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Employment Laws in Bhutan

Bhutan has a set of employment laws that aim to maintain a fair working environment for both employers and employees. The primary legislation governing employment relationships is the Labor and Employment Act of Bhutan 2007.

Key Employment Legislation

  • Labor and Employment Act of Bhutan 2007: This act covers various aspects such as contracts, working hours, minimum wage, annual leave, termination procedures, employee benefits, and protection against unfair dismissal.
  • Occupational Health and Safety Act 2000: This act focuses on ensuring a safe workplace for employees by obliging employers to implement safety measures, conduct risk assessments, provide employee training, and prevent accidents.
  • Bhutan Social Security Act 2011: This act establishes the framework for social security contributions, healthcare benefits, and retirement pensions. It covers employee and employer contributions, sickness benefits, maternity/paternity leave, and pensions.
  • Civil Service Act of 2010: This act governs employment in the civil service sector, setting regulations for recruitment, employment conditions, and disciplinary actions.

Resources for Employment Information

Websites such as:

provide information on employment rules and regulations in Bhutan.

Consequences of Non-Compliance

Non-compliance with employment laws can result in penalties and legal consequences. Violations of the Labor and Employment Act may incur fines ranging from Nu. 5,000 to Nu. 25,000 for each offense. Non-compliance with the Occupational Health and Safety Act may lead to fines ranging from Nu. 5,000 to Nu. 25,000 for each violation.

Failure to comply with social security obligations can result in fines, penalties, or legal action. The specific penalties depend on the nature of the violation. Breach of the Civil Service Act may also result in fines, penalties, or legal action as determined by competent authorities.

Conclusion

Employers must stay updated on amendments to existing laws and seek legal advice to navigate employment regulations effectively. By adhering to these regulations, employers can create a positive work environment while protecting employee rights and well-being.