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This paper aims to review the situation of decent work (DW) and quality of work life (QWL) in the context of Nepal.

The paper is based on a literature survey. Institutional arrangements for DW and QWL are studied in connection with current labor legislations, national policy documents, and company policies and initiatives. The status of DW and QWL is described, examining national policy documents published by the Government of Nepal, National Planning Commission, labor legislations, International Labor Organization (ILO) and other relevant literature.

At present, although the country has been successful in reducing the number of people under the poverty line, there are challenges in meeting the DW goals. In the case of QWL, since there is rising dissatisfaction among employers and employees in the present economic and political circumstances, they are interested in short‐term benefits.

There are a number of factors affecting DW and QWL. In this paper only national economic and social conditions, poverty level, employment situation and income generation are considered for analysis. The analysis of the QWL situation is done only on the basis of published information rather than using primary sources of information.

The findings of this study will have a number of implications in understanding and improving the level of current institutional arrangements in order to ensure DW and QWL. The observations made in this paper can add some value in the process of formulation of national policy for, and regulation of DW. The issues discussed will have substantial implication for the development and framing of new labor laws and policies.

The paper focuses on DW and QWL for the first time in the Nepalese context. This is an original contribution by the authors to familiarize readers with the situation of DW and QWL in Nepalese organizations.