What are the Probation Periods like in Nepal?

In Nepal, probation periods allow employers to evaluate a new employee's performance and suitability for a role before confirming their permanent employment. During this period, specific rules apply regarding dismissal, notice, and severance pay. Here's what both employees and employers should understand about probation periods in Nepal.

Dismissal during the Probation Period

An employee can be dismissed during the probationary period. However, the employer must provide advance notice, the length of which depends on how long the employee has been employed:

  • Up to 4 weeks of employment: 1 day of notice is required.
  • Between 4 weeks to 1 year of employment: 7 days of notice is required.
  • Above 1 year of employment: 30 days of notice is required.


Even during the probationary period, an employer must provide severance pay if an employee is dismissed. The severance pay is calculated based on the accumulated gratuity, prorated up to the point when the employment contract ends.


During the probationary period, vacation pay is not applicable. If any vacation pay has been advanced or allocated, it will be refunded to the employer upon the termination of the employment contract.

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