Internal Service Rule

The Internal Service Rules (ISR) under the Labour and Employment Act of Bhutan 2007 are designed to provide a structured framework for managing the working relationship between employers and employees within an organization. The ISR outlines specific policies, procedures, and practices regarding various employment aspects such as working hours, leave entitlements, salary payments, disciplinary actions, grievance procedures, health and safety standards, and termination procedures.

Purpose of Internal Service Rules (ISR):

1. Compliance with the law: Ensure that both employers and employees comply with the provisions of the Labour and Employment Act of Bhutan.

2. Clarity and transparency: Provide clear guidelines regarding employees' rights and responsibilities as well as the employer's expectations.

3. Workplace discipline: Promote harmonious relations by regulating behavior, promoting ethical standards, and dealing with misconduct in a structured way.

4. Dispute resolution: Offer formal procedures to address grievances or disputes between employers and employees.

5. Consistency: Ensure uniform treatment of employees, reducing ambiguity and preventing discrimination or favoritism.

6. Productivity: Enhance workplace efficiency by creating a predictable and well-regulated environment that boosts worker morale and satisfaction.

Who should have Internal Service Rules?

As per the Labour and Employment Act of Bhutan 2007:

• All employers who employ five or more workers are required to have Internal Service Rules in place. These rules must be prepared by the employer and registered with the Ministry of Labour and Human Resources to ensure compliance with national labor standards.

• Smaller employers, with less than five workers, may not be strictly required to have formal Internal Service Rules, but they must still comply with other relevant provisions of the Labour and Employment Act to ensure fair treatment and safe working conditions