Kathmandu
Monday, July 6, 2026

95 hospitals found violating labor laws in nationwide inspection

July 6, 2026
3 MIN READ
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KATHMANDU: A nationwide labor inspection conducted by labor offices on July 2 has uncovered widespread violations of labor laws across public and private hospitals, revealing serious failures in implementing the minimum wage, issuing employment contracts, and enrolling workers in the Social Security Fund (SSF).

Data compiled from inspections carried out in recent days show severe lapses in compliance with the Labor Act at 95 public and private hospitals nationwide. The inspections, conducted by Labor and Employment Offices in Jhapa, Biratnagar, Janakpur, Birgunj, Kathmandu, Pokhara, Butwal, Nepalgunj, Surkhet, and Dhangadhi, found widespread violations of workers’ fundamental rights.

The monitoring found that 38 hospitals and health institutions had failed to implement the government-mandated minimum wage, while five had only partially complied. Similarly, 60 hospitals and health institutions had not enrolled workers in the Social Security Fund, with four only partially enrolled. In addition, 41 hospitals and health institutions had failed to provide employment contracts, while only two had partially issued them.

In several hospitals, workers were found to be employed solely on verbal agreements without formal appointment letters. Inspectors also received complaints of unpaid overtime despite extended working hours, as well as the absence of paid leave and holiday allowances.

Following the inspections, labor offices directed non-compliant hospitals to immediately implement the minimum wage, enroll all eligible workers in the Social Security Fund, issue employment contracts, and submit labor audit reports. While some hospitals have pledged to comply beginning in the upcoming fiscal year, others have already started the process of meeting the legal requirements.

Labor offices have also recommended legal action against establishments that failed to respond despite repeated notices regarding non-compliance. The findings underscore the need for stronger enforcement of labor laws to protect workers’ rights in the healthcare sector.

The Ministry of Labor, Employment and Social Security said it has significantly stepped up labor inspections under the current government. While 1,991 labor inspections were conducted during the nine months before the current administration took office, 1,321 inspections have already been completed within its first 100 days.

The ministry said it has also promoted compliance by recognizing organizations that meet labor standards. It recently honored 13 local governments declared child labor-free, six outstanding industrial establishments, and seven entrepreneurs from across the country.

According to the ministry, investigations into petitions, complaints, and targeted inspections have resulted in the recovery of Rs. 44.096 million in fines and compensation to protect workers’ rights and promote fair labor practices.

Minister for Youth, Labor, and Employment Ramji Yadav reaffirmed the government’s commitment to ensuring safe and dignified work and eliminating child labor.

“The nation grows strong only when every worker feels secure, when every child is in school, when every employer respects the law, and when every youth believes they can build their future right here in their own country,” Yadav said.