An Overview of the Social Security Provisions as per the Labor Act of Nepal

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  • Topic: Insurance, Social programs, Social insurance
  • Pages : 7 (2633 words )
  • Download(s) : 194
  • Published : December 23, 2012
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1.1 Background
The mutual conflict between the employer and the employees over the question of adequacy of their respective shares in social produce, constitutes the crux of the labour problem, of which collective bargaining and industrial conflict are the two most important aspects. As industrialisation advances the worker is increasingly alienated from his previous socio-cultural world and thus faces various insecurities with regard to income and employment in addition to the natural ones (i.e., sickness, maternity and the age) for which the new order does not have structural provision. This is how the problem of social security arises and revolution has meant urbanisation. In ancient times if a person was unable to work on a particular day, he was cared for by the village, community or by the members of his family. But now urbanisation has so deeply uprooted these values that in times of sickness, unemployment, old age and other similar contingencies a worker has nothing to fall back upon. In modern times social security is influencing both social and economic policy. Social security is the security that the State furnishes against the risks which an individual of small means cannot, today, stand up to by himself even in private combination with his fellow. Social security envisages (foresees) that the members of a community shall be protected by collective action against social risks causing undue hardship and privation to individuals whose private resources can seldom be adequate to meet them. The concept of social security is based on ideals of human dignity and social justice. The underlying idea behind social security measures is that a citizen who has contributed or is likely to contribute to his country’s welfare should be given protection against certain hazards. In context of Nepal, The Labour Act 1992 was enacted by the first parliament in 1992. Before this Act, the Factory and Factory Workers Act 1959 had been in force in factories and other establishments as notified by the government. After the change of polity in 1990, the parliament also enacted the Trade Union Act 1993. In order to complement the Acts, Labour Rules 1993 and Trade Union Rules 1993 were enacted and implemented. Social security issues are dealt with by the Labour Act 1992 and the supplementary Rules. Trade unions as a political agency of workers have established its social utility by struggling to humanize the working conditions, improving industrial relations and exerting pressure on the agencies of capital and political authority to set a framework of social justice at multi-level governance. The trade unions of the nation are in a constant move towards creating ideal working conditions for the workers. The welfare of the working force is the driving factor for trade unions to contribute to labours well being.

1.2 Objective: To analyse the concept of social security system under the Nepalese Labour Law

1.3 Limitation: This paper is limited up to the basic provisions relating to Social Security system that has been maintained under Labour Laws of Nepal.

1.4 Methodology: This term paper is based on the Secondary sources and various Library and Internet works.


2.2 General Concept of Social Security
Social security is primarily a social insurance program providing social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to Social insurance, where people receive benefits or services in recognition of contributions to an insurance scheme. These services typically include provision for retirement pensions, disability insurance, survivor benefits and unemployment insurance. Income maintenance; mainly the distribution of cash in the event of interruption of employment, including retirement, disability and unemployment. In different countries social security may include...
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