BANGLADESH LABOUR ACT, 2006

It shall come into force at once.

CHAPTER TWO
CONDITIONS OF SERVICE AND EMPLOYMENT

5. Letter of Appointment and Identity Card: No employer shall employ any worker without
giving such worker a letter of appointment and every such employed worker shall be provided
with an identity card with photograph.
6. Service book: (1) Every employer shall, at his own cost, provide a service book for every
worker employed by him.
9. Register of workers and supply of tickets and cards:
(1) The employer of every establishment shall maintain a register of workers, to be available to
the Inspector at all times during working hours.
(2) The register of workers shall contain the following:
 The name and date of birth of each worker in the establishment;
 Date of appointment;
 The nature of his work;
 The periods of work fixed for him;
 The intervals for rest and meals to which he is entitled;
 The days of rest to which he is entitled;
 The group, if any, in which he is included;
 Where his group works on shifts, the relay to which he is allotted; and
 Such other particulars as may be prescribed by rules;

10. Procedure for leave:

(1) A worker who desires to obtain leave of absence shall apply to the employer for the same in
writing stating his leave address therein.

(2) The employer or his authoresses officer shall issue orders on the application within seen
days of the application or two days prior to the commencement of leave applied for, whichever
is earlier; Provided that if due to urgent reasons the leave applied for is to commence on the
date of application or within three days thereof the order shall be given on the same day.

(3) If the leave asked for is granted, a leave pass shall be issued to the worker.

(4) If the leave asked for is refused or postponed the fact of such refusal or postponement, and
the reasons thereof shall be communicated to the worker before the date on which the leave
was expected to be commenced and shall also be recorded in a register to be maintained by the
employer for the purpose.

(5) If the worker, after convincing of leave, desires an extension thereof, he shall, if such leave is
due to him, apply sufficiently in advance before the expiry of the leave to the employer who
shall, as far as practicable send a written reply either granting or refusing extension of leave to
the worker to his leave-address

11. Payment of wages for unveiled leave:

If the service of a worker, to whom any annual leave is due, is dispensed with whether as a
result of retrenchment, discharge, removal, dismissal, termination, retirement or by reason of
his resignation before he has availed of any such leave, the employer shall pay his wages in lieu
of the unveiled leave at the rate he is entitled to the payment of wages during the period of
leave in accordance with the provisions of this Act.
18. Laid-off workers not entitled to compensation uncertain cases:

(1) Not withstanding anything contained elsewhere in this chapter, no compensation shall be
payable to a worker who has been laid-off-

 If he refuses to accept on the same wages, any alternative employment not requiring any
special skill or previous experience, in the same establishment for which he has been laid-
off, or in any other establishment belonging to the same employer and situated in the
same town or village or situated within a radius of eight kilometers from the
establishment;
 If he does not present himself for work at the establishment at the appointed time during
normal working hours at least once a day if so required by the employer.
(2) For the purpose of sub-section (1) (b), every laid-off worker who presents himself for work
at the establishment at the time appointed for the purpose during normal working hours on
any day and is not given employment by the employer within two hours of his so presenting
himself, shall be deemed to have been laid- off for that day within the meaning of this section.

(3) If a laid-off worker who presents himself for work as mentioned in sub-section (2), instead of
being given employment at the commencement of any shift for any day, is asked to present
himself for the purpose during the second half of the shift for the day, and if he so presents
himself, he shall be deemed to have been laid-off only for one-half of that day, the other half
being treated as on duty, irrespective of the fact whether he is given work or not.

19. Death benefit: If a worker dies while in service after a continuous service of not less than
three years, his nominee or in the absence of an nominee, his dependant shall be paid by the
employer a compensation at the rate of thirty days wages for every completed year of service,
or for any part thereof in excess of six months or gratuity, if any, whichever is higher, in
addition to any other benefit to which the deceased worker would have been entitled had he
retired from service:

Provided that if such worker is covered by any compulsory insurance scheme of the
establishment, or, if any compensation is payable for such death under chapter XII, the worker
shall be entitled to whichever is higher.

23. Punishment for conviction and misconduct : (1) Notwithstanding anything regarding lay-
off, retrenchment, discharge and termination of service as provided elsewhere in this Act, a
worker may be dismissed without prior notice or pay in lieu thereof if he is-

(a) Convicted for any criminal offence; or

(b) He is found guilty of misconduct under section 24. (2) Any worker found guilty of
misconduct may, instead of being dismissed under sub-section (1), in consideration of any
extenuating circumstances, be awarded any of the following punishments, namely:
  Removal;
 Reduction to a lower post, grade or scale of pay for a period not exceeding one year;
 Stoppage of promotion for a period not exceeding one year;
 Withholding of increment for a period not exceeding one year;
 Fine;
 Suspension without wages and subsistence allowance for a period not exceeding seven
days;
 Censure or warning.

