KATHMANDU: The workers employed by Devyani International Nepal Pvt Ltd — the operator of popular brands KFC and Pizza Hut restaurants in Kathmandu — have said the management’s decision to shut down the restaurants indefinitely is against the Labour Act of Nepal and demanded the restaurants be reopened promptly.

The management had issued a statement on May 15 revealing its decision to shut down all four restaurants being operated in the Capital for indefinite period, citing labour union members had protested and manhandled a senior management team member in front of the customers on May 11.

Organising a press conference today, the labour union, however, refuted the claims made by

Devyani International.

“There had been confrontations between the union members and the management time and again regarding salary increment and transport facilities, but there was no such incident as the management has alleged on May 11,” claimed Sitaram BK, president of the All Nepal Revolutionary Hotel and Restaurant Workers Union, Devyani International Nepal Pvt Ltd.

He further said it was unfair for the management to unilaterally shut down the restaurants without informing the labourers during this turbulent time following the devastating earthquake of April 25.

Devyani International was operating two restaurants at Durbarmarg since 2009. In 2012, it added two more outlets at BlueBird Mall in Tripureshwor.

In total, it provides employment to 155 individuals. The daily turnover from the four restaurants was about Rs one million, as per Santosh Jha, finance head of Devyani International Nepal.

According to the labour union, the senior management has already transferred 12 of its managers to RJ Corp, India — the mother company of Devyani International — a week ago, and they are reluctant to go there.

Even as Devyani International Nepal has not formally started any of the necessary procedures with the Office of Company Registrar and Department of Industry to dissolve the company, its decision to transfer senior managers and other internal homework point toward the possibility of the firm shutting up shop.

Maheshwor Neupane, director general of the Department of Industry, and Prem Kumar Shrestha, registrar at Company Registrar Office, have said that Devyani International Nepal has not initiated any process to dissolve the company till date.

According to Rohit Kohli, director of Devyani International Nepal, who also represents Varun Beverages (Nepal) Pvt Ltd, they cannot do business in this situation and are planning to leave Nepal.