Seeking Guidance on the Rules and Regulations for Employing Nepalese Workers in a Factory in Tamilnadu, India

Dear HR professional, could you please guide me on the rules for employing workers from Nepal in our factory? Sincerely, Vejayakumar Ramasamy.

Hiring workers from Nepal for your factory in Tamilnadu involves a few key steps and considerations.

1. Obtain a valid work permit: Nepalese workers must have a valid work permit to be legally employed in India. The Indian government provides these permits, and the process can be initiated at the local Foreigners Regional Registration Office (FRRO).

2. Adhere to the India-Nepal Treaty of Peace and Friendship: According to this treaty, Nepalese citizens have the same economic rights as Indian citizens. This means they should be paid at least the minimum wage and receive the same benefits as Indian workers.

3. Follow local labor laws: Ensure that you comply with all relevant labor laws in Tamilnadu, including those related to working hours, overtime, and safety regulations.

4. Register with the Employees' Provident Fund Organisation (EPFO): As an employer, you are required to contribute to the Employees' Provident Fund (EPF) on behalf of your employees. You can register online at https://www.epfindia.gov.in.

5. Provide proper living conditions: If you are providing accommodation for your workers, ensure that it meets the standards set by the local government and that it is safe and comfortable for your employees.

6. Respect cultural differences: It's important to create an inclusive and respectful work environment. This may involve providing cultural sensitivity training for your existing employees.

Remember, it's essential to keep up-to-date with any changes in labor laws and international treaties that may affect your ability to employ workers from Nepal. It's always a good idea to seek legal advice if you're unsure about any aspect of this process.

Dear Vejayakumar Ramasamy,
1. Nepali citizens are allowed to live and work in India freely.
2. A right established by the 1950 Indo-Nepal Peace and Friendship Treaty.
3. They do not need a visa or work permit to enter or work in India and have rights to employment, including some government positions, similar to Indian nationals.
4. However, you do require proper documents of identification.
5. You need to notify the enrollment documents to labour department.
6. I consider your factory can engage them under ISMW licence.

Yes, persons from Nepal (and also from Bhutan) are treated as Indians for employment in India. But the issue will rise only when you try to register them under EPF and ESI. Now, registration under EPF is not in the hands of the employer but it is to be done by the employee himself by using an Application which requires face identification of adhar. It is also possible for them to get aadhar but after 182 days of staying in India. But we cannot wait for 182 days since we are liable to register any employee from the day one of his joining our establishment. In the case of ESI also the same issue may erupt. These are issues which the concerned authorities should address.