Labour Law in Bangladesh

Introduction
Labour law (or labor, or employment law) is the body of laws, administrative rulings, and
precedents which address the legal rights of, and restrictions on, working people and their
organizations. As such, it mediates many aspects of the relationship between trade unions,
employers and employees. In Canada, employment laws related to unionized workplaces are
differentiated from those relating to particular individuals. In most countries however, no such
distinction is made. However, there are two broad categories of labour law. First, collective labour
law relates to the tripartite relationship between employee, employer and union. Second,
individual labour law concerns employees rights at work and through the contract for work.
The labour movement has been instrumental in the enacting of laws protecting labour rights in
the 19th and 20th centuries. Labour rights have been integral to the social and economic
development since the industrial revolution.
Labour law arose due to the demands for workers for better conditions, the right to organize, and
the simultaneous demands of employers to restrict the powers of workers many organizations
and to keep labour costs low. Employers costs can increase due to workers organizing to win
higher wages, or by laws imposing costly requirements, such as health and safety or equal
opportunities conditions. Workers organizations, such as trade unions, can also transcend purely
industrial disputes, and gain political power which some employers may oppose. The state of
labour law at any one time is therefore both the product of, and a component of, struggles
between different interests in society.
What is ILO :
The International Labour Organization (ILO) is devoted to advancing opportunities for women and
men to obtain decent and productive work in conditions of freedom, equity, security and human
dignity. Its main aims are to promote rights at work, encourage decent employment opportunities,
enhance social protection and strengthen dialogue in handling work-related issues.
International Labour Code :
One of the principal functions of the ILO is setting international labour standards through the
adoption of conventions and recommendations covering a broad spectrum of labour-related
subjects and which, together, are sometimes referred to as the International Labour Code. The
topics covered include a wide range of issues, from freedom of association to health and safety
at work, working conditions in the maritime sector, night work, discrimination, child labour, and
forced labour. The term code is somewhat a misnomer insofar as adoption of new standards

and revision of old ones has not resulted in an entirely integrated and homogeneous body of law.
This is not the case. Nevertheless, the broad scope of the subjects covered by the ILOs
standards suggests that the term code would be appropriate to use.
History
The Bangladesh Labour Code 2006 is one of the very recent laws with major overhauling
changes in the field of labour legislation. The laws which this Code has replaced were made
mostly during the British Colonial regime and Pakistan period and they were as many as 50 in
number. In many cases these laws were outdated, scattered, inconsistent and often overlapping
each other. In 1992 a Labour Law Commission was formed by the Government of the day which
examined 44 labour laws and recommended to repeal 27 laws and it prepared a draft Labour
Code in 1994. This draft of Labour Code, 1994 underwent series of changes in its vetting stages
and finally the Bangladesh Labour Code 2006 was passed by the Parliament on October 11,
2006. Section 353 of the Code has repealed 25 previous labour related laws. There are still 25
valid laws dealing with labour and -industrial issues have not been repealed or consolidated and
as such the Bangladesh Labour Code 2006 although a consolidated Act has not consolidated all
the laws in the filed. Furthermore, although the name of the law is Bangladesh Labour Code,-in
fact, it is not a Code rather a consolidating legislation only.
A recent tendency of legislative drafting by the government bodies has been that most of the laws
are drafted in Bengali and so has been the case of the Bangladesh Labour Code, 2006.
Conclusion
Bangladesh being a member of International Labor Organization has been trying to maintain
international standard in enacting laws relating to labor rights. The Bangladesh Labor Law 2006
is a complete code to protect the rights of labor in Bangladesh working in various factories and
industries with maintaining the requirements of International Conventions of ILO. As a third World
County it has been ratified most of conventions of ILO and assisting to promote more efficient
operation of those treaties with implementing the laws relating to labor. Though it is not possible
to maintain highest standard through its enactment and practical implementation of labor laws
due to many social and economical restriction but the continuing process is somehow demands a
lot of gratitude from international community.
Submitted by:
Kishore Kumar Mondal
Reg. No# 10209015
Batch #3rd

Program: LL.M (Regular)

Department of Law and Human Rights
The University of Asia Pacific

http://www.assignmentpoint.com/arts/law/labour-law-bangladesh.html

Theis on Workers Retrenchment under Labour Law in Bangladesh

Perspective
Introduction
Barriers to timely resolution of labour disputes involve two types of issues; one is the legal barrier
and the other is the practical one. To deal with the first one, we begin by outlining the origin of
Labour Courts, its constitution, composition, powers and procedures, including the Labour
Appellate Tribunal, as the machinery for disposal of various types of labour cause. This outline is
then followed by a short account for the territorial and other jurisdictional aspects of Labour
Court. The next, third, section offers a detailed expose of the barriers, along with suggestion for
facilitating timely disposal of labour cases, ending with a concluding section. This thesis includes
numerical representations of the state of labour case under various relevant laws.
(1.2)The Objectives of Study
The object of both the law is to establish a continuous process of harmonious relationship
between the employers and employee. They have another object of fastening together both the
labour and capital in order to create an atmosphere that they are an indivisible whole in
production. The ultimate object of labour and industrial law is to maintain industrial peace security
and steady growth of production.
The origin and growth of labour law may be ascribed mostly to the development of organized
industry where a large number of workers including women and children are employed under
conditions which tend to be detrimental to their safety and welfare and against which they are
often to protect themselves.
From historical point of view labour law has given birth to some fundamental industrial rights to
labours in the field of production. At the same time it has also provided protection for those rights.
From a practical point of view labour and industrial law provide for three types of dispute
settlement measures voluntary settlement machinery, quasi judicial machinery and judicial
machinery.
(1.3) Importance of the Study
Labour and industrial legislation is necessary for the following reasons:
The individual workers are economically weak. They cannot bargain with the employees for the
protection of their rights and even for subsistence wages. As such legislation for protection of
labour against long hours of work unhygienic conditions of work low wages and exploitation is
needed. The workers are exposed to certain risks in factories mines and other establishment. As
such in order to make provisions for their health safety and welfare legislation is needed. In order

to increases the burning power of labour legislation is necessary to encourage the formation of
trade unions.
(1.4) Scope and Limitation of Study
The discussion of this dissertation will be limited within the scope of the Origin and historical
development of Labour law of Bangladesh, the Problems of Labour law of Bangladesh, problems
of Labour education in Bangladesh and some case studies. The system of enrolment in the Bar
Council also discussed. There will be discussed about some nature of crimes committed usually.
(1.5) Methodology of Study
The methodology used in the thesis is Qualitative Methodology. Our research works are based on
1. Historical Study and 2. Analytical Study.
1. Historical Study: It has a historical back ground of workers movement for the establishment of
their rights. The workers movement becomes successful. Now the modern world, Modern state
and United Nations Organization highlighted the worker in their dignity, honor, position,
participation social work political activity etc.
In Bangladesh the workers retrenchment are guaranteed in their constitution, state laws, and
social and state activities. Through the historical revolution the workers right has come to this
position. The history workers movement started from 1971 after successful victory of the
Bangladesh war of Independence. So, to write this thesis we have to use historical study.
2. Analytical Study: In this thesis the formation development and solutions regarding workers
right and retrenchment are to be discussed. In this process of analysis the laws related to the
subject and solutions from the judicial process are to be discussed. The enforcement of workers
right is judicial matter. So in this process of study the analytical study is necessary and important
for this thesis. For our research works we followed the analytical study.
The main object of the study is to evaluate effects and importance on persons, society and the
state. The study is mainly qualitative in nature because, the impact that the study has searched
would not be possible to assess without qualitative data. Legal issues, judicial rulings and
administrative management of the government and the public, all are related with the issues. The
research work is involved with the legal matter, administrative matter and judicial decision of the
workers retrenchment. Under these circumstances a regulated research work will be suitable to
solve the problems after investigating different variables such as laws relating to A Study on
Workers Retrenchment under Labour Law: Bangladesh Perspective.
Normally researchers depend on different methodological approaches. Research method is an
important factor for all kinds of study. There are two kinds of empirical research methods namely.

1.

Qualitative

Research

Method

and

2.Quantitative

Research

method.

Research on A study on workers retrenchment of Bangladesh a new admiration has emerged

among the judicial persons, educators, sociologists, psychologists and public interest, lawyers,
politicians, scientists and many others. Peaceful, legal, moral, ethical happy life in the society is
the vital issue for the man kind. So considering all the above factors this research works utilizes
the

following

1.

Case

2.
3.

methodologies
study
Judicial

Ground

4.

method,
method,

theory
Sociological

method.
Method,

5. Statistical Method.
Method Used in this thesis:
The method is used in this dissertation is action oriented. The study has been conducted on the
basis of two principal sources of data collection. These are: 1. Primary Source, 2. Secondary
source.
The basic data has been collected from the administrative source, legislative laws and historical
events. Other data has been collected from judicial rulings and affected persons information. By
focusing efforts on critical issues of authority concern, and the victim persons concern are the
important sources of data collection.
(1.6) Organization of Thesis
Labour Law is very importance in Bangladesh perspective. Labour law of Bangladesh is
developed by origin and historically. There are many problem of labour law of Bangladesh,
problems also labour education in Bangladesh and some cases studies. I try organized this
thesis and mentioned that condition for a valid retrenchment of labour. I include procedure of
retrenchment of Bangladesh and retrenchment compensation with studies. I also try includes
Labour court and Labour appellate tribunal.
In the first chapter I tried to include Introduction, Objectives of the study, Importance of Study,
Scope and Limitation of Study, Methodology of study and Organization of Thesis. It is the
introductory chapter of the thesis.
In the second chapter I tried to discuss about Labour laws in Bangladesh like Employment
Conditions, Labour Laws, Settlement of Labour Disputes, Wages and Fringe Benefits, Leave &
Holidays, Social Security and Labour Union for the better improvement of industrial sector of
Bangladesh.

