Labour and Employment Act of Bhutan 2007.

The Labour and Employment Act of Bhutan, 2007 establishes the legal framework for regulating employment relationships, protecting workers’ rights, and promoting fair labour practices in Bhutan. It contains 237 sections across XV chapters. The Act applies to employers and employees and sets standards for employment contracts, wages, working conditions, occupational safety, dispute resolution, and labour administration. It prohibits forced labour, child labour, discrimination in employment, and sexual harassment, ensuring a safe and fair workplace environment.
The Act provides detailed provisions regarding employment contracts, requiring clear terms and conditions between employers and employees. It covers probation, notice periods, termination of contracts, lawful and unlawful dismissal, redundancy, and remedies for wrongful termination. Employers are required to provide appropriate compensation and benefits, while employees are entitled to protections relating to wages, leave, public holidays, and other employment benefits. The Act regulates working conditions, wages, and employee welfare by establishing provisions on working hours, leave entitlements, overtime payments, minimum wages, wage records, and timely payment of salaries. It also places obligations on employers to maintain occupational health and safety standards, including workplace safety policies, accident reporting, risk management, and protection of employees from unsafe working conditions. Employees also have responsibilities to follow safety procedures and contribute to maintaining a safe workplace.
The Act further provides mechanisms for labour representation and dispute resolution. It recognizes workers’ associations, encourages collective negotiation, and establishes procedures for resolving workplace grievances through negotiation, conciliation, arbitration, or legal processes. It also regulates employment agencies and the employment of foreign workers by requiring proper licensing and permits, and recruitment are managed responsibly.