26. Termination of employment by employers otherwise than by dismissal, etc.:

(1) The employment of a permanent worker may be terminated by the employer, otherwise,
than in the manner provided else-where in this chapter, by giving to him in writing-
 one hundred and twenty days’ notice, if he is a monthly rated worker;
 Sixty days’ notice, in case of other worker.
(2) The employment of a temporary worker may be terminated by the employer, otherwise
than in the manner provided elsewhere in this chapter, and if it is not due to the completion,
cessation, abolition or discontinuance of the temporary work for which he was appointed, by
giving to him in writing-
 thirty day’s notice, if he is a monthly rated worker;
 Fourteen days notice, in case of other worker.
(3) Where an employer intends to terminate the employment of a worker without any notice,
he may do so by paying to the worker, wages in lieu of the notice, which is enquired to be given
under subsection (1) or (2), as the case may be.
(4) Where the employment of a permanent worker is terminated under this section, he shall be
paid by the employer compensation at the rate of thirty day’s wages for every completed year
of service or gratuity, if any; whichever is higher, in addition to any other benefit to which he
may be entitled under this Act.
27. Termination of employment by workers:
(1) A permanent worker may resign from his service by giving to the employer in writing sixty
day’s notice
(2) A temporary worker may resign from his service by giving to the employer in writing-
 Thirty days notice, if he is a monthly rated worker;
 Fourteen days notice in case of other worker.
(3) Where a worker intends to resigns from his service without any notic, he may do so by
paying to the employer wages in lieu of the notice which is required to be given under sub-
section (1) or (2), as the case may be.
(4) Where a permanent worker resigns from his service under this section, he shall be paid by
the employer compensation-
 At the rate of fourteen days wages for every completed year of service, it he has
completed five years of continuous service or more but less than ten years;
 At the rate of thirty days wages for every completed year of service if he has
completed ten years of continuous service or more; or gratuity, if any, whichever is
higher, in addition to any other benefit to which he may be entitled under this Act.
28. Retirement of worker:
i. A worker employed in any establishment shall, notwithstanding anything contained
elsewhere in this chapter, retire from employment ipso facto on the completion of the
fifty-seventh year of his age.
ii. For the purpose of counting age of the worker under this section the date of birth
recoded in the service book of the concerned worker shall be the conclusive proof.
iii. Every retiring worker under the provisions of section 26(4) or under own service rule of
the establishment, shall be paid his benefits due to him.
iv. Appropriate authority, if thinks proper, May afterwards, employ the retiring worker
under contract
29. Payment of provident Fund: No worker, who is a member of any provident Fund, shall been
deprived due to retrenchment, dismissal, removal, discharge or termination of service of the
benefit of the provident Fund including the employer’s contribution thereto, if he is entitled to
it under the rules of that Fund.
 CHAPTER: III
EMPLOYMENT OF ADOLESCENT

41. Working hours for adolescent:

i. No adolescent shall be required or allowed to work in any factory or mine, for more than five
hours in any day and thirty hours in any week;
ii. No adolescent shall be required or allowed to work in any other establishment, for more than
seven hours in any day and forty-two hours in any week.
iii. No adolescent shall be required or allowed to work in any establishment between the hours
of 7.00 P.M and 7.00 a.m.
iv. If an adolescent works overtime, the total number of hours worked, including overtime shall
not exceed-
 In any factory or mine, thirty six hours in any week;
 In any other establishment, forty eight hours in any week.
v. The period of work of an adolescent employed in an establishment shall be limited to two
shifts which shall not overlap or spread over more than seven and a half hours each.
vi. An adolescent shall be employed in only one of the relays which shall not, except with the
previous permission in writing of the Inspector, be changed more frequently than once in a
period of thirty days.
vii. The provisions of weekly holiday shall apply also to adolescent workers, and no exemption
from the provisions of that section shall be granted in respect of any adolescent.
viii. No adolescent shall be required or allowed to work in more than one establishment in any
day.