In the third Chapter I tried to discuss about retrenchments including Conditions for a valid
Retrenchment, Procedure of retrenchment, Retrenchment compensation, Re-employment of
retrenched workers, Condition of re-employment for retrenchment workers and Distinction
between lay-off and retrenchment.
In the fourth chapter I discussed about 10 cases like M/S Caltex oil (Pakistan) Ltd. vs. The
chairman second labour Court, Aminul Islam vs. James Finlay Co.Ltd, Bangladesh tea estate ltd
vs. Bangladesh tea estate staff union, Banks & Another vs. Coca-Cola SA, Oosthuizen vs.
Telkom SA Ltd., Perumal & another vs. Tiger Brands, Zero Appliances (Pty) Ltd vs. CCMA &
Others, Leppan and Suretrade 110 CC t/a Bra Boutique, Retrenchment: breakdown of trust
relationship14-MAY-08 Zietsman & others vs. Transnet Limited, Thekiso vs. IBM South Africa
(Pty) Ltd [Redundancy & EEA requirement etc.
Chapter

LABOUR

LAW

IN

BANGLADESH:

2.1

Employment

Conditions

2.2

Labour

Laws

2.3
2.4
2.5

Settlement
Wages

of

Labour

Disputes:

and

Fringe

Benefits

Leave

2.6

&
Social

2.7

Holidays
Security

Labour

Union

2.8 Working Hours

Labour

Law

in

Bangladesh:

Bangladesh offers an abundant supply of disciplined, easily trainable and low-cost work force
suitable for any labor-intensive industry. Of late, there is an increasing supply of professionals,
technologists and other middle and low level skilled workers. They receive technical training from
universities, college, technical training centers, polytechnic institutions etc. The expenditure
incurred by an employer to train his employee is exempted from income tax.
(2.1). Employment Conditions
The minimum age for workers in Bangladesh is 16 years in factories and establishments.
Contracts are made in the form of a letter of offer. Workers may also be engaged on verbal
agreements. In government organizations and in some private organizations as well, a probation
period exists for skilled or semi-skilled workers varying between three months to one year and
during this period either party may serve one months notice for Termination from or giving up to

the job. In the private sector, the dignity of labor is ensured in accordance with the principles
enunciated in the ILO convention and recommendations.
(2.2). Labour Laws
In Bangladesh 47 labour laws are now in operation. These relate to (a) wages and employment,
(b) trade union & industrial disputes, (c) working environment and (d) labour administration and
related

matters.

The

Workmens

main
Compensation

Payment

of

Maternity

Employment

Shops

labor
Act,

Wages

Labour
&

Factories

1936

Act,

(Standing

1936

Orders)

Establishments
Act,

are:
1923,

Act,

Benefit

of

laws

Act,
Act,

1965
1965
1965

Industrial Relations Ordinance, 1969

(2.3). Settlement of Labour Disputes
Contract or agreement is usually made between the management and the Collective Bargaining
Agent (CBA) on settlement of industrial disputes as per provisions of Industrial Relations
Ordinance, 1969 . In case a bipartite negotiation fails, conciliation machinery of the government is
requested by the aggrieved party to intervene and the conciliation process is undertaken. If
succeeds agreement is signed between the parties and the Conciliation Officer becomes a
witness. If it fails, the party raising the dispute may go for strike or lockout as the case may be.
The government may, however, prohibit the same after one month in the interest of the public. In
the essential services like, (a) electricity, gas, oil & water supply etc. (b) hospital & ambulance
service, (c) fire brigade, (d) railway & Bangladesh Biman and (e) ports etc., strike is prohibited.
(2.4). Wages and Fringe Benefits
In the public sector, wages and fringe benefits of the workers are determined by the government
on the recommendation of the National Wages Commission established from time to time. Such
commissions were appointed in 1973, 1977, 1984, 1989 & 1992. Wages & fringe benefits
declared by the government in 1977 having 20 grades of wages. The public sector employees
are, however, covered by the Pay Commission declared by the government from time to time.
In the private sector, the wages & fringes benefits of the workers and employees are determined
through collective bargaining process. Sometimes private industries follow the public sector
wages & salary structure for their workers and employees respectively.
(2.5). Leave & Holidays

Leave & holidays of the workers & employees are regulated by the Factories Act, 1965 and
shops Establishment Act, 1965.
(2.6). Social Security
Workmen Compensation, Maternity Benefit (Tea Estate) Act, 1950, Maternity Benefit Act, 1939,
Employment of Labour (standing orders) Act, 1965 etc. deal with provident fund and gratuity.
(2.7). Labour Union
Industrial Relations Ordinance, 19691 deals with trade union in Bangladesh. In any industrial and
commercial establishment, a trade union may be formed with 30% of the total number of workers
employed. If there is more than one union in any establishment, Collective Bargaining Agent is
determined by the Registrar of Trade Union through sector ballot for a term of two years. Only the
Collective Bargaining Agent is authorized to raise industrial disputes and negotiate with the
management. The Director of Labor of the government acts as the Registrar of Trade Union in
Bangladesh. Till December 1996; 4955 trade unions (workers union 4104 & employers
association- 851) exits in Bangladesh having 17, 30, 927 members.
Industrial Relations Ordinance, 1969 and The Industrial Relations Rules, 19772 provides that any
worker or employer/ has the right to form a union/association without previous authorization. But
such a union/association can not function as a trade union without being registered under the
law.
(2.8). Working Hours
Workers in the public or private sector remain at their job for eight and a half hours daily
(including half an hour for meal or rest) with Friday as weekly holiday marking 48 working hours a
week. Work in excess of these, is paid as overtime. The rate of overtime is 2 hours pay for 1-hour
job.
1.

Industrial

Relations

Ordinance,

1969(Ordinance

No.

XXIII

of

1969)

2. The Industrial Relations Rules, 1977

Chapter

-3

RETERNCHMENTS
3.1
3.2

Retrenchment
Conditions

3.3

for
Procedure

3.4
3.5
3.6

valid
of

retrenchment

Retrenchment
Re-employment
Condition

of

compensation

of
re-employment

3.7 Distinction between lay-off and retrenchment

Retrenchment

retrenched
for

retrenchment

workers
workers

(3.1) Retrenchment
Section 2(11) define the term retrenchment as the termination by the employer of service of
workers not as a measure of punishment inflict by way of discipline action but on the ground of
redundancy. Retrenchment means the termination by the employer of the services of workers
on the ground of redundancy {sec. 2(q)}. Thus retrenchment measure to remove surplus staff it
results in a complete severance of employer relationship. The definition also makes it clear that
retrenchment is a kind of termination but every termination is not retrenchment. To be
retrenchment the termination must be on the ground of sedentary. 1
(3.2) Conditions for a valid Retrenchment
According to section 20 read with section 2(11) the conditions of a valid retrenchment are as
follows:
1. The workers to be retrenchment must be given one months notice;
2. The notice must be given in writing;
3. the notice must be contain reasons for retrenchment;
4. alternative to condition (2) above, instead of giving one months, a worker may be retrenched
instantly by giving him payment of wages for the period of notice;
5. a copy of the notice of retrenchment must be send to the chief inspector;
6. a copy of the notice must be send to the CBA;
7. there must be termination of services of a workman on the ground of redundancy or surplus
labour;
1. Md. Abdul Halim, The Bangladesh Labour Code, 2006,CCB Foundation, Ed.1, p.76
(3.3) Procedure of retrenchment
Section 20 of the code incorporates the well recognized principle of retrenchment in industrial
law1, namely, the last come first go or first come last go. The principal laid down in section 20
for retrenchment procedure are to be adhered to by every employer. The conditions which this
section prescribes for the procedure of retrenchment are as follows:
1. The claiming the protection of retrenchment procedure under section 20 must be a worker
within the definition in clause(65) of secion2;
2. The person must belong to a particular category of workers in the establishment concerned;
3. There should not be any agreement between the employer and employee contrary of last
come

first

go.

4. The employer is bound to comply with all the above conditions while retrenching a worker.
However, the employer can deviate from this procedure on justifiable reasons which must be
recorded.

(3.4) Retrenchment compensation

Under clause (c) of section 20(2) payment of compensation for retrenchment is mandatory. The
provisions of compensation for retrenchment are as follows:
(1) At the time of retrenchment the worker must be paid compensation equivalent to 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,
(2) To claim compensation for retrenchment the worker must show that he has been in
continuous service for not less than one year under that employer who has retrenched him;
(3) If a worker who is to be laid-off even after first 45 days in a calendar year under section 16(7),
is retrenchment instead of laying-off, no notice will be required. However, he shall be paid 15
days wages in addition to the compensation or gratuity which may be payable;
(4) Wages as compensation for retrenchment will mean the average of the basic wages plus
dearness allowances, if any, paid during the period of twelve months immediately preceding the
date of retrenchment.
1. Md. Abdul Halim, The Bangladesh Labour Code, 2006,CCB Foundation, Ed.1, p.77
(3.5) Re-employment of retrenched workers
Retrenchment of surplus workers causes undue suffering not only to the retrenched worker but to
all his dependents. Therefore in order to avoid hardship to the worker and his family the
provisions have been made in section 21 of the code that such workman should be given an
opportunity to join service whenever an occasion arises to employ another hand. This principle
was regarded as of general application in industrial adjudication on the ground that it was based
on considerations of fair play and justice. The section provides that after effecting retrenchment, if
the employer proposes to take into his employment any person:
(1) He shall give opportunity to the retrenched workers who offer themselves for re-employment;
and
(2) These retrenchment workers will have preference over the new applicants. Thus section 21
imposes legal obligation on the employers to give preference to retrenched workers when he
subsequently employers any person.
(3.6) Condition of re-employment for retrenchment workers
A retrenched worker may claim preference under section 21 on the fulfillment of the following
conditions:
(1) to apply for preference under section 21 the worker concerned must have been retrenched in
last one year time prior to re-employment (thus a dismissed or discharged worker cannot claim
preference in employment)

(2) The worker must offer himself for re-employment in response to the notice by the employer;
(3) Workers will have priority according to the length of his service under the employer;
(3.7) Distinction between lay-off and retrenchment
(1) In case of lay-off there is failure, refusal or inability of the employer to give employment to a
workman for a temporary period while in retrenchment the workman is deprived of his
employment permanently by his employer.
(2) The grounds of lay-off are May. In lay-off the failure refusal or inability to give employment is
on account of one or more of the reasons specified in section 2(58) such as shortage of coal
shortage of power, raw materials, break down of machinery etc. while in retrenchment the
termination of service is on the ground of surplus labour only. Thus the ground of retrenchment
and lay-off are completely different.
(3) The reasons of lay-off are completely different as compared to reasons of retrenchment. The
situation of surplus labour may arise due to economic drive, rationalisation in the industry
installation of new labour saving machinery etc. But in lay-off reasons of non-employment are
mainly non-availability of power raw materials, coal or break down of machinery etc.
(4) In lay-off labour force is not surplus but in retrenchment labour force is surplus which is to be
retrenched.
(5) In lay-off employment relationship of employer and employer and employers is not terminated
but suspended while in retrenchment relationship is terminated. 1
1.Md. Abdul Halim, The Bangladesh Labour Code, 2006,CCB Foundation, Ed.1, p.79
Chapter

CASE
4.1

STUDIES
M/S

4.2
4.3

Caltex

oil

Aminul
tea

Banks

4.5

estate

ltd

&

Zero

4.8

Leppan

Bangladesh

and

chairman
tea

estate

Ltd

vs.

