New online labour system nears its launch

ILMIS to digitise labour permits, occupational safety records, and trade union activities

 

Kathmandu, July 20

With an aim of digitizing services offered by labour inspectorate in Nepal, the Department of Labour and Occupational Safety (DoLOS) has developed an Integrated Labour Management Information System (ILMIS) – a web portal that allows digital submission of labour audits, occupational accidents and disease reports, and case management system for labour disputes.

According to Director (Technical) and Spokesperson of the DoLOS, Engineer Maninath Gope, the system is in the final phase and would be officially rolled out in a month or so.

After the implementation of the new online-system, work and data related to foreign citizens to work in Nepal, labour suppliers, trade unions, and labour dispute resolution can be handled digitally without physically going into the existing eleven labour and employment offices.

Labour Act 2017 requires submission of a self labour audit each year by enterprises, which according to DoLOS is a complex task that involves 38 indicators addressing the major legal provisions of the labour laws. This was especially difficult for micro and small enterprises who had to physically travel to a different district where labour and employment office was based to submit the labour audit report. ILMIS by allowing digital submission democratizes the process, and facilitates the compliance process.

Likewise, it handles trade union registration and renewal, name changes, cancellations and amendments to trade union statutes.

"It will facilitate and simplify the registration of the details regarding occupational accidents and diseases. It also facilitates performance of the activities related to collective bargaining online," said Gope.

One of the most required functions in the business establishments has been managing rights and interest-based disputes in a systematic manner.

The ILMIS not only enables the online registration of applications related to labour disputes, including minimum wage, individual claims, and collective claims but also provides applicants with information on the processing status of their applications.

Similarly, new improvements to ILMIS include developing case management and messaging systems for grievance handling and occupational accident reporting.

The new system will support paperless work and technology-friendly service delivery, promote fast and transparent work process, and eliminate the need for repeated visits to the concerned offices. It will provide updated statistics of the establishments and workers.

 

Implementing transformation

Engineer Gope informed that the DoLOS had initiated the software development work about two years ago with Rs. 4.2 million. "With a vision of transforming the labour department to a technology-efficient and technology-friendly, we had launched a drive to develop a comprehensive software. But lack of budget limited the progress," he said.

The software has been used for issuing the labour permits to the industries, labour permits to the foreign citizens in Nepal, and recording trade union activities.

However, the Ministry of Labour, Employment and Social Security (MoLESS) under the National Action Plan on Formalization, worked together with the International Labour Organization (ILO) to provide technical and financial support in upgrading the software to include a full case management system for rights disputes, collective bargaining, industrial accident and disease reporting, and enterprise audits.

Following the launch of the new system, respective companies and trade unions can digitally feed the data into it saving their time and resources. Likewise, it will facilitate the DoLOS in collecting information even from the rural areas in a quick and reliable manner.

Currently, the DoLOS and ILO have conducted orientation trainings to the stakeholders of the ILMIS on the updated system. Such trainings have been organised in Dhangadhi, Surkhet, Birgunj and Biratnagar and will be conducted in Kathmandu soon.

"In about a month, the developer will officially handle the system to the DoLOS. Currently, we are testing the software from every aspect," said Engineer Gope and added that the system would be implemented gradually.

Since the labour is considered a tripartite issue in Nepal, the Department is collaborating with the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) from the employer's side and Joint Trade Union Coordination Center (JTUCC) from the employee's side. The committee implementing the national action plan on formalization also has representation from FNCCI and JTUCC.

Women Committee Coordinator at the JTUCC, Sita Lama, appreciated the ILMIS stating that it has given priority to grievance handling and occupational safety and paved the way to manage them digitally.

"Although we have good laws, their implementation has remained poor. But with the implementation of online system, it would be easy to keep records of grievance and monitor the implementation of the facilities provided to the workers," she said.

However, Lama said that all workers must have easy and timely access to the system. For it, they should be enabled with information and skills, she stated.

Co-Chair of the Employers Council of the FNCCI, Babu Kaji Karki, said that the new system would facilitate all the stakeholders of the labour market. According to him, the small and medium enterprises (SMEs) should be provided with support so that they can implement it better.

 

A model project

The ILMIS functions as a web application with a front-end for user interaction and a back-end containing business logic, a web server, file system, and database.

The system flow for service seekers involves user registration via email and OTP, profile and document setup, application submission, payment verification, and the generation of a license certificate upon approval. For administrators, the system includes processes for reviewing, approving, and rejecting applications, as well as setting fees/fines and forwarding for further approval.

The DoLOS informed API integration with the Social Security Fund (SSF) to verify labour information has been initiated, with an MoU signed supported by the ILO. Efforts are also underway to improve usability through streamlined navigation, clear instructions, optimised interface design, responsiveness across devices, role-based access control, and mobile-friendliness.

Engineer Gope informed that the ILMIS being updated is a unique system in the South Asian Region. "Neighbouring countries like Sri Lanka and Bangladesh have shown interest in our system and want to replicate the model in their respective countries," he said. 

Published in The Rising Nepal daily on 21 July 2025.