Labour Ministry: No Unpaid Trainees

In a stern crackdown on labor exploitation, the Ministry of Labour, Employment, and Social Security has warned that “training” is no excuse for underpayment, mandating that all institutions provide trainees with full minimum wage and social security benefits or face legal prosecution.

The Ministry issuing a statement Monday directed all concerned to provide minimum wages to the trainees, especially in the health, private school, and service sectors.

The move, according to the statement, comes after complaints that trainees have been forced to work without the legally mandated pay and benefits.

The Ministry reminded all employers that Section 18, Sub-section (3) of the Labor Act, 2017 explicitly prohibits the exploitation of trainees. Under the law, any individual engaged as a trainee must be provided with minimum wage, social security benefits, leave and insurance coverage.  

The government’s notice specifically calls out private hospitals, health institutions, and private schools. The Ministry noted that it has received “serious complaints” regarding health workers and teaching staff being denied their basic rights.

“The Ministry’s attention has been seriously drawn to reports that professionals, particularly nursing staff and private school employees, are not receiving the minimum remuneration and facilities prescribed by the law,” the statement read.

The Ministry has urged all employers to comply with the Labor Act to avoid stern action.

This move is seen as a significant step toward formalizing the labor market in Nepal’s private sector, where the “trainee” label is frequently used to bypass labor rights and reduce operational costs.