Decent work and work life quality in Nepal: an observation
| Published date | 11 November 2011 |
| DOI | https://doi.org/10.1108/01425451211183264 |
| Pages | 61-79 |
| Date | 11 November 2011 |
| Author | Dev Raj Adhikari,Katsuhiko Hirasawa,Yutaka Takakubo,Dhruba Lal Pandey |
| Subject Matter | HR & organizational behaviour |
Decent work and work life quality
in Nepal: an observation
Dev Raj Adhikari
Central Department of Management, Tribhuvan University, Kathmandu, Nepal
Katsuhiko Hirasawa and Yutaka Takakubo
Nihon University, College of Commerce, Tokyo, Japan, and
Dhruba Lal Pandey
Central Department of Management, Tribhuvan University, Kathmandu, Nepal
Abstract
Purpose – This paper aims to review the situation of decent work (DW) and quality of work life
(QWL) in the context of Nepal.
Design/methodology/approach – The paper is based on a literature survey. Institutional
arrangements for DW and QWL are studied in connection with current labor legislations, national
policy documents, and company policies and initiatives. The status of DW and QWL is described,
examining national policy documents published by the Government of Nepal, National Planning
Commission, labor legislations, International Labor Organization (ILO) and other relevant literature.
Findings – At present, although the country has been successful in reducing the number of people
under the poverty line, there are challenges in meeting the DW goals. In the case of QWL, since there is
rising dissatisfaction among employers and employees in the present economic and political
circumstances, they are interested in short-term benefits.
Research limitations/implications – There are a number of factors affecting DW and QWL. In
this paper only national economic and social conditions, poverty level, employment situation and
income generation are considered for analysis. The analysis of the QWL situation is done only on the
basis of published information rather than using primary sources of information.
Practical implications – The findings of this study will have a number of implications in
understanding and improving the level of current institutional arrangements in order to ensure DW
and QWL. The observations made in this paper can add some value in the process of formulation of
national policy for, and regulation of DW. The issues discussed will have substantial implication for
the development and framing of new labor laws and policies.
Originality/value – The paper focuses on DW and QWL for the first time in the Nepalese context.
This is an original contribution by the authors to familiarize readers with the situation of DW and
QWL in Nepalese organizations.
Keywords Decent work, Qualityof work life, Labour legislation, Poverty,Employment, Nepal,
Quality of life
Paper type General review
Introduction
Nepal, a member of South Asian Association for Regional Cooperation (SAARC), lies
between two emerging big economies, India and China. The country’s population is
27.5 million (NPC, 2010) comprising over 100 ethnic groups and speakers of
92 languages. In the modern history, the country has passed through a number of
political, economic and social changes. Since its unification in the eighteenth century,
Nepal has been an independent kingdom. Unlike India and other countries in South Asia,
it was never colonized. The country faced suppression for 104 years of family ruled Rana
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Decent work and
work life quality
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Vol. 34 No. 1, 2012
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DOI 10.1108/01425451211183264
regime from 1816 to 1951. During this period foreigners were not allowed to enter the
country, so Nepal was almost completely isolated from the outside world. In 1951, Nepal
opted for a political system with constitutional monarchy and people’s government,
however, the real power remained with the King. In 1990 a pro-democracy movement,
which was motivated by economic problems and discontent with corruption, forced the
King to end his rule and a multi-party democracy was established. During 1996-2006 the
country faced unprecedented armed conflict between government forces and Maoist
rebels which ended on 21 November 2006 with the signing of Comprehensive Peace
Accord (CPA). The Civil War resulted in the deaths of over 13,000 people and the
destruction of physical infrastructure, displacement of people and serious disruption to
the economy. After CPA on 28 December 2007, a bill was passed in parliament to amend
Article 159 of the constitution — replacing “Provisions regarding the King” by
“Provisions of the Head of the State” – declaring Nepal a federal republic, and thereby
abolishing the monarchy. The bill came into force on 28 May 2008, as the Constituent
Assembly overwhelmingly voted to abolish royal rule. After the election of
Constitutional Assembly (CA) in 2008 United Communist Party of Nepal (Maoist)
became the largest party followed by Nepali Congress and Nepal Communist Party
(UML). After the election, three governments have been formed, a fact that reflects a
perennial political instability forcing the country to go through 19 years of transition in
the post 1990 democracy era. This period also witnessed a huge number of political
protests and strikes by various interest groups on issues such as good governance and
human rights. After the CA election, restoration of peace and writing the constitution
have been the main concerns for the people.
Nepal is a country with a total population of 27.5 million of which almost 25 percent
of the people is under the poverty line. The overall adult (above 15 years) literacy rate
has reached 55 percent. The current labor force participation rate in both formal and
informal sectors of the above 15 years of age has reached 83.4 percent (NLFS, 2008).
However, the proportion of paid employees is about 16.9 percent. It is estimated that
about 9 million people are working in the informal sector totally uncovered by labor
legislation. In this demographic bracket, around 2 million people are employed in the
nonagricultural informal sector, which is almost 70 percent of the total non-agricultural
employment. Of all the children, an estimated 33.9 percent aged between 5 to 14 are
engaged in economic activity. At the Millennium Summit in September 2000, Nepal
expressed its commitment to, and adapted, the United Nations Millennium Declaration
and put hand-in-hand a global partnership to reduce poverty, improve health, and
promote peace, human rights, gender equality and environmental sustainability.
Although the Government of Nepal (GoN) is committed in achieving Millennium
Development Goals (MDGs) by reducing the level of poverty across the country and
improving the living standard of its citizens, odds are high in meeting the targets of
employment, hunger, gender p arity in tertiary education, an d environmental
sustainability by 2015 (NPC, 2010).
In this context, it is imperative to create decent job opportunities through the
creation of productive employment. This is only possible through investment and skill
development at the national level. According to the Enterprise Survey – 2006, the key
two factors influencing the level of investment and output in Nepal are political
uncertainties and the prominence of low skilled workers (Kyloh, 2008). By and large,
improvements in development indicators such as investment, employment and
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