Analysis of legal landscape regarding internships in Nepal

Internship in Nepal is gradually gaining recognition as a critical link that connects academic study and professional careers, offering practical experience to students and fresh graduates. However, the legal framework of internships remains largely undefined and hence marked by inconsistencies and exploitation. This is particularly evident in professions such as law, chartered accountancy, and architecture, where the internship is often carried out without any clear oversight, and its linkage with learning objectives is sacrificed. Instead of being seen as learning opportunities, internships are sometimes used as a way to justify paying lower wages.

Existing legal framework and shortcomings 

While the issues of internship indirectly come under the Labor Act 2017, Nepal’s main legislation regarding employment, it does not specify regulations relating to internships. The Act deals with ‘trainees’ and provides certain protections, such as limitation of working hours, safety measures, and compensation in case of injury. Although these may include internships related to academic courses, the ambiguity of definition creates legal ambiguity. They are allowed to work for eight hours daily or 48 hours in a week. They are also provided with medical support, compensation for injuries; however, many tasks which are beyond the training they mostly get transferred or change their status into ordinary laborers which complicates the legal situation. 

Due to this lack of clear regulation, there have been many abuses of internships as a labor law loophole. Interns are often overworked and underpaid, with basic employee protections denied. Minimum wage issues, work hours, safety standards, and compensation for injuries 

are frequently disregarded, which places interns in a precarious situation. Many work long hours with neither formal agreements nor contracts, with little to no financial compensation, and undefined roles. 

Liability and workplace protections 

As no particular legislation exists concerning the matter, liability for work performed by the student will be quite undetermined. Such a legal vacuum provides uncertainty to who would be liable for any damage or loss resulting from performance of the interns, which arises rather typically in cases of legal disputes, especially negligence or misfeasance. In most instances, little protection from workplace harassment, discrimination, and mistreatment can be accorded to interns and limited ways of appeal against those hostile environments. These requirements do not extend to employers who must provide structured learning, mentorship, or adequate training, which often reduces internships to poorly paid work rather than an educationally enriching experience. 

Need for comprehensive regulation 

The urgent need exists for comprehensive regulation through legislation that can provide a clear definition of internships and the difference between them and regular employment or traineeships. Such a framework must detail both the rights and responsibilities of the interns and the employers, providing minimum conditions for work, including reasonable hours, fair

compensation, and safe environments. Also, educational institutions bear the responsibility to guarantee the quality of internships, specify agreements with host organizations, and monitor placements for their adherence to educational and professional standards. 

Stronger protections with clear definitions of what constitutes a genuine learning experience would afford better protection for an internship, making the job market more transparent as a result. Thus, moving ahead in the Nepalese employment landscape, more elaborated regulation of internships will be required to accompany economic growth and ensure that internships provide an actual route into professional careers. 

Manish Khadka 

BA LLB 4th Year 

Kathmandu School of Law