CHAPTER: IV
MATERNITY BENEFIT
45. Employment of women worker prohibited during certain period:
(1) No employer shall knowingly employ a woman in his establishment during the eight weeks
immediately following the day of her delivery.
(2) No woman shall work in any establishment during the eight weeks immediately following
the day of her delivery.
(3) No employer shall employ any woman for doing any work which is of an arduous nature or
which involves long hours of standing or which is likely to adversely affect her health; if he has
reason to believe or if she has informed him that she is likely to be delivered of a child within
ten weeks; she has to the knowledge of the employer been delivered of a child within the
preceding ten weeks: Provided that in case of tea plantation worker, a woman worker can
undertake light work if and for so long as the medical practitioner of the concerned tea estate
certifies that she is physically fit to do so; and, for the days that she does such work, she shall
be paid at the prevailing rate of pay for such work, and such pay shall be paid to her in addition
to the maternity benefit which she may be entitled to receive under existing this Act.

46. Right to, and liability for, payment of maternity benefit:

(1) Every woman employed in an establishment shall be entitled to and her employer shall be
liable for, the payment of maternity benefit in respect of the period of eight weeks preceding
the expected day of her delivery and eight weeks immediately following the day of her delivery:
Provided that a woman shall not be entitled to such maternity benefit unless she has worked
under the employer, for a period of not less than six month immediately preceding the day of
her delivery.
(2) No maternity benefit shall be payable to any woman if at the time of her confinement she
has two or more surviving children, but in that case she shall be entitled to the leave to which
she would otherwise be entitled.

47. Procedure regarding payment of maternity benefit:

(1) Any pregnant woman entitled to maternity benefit under this act may, on any day, give
notice either orally or in writing to her employer that she expects to be confined within eight
weeks next following and may therein nominate a person for purposes of receiving payment of
maternity benefit in case of her death.
(2) Any woman who has not given such notice and has been delivered of a child shall within
seven days, give similar notice to her employer that she has given birth to a child.

(3) When a notice referred to in sub-section (1) or (2) is received, the employer shall permit the
women to absent her from work from the day following the date of notice in the case
mentioned in sub-section (1); form the day of delivery in the case mentioned in sub-section (2)
until eight weeks after the day of delivery.

(4) An employer shall pay maternity benefit to a woman entitled thereto in such one of the
following ways as the woman desire, namely:

 For eight weeks, within three working days of the production of a certificate signed by
registered medical practitioner stating that the woman is expected to be confined
within eight weeks of the date of the certificate, and for the remainder of the period for
which she is entitled to maternity benefit under this act within three working days of the
production of proof that she has given birth to a child; or
 For the time period up to and including the day of delivery, within three working days
of the production of proof that she has given birth to a child, and for the remainder of
the time period, within eight weeks of the production of such proof; or
 For the whole of the time period, within three working days of the production of proof
that she has given birth to a child: Provided that a woman shall not be entitled to any
maternity benefit or any part thereof, the payment of which is dependent upon the
production of proof under this sub-section that she has given birth to a child, unless
such proof is produced within three month s of the day of her delivery.

(5) The proof required to be produced under sub-section (4) shall be either a certified extract
from a birth register under the births and deaths registration act, 2004 (XXIX of 2004) or a
certificate signed by a registered medical practitioner or such other proof as may be accepted
by the employer.
48. Amount of maternity benefit:

(1) The maternity benefit which is payable under this act shall be payable at the rate of daily,
weekly or monthly average wages, as the case may be, calculated in the manner laid down in
sub-section (2), and such payment shall be made wholly in cash.

(2) For the purpose of sub-section (1) the daily, weekly or monthly average wages, as the case
may be, shall be calculated by dividing the total wages earned by the woman during the three
months immediately preceding the date on which she gives notice under this act by the number
of day she actually worked during the period.

49. Payment of maternity benefit in case of a woman’s death:

(1) If a woman entitled to maternity benefit under this act dies at the time of her delivery or
during the next period of 8 months, the employer shall pay the amount of maternity benefit
due, if the newly born child survives her, to the person who undertakes the care of the child,
and if the child does not survive her; to the person nominated by her under this chapter, or if
she has made no such nomination, to her legal representative.

(2) If a woman dies during the period for which she is entitled to maternity benefit but before
giving birth to a child, the employer shall be liable only for the period up to and including the
day of her death, provided that any sum already paid to her in excess of such liability shall not
be recoverable from her legal representative, and any amount due at the woman’s death shall
be paid to the person nominated by her under this chapter, or if she has made no such
nomination, to her legal representative.

