supply of fuel, electricity, coal or similar energy or due to any kind of force majeure or insufficient
supply of raw materials or stock piling of the produced goods due to loss of sale or other similar situations.