Section 55



Coercive, unfair or deceptive recruitment Compensation Criminal liability

This Section prohibits licensees from acting in contravention of their agreement with the worker, as well as making the worker act contrary to their mutually signed contract. This includes paying a lower wage than stipulated in the contract and engaging the worker in work that he/she did not agree to do. This section penalises this offence with a fine of 100 thousand rupees and the obligation to pay compensation to the victim.


The Nepali government reported having prosecuted 22 agencies pin 2013/2014 for infringements of the Foreign Employment Act. However, only 3 agencies were convicted, and no action is taken against many other such agencies operating in breach of the law. Common violations include charging excessive fees, payment below minimum wage in receiving countries, and prompting workers to commit document fraud. Working conditions at the destination country are often different than those promised or from the information registered with the Nepali Department of Foreign Employment.

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Section 55. Punishment to be imposed in the event of doing or causing to be done act contrary to contract:

If any licensee, after making a contract with any worker for work in a company, engages the worker in work for remuneration or facilities lower that or in another company for a work of such nature as is different than that specified in the contract or does not engage the worker in the work for which the worker has been sent for foreign employment but engages the worker in another work or engages the worker in work for remuneration and facilities less than the remuneration and facilities offered previously, the Department shall punish such licensee with a fine of one hundred thousand rupees and require the licensee to pay the shortfall amount of such remuneration and facilities.

Law /Nepal / Foreign Employment Act, 2064 (2007)

This mechanism was enacted in 2007 in order to regulate foreign employment and foreign recruitment agencies, and to protect the rights and interests of workers and ensure the safety of those migrating for work purposes. It includes the criminalisation of sending minors abroad for work purposes, and of abusive recruitment practices such as the use of any form of coercion or deception to send anyone abroad.