50. Restriction on termination of employment of a woman in certain cases:

If any notice or order of discharge, dismissal, removal or termination of employment is given by

an employer to a woman within a period of six month before and eight weeks after her delivery
and such notice or order is given without sufficient cause, she will not be deprived of any
maternity benefit to which she would have become entitled under this chapter.
 CHAPTER: VI
SAFETY
61. Safety of building and machinery:
(1) If it appears to the Inspector that any building or part of a building or any part of the ways,
machinery or plant in an establishment is in such a conditions that it is dangerous to human life
or safety, he may serve on the employer of the establishment an order in writing specifying the
measures which, in his opinion, should be adopted, and requiring them to be carried out before
a specified date.
(2) If it appears to the Inspector that the use of any building or part of a building or of any part
of the ways, machinery or plant in the establishment involves imminent danger to human life or
safety, he may serve on the employer of the establishment an order in writing prohibiting its
use until it has been properly repaired or altered.
62. Precaution in case of fire: (1) Every establishment shall be provided with at least one
alternative connection stairway with each floor and such means of escape in case of fire and
firefighting apparatus, as may be prescribed by rules.
(2) If it appears to the inspector that any establishment is not provided with the means of
escape prescribed under sub-section (1) he may serve on the employer of the establishment an
order in writing specifying the measures which in his opinion, should be adopted before a date
specified in the order.
(3) In every establishment the doors affording exit from any room shall not be locked or
fastened so that they can be easily and immediately opened from inside while any person is
within the room and all such doors, unless they are of the sliding type, shall be constructed to
open outwards or where the door is between two rooms, and all such doors, unless they are of
the sliding type, shall be constructed to open outwards or where the door is between two
rooms, in the direction of the nearest exit from the building and no such door shall be locked or
obstructed while work is being carried on in the room.
(4) In every establishment every window, or other exit affording means of escape in case of fire,
other than the means of exit in ordinary use, shall be distinctively marked in Bangla and in red
letters of adequate size or by some other effective and clearly understood sign.
(5) In every establishment every window, door, or other exit affording means of escape in case
of fire to every person employed therein.
(6) A free passage-way giving access to each means of escape in case of fire shall be maintained
for the use of all workers in every room of the establishment.
(7) In every establishment wherein more than ten workers are ordinarily employed in any place
above the ground floor, or explosive or highly inflammable materials are used or stored,
effective measures shall be taken to ensure that all the workers are familiar with the means of
escape in case of fire and have been adequately trained in the routine to be followed in such
case.
(8) In factories wherein fifty or more workers and employees are employed shall arrange at
least once in a year a mock fire-fighting and the employer shall maintain a book of records in
this regards.
CHAPTER IX

WORKING HOUR AND LEAVE

100. Daily hours : No adult worker shall ordinarily be required or allowed to work in an
establishment for more than eight hours in any day: Provided that, subject to the provisions of
section 108, any such worker may work in an establishment not exceeding ten hours in any day.

101. Interval for rest or meal: Any worker in any establishment shall not be liable to work
either-

 For more than six hours in any day unless he has been allowed an interval of at least one
hour during that day for rest or meal;
 For more than five hours in any one day unless he has been allowed an interval of at least
half an hour during that day for rest or meal; or
 For more than eight hours unless he has had an interval under clause (a) or two such
intervals under clause (b) during that day for rest or meal.
102. Weekly hours:

(1) No adult worker shall ordinarily be required or allowed to work in an establishment for
more than forty-eight hours in any week.

(2) Subject to the provisions of section 108, an adult worker may work for more than forty-eight
hours in a week:

Provided that the total hours of work of an adult worker shall not exceed sixty hours in any
week and on the average fifty-six hours per week in any year: Provided further that in the case
of a worker employed in an establishment which is a road transport service, the total hours or
overtime work in any year shall not exceed one hundred and fifty hours.

Provided further that the government, if satisfied that in public interest or in the interest of
economic development such exemption or relaxation is necessary, in certain industries, by
order in writing under specific terms and conditions, may relax the provision of this section or
exempt, for a maximum period of six months, from the provision of this section at a time.

103. Weekly holiday: An adult worker employed in an establishment

(a) Which is a shop or commercial establishment, or industrial establishment, shall be allowed

in each week one and half day’s holiday and in factory and establishment one day in a week;

(b) Which is a road transport service, shall be allowed in each week one day’s holiday of twenty
four consecutive hours; and no deduction on account of such holidays shall be made from the
wages of any such worker.