CCMA

Suretrade

110

CC

t/a

of

trust

SA
Brands

&
Bra

union
Ltd

Tiger

(Pty)

breakdown

staff

SA

vs.

labour
Co.Ltd

Coca-Cola

Telkom

another

second

Finlay

vs.

vs.

Appliances

Retrenchment:

vs.

&

The
James

Another

Perumal

4.7

vs.

vs.

Oosthuizen

4.6

Ltd.

Islam

Bangladesh

4.4

(Pakistan)

Others
Boutique
relationship

14-MAY-08
4.9

Zietsman

&

others

vs.

Transnet

4.10 Thekiso vs. IBM South Africa (Pty) Ltd [Redundancy & EEA requirement

Limited.

(4.1)

M/S

Caltex

oil

(Pakistan)

Ltd.

Vs.

The

chairman

Hakim

Khan

Second labour court (1967) 19 DLR 264 1

Judge:

S.D

Ahmed

Heard

on:

3rd,

and
6th,

Abdul
7th

March

1967

Judgment date: 9th March 1967

Dr. F.K.M.A Muslim .. (Petitioner)
Vs.
M.M Golam Hafiz (Respondandent)
Issue:
Whether to effect retrenchment condition of the section must be fulfilled or not
Fact:
In the present, case service of the employees have not been terminated in the manner provided
in section (12) of the Act. The termination of the service on the ground of retrenchment in terms of
section 12 can only take place when all the condition mentioned there under have been complied
with and not before.
1. M/S Caltex oil (Pakistan) Ltd. Vs. The chairman second labour court (1967) 19 DLR 264
In the present case it is obvious that one of the condition, namely, dispatching the notice in
respect of the retrenchment to the chief inspector was not complied with. The Labour court was,
therefore justified and acted quite within its jurisdiction in holding that the termination of the
service of the respondents concerned was under section 19 of the Act and not under section 12
and claimed by the petitioner. The essential of a termination on the ground of retrenchment as
prescribed under section 12 are (a) the worker must be given one month notice is writing
indicating the reason for retrenchment or he has been paid in lieu of such notice in respect of
retrenchment in sent to the chief inspector and(c) the worker has been paid at the time of
retrenchment compensation or gratuity which ever is higher as required under clause (c) of the
section 12 .
If notice in the chief inspector has not been served in terms of diction 12, the retrenchment of the
employee by the employer is not is according with law.
Judgment:
For the purpose of calculation of the compensation under the section, wages shall mean the
verge of the basic wages plus dearness allowance. If any paid to the worker during period the
date of retrenchment. For the reasons stated above, we dont think that the impugned order
passed by the labour court suffers from any illegality. We accordingly discharge the rule in each

one of the two petitioners without any order as to costs. Judge Abdul Hakim Khan also agrees
with.
(4.2)

Aminul

Islam

Vs

James

Finlay

Co.

Ltd 26DLR (SC) 33 1

Fact:
Mr.Aminul Islam was a head Clerk-cum Accountant under James Finally Company Ltd at Khulna.
His service was terminated allowing him wages in lieu of 90 days notice. The company preferred
to pay his wages for that period in addition to compensation at the rate of 14 days wages for
every completed year or part thereof in excess of six months. It was asserted that the termination
was for trade union activities of the workers and that it was case of victimization. The labour court
upheld the contention of the worker. On the appeal before the high court no opinion was
expressed on merits as the case was remanded to the labour court since the opinion of a
member was not obtained. On farther appeal to the Appellate division, it was held on fact that the
workers service was terminated without any stigma or charge and it was a termination
simplicater.
Judgment:
It has been contended that the service of Aminul Islam ware terminated due to his trade union
activities and as such it was act of victimization and the termination
1.

Aminul

Islam

Vs

James

Finlay

Co.

Ltd

26DLR

(SC)

33

virtually amounted to dismissal under the cloak of the tram termination . But his contention does
not hold good as on examination of the impugned order it has been found that the termination
simpliciter under section 19 and as such he was no longer a worker within the meaning of the
Act.
(4.3)Bangladesh

tea

estate

ltd

Bangladesh

tea

estate

staff

union

(1976)28DLR (AD) 190 1

Facts:
One Mr. Nurul Abser Chowdhury was appointed as a clerk by the Bangladesh tea Estate ltd. On
1st June 1964. He was subsequently promoted to grade 2, gardener clerk on 3-7-67. The
employer company terminated his service under section 19 of the employment of labour act 1965
by a letter with all termination benefits. The employer instead of receiving his dues raised a
labour4 dispute through the union under the estate Pakistan labour dispute act 1965. The labour
court on consideration of evidence held that the termination of service of Nurul Abser was
malafide a code of victimization for his trade union activities and according made an award
directing to be a unit representative of the union.

On appeal by the employer company the high court of East Pakistan made an elaborate
discussion of evidence and dismissed the appeal on the ground that Nurul Abser was victimized
for his trade union activities. Because of his participation in trade union activities the order of
termination was passed by the management in disapproval of such activities.
The employer company obtained leave from the supreme court of Pakistan.
Issues:
1. Whether the question of termination under section 19 should only be decided under section 25
of the standing orders act 1965 and cannot be raised as an industrial dispute under the labour
dispute

act

or

it

can

be

raised

as

an

industrial

dispute.

2. Can the court go behind the order of termination to see if it is really victimization or not.
Judgment:
The ratio decldendi of the two cited decision reported in 25 DLR (SC) 85 and in 13 DLR (SC) 280
(PDL 1961 (SC) 403) appear to be that the employer has a right to terminate the service of a
worker under section 19 of the standing order act without disclosing any cause and that the court
should not go behind an order of termination simpliclter to find out whether the order was
malafide or not.
1. Bangladesh tea estate ltd v Bangladesh tea estate staff union (1976)28DLR (AD) 190
There is however an exception to the rule that court not to go behind the order of a service of the
termination to see if it really was victimization. This exception is contained in section 19, itself
when read with section 25. it says that if purported termination is in reality victimization of an
officer of a registered trade union for his trade union activities the court can go behind the order
to see the real purpose of termination and grant such relief as it thinks fit. The two propositions
should be read together in order to arrive at the true import of section 19 of the standing orders
act.
Labour dispute is broad enough to include a dispute of a terminated worker under section 19 of
the standing act 1965 if the dispute centres round the victimization of the worker for his trade
union activates. It is to be remembering that section 25 of the standing orders act has clearly
provided that an individual worker can claim relief before the labour court under the said act
unless the grievance ha was raised as labour dispute under labour dispute act (IRO). Through
section 25 bars all complaints against the order of termination under section 19 of the said act yet
it authorized the worker to claim relief if the termination is of an officer of the registered trade
union for his trade union activities or the worker is deprived of his benefits under section 19. The
two acts are pair material and the provision in section 25 indicates that if the termination of a

worker is for his trade union actives and if he is an officer of a registered trade union his code
may be raised as an industrial dispute.
(4.4)Banks & Another v Coca-Cola SA 1
Case

No.

Award

1114

Date

Jurisdiction

29
Labour

07

June
Court

2007
Johannesburg

Judge A Van Niekerk AJ

Subject: procedural fairness in Retrenchment.
Issue:
An application to interdict the employer from implementing a dismissal based on operational
requirements on the grounds of procedural fairness. There was a delay in the launch of the
proceedings and disagreement on what the appropriate remedies were. There was also a
material dispute of fact. The matter was referred to trial for the hearing of oral evidence.
1.

Banks

&

Summary

Another

of

Coca-Cola

SA
facts:

The two applicants, both senior executives were dismissed due to operational requirements after
the process of consultation had broken down. Two and a half months later they approached the
Labour Court for relief in terms of Section 189A (13) and sought compensation in the event that
the court found that their dismissal had been procedurally unfair.
The allegations of the process being a shambles was denied by the Respondent Company and
the disputes were therefore factual and material to the issue.
The notice of termination was due to take place on the 30 June 2007 and therefore the urgency
of the matter being heard to interdict the employer from dismissing the applicants and directing
the respondent to commence the consultation process afresh as required by Section 189 of the
Act.
The facts as alleged by the applicants on the consultation process used by the Respondent were
very comprehensive and the basis of the claim was that the respondent failed to engage in any
meaningful individual consultations about a structure that could save their jobs and that the
consultation process was nothing less than a shambles, that vague and subjective selection
criteria were applied, that the respondent made a decision on restructuring and sought to consult
thereafter and that it failed to make a proper severance proposal.
The respondent alleged that the applicants referral was opportunistic and that the applicants are
seeking to do no more than secure themselves reinstatement for the purposes of negotiating a
more generous severance package.

Summary

of

Three

Judgment:

considerations

were

apparent.

