Leave Rules Under Nepal Labour Act: Annual, Sick, Maternity, and Public Holidays

Author : Hajir hr | Published On : 26 Oct 2026

Leave rules in Nepal play an important role in protecting employee rights and helping businesses manage their workforce effectively. The Labour Act, 2074, and Labour Rules, 2075 establish key provisions for employee leave, including eligibility, duration, payment, and carry-forward limits. Employers should understand these requirements to develop clear workplace policies and maintain compliance with Nepalese labour laws.

Employees may qualify for different types of leave depending on the applicable legal provisions and their employment circumstances. These include annual or home leave, sick leave, casual leave, maternity leave, paternity leave, mourning leave, and public holidays. Each category serves a specific purpose, from providing time for rest and recovery to supporting employees during childbirth, illness, and family emergencies.

Employers must also manage leave balances and payments carefully. Nepal’s labour regulations establish limits for carrying forward certain types of unused leave and provide rules for leave encashment in applicable circumstances. Accurate records help businesses calculate employee benefits correctly and reduce payroll disputes. Employers should also communicate holiday schedules clearly, particularly because many Nepalese festivals follow the lunar calendar and change dates each year.

Managing these requirements manually can create challenges for HR teams, especially when organizations have many employees. A reliable leave management system helps automate leave applications, approval workflows, balance calculations, and recordkeeping.

Hajir HR supports businesses by streamlining leave and holiday management alongside attendance and payroll processes. By combining accurate records with automated workflows, businesses can save administrative time, reduce calculation errors, and improve transparency for employees and managers.

Ultimately, understanding and following Nepal’s leave rules helps organizations build a fair, organized, and compliant workplace while supporting employee well-being and productivity.