The Industrial Enterprises Bill has been approved by Nepal’s parliament and is awaiting Presidential ratification. It contains a controversial provision which allows employers to withhold pay from employees for periods when they do not actually work. But even if it comes into force, it cannot be upheld by the courts until it is also accompanied by an amendment to the Labour Act – which is still being reviewed by parliament. Both provisions are aimed at the ad hoc labour protests that have plagued the country this year. Under the revised Act strike activity may still qualify for half pay – but only if due notice has been given to employers and government agencies. Employers would also be able to enforce lock-outs and dismiss employees if they face severe economic difficulties.