The first was a material dispute of fact, the second was the time passed since the breakdown of
consultations and the launching of the application and the third is the acrimonious relationship
between the parties, best described as a hostile stand-off, in so far as is relevant to the remedy
sought by the applicants.
It was held that no purpose would be served by requiring the respondent and applicants to go
back to square one in the process and it was held that Section 189A would not serve its purpose
if the court would grant an interdict against dismissal and issue directions on how the parties
should conduct themselves in a resurrected consultation process.
The court did not make a finding on the papers before court as to whether either party had
discharged their obligations in terms of Section 189 and held that the inevitability of a future
referral to the court on the substantive fairness of the dismissal, that the procedural and
substantive aspects of the dispute are dealt with simultaneously in a trial action.
The order granted by the court was therefore:
1. The application in terms of section 189A (13) was referred to the trial roll for hearing of oral
evidence.
2. The application in terms of section 189A (13) to be enrolled simultaneously with any action that
the applicants may institute in relation to the substantive fairness of the dismissal. Should the
applicants not institute this action then the application made in terms of section 189A (13) should
be enrolled on the trial role.
(4.5) Oosthuizen v Telkom SA Ltd 1
Case
Judgment
Jurisdiction

No.

PA
Date

Labour

5
29

Appeal

/
June
Court,

04
2007
Johannesburg

Judge Zondo JP, Kruger AJA

Subject: Dismissals based on Operational Requirements Substantive Fairness in Retrenchment.
Issue:
Whether the respondent employer ought to have redeployed the appellant, rather than make
retrench him, and whether the selection criteria that did not include length of service were fair in
the circumstances.
Summary

of

Facts:

The appellant had been retrenched by the respondent. He lodged a claim in the Court that

partially rested on the fact that the respondent had not negotiated with him personally but with a
union that was representative at the workplace. The Court dismissed the applicants claim.
The appellant appealed to the LAC on the basis that (1) the respondent ought to have avoided
the redundancy by redeploying to one of the positions that he applied for and (2) on the basis that
the respondents selection criteria was unfair.
1.

Oosthuizen

Summary

Telkom

SA

of

Ltd
Judgment:

On the issue of redeployment, the Court noted that the appellant had applied for 26 positions,
some of which he was short listed for. The respondent led no evidence at to why he was not
appointed to those positions and the Court found that it had failed to justify the dismissal of the
appellant. Interestingly, the Court found that if the appellant required training to be suitable for an
alternative position, that the respondent must arrange such training as part of its obligations to
look for alternatives to redundancy.
On the issue of the selection criteria, the respondents evidence was that skills, suitability and
employment equity policy were the criteria adopted. The respondent did not take into account
length of service, which was a significant issue given the appellant had been employed for 30
years with the respondent. The Court did not making any findings on this point, having already
ruled that the dismissal was substantively unfair because the appellant could have been
redeployed. The LAC did appear to find that the length of service was also relevant to the
obligation

to

redeploy.

The LAC ordered that the appellant be reinstated. It also made specific orders about the need for
a fair reasons and procedures to be adopted should the respondent maintain that it has a surplus
because of the reinstatement. Costs were awarded against the respondent.
(4.6) Perumal & another v Tiger Brands
Case

No.

Judgment

D
Date

Jurisdiction

987
1

Labour

/
June

04
2007

Court,

Durban

Judge Pillay J
Subject: Dismissals based on Operational Requirements Substantive Fairness in Retrenchment
Issue:
In what circumstances can an employee allege that in the Labour Court that his or her dismissal,
as part of a mass redundancy (necessitating s.189A procedures), is procedurally unfair?
1.
Summary

Perumal

&

another
of

vs.

Tiger

Brands
Facts:

The applicant challenged the substantive and procedural fairness of her redundancy.
The respondent contended that the provisions of the LRA prohibited the applicant from disputing
the

procedural

fairness

in

this

instance.

In relation to substantive unfairness, the applicant alleged that the respondent had applied its
selection criteria in an unfair manner, a contention denied by the respondent.
Summary

of

Judgment:

In respect of procedural fairness, the Court agreed with the respondent. It found that s.189A (18)
of the LRA operates to bar procedural challenges from being raised in s.191 (5) (b)(ii) disputes
(relating to dismissals for operational requirements), because s.189A(13) allows for challenges to
procedural defects by way of an order compelling the employer to conform to fair procedure. In
other words, because the applicant had not brought the procedural flaws to the attention of the
employer via s.189A (13), she forfeited the right to challenge the procedural fairness altogether.
In respect of the substantive fairness, the Court noted that the respondent had subjected the
applicant and her colleagues to a competency test and also required them to attend a meeting
held by an interviewing panel. The Court found that in both the test and the interview, the
respondent had acted in a biased manner towards the applicant. Accordingly, it found that the
dismissal was substantively unfair. It ordered that the applicant be reinstated, paid compensation
of 12 months with a partial costs order against the respondent
(4.7) Zero Appliances (Pty) Ltd v CCMA & Others 1
Case

No.

Judgment

JR
Date:

Jurisdiction:

805
28

Labour

06

March
Court,

2007
Johannesburg

Judge: Rampai AJ
Subject: Practice and Procedure/Appeal and Review
Issue:
The matter rested on the correct jurisdiction for a claim relating to a mass retrenchment
1.

Zero

Summary

Appliances

(Pty)

Ltd

vs.

CCMA

of

&

Others
Facts:

The applicant employer implemented a redundancy program that included, at the unions request,
the appointment of a facilitator from the CCMA and the execution of a facilitation agreement.
Some three months after they have been made redundant, 63 employees lodged unfair dismissal
claims alleging procedural unfairness. The employer alleged that the referral was out of time and
had been directed at the wrong body. Nevertheless, a CCMA commissioner condoned the later
referral and issued a certificate to the effect that the dispute remained unresolved.

The employer approached the Court to have the commissioners condonation and the certificate
set aside.
Summary

of

Judgment:

The Court found that the mere fact that the CCMA had been involved during the facilitation phase
of the retrenchment did not entail the transfer of jurisdiction over the dispute.
The Court noted that it is the correct forum for lodging disputes about the procedural fairness of
mass retrenchments pursuant to s.189A(13). The employees had embarked on the wrong
dispute referral procedure. Accordingly, the Court held that the certificate was issued in error and
set

it

aside.

As to the condensation, the Court noted that the retrenched employees did not dispute or
question the retrenchment process while it was in progress and only did so 97 days after their
contracts were terminated, which raised serious questions about their bona fides. It took the
employees 238 days, from date of termination of their contracts, to raise the dispute in the Court.
It also found that the employees provided no explanation and had not applied for condensation.
Finally, the Court assessed the employers chances of success as excellent. The condensation
was also set aside.
Costs were awarded against the employees.
(4.8)

Leppan

Retrenchment:

and

Suretrade

110

breakdown

CC

of

t/a
trust

Bra

Boutique
relationship

14-MAY-08 1
Case
Award

No.
Date

Jurisdiction

KNDB
04

6002-07
February

CCMA,

2008
Durban

Commissioner L Williams-de Beer

Subject: Retrenchments, Jurisdiction
Issue:
The Employer had retrenched an employee with whom the Employment relationship had
irretrievably broken down. The Commissioner held that Employer was entitled to do this, and that
CCMA does not have jurisdiction to entertain procedural challenges in disputes concerning
retrenchments of single employees.
Summary

of

Facts:

The Employer was a close corporation in which the Employee held a 15% membership. Other
members were his mother (15%), Andre Dippenaar (40%), and Lynette and Kim Thompson (each
15%).

The Employee had also been the general manager for a period of 2 years. When a fellow
employee complained about him to the CEO, Ian Thompson (not a member of the CC),
Thompson suspended him.
The Employee then called a meeting with all the members where he pointed out that Thompson
was an un rehabilitated insolvent, and as a result, not allowed to act as the CEO, with the result
that Thompson was removed from this position.
Dippenaar, the majority shareholder then indicated that he would take over as CEO and the
employee indicated that he was not prepared to back Dippenaar in this position.
He failed to return to work and attempted to negotiate an exit package via his attorneys. This was
followed by another letter from his attorneys, indicating that he would return to work under certain
conditions. The conditions were not accepted by the new CEO, and indicated that he was not
prepared to work with the Employee.
1. Leppan and Suretrade 110 CC t/a Bra Boutique Retrenchment: breakdown of trust relationship
14-MAY-08
The Employer then invited the Employee to participate in consultation pending a dismissal for
operational reasons. No agreement was reached and the Employee was retrenched.
Summary

of

Award:

The Commissioner held that, with reference to the LC decision in Rand Water v Bracks NO &
others, she did not have jurisdiction to adjudicate the procedural fairness of the dismissal. The LC
held in that matter that: As soon as the procedural fairness of the dismissal is put in issue by a
single employee, I am satisfied that section 191(12) of the LRA must be interpreted as meaning
that such cases must still be referred to the Labour Court and that the CCMA will not have
jurisdiction to hear them.
She held, however, that she was entitled to split the issues and make a finding in the substantive
fairness of the dismissal. In this regard she held that the wording: requirements based on the
economic, technological, structural or similar needs of an employer in section 213 of the LRA
was wide enough to include a breach of trust or a breakdown in the relationship.
In this matter, the Employee was unable to function in a harmonious work environment with the
CEO and a breakdown in the employment relationship resulted. The breakdown was mutual in
this case.
The Commissioner held that there does not need to be a long history of problems for trust to be
damaged, particularly at a senior level and where parties are co-members of a close corporation.
As a result, the dismissal was held to have been substantively fair
(4.9) Zietsman & others v Transnet Limited 1

Case

No.

