Employment
2007 Labour and Employment Act covering both nationals and foreign workers
The Labour and Employment Act 2007 sets contract requirements, an eight-hour day, leave and termination rules. It applies to foreign workers on permits as well as citizens.
Key rules
- Deadline — Written contract at commencement of employment
- Deadline — Final settlement of dues on termination without undue delay
Governing law
- Labour and Employment Act of Bhutan, 2007
- Regulation on Working Conditions, 2022
- National Pension and Provident Fund rules
In practice
The Act requires written contracts, prohibits discrimination and sets minimum wage by government notification. Trade unions are permitted in form but essentially absent in practice. Termination requires notice or payment in lieu and a stated ground; the Department of Labour handles disputes administratively before they reach court, and internal grievance procedures are mandatory for larger employers.