January 1: Stakeholders have warned that the industrial sector will get engulfed in turmoil if the parliament endorses an amendment proposal of the Bonus Act 2030 forwarded by the government.  Big corporate houses, companies, banks and financial institutions, representatives of the private sector as well as trade unions have said in unison that the amendment proposal aims to demoralize both the industrialists and the workers. They have demanded the government to withdraw the amendment proposal and initiate dialogues with the concerned stakeholders.

In this regard, the Federation of Nepalese Chambers of Commerce and Industries (FNCCI) held discussions with the representatives of multinational companies operating in Nepal on Tuesday (January 1) and reached to the conclusion that the amendment proposal is inappropriate. The FNCCI also urged the government to reconsider its decision to amend the Act.

“The amendment proposal is certain to spoil the good relation between the employer and the employee. Therefore, we held discussions on requesting the government to withdraw the amendment proposal,” said Shekhar Golcha, senior vice president of FNCCI.

There will definitely be a revolt if the government snatches away the perks and benefits that the workers have been enjoying, argued Golcha.

“This decision will have a long-term effect in the industrial sector,” he added.

Nepal Bankers’ Association also held discussions regarding this issue on Tuesday. The association’s executive director Anil Sharma said that the government’s decision will have a direct impact on the banking sector as thousands of employees will be denied their perks and benefits which they have been receiving so far.

“The amendment will demoralize thousands of workers,” he said.

Likewise, the trade union affiliated to Nepali Congress warned the government of grave consequences if the government goes ahead with the amendment proposal which is against the wishes of both the employers and the employees.

The Bonus Act 2030 currently has a provision of depositing 30 percent of amount left after distributing bonuses to the employees at the social security fund of the government. However, the government’s amendment proposal seeks to take away 70 percent of the amount, leaving very little benefits for the employees.