Probation Periodपरीक्षणकाल
Probation 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.
Also called: probation Nepal, pariksankaal, trial period
Key facts
- Maximum
- Six monthsPer the Labour Act 2074.
- At the end
- Confirm or endThere is no third option.
- Entitlements
- Apply during probationIncluding the minimum wage.
Six months is a ceiling, not a default
The Act sets six months as the maximum. A shorter probation is perfectly valid, and for many roles three months is enough to know. What is not valid is extending probation past six months or leaving it to lapse without a decision, which is the most common failure: the date passes, nobody acts, and the employee is left in an undefined status.
A confirmation decision that has to be made is a useful forcing function. It is when a manager either writes down what has gone well or explains what has not.
What probation does not suspend
- The minimum wage applies from day one.
- Statutory contributions apply from the first payroll run.
- Leave accrues during probation, even where the policy defers when it can be taken.
- Public holidays and the weekly rest day apply as normal.
Running it properly
Set a review date at the midpoint rather than only at the end, so a struggling hire gets a chance to correct course while there is still time. Record the confirmation decision in writing and put it on the employee's record, because it is the document that establishes the change in status.
Probation Period, answered
Six months under the Labour Act 2074. At the end of it the employee must be confirmed or the engagement ends; probation cannot be extended beyond the limit.
Yes. The minimum wage, statutory contributions, leave accrual and holidays all apply during probation. Probation affects confirmation of the role, not entitlements.
- Labour Act 2074, provisions on the probation period.
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
- 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.
- Notice Periodसूचना अवधिA 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.
- Employee Onboardingकर्मचारी भर्ना प्रक्रियाOnboarding is everything between an accepted offer and a new employee being productive: paperwork, identifiers, access, equipment, introductions and the first pieces of work. It is a process with owners and dates, not a first-day checklist.
- 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.
- Applicant Tracking System (ATS)An applicant tracking system is software that manages hiring from job posting to offer: applications in one place, candidates moving through defined stages, and a record of who decided what.
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