Labor Approval Process in Nepal

Nepal sends hundreds of thousands of workers abroad every year for foreign employment. Before a Nepali citizen can legally work in a foreign country through an institutional channel, the worker or the recruiting agency must obtain labor approval from the concerned government authority. This article explains the full labor approval process in Nepal, the legal framework behind it, required documents, fees, timelines, and common questions.

What Is Labor Approval in Nepal?

Labor approval is an official authorization issued by the Department of Foreign Employment (DOFE) under the Ministry of Labour, Employment and Social Security (MoLESS) of Nepal. It permits a Nepali worker to travel abroad for employment purposes through a registered manpower agency or on an individual basis.

Without labor approval, a Nepali worker cannot legally depart for foreign employment. Traveling abroad for work without this approval is a punishable offense under Nepali law.

Labor approval is different from a work permit. A work permit is issued by the destination country, while labor approval is issued by the Government of Nepal before the worker departs.

Legal Framework Governing Labor Approval in Nepal

The labor approval process in Nepal is governed by several laws and regulations:

• Foreign Employment Act, 2007 (2064 B.S.) – This is the primary law regulating foreign employment in Nepal. It defines the process for obtaining labor approval, the role of manpower agencies, and the rights of migrant workers.
• Foreign Employment Rules, 2008 (2065 B.S.) – These rules elaborate the procedural aspects of labor approval, documentation, and fees.
• Foreign Employment Promotion Board Act, 2007 – Governs the establishment and operation of the Foreign Employment Promotion Board (FEPB).
• Labour Act, 2017 (2074 B.S.) – Governs domestic employment and some conditions related to migrant workers returning to Nepal.

Under Section 23 of the Foreign Employment Act, 2007, no person shall go for foreign employment or send a person for foreign employment without obtaining labor approval from DOFE.

Types of Labor Approval in Nepal

There are two main types of labor approval in Nepal:

1. Institutional Labor Approval

This is obtained by a registered manpower agency (institutional recruitment license holder) on behalf of the worker. The agency applies for labor approval after receiving a demand letter from a foreign employer. This is the most common route for Nepali migrant workers.

2. Individual Labor Approval

This is obtained by the worker himself or herself without involving a manpower agency. This applies when a worker has received a direct job offer from a foreign employer and arranges employment independently.

Who Can Apply for Labor Approval?

The following parties can apply for labor approval:

• Registered manpower agencies holding a valid institutional recruitment license from DOFE
• Individual workers who have received a direct employment offer from a foreign employer
• Government-to-Government (G2G) employment programs – handled directly by the Government of Nepal

Workers must be 18 years of age or above to apply for labor approval. For certain countries like Saudi Arabia and Kuwait, additional age and health conditions may apply.

Step-by-Step Labor Approval Process in Nepal

Step 1: Demand Letter Authentication

The foreign employer sends a demand letter to the Nepali manpower agency. The demand letter must be authenticated by:

• The Ministry of Labour or relevant authority in the destination country
• The Nepali Embassy or Consulate in the destination country (where available)
• The Ministry of Foreign Affairs of Nepal

Step 2: Submission of Application to DOFE

The manpower agency or individual worker submits the labor approval application to DOFE. The application must include all required documents.

Step 3: Document Verification

DOFE officials verify all submitted documents including the demand letter, employment contract, manpower agency license, and worker information.

Step 4: Approval or Rejection

If all documents are found valid, DOFE grants labor approval. If any discrepancy is found, the application is rejected and the applicant is informed.

Step 5: Worker Orientation

Workers must attend a pre-departure orientation training conducted by the Foreign Employment Promotion Board or its authorized training centers. This is mandatory before departure.

Step 6: Departure

After receiving labor approval and completing orientation, the worker can legally depart for the destination country.

Documents Required for Labor Approval in Nepal

For Institutional (Agency-Based) Labor Approval:

• Valid institutional recruitment license of the manpower agency
• Authenticated demand letter from the foreign employer
• Employment contract signed by the employer
• Power of Attorney (where applicable)
• Details of workers (name, age, address, passport number)
• Medical fitness certificate of each worker
• Insurance documents

For Individual Labor Approval:

• Valid passport of the worker
• Authenticated job offer letter from the foreign employer
• Employment contract
• Medical fitness certificate
• Proof of qualification or skill (if required by the employer)
• Insurance documents

Labor Approval Fees in Nepal

The fee structure for labor approval is set by the Government of Nepal and is periodically revised. Below is a general overview:

Type of Approval	Fee Amount (Approximate)
Institutional Labor Approval (per worker)	NPR 1,500 – NPR 3,000
Individual Labor Approval	NPR 1,500 – NPR 3,000
Renewal or Re-approval	NPR 1,000 – NPR 2,000
Pre-departure Orientation Fee	NPR 500 – NPR 1,500

Note: Fee amounts are subject to change by DOFE notification. Workers should check the latest fee schedule on the DOFE official website.

