The Supreme Court has delivered a double setback to the government’s campaign against unionism, issuing separate interim orders to halt the dissolution of both civil service trade unions and student organisations. The rulings effectively freeze the implementation of executive ordinances that sought to dismantle long-standing institutional bodies in favour of state-managed grievance mechanisms.
In a significant ruling on Monday, the five-member Constitutional Bench stayed the “Some Nepal Laws (Amendment) Ordinance, 2083,” which had moved to abolish formal trade unions within the bureaucracy. Following the ordinance’s issuance on 3 May, the Ministry of Federal Affairs and General Administration had moved swiftly to seal union offices and freeze their financial assets.
The bench was notably divided in its assessment. A majority opinion, held by Acting Chief Justice Sapana Pradhan Malla and Justices Kumar Regmi and Hariprasad Phuyal, concluded that the right to form trade unions is a protected constitutional freedom that cannot be abruptly curtailed without thorough legal scrutiny. Conversely, Justices Binod Sharma and Sharanga Subedi dissented, arguing that as the ordinance was a legal act of the President and the Council of Ministers, it should proceed through the parliamentary process without pre-emptive judicial interference.
In a parallel move, a single bench of Justice Shrikant Paudel issued a short-term interim order staying the government’s plan to abolish student unions across Nepal’s universities. The Ministry of Education, Science and Technology had intended to replace partisan student wings and the Free Student Union (FSU) structure with state-managed “Student Councils.”
Education Minister Sasmit Pokharel defended the policy as a fulfilment of the government’s mandate to remove partisan politics from academic institutions. However, student leaders challenged the move as a violation of the constitutional right to freedom of association. They also contested legislative amendments that removed union representatives from university senates, replacing them with members directly nominated by the Prime Minister in his capacity as Chancellor.
These judicial interventions come at a critical time as the government unveils its broader policy and programme for the 2083 fiscal year. While the administration has pledged a “new stage of economic reform” focused on digital transformation and infrastructure development, its attempt to restructure institutional associations via executive ordinance has met with immediate legal hurdles.
For now, union offices for both civil servants and students will remain operational. The Supreme Court has summoned government representatives for further discussions, scheduled for 20 May for the civil service case, to determine if these stay orders will be extended for the duration of the litigation. The outcome will serve as a crucial test of the government’s ability to implement its structural reforms while navigating the constitutional protections of institutional association.