Employer in Bhutan

An employer registers the workplace with the Department of Labour and provides the business name, licence or registration number, location, contact details, ownership, employee information, wages, start dates and manpower forecast. A new business registers within 90 days of starting operations; an existing business registers within 60 days after the registration requirement takes effect. Updates can be submitted online, through a survey or in person. Workplace registration supports access to Internal Service Rules, foreign-worker procedures and other Department of Labour services. The employer gives written notice to the Chief Labour Administrator when the workplace closes. Labour inspectors may enter the workplace, examine documents, interview people and issue an Improvement Notice or Prohibition Notice. The Labour Administration System records registration, Internal Service Rules, accidents and illnesses, grievances, workers’ compensation, appeals, occupational health and safety policies and committees, and self-inspections twice a year. Internal Service Rules are written workplace rules. They are required for a registered company, a small-, medium- or large-scale industry, or a workplace with at least five regular employees. The employer consults the Workers’ Association or employees, and the rules are signed by the employer and at least three employee representatives. The Chief Labour Administrator reviews them and decides within 21 working days. If approval is refused, the employer corrects and resubmits them within 14 working days. The rules and their explanation use a language employees can understand. They cover non-discrimination, sexual harassment, recruitment, contracts, wages, provident funds, gratuity, compensation, redundancy, working time, leave, discipline, occupational safety, accidents, training and grievances. Recruitment rules generally require a minimum age of 18 and public notice of every vacancy through mainstream media or social media. The stated recruitment procedure excludes sole proprietorships. A typical process takes about nine weeks: the vacancy remains open for two weeks, shortlisting takes one week, interview notice one week, selection one week, and the remaining time covers results, thanks, references, grievance handling, the offer, acceptance, contract and appointment. A selection committee handles the process. Applicants with disabilities receive equal opportunity and an enabling work environment. The employer gives each employee a written contract and a copy. The contract states its duration, duties, notice period, wage, working hours, probation, leave and other applicable conditions. The pay period cannot exceed one month. The employer pays wages directly to the employee in cash or into a bank account in Bhutan and provides a written wage statement when employment begins and with every payment. The wage register is kept for five years. Deductions are limited to lawful or permitted deductions, and at least half of the total wage remains payable to the employee. Bhutan sets a national minimum wage by ministerial order with daily, monthly and hourly rates. The last located official notice states Nu 125 per day and Nu 3,750 per month from 2014; the current rate should be confirmed with the Ministry of Industry, Commerce and Employment or the Department of Labour before setting pay. Standard working time is up to eight hours per day and 48 hours per week. Overtime is limited to 12 hours per week, requires agreement by both sides and is paid at least at the normal rate. Work between 22:00 and 08:00 receives a 50 percent supplement, and work on a public holiday also receives a 50 percent supplement. Employees receive at least 12 hours of daily rest and 24 hours of weekly rest. The employer pays wages due after the contract ends within seven days. After probation, annual leave is at least 18 working days per year and sick leave is at least five working days per year. After 12 months of continuous service, paid maternity leave is at least two months and paternity leave is at least ten working days. A contract lasting at least one year generally carries a notice period of at least 30 days for either side. Probation lasts no more than 180 days, and termination during probation requires seven days’ notice. Redundancy is limited to the disappearance of work or required skills. The employer consults the Workers’ Association or employees, communicates the number of affected employees and the period, and applies the standard notice period plus seven days for each completed year of service, up to an additional 42 days. Payment instead of notice is permitted. In a wrongful-dismissal case, the employer has to prove a valid reason; a court may order reinstatement or compensation of one month’s wage per year of service, up to six months. A collective bargaining agreement remains in force when management, ownership or the undertaking changes. Occupational health and safety rules apply to all employment except farming. The employer provides a safe environment, identifies hazards, assesses risks, eliminates or reduces hazards, gives information and training, supervises work and keeps records. A written occupational health and safety policy is required for a registered company, a small-, medium- or large-scale industry, or a workplace with at least 12 employees. A workplace with at least 20 employees establishes a Health and Safety Committee within 90 days if new or 60 days if already operating, meets at least quarterly, appoints a full-time Safety Officer and prepares an Emergency Action Plan. The employer supplies personal protective equipment free of charge and maintains it. Hazardous processes require pre-employment and periodic medical examinations; the employer pays costs not covered by the state and grants paid leave for them. Accidents and incidents are reported immediately to the Chief Labour Administrator, and a death is also reported to the police. A written record follows within five days. Workers’ compensation covers death, total permanent disablement and temporary partial disablement caused by a workplace accident or occupational disease. The employer cannot transfer occupational safety costs to employees. Construction and manufacturing receive particular attention under Bhutan’s National Occupational Health and Safety Strategy 2025–2035. A Workers’ Association is Bhutan’s local employee-representation body. An enterprise generally needs at least 12 employees with contracts of at least one year, five years of commercial operation and at least seven members over 18 to register one. Joining is voluntary, and management and supervisory employees are excluded. Registration is submitted to the Chief Labour Administrator within 30 days; the decision is due within 15 calendar days and remains valid for three years. The employer cannot influence or obstruct the association and provides reasonable facilities and paid time off. The association can represent employees, present claims, negotiate collective bargaining agreements and participate in grievance, sexual-harassment and occupational-safety matters. The parties bargain in good faith, and a collective bargaining agreement is sent to the Chief Labour Administrator within seven days. It becomes binding after certification. The employer makes a grievance procedure known and available. The employee first uses the workplace procedure and meeting. If the matter remains unresolved, it is notified to the Chief Labour Administrator. A Labour Relations Officer assists and reports within seven working days. The parties choose a conciliator within four days; if they do not agree, the Chief Labour Administrator appoints one. A rights dispute goes to a court, while an interests dispute goes to arbitration. Foreign-worker recruitment currently follows the Rules and Regulations on Foreign Workers Management 2024, which replaced the 2022 rules. The employer obtains approval from the Chief Labour Administrator before recruitment. Available pathways include the Critical Skills Shortage List, sector-based quota, need-based approval, case-by-case approval and a dependency-ratio ceiling. An employer cannot dismiss a Bhutanese employee to replace that employee with a foreign worker. A foreign worker may work only for the approved employer, worksite and occupation; changing employer requires approval. R permits last up to one year, S permits last up to 30 days and cannot be extended, B permits last up to one year for border-town work with daily exit, and H permits cover up to six hours for urgent technical services. R and B renewals are submitted at least 14 days before expiry. The employer pays agent service charges, medical, transport, administrative and repatriation costs, and where required provides decent accommodation, a bank account, monthly wages, statutory deductions, insurance, compensation, support during illness or death and repatriation. Bhutan has no regional special rule in the reviewed national framework. The Department of Labour operates through four regional offices. The main employer costs are wages, overtime and shift supplements, occupational-safety equipment and training, medical examinations, compensation, and foreign-worker recruitment, transport and repatriation. Fixed Department of Labour fees are not stated in the applicable core sources, so any current charge should be confirmed before an application or registration is filed.