Bhutan has introduced a new employment framework aimed at promoting productive workplaces, protecting workers’ rights, and creating a business-friendly labor environment. The framework was unveiled by the Gelephu Mindfulness City Authority as part of its plan to regulate employment standards in the country’s Special Administrative Region.
The GMC Employment Act 2025, which came into force on December 26, 2024, is largely based on the Singapore Employment Act 1968. The law has been adapted under the Application of Laws Act 2024 to suit Bhutan’s economic goals and attract foreign investment.
The Act provides mandatory protections for employees that cannot be reduced by any employment contract. It applies to all salaried workers, including part-time and contract employees, and offers clear legal channels to address workplace disputes.
A strict penalty system has also been introduced to prevent labor violations. For salary-related offenses, employers can face fines ranging from USD 3,000 to USD 15,000 and up to six months in prison. Repeat offenses may lead to fines of up to USD 30,000 or imprisonment of up to one year.
The law also outlines rules on working hours and overtime. Employees cannot work more than eight hours a day or 44 hours a week, and they must receive a break after six consecutive hours of work. Overtime is limited to 72 hours per month and must be paid at 1.5 times the normal hourly wage.
Workers are also entitled to benefits such as paid annual leave, sick leave with medical certification, paid public holidays, maternity leave, and childcare leave. The law also ensures rest days for employees and introduces flexible work options under certain conditions.
Special provisions have been included to protect young workers. Children under 15 can only work in light or family-run jobs, while those aged 15–16 face restrictions on industrial work.
Officials say the new law aims to create balanced labor relations while ensuring safe working conditions. By combining worker protections with business-friendly regulations, Bhutan hopes to attract investment and support sustainable economic growth in the region.
