A vacuum of accountability

Shuffling through the realities of Nepal’s Adult Entertainment Sector (AES) meant spending days absorbing stories of survival, economic displacement, wage theft and a quiet, systemic cruelty. It is a recurring pattern. Once these issues are translated into writing, the other, more important, question remains: how do we fix it? 

For a long time, AES like cabin restaurants, dance bars, and dohori sanjhs have been viewed as a societal taboo that needs policing. This completely deters us from the fact that it is an informal economy where workers are systematically stripped from their basic legal rights. This is not merely an accident but a result of policy vacuum that gives employers leeway to operate outside the boundaries of law, essentially profiting through labour exploitation. The law exists on paper, but the implementation is bleak. 

The majority of AES workers are denied written contracts, forcing them to maintain an informal relationship with the employer. This goes against Section 11 of Nepal’s Labour Act (2074), which prohibits employing anyone without a written agreement. Ideally, these workers are supposed to receive a written contract with wage that matches or exceeds the government’s minimum wage standards, independent of tips and commission. 

This lack of paper trails not only takes away their labour rights; it ripples into something worse. It enables rampant wage theft, arbitrary transmission and employers have a terrifying leverage against workers when they force them toward unsafe situations with the clients like coerced alcohol consumption.

To tackle this, the next step is to make use of the already existing law that has failed to protect this community. The state is responsible for ensuring that there are mandatory, industry-specific standardized contracts that ensure workers’ fair pay. Additionally, to make this work, local governments must make the annual renewal of an establishment’s commercial license dependent upon digital payroll records. If salaries are paid electronically into a bank account, employers can no longer retroactively claim a worker was never employed there when a dispute arises.

However, the risk of working in AES does not stay confined within the four walls of their workplace. Kathmandu does not have operational public transportation after 11 pm. These workers have no choice but to walk home, which is often rendered unsafe as their work ends at 2 am. Most often, they face inappropriate interactions and abuse on the street. 

Under Section 132 of the Labour Act, employers are required to ensure that a workplace is free from sexual harassment and abuse. This law hasn’t been implemented within the workplace as many experience abuses camouflaged as client engagement. In a work that involves late-night economy, commuting home is a direct extension of that workplace. To address this issue, the most practical solution would be to amend local municipal byelaws to make it legally mandatory for any commercial establishment operating at night after certain hours to provide verified, door-to-door drop-off transportation for their staff. 

Finding a place to live is another big issue. Housing insecurity is a major problem among these workers. As working in AES is considered more of a taboo than a job in Nepali society, most landlords are unwilling to allow these workers to rent a place. Even if they do, workers are exposed to humiliation for doing a job that isn’t socially approved. 

Facing intense social stigma and sudden evictions, many women are pushed into unsafe live-in relationships just for physical protection. Local governments need to use municipal funds to partner with specialized civil society groups to fund subsidized, safe-haven hostels where workers can find secure, stigma-free housing and immediate mental health support to cope with deep occupational burnout.

What’s more heartbreaking is that the trauma is passed down through bureaucratic violence to the next generation. As mentioned in the previous article in AES, there are workers left by their partners to raise children on their own. This is often the result of live-in relationships, again, a temporary solution workers comply with to ensure a roof over their head. Despite needing the state’s support, these workers hit a brick wall at local ward offices. 

Officials are known to refuse birth registration or to process citizenship applications, frequently demanding the physical presence or identification of the father. This administrative gatekeeping is a direct violation of Article 38 of the Constitution of Nepal which guarantees the rights to women and Article 39 that protects a child’s right to identity. 

More importantly, it violates landmark Supreme Court precedents like the Sabina Damai case, which explicitly ruled that a mother has the independent legal right to register her child’s birth and give citizenship matrilineally if the father cannot be found or is uncooperative. To solve this problem, the Ministry of Federal Affairs should issue clear directives to local levels regarding the refusal to register a child in a single mother’s name. Municipalities should also establish permanent free legal aid desks in wards so that these women have immediate representation to fight through the bureaucracy.

Finally, the pipeline to the entertainment industry must be recognized for what it is: a web of duplicitous recruiting and trafficking. Brokers exploit regional economic desperation and prey on vulnerable groups. Once these women are caught in the city, their financial independence is demolished through unpaid wages. Under Nepal’s Human Trafficking and Transportation (Control) Act, 2064, it is a serious crime to keep someone in forced labour or exploit them by using deception, coercion or withholding of financial support. 

It’s something legal advocates have long pointed to as a perfect example of internal trafficking, since an employer who withholds months of a worker’s salary as an arbitrary “finder’s fee” fits the statutory definition. The Ministry of Home Affairs needs to stop treating these wage disputes as petty civil disagreements and instead should prosecute predatory employers under the Act of 2064. The Department of Foreign Employment also needs to focus on cracking down on rogue recruitment agencies when this exploitation spills overseas, for instance, through manipulation of visit visas. It should also invest in emergency repatriation resources at Nepali embassies abroad. While talks with the authorities suggest interventions are underway, the result is barely visible. 

However, there is the single biggest bureaucratic bottleneck in Nepal that needs to be overcome to implement any of these solutions. It is the total lack of institutional ownership. Right now, if an entertainment worker seeks help, they get caught in a cycle of administrative buck-passing. 

If they complain about a withheld paycheck, they are told to go to the Ministry Of Labour, Employment and Social Security. If they report abuse at work or internal trafficking, they are referred to the Ministry of Home Affairs. If they want protection as a single mother or a vulnerable woman, then the responsibility is on the Ministry of Women, Children and Senior Citizens. 

There is no single entity that takes accountability for the sector because their issues cut across labour, criminal justice, and social welfare, leaving workers to bounce helplessly between different government corridors. The government cannot continue to let these women fall through the structural cracks of its own fragmented bureaucracy. 

Rather than creating a new centralized bureaucracy that risks being driven mainly from the capital, the state must emphasize strengthening and mobilizing existing frameworks at the grassroots level. The real enforcement mechanism is local governments. This decentralization allows municipalities to craft rules, response mechanisms and dedicated budgets suited to their context, letting local authorities manage first-level labor grievances and provide direct oversight.

Real, lasting change for Nepal’s entertainment sector will never come from heavy-handed police raids, moral surveillance or paternalistic bans that only push the industry further underground and empower corrupt actors to exploit vulnerable workers. True justice is removing these workers from the legal shadows and putting them under the full protection of the state’s labour laws. 

The state can begin to dismantle this exploitation by enforcing the existing Labour Act, operationalizing the Supreme Court’s rulings on single mothers and treating predatory wage detention as a serious trafficking offense. The solutions are already written in the country’s laws. All the state needs are the political will to enforce them for the women working in the late-night shadows of its cities.