The Bhutanese Leading the way.
Bhutan’s Labour and Employment Act outlines clear provisions regarding public holidays for employees. Section 108 of the Act guarantees every employee a minimum of nine public holidays per year, including His Majesty the King’s Birth Anniversary and National Day. These holidays must be granted as paid leave, with employees receiving their normal rate of pay based on their most recent pay period.
Section 109 allows employers and employees to mutually agree to substitute a public holiday under Section 108 with another public holiday. However, concerns have arisen regarding the implementation of these provisions, with many employees in the hospitality and retail sectors feeling that their rights are not being adequately upheld.
Furthermore, Section 110 of the Act states that if an employee is required to work on a public holiday, they must be compensated with an additional 50% of their normal rate of pay. Despite these legal mandates, many workers in the hospitality and retail sectors report that they are either not receiving their entitled public holidays or are not being properly compensated when required to work during these periods.
The MoICE Minister Namgyal Dorji, through the Department of Labour, has acknowledged these grievances and is actively working to address them while balancing the operational needs of businesses.
In 2023, the Department surveyed working conditions in the hospitality sector, surveying 423 employees and 111 employers. The findings highlighted inconsistencies in leave and holiday practices, particularly between higher-rated and budget establishments, reinforcing the need for stronger monitoring and enforcement mechanisms.
The survey findings confirmed that 44% of employees did not receive public holidays, though 76% were offered substitute days off and 19% were compensated with the same day off. Only 5% received monetary compensation for working on public holidays.
The assessment further revealed that 33% of employees worked beyond standard hours, and only 55% of those entitled to leave were fully aware of their rights.
To address these concerns, the Department of Labour has reinforced compliance monitoring and enforcement. Lyonpo Namgyal Dorji said, “The Ministry is ramping up risk-based inspections to monitor compliance with the Labour and Employment Act of Bhutan 2007. Employers found to be in violation will face penalties as per the law.”
Another step taken to protect workers is the introduction of an anonymous reporting mechanism. “Employees can report violations including unfair holiday practices through the Online Labour Administration System, which ensures confidentiality and protection from retaliation,” Lyonpo said.
The Department also focuses on education and awareness to ensure that both employers and employees fully understand their rights and responsibilities. “We are collaborating with industry associations to conduct targeted awareness programs so that employees are aware of their entitlements and employers understand their obligations under the law,” said the Minister.
Lyonpo said, “During peak seasons, businesses experience high customer demands, making it difficult to grant leave. To balance employee well-being with business needs, we are promoting compensatory leave and additional benefits during lean seasons.”
Lyonpo said that the Ministry’s goal is to ensure that no employee feels undervalued, particularly in sectors that play an important role in the country’s economy.
