KATHMANDU: The government has decided to discontinue the services of contract-based employees who have already received retirement benefits, gratuity, or are receiving pensions from government services.
The Ministry of Land Management, Cooperatives, Federal Affairs and General Administration issued a seven-point circular to all government bodies on Friday, directing them not to extend contracts of such employees from today.
The ministry has instructed government offices to maintain a pool of currently employed contract staff under existing contract agreements until further arrangements are made.
The ministry will maintain and update an integrated record of employees kept in the pool.
Once the Organisation and Management (O&M) Survey is approved, concerned government agencies will be required to assign work to employees from the pool based on their requirements.
The circular also states that if new positions are created in newly established agencies or vacancies arise in existing offices, authorities should not hire new contract employees. Instead, they must request available contract staff from the pool through the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration.
For agencies undergoing merger or dissolution under different ministries, the concerned ministry will determine the minimum workforce required for protecting assets, ensuring security, and completing the transfer and settlement of assets and liabilities. Existing contract employees of those agencies will be used for such purposes until the process is completed.
The ministry said it will conduct a study within one month to recommend appropriate arrangements for remaining contract employees, minimum service conditions to be included in future contract agreements, and facilities to be provided when contracts cannot be continued due to the absence of approved positions.
The decision follows the Cabinet meeting held on July 16, which approved a plan to manage contract employees working in sanctioned positions at various ministries and subordinate offices affected by organisational restructuring.








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