Judgment

JS

614

Date

Jurisdiction

21

/
June

Labour

Court,

06
2007
Johannesburg

Judge Molahlehi J
Subject: Retrenchment: Severance Pay
1.Zietsman

&

others

Transnet

Limited

Issue:
The Employees sought a determination on whether the calculation of the severance pay by the
Employer should have included the dealer bonuses of each of the Employees as provided for in a
bonus scheme agreed to by the Employer.
The court held that as long as the Employer complied with the statutory minimum payments,
there was no additional entitlement to other payments.
Summary

of

Facts:

The 3 applicant Employees were retrenched by the Employer. They had all participated in a
bonus scheme in terms of which bonuses were paid to them bi-annually.
When they were retrenched they were paid a severance package of 2 weeks salary for each
completed year of service. The Employees claimed that their severance packages were
calculated incorrectly as the bonuses were excluded from the quantum of remuneration on which
the 2 weeks severance pay was calculated.
Summary

of

Judgment:

In exercising powers given to him in terms of section 35(5), the Minister published a schedule
indicating payments to be included in an employees remuneration for the purposes of calculating
pay for severance pay in terms of section 41 of the Act.
In terms of this notice discretionary payments not related to an employees hours of work or
performance do not form part of the remuneration for the purpose of calculating severance pay.
The court held that where an employer paid more than what section 41 of the Act required, a
section 35(5) calculation would not apply. In this case, the Employees severance packages
exceeded what they would have received had they been paid the statutory minimum calculated to
include the bonuses.
As the Employees received more than what was provided for in section 41 of the Act and in the
absence of an agreement to use the formula provided for in section 35, the court held that the
Employer had complied with the requirement of the Act and that the Employees were not entitled
to payment of their bonuses.

(4.10)

Thekiso

IBM

South

Africa

(Pty)

Ltd

[Redundancy & EEA requirement] 1

Case

No.

Judgment

Date

Jurisdiction

JS415/05

18

October

Labour

2006

Court,

Johannesburg

Judge Freund, Acting Judge

Subject: Procedural Fairness in Retrenchment
Issue:
The applicant was made redundant and challenged the decision on a number of grounds,
namely:
1. That she had not been adequately consulted;
2. That her employer used an inherently subjective selection criteria and she should have been
informed of the merits of each employee that was subject to the redundancy process; and
3. That the redundancy was unfair because the employer failed to consider the obligations
contained in the Employment Equity Act (EEA).
Summary

of

Facts:

The applicant worked in the employers asset management division which lost a number of
contracts that necessitated redundancies. Positions in the division were made redundant and
affected employees were invited to apply for a more complex post of asset administrator. The
applicant applied but was unsuccessful. The employer appointed a white male.
The applicants claim for inadequate consultation relied on the fact that the employer commenced
consultation meetings on the same day that she was given a s.189 letter.
Interestingly, the applicant initially pleaded that her dismissal was automatically unfair because of
direct discrimination (on the grounds of race and gender). During the hearing, by leave of the
Court, she amended her claim to plead that the employer failed to consider the obligations of the
EEA when determining parties for retrenchment. The applicant relied on s.15 of the EEA.
1.

Thekiso

IBM

South

Summary

Africa

(Pty)
of

Ltd

[Redundancy

&

EEA

requirement]
Judgment:

The Court dismissed the applicants contention that she had not been adequately consulted,
noting that the applicant, when asked to attend a meeting on the same day as receiving her s.189
letter, had not objected or asked for more time. A number of consultation meetings were also held
subsequent to the initial meeting.

On the issue of the selection criteria, the Court found against the employee, noting that a
retrenching employer that has one post to fill is not required to debate the merits of each
employee with the others before making the selection.
The Court noted that the applicant relied on the EEA to claim that the employer was obliged to
retain the applicant (a black woman) in preference to a white male provided she was suitably
qualified for the available position.
The Court was quick to reject this claim, referring to its earlier decision of Dudley y City of Cape
Town in which it was determined that the EEA does not bring about an individual right to
affirmative action. The applicant had submitted to the Court that Dudley was wrongly decided
and should not be followed.
The Court did not agree and it noted, the obligation imposed by the EEA obliges designated
employers to take measures to retain and develop people from designated groups does not
mean that designated employees should be afforded a preference when it comes to selection in
the retrenchment context.
Chapter-5
LABOUR COURT AND LABOUR APPELLATE TRIBUNAL
5.1

Basic

Idea

5.2

Application

of

the

Labour

court

5.3

Jurisdiction

of

the

labour

court

5.4

Power

5.5

and

status

of

labour

the
court

labour
is

court

in

trying
civil

offences
court

5.6 Power and functions of the tribunal

(5.1) Basic Idea
To promote industrial peace and to establish a harmonious and cordial relationship between
labour and capital by means of conciliation mediation and adjudication. With this end in view
different authorities have been created under the code to resolve an industrial dispute. Of these
tow bodies are adjudicatory or judicial. They are the labour court and the labour appellate
tribunal. The code has streamlined for some non-adjudicatory as well as adjudicatory authorities.
Non-adjudicatory authorities include participation committee conciliator and arbitrator while
adjudicatory authorities include labour court and labour appellate tribunal.
(5.2) Application of the labour court1
An industrial dispute may be referred to the labour court in any of the following ways:
(1) If no settlement is arrived by way of conciliation and the parties agree not refer the dispute to
an arbitrator and the parties have received a certificate of failure under section 210(11) the

worker may go on strike or the employer may declare lock out. However the parties raising the
dispute may either before or after the commencement of a strike or lock out make an application
to the labour court for adjudication of the matter (section 211)
(2) Again if a strike or lock out lasts for mare than 30 days the government may prohibits such
strike or lock out and in that case the government must refer the dispute to the labour court 1
(section 211,(3,4,5))
(3) Again under section 213 any collective bargaining agent or any employer or worker may apply
to the labour court for the enforcement of any right guaranteed or secured to it or him by or under
this code or any award settlement.
1. Md. Abdul Halim, The Bangladesh Labour Code, 2006,CCB Foundation, Ed.1, p.280
(5.3) Jurisdiction of the labour court
Under section 214(10) a labour court shall have exclusive jurisdiction to
(1) Adjudicate and determine an industrial dispute which has been referred to or brought before it
under this code;
(2) Enquire into and adjudicate any matter relating to the implementation or violation of a
settlement which is referred to it by the government
(3) Try offences under this code
(4) Exercise and perform such other powers and functions as are or may be conferred upon or
assigned to it by under this code or any other law.
(5.4)Power and status of the labour court in trying offences
Section 215 and 216 of the code provides the procedure and powers of labour court which is may
be of two types; 1
(1) Power and status in trying offences and
(2) Power and status in civil maters
(a) The labour court shall follow as nearly as possible summary procedure as prescribed under
the code of criminal procedure 1898 (Act V of 1898)
(b) A labour court shall for the purpose of trying an offence under the code have the same powers
as are vested in the court of a magistrate of the first class under the code of criminal procedure.
(c) The labour court shall for the purpose of inflicting punishment have the same powers as are
vested in Court of Session under that code.
(d) A labour court shall while trying an offence hear the case without the members.
(5.5) Labour court is a civil court
In the case of Pubali Bank V the Chairman 1st labour court 44DLR(AD)40 the question was
raised whether a labour court is a civil court or not their. Lordship of

1. Md. Abdul Halim, The Bangladesh Labour Code, 2006,CCB Foundation, Ed.1, p.282
the appellate division upon consideration of relevant provision of the industrial relations ordinance
1969 held that the labour court acts as civil court for limited purpose but not a civil court at all it is
only by a legal fiction or a statutory hypothesis that it is to be treated as a civil court.
Labour Appellate tribunal Constitution
(1) The labour Appellate tribunal shall consist 1 of a chairman or the government deems fit of a
chairman and such number of members as determined by the government additional judge of the
high court division (section 218(1))
(2) The chairman of the tribunal shall be from amongst persons who is or has been a judge or an
additional judge of the Supreme Court or is or has been a district judge for at least three years.
(3) If the chairman is absent or unable to the tribunal the chairman any reasons the senior the
senior member of the tribunal if any shall discharge the functions of the chairman.
(4) An appeal or any matter before the tribunal may be heard and disposed of by the tribunal
sitting as a whole or by any bench thereof.
(5.6) Power and function of the tribunal 2
(1) Subject to this code, the tribunal shall follow as nearly as possible such procedure as are
prescribed under the code of civil procedure, for hearing of an appeal by and appellate court from
original decrees.
If the members of a bench are divided in their opinion as to the decision to
be given on any point(a)The same shall be decided according to the opinion of the majority, if any
(b) If the member of the bench is equally divided, they shall state the point on
which they differ and the case shall be referred

by them

to the chairman for

hearing on such point by the chairman himself, if he is not a member of the

tribunal,

and

chairman

or

such
member

point
or

shall
majority

be
of

decided
the

according

members

to

hearing

the
the

opinion

of

the

points,

as

the

case may be.

1.

The

Labour

Code

of

Bangladesh

2006,

{section

218(1)}

2. Md. Abdul Halim, The Bangladesh Labour Code, 2006, CCB Foundation, Ed.1, p.287
(2) Where a bench includes the chairman of the tribunal as one of its members and there is a
difference of opinion among. The members and the members are equally divided, the Decision of
the chairman shall prevail and the decision of The Bench shall be expressed in terms of the
opinion of the Chairman.

(3) The judgment of the tribunal shall be delivered within a period of not more then 60 days
following the filing of the appeal.
(4) The tribunal shall have authority to punish for contempt of its authority, or that of any labour
court as if its were a high court division of the Supreme Court.
(5) The tribunal may, on its own motion or on the application of any party, transfer a case from
one labour court to another.
(6) The tribunal shall have superintendence and control over all labour courts.
Chapter

CONCLUSION
6.1

Findings

6.2

Recommendations

6.3 Scope for Further Study

(6.1) Finding:
Workers retrenchment is a very essential function of the labour law. Its a very effect for Labours
and the Employers. No worker employed in any shop or commercial or industrial establishment
who has been in continuous service for not less then one year under an employees shall not be
retrenched by the employer unless(a) the worker has been given one months notice in writing, indicating the reason for
retrenchment or the worker has been paid in lieu of such notice, wages for the period of notice;
(b) a copy of the notice in respect of the retrenchment is send to the chief inspector or any other
officer authorized by him ; and
(c) the worker has been paid, at the time of retrenchment , compensation which shall be
equivalent of fourteen days wages for every completed year of service or for any part thereof in
excess of six month, or gratuity, if any, whichever is higher :
For the purpose of calculation of compensation under this Section, wages shall mean the
average of the basic wages plus dearness allowance, if any, paid to the worker during the period
of twelve month immediately preceding the date of retrenchment.
(6.2)Recommendations
The importance of labour law is very much in Bangladesh perspective. It is highly importance in
Bangladesh perspective of labour law. We know that labour is a most important part of an
industry. So, we can not think an industry with out labour. Labour right is most essential in
Bangladesh. But the labours are aware about their right. They dont know properly about labour
education. It is a great problem.

