Workplace Harassment Policy in Nepal

1. Introduction to Workplace Harassment Policy in Nepal

A Workplace Harassment Policy in Nepal constitutes a legally mandated framework designed to prevent, prohibit, and redress sexual harassment in all work environments. This framework ensures a safe, dignified, and productive workplace while fulfilling statutory obligations under the Sexual Harassment at Workplace (Prevention) Act, 2071.

The primary purpose of such a policy is to establish clear boundaries, complaint mechanisms, and accountability structures that protect employees and shield employers from legal liability. All employers must recognize that compliance is non-negotiable under Nepalese law.

Three Critical Risks for Employers Without a Compliant Policy:

• Legal Risk: Non-compliance attracts fines up to NPR 50,000 and potential imprisonment for responsible officers, while exposing the organization to civil liability and court-ordered compensation.
• Financial Risk: Beyond statutory penalties, employers face investigation costs, legal defense expenses, victim compensation orders, and potential business disruption during regulatory inquiries.
• Reputational Risk: Public disclosure of harassment incidents and regulatory penalties damages employer branding, erodes employee trust, and creates negative publicity that can impact client relationships and talent acquisition.

2. TL;DR – Workplace Harassment Policy Nepal

• The Sexual Harassment at Workplace (Prevention) Act, 2071 legally requires every employer to establish a written harassment prevention policy and constitute an Internal Complaint Committee (ICC) where 10 or more employees work.
• Employers must display the policy and ICC details prominently at the workplace in both Nepali and English languages for constant visibility.
• The ICC must include at least 50% women members, a senior female employee as Chairperson, and one external member from an NGO or association working for women’s rights.
• Sexual harassment is defined as any unwelcome act or conduct of a sexual nature, including physical contact, advances, demands for sexual favours, sexually coloured remarks, showing pornography, or any other unwelcome physical, verbal, or non-verbal conduct.
• Failure to constitute an ICC or conduct a mandatory inquiry attracts penalties of up to NPR 50,000 and six months imprisonment for the employer, while perpetrators face fines and imprisonment based on offense severity.

3. The Legal Framework: Sexual Harassment at Workplace (Prevention) Act, 2071

The Sexual Harassment at Workplace (Prevention) Act, 2071 (2015 AD) serves as the primary legislative mandate governing harassment prevention across Nepal. Section 3 of this Act imposes explicit obligations on all employers to provide a safe working environment free from sexual harassment.

The Sexual Harassment at Workplace (Prevention) Rules, 2072 operationalize the Act by prescribing procedural details for ICC functioning, inquiry processes, and documentation requirements. These Rules supplement the statutory framework with practical implementation guidelines.

The Labour Act, 2074 reinforces these duties through its broader provisions on employer responsibility for worker safety, dignity, and welfare. Section 20 of the Labour Act complements the 2071 Act by establishing general workplace safety obligations.

Table: Governing Law | Key Provision | Employer Obligation

4. What Constitutes Sexual Harassment Under Nepalese Law?

Section 2 of the Sexual Harassment at Workplace (Prevention) Act, 2071 defines sexual harassment as any unwelcome act or conduct of a sexual nature committed by any person in a workplace. This statutory definition encompasses both explicit and implicit behaviours that create an intimidating, hostile, or offensive work environment.

The law recognizes two distinct categories of harassment: “Quid Pro Quo” harassment occurs when job benefits, promotions, or continued employment are conditioned upon sexual favours. “Hostile Work Environment” harassment involves conduct that unreasonably interferes with work performance or creates an intimidating atmosphere.

Specific Examples of Prohibited Conduct:

• Verbal Harassment: Sexually coloured remarks, offensive jokes, inappropriate comments on appearance, lewd propositions, catcalling, or spreading sexual rumours.
• Non-Verbal Harassment: Staring or leering, offensive gestures, displaying sexually suggestive objects or pictures, sending explicit messages or emails, or posting inappropriate content on workplace notice boards.
• Physical Harassment: Unwanted touching, patting, pinching, brushing against the body, hugging, kissing, or any physical assault of a sexual nature.
• Digital Harassment: Sending pornographic material via email or messaging apps, cyberstalking, unsolicited explicit images, or using social media platforms to make sexual advances or threats.

5. Employer’s Legal Duties and Mandatory Requirements

Employers must fulfill five non-derogable duties under the legal framework. These obligations apply to all organizations, including private companies, government bodies, NGOs, and educational institutions.

1. Formulate and Publish a Written Workplace Harassment Policy: Develop a comprehensive policy document in Nepali and English that defines harassment, outlines prohibited conduct, and establishes complaint procedures. Publish this policy in the employee handbook and on the company intranet.
2. Constitute a Mandatory Internal Complaint Committee (ICC): Establish an ICC in every workplace with 10 or more employees. The ICC must be operational within 60 days of the Act’s applicability to the organization.
3. Provide Orientation and Training to All Employees: Conduct mandatory awareness sessions for all staff members, including management, on harassment recognition, prevention, and complaint mechanisms. Training must occur annually and upon new employee onboarding.
4. Display the Policy and ICC Details Prominently: Post the harassment policy, ICC member names, and contact information on conspicuous notice boards at all workplace locations, including branch offices and client sites where employees work.
5. Facilitate a Fair Investigation and Take Action: Ensure the ICC conducts impartial inquiries, provide necessary resources, implement recommended actions against perpetrators, and protect complainants from retaliation throughout the process.

