The Labour Act 2074 has made key changes to employment law in Nepal. The preamble of the Act says that laws relating to labor is enacted to make provisions for the rights, interests, and benefits of workers and make clear provisions relating to the rights and duties of employers in order to promote good industrial relation and end all forms of labour exploitation for the growth of productivity. It was passed by the Parliament on 11 August 2017 (27 Shrawan, 2074). Section 2 (j) of Labour Act, 2074 define Enterprise as any company or private firm or partnership firm or cooperative organization or association, or any other organization established or incorporated or formed or operated pursuant to the prevailing laws with an objective to carry on any industry or occupation or service with or without any motive to make a profit. It has also defined an Employment Contract means any agreement entered into between an employer and a worker regarding his/her employment service, conditions, and benefits and it shall also mean an appointment letter given to workers by the employer.