For this reason, they retrenched by the employee as the employers wish. Very often, they
retrenched with out any legal process. This is injustice and in human. This should be protected
for the interest of industrialisation in Bangladesh. Proper and strict provisions should be included
in Labour laws and state laws. The labours should not be deprived. Their rights should be
protected.
Illegal retrenchment by the employer is inhuman and increased the suffering of the labours. In
this respect he following action should be taken:
1. The cause of retrenchment should genuine and proper in the eye of law.
2. Proper notice for three months should be given to the respective labour for his self defence,
3. If not the labour should be paid three months salary and other benefits allowable as per law.
(6.3) Scope of the further study
The discussion of this thesis will be limited within the scope of the origin and historical
development of Labour law of Bangladesh, the problems of Labour law of Bangladesh, problems
of Labour education in Bangladesh and some case studies.
In Bangladesh perspective we find that there are several problems remain related with Labour
disputes, Workers Problem, Trade Union Problems, Employments problems, Working Hour
Schedule etc. So we think further study may be done on the following issues:
1.
2.

Labour
Trade

disputes
Union

Problems

solution
and

process.
their

functions

3. Employers and Employees relation.

http://www.assignmentpoint.com/arts/theis-on-workers-retrenchment-under-labourlaw-in-bangladesh-perspective.html

Perspective of Labour Law in Bangladesh:

Advocate Wasim Khalil
Labour Law means those rules & customs of state by which the relation of employer
Labour is regulated in order to secure peace in the Industrial arena. The modern Labour
law is compiled by the state. In the eye of Labour law, the capital & the labour both are
equally important. In modern time, the basic purpose of labour law is to create exclusive
relation between capital & labour. Ther were many labour laws in previous but now it
has only labour laws in Bangladesh. Which name is Bangladesh labour Code, 2006.
The Bangladesh labour code is one of the very recent laws with major overhauling
changes in the filed of labour legislation. The law governing labour relations is one of
the centrally important branches of the law the legal basis on which the very large
majority of the people earn their living. The level of the wages-nominal or real which is
the vital issue can only be marginally influenced by legal rules and institutions. Marginal
influence of the law on the peoples welfare depends on the products of peoples labour
which in turn in very large extent the result of technical development. In the second
place, it depends on the forces of the labour market on which the law has only a
marginal (tough not a negligible) influence and thirdly on the degree of effective
organization of the workers in trade union to which the law can again make only a
modest contribution[1].
Labour law concerns the inequality of bargaining power between employers and
workers. Labour law (or labor, or employment law) is the body of laws, administrative
rulings, and precedents which address the legal rights of, and restrictions on, working
people and their organizations. As such, it mediates many aspects of the relationship
between trade unions, employers and employees. In Canada, employment laws related
to unionized workplaces are differentiated from those relating to particular individuals. In
most countries however, no such distinction is made. However, there are two broad
categories of labour law. First, collective labour law relates to the tripartite relationship
between employee, employer and union. Second, individual labour law concerns
employees rights at work and through the contract for work. The labour movement has
been instrumental in the enacting of laws protecting labour rights in the 19th and 20th
centuries. Labour rights have been integral to the social and economic development
since the industrial revolution[2].
Law is a technique for the regulation of social power. This is true of labour law as it is of
other aspects of my legal system. Power the capacity effectively to direct the

behaviour of others- is on evenly distributed in all societies. There can be no society

without subordination of some of its members to others, without command and
obedience, without rule maker and decisions makers. The power to make policy, to
make rules and make decisions and to ensure that those are obeyed is a social power.
It is same supported and sometimes restrained and sometimes even created by the law
but the law is not the principal source of social power.
Purpose of labour laws
Labour law is chiefly concerned with this elementary phenomenon of social power. And
this is important it is concerned with social power irrespective of the share which the
law itself has had in establishing it. As a social phenomenon the power to command and
the subjection to that power are the same no matter whether the power is exercised by
a person by public function or by a private person, an employer, a trade official. The
subordination to power and the nature of obedience do not differ as between purely
social or private and legal or public relations. It is a profound error to establish a
contract between society and the state and to dee one in terms co-ordination, the
other in terms of subordination. As regard labour relations, that error is fatal. In the
society, there is unequal distribution of power but view of society about individual as
equal. The law does and to some extent must conceal the realities of subordination
behind the conceptual scream of contracts considered as concluded between equals.
The principal purpose of labour law, is to regulate, to support and to restrain the power
of management and power of organized labour. These are abstraction. In their original
meanings the words, management and labour denoted not persons, but activities to
plan and to regulate production and distribution, to co-ordinate capital and labour in the
one hand, the activity to produce and to distribute on the other. But even if, by new
common twist of language, management and labour are used to denote not activities
but the people who exercise them, they remain abstractions. The word management is
always used to identify the individual or corporate body who in a give situation wields
that power to define policy, to make rules and above all decisions, through whose
exercise management manifests itself to those who are its subordinates. To manage
means to command. The ambiguity of the terms management and labour if applied to
persons rather than to activities is important that it means the relation between
managers and those subject to managerial power.To gauge the distribution of
managerial power and to identify its location is not always an easy task. To trace the
distribution of managerial power is a difficult task in any given society, no less difficult
where the means of production are publicly owned than where they are privately owned.
To find who has power our the side of labour is equally difficult.The individual employer

represents an accumulation of material and human resources, socially speaking the

enterprise is itself in Collective Power. If a collection of workers negotiate with an
employer, this is a negotiation between collective entities, both of which are, or may at
least be, bearers of power. But the relation between an employer and an isolated
employee or worker is typically a relation between a bearer of power and one who is not
a bearer of power.
The main object of labour law has always been to counteract the inequality of
bargaining power which is inherent and must be inherent in the employment relationship
There can be no employment relationship without a power to command and a duty to
obey. But the power to command and the duty to obey can be regulated. The
characteristic feature of the employment relation is the individual worker is subordinated
to the power of management but that the power of management is co-ordinate with that
of organized labour. The regulation of labour results from combination of those agreed
between him or his association and the union through collective bargaining.In the
formulation of the rules which regulate the relations between employers and workers the
common law has played a minor role. The courts have had a share, but only a small
share in their evolution. For this there are number of reasons:
(a) The rules and principles in which we are interested are designed to govern the
normal typical behavior at the parties. The rules which are needed in labour relations
must word ex ante. They must direct people what to do or nit to do, before and not after
they have acted, Case law operates ex-port, it does establish rules but not before
something has gone wrong.
(b) The law is expected to have a share in the regulatior of normal behavior in relations
between employers and employed.
(c) Rules governing labour relations are an attempt to mitigate the disequilibrium
inherent in the employment relation[3].
Object of labour legislation:
Any enlightened state would intervene in the conduct of industry and impose
statutory,obligations mostly in the employers and also to a lesser degree on theworkers
in order to maintain industrial peace and good relation between management and
workers and to secure to latter better working condition a minimum wage compensation
in case of accident medical facilities, provision for future etc.The object of labour
legislation is two fold, namely1. to improve the senile conditions of industrial labour so as to provid for them the
ordinal amenities of life, and by that process.

2. to bring about industrial peace which could in its turn accelerate production activity of
the country resulting in its prosperity.
Labour has a vital role in increasing productivity, and management has to help create
condition in which workers can make their maximum contribution towards this objective.
In free India, the labour movement and the trade unions should be in a position to
assume larger responsibilities one of the main tasks in the five year plans is to evolve
practical ways in which they can make an increasing contribution to national
development and national policy. The growth of the public sector provides opportunities
for working out new concepts of labour relations and the association of labour in
management of industry[4].
Labour Laws in Bangladesh before ,2006
The present shape of labour law has not been evolved by one day. It has been evolved
day by day . The practice of labour law was started for the first time in ancient Rome.
For the first time in Rome,the charge of several professionals like: artist, doctor, animal
farmer, were fixed. Then after thousands of year the present shape of law has
evolved.The first effective Labour Legislation in this sub-continent is the Indian
Factories Act, 1881. The act was passed on the basis oa a report of Major Moore
inspector-in-chief of the Bombay Cotton Department in 1872-73. It was major Moore
who, for the first time suggested for provisions in the legislature to regulate the working
conditions in factories. After submission of the said report vis--vis on the pressure of
the Merchants and moll-owners of UK the Factories Bill for India was placed in the
British Parliament in 1874. The cause behind the etageres of the merchants of
Lancashire for industrial laws in India was that they could make less profits than other
British mill-owners who established mills and factories in Bengal or Bombay in India.
Since raw materials and labour were cheaper in the sub-continent the merchants of
Lancashire Mill-owners Association with a view to put some restrictions upon the
working hours and service conditions in the Indian factories managed to place the bill
and the Indian Factories Act, 1881 (Act No XV of 1881)was passed. The Indian
Factories Act, 1881 applied to manufacturing establishments using mechanical power
and employing 100 or more persons. Plantation industries were exempted from
operation if the Act. Although provisions of the Act were far from satisfactory yet those,
as the basement of factory legislation, played an important role in the field of labour and
industrial legislation in the Sub-continent.The Act for the first time limited working hours
of women workers to eleven hours a day. The age for employment of children in
factories under age of seven year was prohibited. A weekly holiday for children was
introduced and a restriction was imposed upon works of children at night.