104. Compensatory weekly holiday:

Where, as a result of the passing of an order or the making of a rule under the provisions of this
act exempting an establishment or the workers therein from the provisions of section 103, a
worker is deprived of any of the weekly holidays provided for in that section, he shall be
allowed, as soon as circumstances permit, compensatory holidays, of equal number to the
holidays so deprived of.
105. Spread over:

The periods of work of and adult worker in an establishment shall be so arranged that, inclusive
of his interval for rest or meal under section 101, it shall not spread over more than eleven
hours, and subject to such conditions as be may imposed by the Government, either generally
or in the case of any particular establishment.

106. Night shift: Where, an adult worker in an establishment works on a shift which extends
beyond midnight:

(a) For the purposes of section 103 a holiday for a whole day shall mean in his case a period of
twenty-four consecutive hours beginning from the end of his shift; and

(b) The following day for him shall be deemed to be the period of twenty-four consecutive
hours beginning from the end of this shift and the hours he has worked after midnight shall e
counted towards the previous day.

107. Restriction on cumulative hours of work on a vehicle:

No worker shall work or be allowed to work on a vehicle or two or more vehicles in excess of
the period during which he may be lawfully employed under this Act.

108. Extra-allowance for overtime:

(1) Where a worker works in an establishment on any day or week for more than the hours
fixed under this Act, he shall, in respect of overtime work, be entitled to allowance at the rate
of twice his ordinary rate of basic wage and dearness allowance and ad-hoc or interim pay, if
any.

(2) Where any worker in an establishment are paid on a piece rate basis the employer, in
consolation with the representatives of the workers, may, for the purposes of this section, fix
time rates as nearly as possible equivalent to the average rates of earnings of those workers,
and the rates so fixed shall be deemed to be the ordinary rates of wages of those workers.
(3) The government may prescribe registers to be maintained in an establishment for the
purpose of securing compliance with the provisions of this section.

109. Limitation of hours of work for women: No women shall, without her consent, be allowed
to work in an establishment between the hours of 10.00PM and 6.00 AM

115. Casual leave: Every worker shall be entitled to casual leave the full wages for ten days in a
calendar year, and such leave shall not be accumulated and carried forward to the succeeding
year: Provided that noting in this section shall apply to a worker employed in a tea plantation.

116. Sick leave:

(1) Every worker other than a newspaper worker shall be entitled to sick leave with full wages
for fourteen days in a calendar year.

(2) Every newspaper worker shall be entitled to sick leave with half wages for not less than one
eighteenth of the period of services.

(3) No such leave shall be allowed unless a registered medical practitioner appointed by the
employer or, if no such medical practitioner is appointed by the employer, any other registered
medical practitioner, after examination, certifies that the worker is ill and requires sick leave for
cure or treatment for such period as may be specified by him.

(4) Such leave shall not be accumulated and carried forward to the succeeding year.

117. Annual leave with wages:

(1) Every adult worker, who has completed one year of continuous service in an establishment,
shall be allowed during the subsequent period of twelve months leave with wages for a number
of days calculated at the rate of one day-

 In the case of a shop or commercial or industrial establishment or factory or road

transport service, for every eighteen days of work;
 In the case of tea plantation, for every twenty two days of work;
  In the case of a newspaper worker, for every eleven days of work, performed by him
during the previous period of twelve months.

(2) Every worker, who is not an adult, who has completed one year of continuous service n an
establishment, shall be allowed during the subsequent period of twelve months leave with
wages for a number of days calculated at the rate of one day-

 In the case of a factory, for every fifteen days of work;

 In the case of a tea plantation, for every eighteen days of work;
 In the case of a shop or commercial or industrial establishment, for every fourteen days
of work performed during the previous period of twelve months.

(3) A period of leave allowed under this section shall be inclusive of any holiday which may
occur during such period.

(4) If a worker does not, in any period of twelve months, take the leave to which he is entitled
under sub-sections (1) or (2), either in whole or in part, any such leave not taken by him shall be
added to the leave to be allowed to him, in the succeeding period of twelve months.

