Government proposes scrapping civil service trade unions, Strict ban on political affiliation

KATHMANDU: The Government of Nepal has proposed sweeping reforms to the civil service, including the abolition of employee trade unions linked to political parties and strict penalties for civil servants involved in political activities.

The draft of the new Federal Civil Service Bill, prepared by the Ministry of Federal Affairs and General Administration, has been made public for feedback within 27 days of the formation of the new government.

Minister Pratibha Rawal said the proposed law aims to replace politically affiliated trade unions with an effective grievance-handling mechanism, ensuring employee concerns are addressed without political influence.

Strict Ban on Political Activities

The draft bill introduces a complete prohibition on political affiliation for civil servants.

It states that government employees will not be allowed to:

Join political parties or their sister organizations
Participate in political activities
Contest elections for political positions

If found involved in political activities, civil servants could face dismissal and permanent disqualification from future government service.

End of Trade Unions, New Grievance System

The government has proposed removing existing trade unions within the civil service, many of which are affiliated with political parties.

In their place, the bill envisions a structured and independent grievance redress mechanism to handle employee complaints and workplace issues.

Service Tenure and Administrative Reforms

The draft outlines several changes in service conditions:

Retirement age set at 60 years
Secretaries to serve a two-year term, extendable by one year based on performance
Fixed tenure for senior officials, including two-year terms for higher-level officers

The bill also introduces provisions for lateral entry into executive roles based on competency assessments.

Transfer and Posting Rules Tightened

New transfer rules aim to bring stability and accountability:

Minimum tenure requirements before inter-ministerial transfers
Maximum four-year limit in the same position and office
No more than 30% inter-ministerial transfers in a fiscal year

Junior officers will not be assigned leadership roles before completing a minimum service period.

Mandatory Service in Remote Areas

To address reluctance among officials to serve outside urban centers, the bill proposes:

Mandatory service in remote areas and local governments
Experience in such postings as a requirement for promotion

Officials who do not serve in these areas will not qualify for higher positions.

Performance and Accountability Measures

The draft includes stricter performance evaluation systems:

Underperforming officials or those with unresolved audit issues may be placed on a negative list, affecting promotions and appointments
Annual performance agreements for senior officials, with quarterly reviews and public disclosure

Conflict-of-interest provisions have also been introduced to prevent misuse of authority for personal or financial gain.

Two-Year Cooling-Off Period

The bill retains a two-year “cooling-off period” for senior civil servants after retirement or resignation.

During this period, they will not be eligible for:

Constitutional appointments
Diplomatic roles
Other government positions
Structural and Institutional Changes

Key additional proposals include:

Introduction of a mixed hierarchical and level-based civil service structure
Formation of a dedicated IT service cadre to attract skilled professionals
Establishment of a Civil Service Board to oversee transfers and career management
Limiting reservation benefits to one-time use at each level

The bill also includes provisions to support employees with family caregiving responsibilities through flexible transfers.

Public Consultation Open

The ministry has invited public feedback on the draft, marking a departure from past practices where such proposals were rarely opened for broader consultation.

Minister Rawal said the government expects extensive input from stakeholders before finalizing the bill, emphasizing that the reforms are aimed at building a more professional, accountable, and politically neutral civil service.