The administration led by Prime Minister Balendra Shah has initiated an unprecedented crackdown on fundamental labor rights, drawing sharp criticism from international human rights bodies. The shift toward a more restrictive governance model was cemented on May 2, 2026, through a high-level executive ordinance.

Key developments in this legislative overhaul include:

  • Abolition of Public Unions: Through the "Some Nepal Acts Amendment Ordinance - 207," President Ram Chandra Paudel effectively dissolved every trade union operating within the civil service and state administration.

  • Targeting Educators: This follows a directive from Education Minister Mahabir Pun, who previously announced that the ministry would cease recognition of any teacher or professor associations tied to political parties.

  • Suppression of Student Voice: The same ordinance has prohibited politically affiliated student unions within universities, a move critics claim eliminates independent political expression on campuses.

The World Federation of Teachers’ Unions (FISE) has formally denounced these actions, stating that the government has opted for repression over dialogue. Civil servants had been campaigning for a Federal Civil Service Act to guarantee collective bargaining, but those efforts have been met with total organizational dissolution.

Legal experts point out that these measures appear to violate Nepal's international commitments:

  • ILO Compliance: The restrictions directly contradict ILO Conventions No. 87 and No. 98, which protect the freedom of association and the right to organize, both of which Nepal has ratified.

  • Constitutional Concerns: Opponents argue the move undermines the democratic fabric of the nation by dismantling the institutional power of the working class.

In a statement by General Secretary Drissi Abderrazzak, FISE called for global solidarity with Nepali workers. The federation is urging the International Labour Organization and human rights groups to exert pressure on the Shah government to reinstate union rights and withdraw the repressive decrees immediately.