Manpower agencies are prohibited from charging workers more than the government-prescribed service fee of NPR 10,000 for countries where free visa and free ticket arrangements exist (such as Malaysia, Qatar, and UAE under bilateral agreements).

Labor Approval for Free Visa Free Ticket Countries

Nepal has signed bilateral labor agreements with several destination countries under which foreign employers bear the costs of visa and air ticket. These countries include:

• Qatar
• United Arab Emirates (UAE)
• Malaysia
• Saudi Arabia (under specific arrangements)
• Jordan
• Bahrain

For workers going to these countries, manpower agencies can charge a maximum service fee of NPR 10,000 only. Charging beyond this limit is a punishable offense under the Foreign Employment Act, 2007.

Countries Open and Restricted for Labor Approval

DOFE maintains a list of countries approved for foreign employment. Workers cannot go to countries that are not on the approved list through formal channels.

Status	Countries (Examples)
Approved for Foreign Employment	Qatar, UAE, Malaysia, Kuwait, Saudi Arabia, Bahrain, Japan, South Korea, Israel, Jordan, Cyprus, Malta
Restricted (Women)	Iraq, Libya, Afghanistan, Syria, and others as notified
Restricted (All)	Countries under conflict or without bilateral arrangements

The government updates this list through official notifications. Workers must verify the current status before applying.

Online Labor Approval System in Nepal

DOFE has introduced an online labor approval system to reduce delays and increase transparency. Manpower agencies can apply for labor approval through the DOFE online portal at https://dofe.gov.np/.

The online system allows:

• Online submission of labor approval applications
• Document upload
• Payment of fees online
• Tracking of application status
• Generation of digital labor approval certificates

This system has significantly reduced the processing time for labor approvals and minimized physical visits to DOFE offices.

Processing Time for Labor Approval

Under normal conditions, DOFE processes labor approval applications within 7 to 15 working days after submission of complete documents. However, the timeline may vary based on:

• Volume of applications
• Authentication delays from destination countries
• Incomplete or incorrect documentation
• Special category approvals (such as domestic workers)

Validity and Renewal of Labor Approval

Labor approval is generally valid for the duration of the employment contract. For most cases, labor approval is valid for 2 years which corresponds to the standard employment contract period.

If a worker wants to renew the employment contract abroad, the worker or agency must apply for re-approval or renewal of labor approval before the existing contract expires.

Penalties for Violations Related to Labor Approval

The Foreign Employment Act, 2007 prescribes strict penalties for violations:

• Section 41 – Any person who sends workers abroad without labor approval shall be liable to imprisonment of up to 5 years or a fine of up to NPR 200,000 or both.
• Section 43 – Manpower agencies found charging fees beyond the prescribed limit shall face license cancellation and criminal prosecution.
• Section 44 – Workers who depart without labor approval may be blacklisted from future foreign employment.

Role of Manpower Agencies in Labor Approval

Registered manpower agencies play the central role in the institutional labor approval process. They are licensed by DOFE under the Foreign Employment Act, 2007. Their responsibilities include:

• Authenticating demand letters on behalf of workers
• Submitting complete documentation to DOFE
• Ensuring workers attend pre-departure orientation
• Providing welfare support during the employment period
• Maintaining records of workers sent abroad

There are over 800 registered manpower agencies in Nepal operating under DOFE regulation as of 2024.

Pre-Departure Orientation: A Mandatory Requirement

Before departure, every worker must attend a pre-departure orientation (PDO) session. This is organized by the Foreign Employment Promotion Board (FEPB).

The orientation covers:

• Rights and responsibilities of migrant workers
• Labor laws of the destination country
• Safe migration practices
• Information about legal channels for grievance redressal
• Health and safety guidelines

Workers who skip this mandatory orientation cannot receive the final clearance for departure.

Grievance and Complaint Mechanism

Workers who face problems related to labor approval, manpower agencies, or foreign employers can file complaints with:

• DOFE – Department of Foreign Employment
• Foreign Employment Tribunal – for legal disputes
• Foreign Employment Promotion Board (FEPB) – for welfare-related issues
• National Human Rights Commission – for human rights violations

DOFE has a dedicated complaint desk and online complaint portal.

Conclusion

The labor approval process in Nepal is a structured and legally mandated procedure under the Foreign Employment Act, 2007. Every Nepali worker seeking employment abroad must go through this process to ensure their rights are protected and their employment is legally recognized. DOFE, FEPB, and registered manpower agencies all play defined roles in this process. Workers should always use official channels, verify the status of their manpower agency, and retain copies of all documents related to their labor approval.

For the latest updates on labor approval procedures, fees, and approved countries, visit the official DOFE website at https://dofe.gov.np/ or the Ministry of Labour, Employment and Social Security at https://moless.gov.np/.

FAQs