Table: Employer Duty | Legal Deadline | Specific Requirement

6. The Internal Complaint Committee (ICC): Composition and Role

The Internal Complaint Committee (ICC) serves as the mandatory adjudicatory body for harassment complaints in workplaces with 10 or more employees. Section 4 of the Act requires constitution of this committee as a prerequisite for legal compliance.

The prescribed composition mandates a senior female employee as Chairperson, at least two employee members (preferably committed to women’s issues), and one external member from an NGO or association working for women’s rights. At least 50% of total ICC members must be women, ensuring gender-responsive complaint handling.

Key roles encompass receiving written complaints, conducting formal inquiries, recording evidence, preparing detailed findings reports, and recommending corrective actions to the employer. The ICC functions as a quasi-judicial body within the workplace with powers to summon witnesses and examine documents.

Qualifications and Disqualifications for ICC Members:

• Qualifications: Must be employed at the workplace; external member must have at least 5 years’ experience in women’s rights advocacy; all members must demonstrate integrity, impartiality, and commitment to gender equality.
• Disqualifications: Any person against whom a harassment complaint exists; individuals with criminal convictions involving moral turpitude; employees with known bias against gender equality principles; persons lacking capacity to serve due to mental incapacity.
• Tenure: ICC members serve for a term of three years, with eligibility for one reappointment. The employer must fill vacancies within 30 days to ensure continuous functionality.
• Confidentiality: All ICC members must sign confidentiality undertakings; breach of confidentiality attracts disciplinary action and potential criminal liability under privacy laws.

7. Step-by-Step: The Complaint and Investigation Process

The complaint and investigation process follows a structured, time-bound procedure designed to ensure fairness and natural justice for both complainant and respondent.

1. Filing of a Written Complaint to the ICC: The aggrieved woman must submit a written complaint to the ICC Chairperson within 3 months of the last incident. The ICC may extend this period by 3 months for valid reasons. Complaints can be filed directly or through a designated nodal officer.
2. Initial Assessment and Prima Facie Determination: The ICC must assess whether the complaint alleges conduct falling within the Act’s definition. Within 10 days of receipt, the ICC decides whether to proceed with a formal inquiry or recommend conciliation if the complainant consents.
3. Inquiry Proceedings (Recording Statements, Collecting Evidence): The ICC conducts a formal inquiry by examining the complainant, respondent, and witnesses. Both parties may present evidence, documents, and written statements. The inquiry must adhere to principles of natural justice, allowing both sides to respond to allegations.
4. Preparation of Inquiry Report with Findings: Within 90 days of complaint receipt, the ICC prepares a detailed report containing findings, conclusions, and recommendations. The report must include a determination of whether harassment occurred and suggest disciplinary action or relief measures.
5. Submission of Report to the Employer for Action: The ICC submits its report to the employer, who must implement recommended actions within 60 days. Actions may include disciplinary measures against the perpetrator, transfer of either party, or granting leave to the complainant during proceedings.

Table: Stage | Timeline (as per law) | Responsible Party

8. Drafting a Compliant Workplace Harassment Policy: Key Clauses

A legally compliant Workplace Harassment Policy must incorporate specific clauses mandated by the Act and Rules while addressing organizational context. The policy should function as a standalone operational document.

Mandatory Clauses to Include:

• Policy Statement and Objective: Clear declaration of zero tolerance towards sexual harassment and commitment to providing a safe, respectful workplace for all employees, contractors, and visitors.
• Statutory Definition: Reproduce the exact definition from Section 2 of the Act along with workplace-specific examples relevant to the organization’s operations.
• Scope and Applicability: Specify that the policy covers all employees, trainees, apprentices, contract workers, probationers, and visitors across all workplace locations including client sites and work-related social events.
• ICC Composition and Contact Details: List full names, designations, contact numbers, and email addresses of all ICC members; include external member credentials and NGO affiliation.
• Complaint Filing Procedure: Step-by-step guidance on drafting complaints, submission methods (email, sealed envelope, in-person), and acknowledgment process with 7-day confirmation requirement.
• Assurance Against Victimization: Explicit guarantee that no complainant or witness will face retaliation, with specific consequences for victimization including disciplinary action up to termination.
• Confidentiality Provisions: Binding commitment to maintain confidentiality throughout the process, with exceptions only where disclosure is required by law or essential for investigation.
• Interim Relief Measures: Provision for temporary relief during inquiry including transfer of respondent, granting paid leave to complainant, or suspension of alleged perpetrator in severe cases.
• Disciplinary Actions and Remedies: Enumerated consequences for substantiated harassment including written warning, demotion, salary reduction, termination, and mandatory sexual harassment prevention training.
• Conciliation Option: Statement that conciliation is available only with complainant’s written consent and cannot involve monetary settlement; ICC must convert to formal inquiry if conciliation fails or is inappropriate.
• False Complaint Provision: Clarification that malicious complaints constitute misconduct subject to disciplinary action, while emphasizing that inability to substantiate a complaint does not automatically imply malice.
• Record Maintenance: Requirement for ICC to maintain confidential records of complaints, proceedings, and outcomes for a minimum of 5 years for monitoring and audit purposes.
• Policy Review and Updates: Commitment to annual policy review, ICC performance evaluation, and updates to reflect legal amendments or organizational changes.