After a lapse of 10 years the Indian Factories Act, 1881 was repealed by the Indian
Factories Act, 1891 (Act XI of 1891). The British Government appointed a commission
for India in 1890 who submitted report to the Government suggesting enactment of a
new law. In the basis of the report of the commission the Factories Act, 1891 was
passed, It applied to all factories employing 50 persons and using power, minimum age
for employment of children was fixed at 9 years. Working hours of children was limited
to 7 hours a day with half an hour rest. Working hours for women was restricted at 11
hours with 1-1/2 hours rest. Male workers were also provided a weekly rest. Half an
hour rest in a day for male workers was also provided for in the Act.The Factories Act
1891 was again repealed and replaced in 1911 by the Indian Factories Act, 1911 (Act
XII of 1911). The Act put restrictions upon daily works of male persons. An adult male
workers maximum hours of work was fixed at 12 hours and that of children at 6 yours a
day in textile industries. Seasonal factories were brought to the ambit of factory laws.
The Act contained extensive provisions for health and safety and effective inspection of
the administration of the factories.Establishment of the International Labour
Organization ILO in 1919 is an epoch making event in the history of Labour legislation.
British India as a member country of the ILO amended the Factory Law in 1922. By the
amendments, all Industrial undertakings using mechanical power and employing 20 or
more persons were brought under the Act. Hours of work irrespective of gender were
fixed at maximum 9 hour a day and 60 hours a week. One hour rest was granted to
workers, for works exceeding 6 hours. Minimum age of children for work was fixed at
12. Payment at a rate of 1-1/2 times of normal wages was provided for overtime work.
Employment of women and children under 18 years of age were prohibited in
dangerous process. The Factories Act 1911 underwent some amendments in
1922,1926 and 1931 and finally the Act was repealed and replaced in 1934.The Royal
Commission on Labour was appointed by his Majesty the King Emperor in 1929 to
enquire into and report on the existing conditions of labour in industrial undertakings
and plantations in British India in the health, hygiene efficiency and standard of living of
the workers and on the relations between the employer and the employed and to make
recommendations. The commission examined the above aspects and submitted report
in 1931. The commission in its reports interalia, made several important suggestions for
amending of the factories Act. employer and the employed and to make
recommendations. The commission examined the above aspects and submitted report
in 1931.The commission in its reports interalia, made several important suggestions for
amending of the Factories Act.Mainly in the basis of the recommendations of the Royal
Commission on labour the Factories Act, 1891 was repealed and altogether a new and

comprehensive Act viz, the Factories Act, 1934 (XXV of 1934) was passed . The major
objects of the Act was to reduce the hours of work,improve working conditions provide
adequate inspection etc. The Factories Act, 1934 covered all manufacturing
establishments and using power and employing 20 or more persons. Seasonal and
perennial factories were distinguished, 54 hours of work per week and 10 hour works a
day in perennial factories for adults and 60 hours per week in seasonal factories were
provided. Hours of work of children was reduced. New category of worker named
adolescent workers was introduced Certificate of fitness for employment of child worker
was made compulsory. Double employment of children was prohibited. Restriction was
imposed upon right work of women and children. Payment of overtime allowance@1-1/2
times of ordinary rate of wages retained. Provisions for health and safety have been
amplified. Contravention of any of the provisions were made punishable, Minor changes
in the Factories Act 1934 was made by amending the Act in 1937,
1940,1941,1944,1945 and in 1946.
During the Pakistan regime the Factories Act, 1934 continued up to1965. The then East
Pakistan Assembly repeated the said Act and in its place re-enact the same and passed
the East Pakistan Factories Act,1965 (Act IV of 1965) The Act was passed in the
Assembly on the 5th August, 1965 and was published in the Gazette dated
1st September,1965.After liberation of Bangladesh on the 26 th March,1971 the Act
remained in force. No major change in the Act has yet been made[5]. The laws which
this Code has replaced were made mostly during the British Colonial regime and
Pakistan period and they were as many as 50 in number. In many cases these laws
were outdated, scattered, inconsistent and often overlapping each other. In 1992 a
Labour Law Commission was formed by the Government of the day which examined 44
labour laws and recommended to repeal 27 laws and it prepared a draft Labour Code in
1994. This draft of Labour Code,1994 underwent series of changes in its vetting stages
and finally the Bangladesh Labour Code 2006 was passed by the Parliament on
October 11,2006.The Bangladesh Labour Code 2006 is one of the very recent laws with
major overhauling changes in the field of labour legislation.
LAW AND CHANGE
Role of law in the society bears relationship between law and social change in view of
its funchions as new modes for change, lags an way to development and inducer
ndevice to bring about social changes etc.While some progress in the thinking process
individually about social study of law and comparative law have been achieved the
same as regards their inter relationships have not progressed upto expectation despite
an appreciable amount of research in the area, possible, because of the inadequate,

availability of trained expertise in the fields of law and social sciences non-availability of
research techniques and tools in normative systems e.g. law, too much concern for
social control aspect of law and a little study of law in the social contexts.Study of some
basic concepts, and then, in this connection the changer modes affecting the
relationship of law and social change, comparative law, policy study development
approach to law making etc. may definitely lay-open some central issues to unite the
implications as to the understanding of the trend of role of law and social change in the
modern societies.Comparative study of law by its insight into the existing systems and
practices of problems and solvetion of life and living of different societies provides the
research methodologies and the basic processes of approaches to the study of law and
society. This way the background and perspective to many legal systems may be easily
brought to the confines of comprehension which would otherwise appear apparently as
unmeaningful or little meaningful when viewed as being isolated from their social
systems as a whole.
In developed societies there are three main or any to bring about changes in law e.g,
legislature, judiciary and executive. On exacts law, another interprets while the other
enforces it. In many primitive societies such differentiation of legal functionaries is less
developed and there all the above processes of law are exercised and handled by the
same body or left to the discretion of the family. But what many be the appearance and
formation of the functionaries i.e, the processes as are performed distinctly to some
extent and the changes in law occur. Social change and changes in law are interacting
processes in all societies. Social study as well as comparative study of law may open
up new directions to social problems and their solutions. Dynamic technological culture
of the modern societies depends largely on the pursuit of statesmen, lawyers, social
scientists and their skills and abilities for better smoother harmony in the life and living
of people as social human beings[6].
Labour law in present:
The British colonial regime and Pakistan period there were many labour laws. In many
case these laws were some words like worker were outdated, scattered, inconsistent
and other employee owner employer etc had different overlapping each other
meanings under different laws. As a result sometime many problem. So in 1992 a
labour law commission was formed by the government of the day which examined 44
labour laws and recommended to repeal 27 laws and it prepared a draft labour code in
1994. This draft of labour code ,1994 under went series of changes in its vetting stages
and finally the Bangladesh labour code 2006 was passed by the Parliament on October
11,2006. The Bangladesh labour code 2006 is one of very recent laws with major

overhauling changes in the field of labour legislation. Section 353 of the code has
repealed 25 previous labour related laws. The following laws are here by repealed.
1. The workmens compensation Act, 1923 (VIII of 1923)
2. The children (pleading of labour) Act, 1933 (II of 1933)
3. The workmens protection Act, 1934 (IV of 1935)
4. The Dock labourers Act, 1934(XIX of 1934)
5. The payment of wages Act, 1936(IV of 1936)
6. The employers liability Act, 1938(XXVI of 1938)
7. The Employment of children Act, 1938(XXVI of 1938)
8. The Maternity Benefit Act,1939(IV of 1939)
9. The Mires Maternity Benefit Act,1941(XIX of 1941)
10. The Motor Vehicles (Drivers) Ordinance,1942(V of 1942)
11. The Maternity Benefit (Tea Estate) Act, 1950 (xx of 1950 )
12. The Employment (Records of service ) Act, 1951 (XIX of1952)
13. The Bangladesh plantation Employees provident Fund ordinance, 1959(XXXI of
1959)
14. The coal Mines (Fixation of Rates of wages) ordinance,1960 (XXXIX of 1961)
15. The Road Transport workers ordinance , 1961 (XXVII of 1961)
16. The Minimum wages ordinance ,1961(XXXIV of 1962)
17. The plantation labour ordinance ,1962(XXIX of 1962)
18. The Apprenticeship ordinance,1962(IVI of 1962)
19. The Factories Act, 1965(IV of 1965)
20. The shops and Establishment Act, 1965(VII of 1965)
21. The Employment of labour (standing orders) Act, 1965 (VII of 1965)
22. The companies profits ( workers participation) Act, 1968 (XII of 1968)
23. The industrial Relations ordinance, 1969(XXII 1969)
24. The newspaper employees (condition of service) Act, 1974(XXX of 1974)
25. The Dock workers (Regulation of Employment) Act, 1980 (XVII of 1980)[7]
There are still 25 valid laws dealing with labour and industrial issues have not been
repealed or consolidated and as such the Bangladesh labour code, 2006 although a
consolidated act has nor consolidated all the laws in the filed. Furthermore, although
the name of the law is Bangladesh labour code, in fact, it is not a code rather a
consolidating legislation only.
1. Prior to the promulgation of the Bangladesh Labor Law 2006, the total number of
Acts and Ordinances in this field was fifty, of which:
15 were enacted during the British regime

 23 were enacted during the Pakistan regime, and

12 were passed after the independence of Bangladesh
2. In accordance with the ratified ILO conventions and with a view to creating a
constructive environment, for the elimination of the imbalances that prevailed in the
issues regarding development of congenial relations between workers and employers,
information about existing labor and industrial laws were sought from concerned
stakeholders, of both home and abroad. Increase of productivity, the enhancement of
favorable environment for investment, the acceleration of industrialization in the context
of the changed environment during the post independence period, were also studied.
3. To meet the aforesaid demand, the government formed a National Labor Law
Commission in 1992, with a view to enacting a modern, up dated and united labor law,
headed by Justice Mohammad Abdul Quddus Chowdhury, along with 37 other members
representing every concerned quarter.
4. After two years of exhaustive study, the Commission submitted its report along with a
draft of the unified modern and updated labor law in 1994.
5.Subsequently, the draft was reviewed by ILO and numerous Employers and Workers
Associations and other human rights organizations in phases for the last twelve years,
and at last it was promulgated on the 11th of October 2006 as Bangladesh Labor Law
2006 under the consensus of all the parties concerned.
6. The salient features of the newly promulgated law are as follows:
One single modern updated code instead of the 25 scattered Acts and Ordinances
There are 354 sections in 21 different chapters in the Law
The scope and applicability of the law has been extended and definitions of
different terms have been clarified. Ambiguity regarding the age limit of a child
has been eliminated. According to this law any person below the age of 14 shall
be treated as a child.
The issuance of an appointment letter and the Identity card for a worker has
been made compulsory.
Death benefits have been provided for even cases of normal deaths or in cases
of any deaths due to causes other than accidents during the continuance of the
service.
The usual retirement age has been scheduled at 57 and at that time the worker
shall be entitled to get all the benefits as are applicable under this law. Even the
case of a workers voluntary retirement, after his continuous service of 25 years
2 with his employer, is also a subject which will come under this retirement benefit.

