Notice Periodसूचना अवधि
A notice period is the time between notifying the other party that employment will end and the last working day. In Nepal the requirement depends on the ground for ending the engagement and on what the contract says.
Also called: resignation notice Nepal, termination notice Nepal, notice pay
Two different situations
When an employee resigns, the notice they owe comes from the employment contract. When the employer ends the engagement, the Labour Act 2074 sets requirements that vary with the ground for termination and, for redundancy, with the employee's length of service.
Writing both into the contract, in plain terms, avoids the argument. A contract that is silent on resignation notice leaves the company relying on custom.
Payment in lieu
Where the contract provides for it, notice can be paid rather than served. That payment belongs in the full and final settlement and is taxable in the period it is paid. What it does not do is remove the handover obligation, which is why a paid-out notice still needs a documented transfer of work.
Use the notice period for the handover
- Document what the leaver owns, and who takes each item.
- Transfer access and system ownership before the last day, not on it.
- Recover assets while the employee is still on site.
- Schedule the exit conversation early enough that what is said can still be acted on.
Notice Period, answered
For a resignation, whatever the employment contract specifies. For termination by the employer, the Labour Act 2074 sets requirements that depend on the ground and, in a redundancy, on length of service.
Where the contract provides for payment in lieu, yes. The amount is settled with the final payment and is taxable, and the handover obligation still stands.
- Labour Act 2074, provisions on termination and notice.
This page explains general practice in Nepal. It is not legal or tax advice, and statutory figures are revised from time to time. Check the current Act, rule or notice before acting on it.
Related terms
- Full and Final Settlementअन्तिम हिसाबFull and final settlement is the closing calculation when an employee leaves: salary for days worked, leave encashment, any dues owed to them, less any recoveries, paid once every clearance is complete.
- Offboardingबहिर्गमन प्रक्रियाOffboarding is the process of ending employment properly: handover, asset recovery, access revocation, clearance from each department, the exit conversation, and the final settlement.
- Probation Periodपरीक्षणकालProbation is the initial period during which an employer assesses a new employee before confirming them. Nepal's Labour Act 2074 caps it at six months, after which the employee is confirmed or the engagement ends.
- Employment Typesरोजगारीका प्रकारNepal's Labour Act 2074 recognises five employment types: regular, work-based, time-bound, casual and part-time. The type decides how the contract can end, what entitlements apply, and what has to be in writing.
- Labour Act 2074श्रम ऐन २०७४The Labour Act 2074 is Nepal's principal employment statute, in force since 2074 BS (2017 AD) and applied together with the Labour Rules 2075. It sets employment types, working hours, overtime, leave entitlements, probation and notice, and the funded gratuity and social security model.
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