9. Penalties and Consequences for Non-Compliance

Section 13 of the Sexual Harassment at Workplace (Prevention) Act, 2071 imposes stringent penalties on employers and perpetrators for violations. These penalties serve as both punishment and deterrent, emphasizing the state’s zero-tolerance stance on harassment.

Employers who fail to constitute an ICC, refuse to conduct inquiries, or neglect to display policy documents face criminal prosecution resulting in fines up to NPR 50,000 and imprisonment up to six months. The responsible officer—typically the MD, CEO, or head of the organization—bears personal liability for organizational non-compliance.

Perpetrators found guilty of harassment face graduated penalties based on offense severity. Minor violations attract fines up to NPR 25,000, while serious or repeated offenses can result in imprisonment up to three years and higher fines. Courts may also order compensatory relief for victims covering medical expenses, mental trauma, and loss of earnings.

Table: Type of Violation | Penalty (Fine/Imprisonment) | Authority

10. Best Practices for Effective Policy Implementation

Beyond statutory minimums, employers should adopt proactive measures that embed harassment prevention into organizational culture. These practices demonstrate genuine commitment to employee welfare and strengthen compliance.

Five Proactive Measures Beyond Legal Minimum:

• Leadership Accountability: Require senior management to sign annual compliance declarations confirming policy implementation, training completion, and ICC functionality; tie performance appraisals to compliance metrics.
• Anonymous Reporting Channels: Establish secure digital hotlines or third-party ethics helplines that allow anonymous complaint filing, encouraging reporting in conservative workplace cultures while maintaining investigation feasibility.
• Bystander Intervention Training: Train employees to recognize and safely intervene in harassment situations, creating collective responsibility and early warning systems before incidents escalate.
• Regular Climate Surveys: Conduct anonymous annual surveys to assess workplace safety perceptions, policy awareness, and potential unreported issues, using data to target preventive interventions.
• Zero Tolerance Communication: Issue firm-wide statements from leadership emphasizing zero tolerance, publicizing disciplinary actions against harasscers (while protecting victim identity), and celebrating diversity and inclusion milestones.

11. Role of a Law/Consultancy Firm in Policy Implementation

Specialized law and consultancy firms provide critical expertise that ensures robust, legally defensible harassment prevention frameworks. Their involvement elevates compliance from paper-based formalities to substantive protection systems.

Service Scope for Professional Assistance:

• Customized Policy Drafting: Develop organization-specific harassment policies that reflect industry risks, workforce demographics, and operational contexts while ensuring full statutory compliance and alignment with international best practices.
• ICC Training and Capacity Building: Conduct intensive workshops for ICC members on inquiry procedures, evidence assessment, natural justice principles, trauma-informed interviewing, and report writing to enhance committee effectiveness.
• External ICC Membership: Serve as qualified external members on ICC panels, providing impartial expertise, ensuring objectivity in sensitive cases, and offering guidance on complex investigations involving senior management.
• Investigation Advisory: Provide end-to-end support during inquiries including evidence review, witness interview strategy, legal interpretation, and recommendations drafting to ensure procedurally sound outcomes that withstand legal scrutiny.
• Compliance Audits: Perform annual audits of policy implementation, ICC functionality, training effectiveness, and record maintenance to identify gaps and recommend corrective actions before regulatory inspection.

12. Frequently Asked Questions (FAQs)

Q: Is a harassment policy mandatory for a small shop with 5 employees?
A: The ICC requirement applies only to workplaces with 10 or more employees. However, the substantive duty to provide a safe workplace under the Labour Act, 2074 applies to all employers, making a basic policy advisable even for smaller establishments.

Q: What is the punishment for filing a false complaint?
A: Section 12 of the Act prescribes that intentionally filing a malicious or false complaint constitutes misconduct punishable by disciplinary action up to termination. However, inability to substantiate a complaint does not automatically constitute malice.

Q: Can the ICC include only senior managers?
A: No. The ICC must include employee representatives and a qualified external NGO member. At least 50% must be women, and the Chairperson must be a senior female employee, ensuring diverse representation beyond management.

Q: What is the time limit to file a complaint?
A: Complaints must be filed within 3 months of the last incident. The ICC may extend this by an additional 3 months if the complainant demonstrates sufficient cause for delay, such as trauma or fear of retaliation.

Q: Does the policy apply to harassment by clients or customers?
A: Yes. The Act covers harassment by any person at the workplace, including clients, customers, suppliers, and visitors. Employers must take proactive steps to address third-party harassment and protect employees in client-facing roles.

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