Nepal Rastra Bank Drafts Major Amendments to Bank Employee Leave Policies

Nepal Rastra Bank has drafted major amendments to the service regulations for employees in banks and financial institutions to ensure better leave protections. Under the new proposal, workers cannot accumulate their annual mandatory leave and must take at least seven consecutive days off with full pay.

For female staff, the draft introduces 14 weeks of fully paid maternity leave, which can be taken before or after childbirth; if more time is needed, it will deduct from other available leaves or can extend up to one year as unpaid leave if recommended by a specialist doctor. Additionally, paid mourning leave is being expanded to include the passing of in-laws or when a spouse undergoes traditional mourning rituals.

Significantly, financial institutions will be strictly prohibited from recalling employees who are out on critical leaves, specifically mourning, maternity/paternity care, mandatory home, sick, and marriage leaves. While banks can still recall staff from non-critical casual leaves when necessary, they must save those unused days and compensate the employee with either substitute time off or equivalent pay for the days worked.