(5) Notwithstanding anything contained in sub-section (4), an adult worker shall cease to earn
any leave under this section, when the earned leave due to him amounts to-

 In the case factory or road transport service, forty days;

 In the case of a tea plantation or shop or commercial or industrial establishment, sixty
days;

(6) Notwithstanding anything contained in subsection (4) an adolescent worker shall cease to
earn any leave under this section, when the earned leave
 in the case of a factory or tea plantation, sixty days;
 in the case of shop or commercial or industrial establishment, eighty days;
 (7) Any leave applied for by a worker but refused by the employer for any reason, shall be
added to the credit of such worker beyond the aforesaid limit mentioned in sub-section (5) and
(6).
(8) For the purpose of this section a worker shall be deemed to have completed a period of
continuous service in an establishment notwithstanding any interruption in service during that
period due to-
 any holiday;
 any leave with wages;
 any leave with or without wages due to sickness or accident;
 any maternity leave not exceeding sixteen weeks;
 any period of lay-off;
 A strike which is legal or a lock-out which is not illegal.
118. Festival holidays:
i. Every worker shall be allowed in a calendar year eleven days of paid festival holiday.
ii. The days and dates for such festivals shall be fixed by the employer in such manner as may
be prescribed.
iii. A worker may be required to work on any festival holiday, but two day’s additional
compensatory holidays with full pay and a substitute holiday shall be provided for him in
accordance with the provisions of section 103.
119. Calculation of wages and payment during leave or holiday period:
(1) For the leave or holidays allowed to a worker under the provisions of this Act, he shall be
paid at the rate equal to the daily average of his full time wages including dearness allowances,
and ad-hoc or interim pay, if any, for the days on which he worked during the month
immediately preceding this leave but excluding any overtime allowance and bonus: Provided
that if a worker in any establishment is entitled to cash equivalent of any advantage accruing
from the supply of food grains, it shall be included in his wages.
(2) A worker who has been allowed annual leave for a period of not less than four days in the
case of an adult and five days in the case of an adolescent, at any time, shall, in so far as it is
practicable, be paid his wages for the period of the leave so allowed, before his leave begins.
 CHAPTER XVII
PROVIDENT FUNDS
264. Provident funds for workers in private sector establishments:
(1) An establishment in the private sector may constitute for the benefits of its worker a
provident fund.
(2) Such provident fund shall be constituted in such manner as may be prescribed by rules
made by the establishment in this behalf under section 3.
(3) Notwithstanding anything contained in sub-section 920, the Government may make rules
for constitution of provident funds for workers employed in establishments in private sector,
and where such rules are made each establishment to which the rules apply, shall comply with
the requirements of such rules.
(4) Such provident fund shall be held and administered by a board of trustees.
(5) Such board of trustees shall consist of an equal number of representatives of the employer
and workers employed in the establishment, and a person nominated by the government shall
be its chairman.
(6) The representatives of the employer shall be nominated by the employer, and the
representative of the workers shall be nominated by the collective bargaining agent.
(7) Where there is no collective bargaining agent in an establishment, the representatives of
the worker shall be elected by the workers under the supervision of the director of labour.
(8) All the representatives shall hold office for a period of two years. Provided that they shall
continue to hold office until their successors enter upon office.
(9) Every permanent worker shall, after the completion of his one year of service in the
establishment constituting the provident fund, subscribe to the fund, every month, a sum,
unless otherwise mutually agreed, not less than seven per cent and not more than eight per
cent of his monthly basic wages. And the employer shall contribute to it an equal amount.
(10) Notwithstanding anything contained in this section an establishment in the private sector
shall constitute a provident fund for the benefit of its workers, if three-fourths of the total
number of workers employed in it so demand to the employer by an application in writing.
(11) Where a demand for constitution of a provident fund is made under sub-section (10), the
employer of the establishment shall make necessary rules for its constitution under section 3
within a period of six months and the fund shall start operation before the expiry of that period.
(12) At least half of the total accumulations in such provident fund shall be invested for the
purpose of any of the following, namely:
 I.C.B Mutual Fund Certificates
 I.C.B Unit certificates ; and
 Government securities including defense and postal saving certificate.
(13) The cost of maintenance of the provident fund shall be borne by the employer.
(14) The accounts of the provident fund shall be audited annually at the cost of the
establishment in the same manner as the accounts of the establishment are audited:
(15) A statement of accounts of the provident fund, together with the audit report thereon,
shall be forwarded to the director of Labour within one month of the submission of audit
report.
(16) Where the Government is satisfied that a provident fund constituted by an establishment
in the private sector is working satisfactorily and the workers have no complaint against it, the
Government may, on the application of the employer of the establishment, by order in writing
exempt the establishment from operation of this section.
(17) An establishment constituting a provident fund shall be deemed to be a public institution
for the purposes of the provident funds act, 1925 (XIX of 1925).
(18) In this section, establishment in private sector shall mean an establishment which is not
owned or managed directly by the government or by any local authority or to which any
provident fund rules made by the government or by any local authority does not apply.