Legal Framework for the Industrial Relation System
An Overview of Labor law ACT 2006 Bangladesh
LABOR ACT 2006
• WORKING CONDITION
• EMPLOYEMENT
• OCCUPATIONAL HEALTH, SAFETY AND WELFARE
Employment
•An Employment contract is a written legal document
•Lays out binding terms and conditions of employment between an
employee and an employer.
•Not mandatory to be in written form to be legally valid.
•A contract 'starts' as soon as an offer of employment is accepted.
•Consists of main terms and conditions of employment, i.e. pay, holiday,
working hour etc
Employment: Forced labor
• Forced labor: Forced labor is strictly prohibited by the Constitution of the
Peoples Republic of Bangladesh.
• Law approving forced labor is Void ab-initio (from the beginning) as
per the constitutional framework of legislation in Bangladesh.
Article 34 of the Constitution of the Peoples Republic of Bangladesh stated as
follows:
“All forms of Forced Labor are prohibited and any contravention of this
provision shall be an offence and shall be punishable in accordance with
Law”
ILO fundamental rights Agreements (nos. 29 and 105) also addressed the
elimination of forced labor
Employment: Discrimination
• Discrimination: Discriminatory behavior on the basis of sex, color and belief
is totally prohibited in any law in Bangladesh.
• Article 27 and 28 has provided a guideline to the legislator to make the
discrimination free environment at every walks of national life.
Article 27: “All citizens are equal before Law and are entitled to equal
protection of Law”
Article 28: “The State shall not discriminate against any citizen on the
grounds of religion, race, caste, sex or place of birth.”
Employment: Service Rules
Service Rules: (Provisions of the new labor code)
• Section 3 of the new labor law allows an industrial establishment to make a
service rule in accordance to the laws of the land
• Section 3 of the Employment of Labor (Standing Orders) Act, 1965 has the
same provisions as above
•Framing of the service rules by an employer is not mandatory, but if made it
must comply with the relevant laws
• Appointment letter and ID card:
Section 5 of the new labor law of 2006 provides that each and every worker
should be given with appointment letter and ID card by their employer free of
charge.
Employment: Service Book
• Service book:
law provides section 7 of the law for the entries of the service book of a
labor. As per the section following entries shall be there in the service
book of a labor:
• Name, spouse name , mother’s and father’s name and address
• Date of birth
• Mark of recognition
• Previous owner and his address if applicable
• Duration of the employment
• Occupation or designation
• Wages and allowances
• Leaves availed
• Conduct of the worker
Employment: Classification of Workers
Classification of workers:
Section 4 of the new labor code of 2006 classifies the workers into following classes:
Apprentice: A worker who is appointed in an establishment as a trainee and during
the period of training he is paid an allowance is called an apprentice.
BADLI: A worker who is employed for the period of absence of a permanent or
probationer worker.
Casual: A worker who is employed on casual basis with no fixed working hours & no
benefits of a permanent employee.
Temporary: A worker who is employed purely for a temporary nature of work.
Probationer: A worker who is employed on probation for a fix time with a view to fill
up a permanent vacancy.
Permanent: A worker who is employed to fill up a permanent post or when a
probationer completes his probation period in an establishment.
Employment: Probation Period
• Probationary/TEST period:
Period of probation:
• 6 months for the worker employed in office activities
• 3 months for other workers.
• permanent worker might be given waiver if rejoins as a probationer for the
same post
• If an employee leaves during the probation period & joins again under the
same employer within next 3 years of such employment, He will be treated as
a probationer but the previous period of probation will be calculated with in
new period.
Employment: Service Length Calculation
Calculation of continuous service:
Section 145 of the new labor law provides for the method of the calculation
of the continuous service period of a labor for the purpose of this law in the
following manner:
• If the actual number of the working days of a worker is 240 days during the
previous 12 months, He will be considered to have worked for a continuous
period of one year.
• If the actual number of the working days in the previous 12 months is 120
days, He will be considered to be employed there for a continuous period of 6
months.
Employment: Death Benefit
• Payment of wages for leave:
In case of the expiry of the employment of any worker by dismissal,
termination, retrenchment or retirement, he will be entitled to get wages for
any leave ‘due to be availed’.
