---
title: "Business law and labour law in Nepal"
subject: "Engineering Professional Practice"
chapter: 5
key: "semester_8/engineering_professional_practice:business-labour-law-nepal"
source: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/business-labour-law-nepal
site: BCT Engineering
---

# Business law and labour law in Nepal

Engineering Professional Practice · Chapter 5: Regulatory Environment

- Asked in: 2073 Bhadra, 4 marks; 2072 Asoj, 2 marks (asked 2 times)
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/business-labour-law-nepal
- Whole chapter: https://www.bctengineer.com/md/semester_8/engineering_professional_practice/chapter-5

## Question

Explain business law and labour law in Nepal.

## Short answer

Business law regulates the formation, operation and closing of businesses through the Companies Act 2063, Partnership Act, Civil Code, tax and competition laws. Labour law regulates employer-employee relations mainly under the Labour Act 2074, covering working hours, leave, pay, safety, termination and disputes, supported by social security and trade union laws.

## Answer

#### Business law
**Business law** is the body of laws that regulates the formation, operation and closing of business and commercial dealings. Main laws in Nepal:
- **Companies Act 2063:** formation, management and winding up of private, public and other companies.
- **Partnership Act 2020**, **Industrial Enterprises Act 2076**, **Foreign Investment and Technology Transfer Act 2075**.
- **Muluki Civil Code 2074** (contracts, sale, agency, etc.), **Negotiable Instruments Act**, **Insolvency Act 2063**, **Securities Act 2063**.
- **Competition Promotion and Market Protection Act 2063**, **Consumer Protection Act 2075**, and tax laws (Income Tax Act 2058, VAT Act 2052).
- Intellectual property acts and the **Arbitration Act 2055**.

#### Labour law
**Labour law** regulates the relation between employer and employee. The main law is the **Labour Act 2074** with Labour Rules 2075, supported by the Contribution-Based Social Security Act 2074 and Trade Union Act 2049. It covers:
- Appointment letters and types of employment (regular, work-based, time-based, casual, part-time).
- Working hours (8 hours a day, 48 hours a week), rest, holidays and leave, overtime pay.
- Minimum remuneration, bonus, provident/contribution fund and gratuity.
- Health and safety, women's and child labour protection, discipline and termination, trade unions and collective bargaining, and labour dispute settlement.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Business law is the body of laws that
   A. regulates the formation, operation and closing of business and commercial dealings
   B. only fixes workers' wages
   C. only regulates taxes
   D. only governs criminal acts
   Answer: A. Business law covers formation, operation and closing of business and commercial dealings. (Key point: Definition of business law)

2. Which Act governs formation, management and winding up of companies in Nepal?
   A. Labour Act 2074
   B. Companies Act 2063
   C. Trade Union Act 2049
   D. Arbitration Act 2055
   Answer: B. The Companies Act 2063 covers formation, management and winding up of companies. (Key point: Law for companies)

3. What is the main law regulating employer-employee relations in Nepal?
   A. Labour Act 2074
   B. Insolvency Act 2063
   C. Consumer Protection Act 2075
   D. Securities Act 2063
   Answer: A. The Labour Act 2074, with Labour Rules 2075, is the main labour law. (Key point: Main labour law)

4. What are the normal working hours under Nepali labour law?
   A. 6 hours a day, 36 a week
   B. 10 hours a day, 60 a week
   C. 8 hours a day, 48 hours a week
   D. 8 hours a day, 56 a week
   Answer: C. Working hours are 8 hours a day and 48 hours a week. (Key point: Working hours)

## Related in Engineering Professional Practice

- [Contract law and labour law in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Acontract-law-labour-law-nepal) — Engineering Professional Practice, chapter 5
- [Labour law awareness; worker falls from height](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Alabour-law-worker-death) — Engineering Professional Practice, chapter 5
- [Patent vs trademark; business organization](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Apatent-trademark-business-law) — Engineering Professional Practice, chapter 5