Insurance Authority Directs Insurers to Provide Compensatory Leave or Overtime Pay for Extra Hours Worked

Kathmandu — The Nepal Insurance Authority has tightened its monitoring of insurance companies that require employees to work additional hours without providing extra benefits, directing all licensed insurers to comply with existing labor laws.

Through a circular issued to all licensed insurers, the Authority has clarified that employees cannot be subjected to unfair labor practices in the name of business requirements. Companies must provide compensatory leave or additional remuneration when employees are required to work on public holidays, weekly days off or beyond regular office hours.

The directive follows widespread complaints received by the Authority that insurance companies have been requiring employees to work on holidays and beyond regular working hours without providing the corresponding benefits.

The move is expected to help protect the labor rights of employees in the insurance sector and promote institutional good governance within insurance companies.