Section 116: Collective claim may be submitted

1) Any enterprise employing ten or more than ten labourers shall have a collective bargaining committee as follows:

(a) A team of negotiating representatives designated on behalf of the elected authorised trade union of the enterprise,

(b) In cases where election to the authorised trade union referred to in clause (a) could not be held or where election has been held but its term has expired, a team of negotiating representatives nominated through mutual agreement of all the unions in the enterprise,

(c) In cases where there is no authorised trade union referred to in clause (a) or team referred to in clause (b), a team of representatives supported with the signatures of more than sixty percent of the labours working in the enterprise.

2) The collective bargaining committee may submit collective claims or demands in writing to the employer on issues relating to the interest of the labours.

3) Notwithstanding anything contained in sub-section (2), no collective claims or demands may be submitted on the following matters:

(a) A matter which is contrary to the Constitution of Nepal,

(b) A matter which contains an allegation with no evidence or basis and is thus contrary to the interest of anyone,

(c) A matter which affects the personal conduct of any employer or labour,

(d) A matter which is not related to the enterprise,

(e) Until the period specified in this Act lapses in cases where the collective agreement has been made,

(f) A matter relating to the rate of contribution and benefits specified for the social security scheme.

4) The collective bargaining committee may consist of a maximum of three to eleven members, as prescribed, on the basis of the number of labourers.

5) The collective bargaining committee formed pursuant to this Section shall have the powers to submit collective claims or demands, enter into an agreement, file a case against any person or defend a case.