• Death benefit
• In case of death of a worker after completing 3 years continuous service
with the same employer, the worker will be entitled to get the benefit of
30 days wages for every completed year or 6 months thereof or gratuity,
whichever is higher.
• The worker will get this benefit in addition to his other privilege of the
retirement.
Employment: Work Stoppage
Work stoppage:
Section 12 of the labor law deals with the stoppage of work by the employer.
Following are the points to be noted:
a) In the event of fire, disaster, breakdown of machineries, epidemics or civil disorder
or any other circumstance beyond his control, the employer can stop the work of a
section or sections of his factory.
b) In the event of such stoppage occurring at any time beyond working hours, the
employer will issue a notice in the notice board of the factory to inform the labors as
when to resume the work and whether the worker is to be present at their place at
that time.
c) The notice also mentions that those who are ordered to be present, and if their
presence is required for an hour only, then they may not be entitled to get any
benefit.
Employment: Retrenchment
• Retrenchment/Cut Back: Retrenchment means the expiry of the employment of
a worker on the ground of termination. For the retrenchment an employer has to
follow the following provision:
No worker, employed in any shop or commercial or industrial establishment, who
has been in continuous service for not less than 1 year under an employer shall be
retrenched only by the employer if :
a) the worker has been given 1 month’s notice in writing, indicating the reasons
for retrenchment or the worker has been paid wages for the period of notice;
b) a copy of the notice in respect of the retrenchment is sent to the Chief
Inspector or any other officer authorized by him
c) the worker has been paid, at the time of retrenchment , compensation which
shall be equivalent to 30 day’s wages for every completed year of service or for
any part thereof in excess of 6 months, or gratuity, if any, whichever is higher.
Employment: Discharge
• Discharge: Discharge refers to the expiry of the employment of a worker on
the ground of inability or incapacity because of ill health.
• Section 22 of the labor code deals with the system of discharge. As per the
section an employer can discharge a worker on the basis of the report of a
registered physician.
• Compensation in case of discharge: Every worker who has completed a
continuous service for 1 year shall be entitled to get a benefit
• The worker will receive a 30 days wages for every completed year of
service or the gratuity, whichever is higher.
Employment: Dismissal
• Dismissal: Section 23 of the new labor law deals with the dismissal of the
worker on the ground of misconduct and conviction.
The section makes a room for the employer to dismiss a worker without
serving him a notice or the payment in lieu thereof for the following two
grounds:
If the worker is convicted by any criminal court.
If his misconduct is proved under section 24 of the labor law 2006.
Misconduct as defined in that section:
• Willful insubordination, alone or in combination with others, to any lawful
or reasonable order;
• Theft, fraud or dishonesty;
• Taking or giving bribes;
Employment: Dismissal
…Misconduct cont.
• Habitual absence, without leave, for more than ten days;
• Habitual late attendance;
• Habitual breach of any rule or law applicable to the establishment;
• Violent or disorderly behavior;
• Habitual negligence or neglect of work;
• Frequent repetition of a work on which fine can be imposed;
• Resorting to illegal strike or go slow or instigating others to do so;
• Falsifying, tampering the official document of the employer
Employment: Dismissal
The new labor law 2013 makes a provision of the lighter punishment in
case of the misconduct. Sub section 2 of section 23 says:
Any worker, against whom misconduct has been proved, may be punished
by any of the following punishment other than dismissal from the job:
• Termination;
• Demotion to lower grade;
• Held up promotion for at least one year;
• Held up increment for an year;
• Fine;
• Temporary suspension without wages;
• Rebuking and warning;
Employment: Termination
• Termination: The employer can terminate a worker without assigning any reason
whatsoever, not dismissing or etc, in the following manner as described in Section 26 of
the new labor law 2006.
For the permanent workers:
Serving 120 days notice to the workers employed on the monthly basis.
Serving 60 days notice to the other workers.
For the temporary workers:
Serving 30 days notice to the workers employed on the monthly basis.
Serving 14 days notice to the other employees.
Termination without any notice: The employer can even terminate the employment of a
particular worker without any notice if the employer pays the wages to the terminated
worker for the abovementioned period of notice.
Compensation on termination of a permanent worker: When a permanent worker is
terminated she or he shall be eligible to get a benefit of 30 days wage for every
completed year of service in an establishment in addition to the other benefit payable to
him.