 Child labor is prohibited even in non-hazardous regular work in an establishment.

Appointment of adolescent and female workers is prohibited during the nights and in
dangerous occupations.
Maternity benefits have been increased to 16 weeks and the qualifying service length
has been decreased to six months, but this benefit is limited only up to the birth of two
living infants.
Special importance is given on occupational health and safety and working
environment. There are 78 sections exclusively on it out of a total of 354 sections in the
law.
Maintenance and preservation of safety record books and introduction of group
insurances have been provided for.
Time limits for payment of wages have been determined and a provision has been
made to realize the unpaid wages through the court.
Provisions have been made for the declaration of sector wise minimum wage rates
after an interval of every five years.
Amount of compensations in cases of death or injury because of accidents at the
workplace has been increased. For deaths, the amount of compensation has been
ascertained at Taka. 100000.00 per worker and for a permanent total disability, the
amount fixed is Taka 125000.00 per worker. In case of an accident that may happen
due to employers negligence, the compensation amount shall be double.
No one, other than those in the pay-roll of the employer, shall be the member or
officer of an establishment based basic trade union.
The purview of unfair labor practices on the part of the workers, employers or the trade
unions has been extended.
Determination of CBA from amongst the establishment based basic trade unions has
been made easier and the period of such determination has been fixed within a time
frame of 120 days.
Industrial or craft Federations of trade unions, under certain conditions, have been
given the jurisdiction to act as CBA
Provisions have been made to form compulsorily participation committees in every
establishment where 50 or more permanent workers are engaged.
Labor courts shall be the only courts to adjudicate all issues under labor law and all
appeals shall lie to the labor appellate tribunal
Time has been fixed for the adjudication of each and every stage of the cases in the
labor court to accelerate the procedure

 Only the workers employed in an establishment, irrespective of their designation and

wage scale are entitled to get the benefits of the participation fund and the welfare fund
developed out of the profit of the company.
Provisions for provident funds have been made for the establishments run under the
private management 3
The punishments for the breach of the provisions of the labor law have been revised
appropriately. Imprisonment has also been provided for along with fines
A provision has been made to form a National Industrial health and safety council to
enact the national policy to ensure the occupational health and safety at the enterprise
level.
Provision has been made for the strict implementation of the Equal pay for equal
amount of work policy of ILO convention
Any discrimination or indecent behavior towards female workers has been prohibited
under the new law.
Sick Leave: 14 days sick leave with full average wages have been provided, in the
new Labor Law. In previous laws sick leaves were paid for half average wages.
Annual leave with wages: For adults one day for every 18 (eighteen) days of work
performed by him/her during the previous period of twelve months. And for adolescents
one day for every 15 days of work performed by him/her during the previous period of
12 months.
Festival Leave: Every worker shall be entitled to eleven days festival leaves in a
calendar year. The Employer shall fix the days and dates of such leaves.
Children Room: A children room for every 40 female workers having their children
below the age of 6 years have been provided by the law. Previously it was provided for
every 50 female workers.
Termination of employment by the worker: A permanent worker may terminate the
employment serving a 30 days notice to the employer and a temporary worker may
terminate it serving a notice of 30 and 14 days case wise. In lieu of the notice, the
worker can even terminate the employment returning the wages for that period.
Grievance Procedure: Limitation for the application of grievance has been
extended to a period of 30 days, though previously it was 15 days only.
Fitness certificate: Previously a fitness certificate was issued by the District civil
surgeon but now it is to be issued by any registered physician at the cost of the
employers.
Training on the labor law: Arrangements for training on law was never provided for
but now in this new law, training arrangement is made compulsory for the laborers. The

worker participating in the training program shall be deemed to be in his or her official
duty during continuance of such training. This unified law is applicable with equal force
to all the industrial and commercial establishment as previous Shops and Establishment
Act-1965 and other labour laws has been abrogated by the promulgation of this new
labour code[8].
Applicable of Bangladesh labour code, 2006According to the Bangladesh labour code, 2006 see-1(3) defines save as other wise
specified close where in this code, it shall apply to the whole of Bangladesh. And
According to see-1(4) defines, Hot with standing anything contained in sub-section (3),
this code shall not apply to1.
offices of or under the government
2.

Society printing press.

3.

Ordinance factories.

4.

Establishments for the interment or care of the sick, inform aged, distillate ,
mortally deranged, orphan abandoned worn an or child or widow which are not run
for profit or gains.

5.

Shops or stalls in any public exhibition or show in so far as such shops or stalls
deal in retail trade which is solely subsidiary or ancillary to the main purpose of such
exhibition or show.

6.

Shops or stalls in any public fair or bazaar held for religious or charitable
purpose;

7.

Educational, training or research institutions;

8.

Hostels and messes not maintained for profit or gain;

9.

In respect of Chapter-II, any shop or commercial or industrial establishment

owned and directly managed by the Government where the workers are governed by
the Government Conduct Rules.

10.

Workers whose recruitments and conditions of service are governed by laws or

roles made under Articles 62, 79, 113 or 133 of the Constitution, except, for the
purposes of Chapters Twelve, Thirteen and Fourteen, workers employed by the

1.

Railway Department;

2.

Telephone, Telegraph and Postal Departments;

3.

Public Works Department;

4.

Public Health Engineering Department;

5.

Bangladesh Government Press.

11. workers employed in any establishment referred to in clauses (b), (c), (d), (e), (f),
(g) and (h), except, for the purposes of Chapters Twelve, Thirteen And Fourteen,
workers other than teachers, employed by any university;

11. seamen, except for the purposes of Chapters Twelve, Thirteen and Fourteen.
11. Ocean going vessels, except for the purposes Chapter Sixteen.
11. Agricultural farms where less than ten workers are normally employed;
11. Domestic servants; and
16. Establishments run by owners with the aid of family members and without employing

workers for wages.[9]

Change in the Bangladesh Labour Act,2006 compare to previous Act
Previous Act

Change in Bangladesh Labour Act,2006

1. There were total 700 sections of 25 labour Act

1. There was made correction in 25 different aets and as

in which 10 labour Act were existing since British

much possible make it unifying to prepare a full Act

period and 15 Labour Act exist since Pakistan

incluking 21 chapters and 354 sections. Here removed all

period.

the oobscure and inconsistence and bring all the dections

in a place. The Act is simple ande perfect timing.

2. Industria ! Ordinance, 1969 do not provide any

2. Section-2 (32) defines the Group of Establishment

definition about Group of establishment.

clearly. Under section 183 there have act about to make

the Trade union in the group of establishment.

3. Shops and Establishment Act,1965, section 2

3.Section 2 (61) defines the Industrial Establishment

(Ta) defines Industrial establishment, but it is not elearly.

clear.
4. Here, total 8 Labour Act decide the age of

4. According to ILO Convention 138 by combining different

children between 12-16. it is inconsistence.

age of children from different Act it is said in section-2 (63)

Those have not hashed in age 14 are children. According
to Section-34(1)- Children should not employed in any
work or institution.

5. In present, there have provision to provide the

5. To make the contract of the job strong and legal, it is

appointment letter only according to section 3(3)

compulsory to provide the appointment letter to all the

of Road Transport Workers Ordinance, 1961 and

employees under section 5.

section 4 of the Newspaper Employees

(Conditions of Service) Act, 1974. There have no

any compulsory rule to provide appointment letter
to any workers in any other sectors in any industry
by the authority.
6. There have a provision to diction the Service

6. According to section-6, it is compulsory for the

book according to decided way according to the

employers to maintain a service book for all the employees

section 3 and 4 of The Employment (Record of

except under training, transferring or temporary workers.

Service) Rules, 1957.But there have no any

According to Section-7(2) there have a provision to write

provision to write down the mothers name and

down the fathers name and mothers name and

where appreciable husband/wifes name where

husband /wifes name where applicable after the

applicable along employees name

employees name.It is necessary for labour, Iwner and

Government.

7. Provide Monetary benefit for death-in present

7. According to section-19, there have a provision to

there have no any provision in the Act.

provide the monetary benefit to the nominee of the death

employee if This is a new law of social
security of the employees.

8.Termination of service by Employee According

8.In section-27,it is stated that, by providing a notice from

the Employment of labour (standing Order) Act

employee or return the wages of that period inin lien of

1965, section19(2) employee ..by giving

giving notice to the employer, employee can terminate his

notice. But in that case, he will have no right to

job.There have a provision that any permanent worker like

get any compensation from the authority.

above have ehanec to get the compensation.

9.Retire from the service of the employee- There

9.When employee become 57 years old then he will retire

have no any provision like this in any Act.

from the job naturally. But if the authority thinks him fit then
they can appoint him as a contractual basis-there is a
provision about it in section 28. It is a new provision.

10.Final period of payment of wages of the

10.There is a new section-30 which stated that; employer

employee- In present there have no any act to

should pay the final wages to the employee maximum 30

decide the time period.

working days after his termination.

11.Right and amount of the Maternity benefit-In

11.According to the last ILO conventionit is decide to

present laws provide 6+6=12 weeks for the

provide the maternity benefit for women employee 8+8=16

vacation and period of wages as the maternity

weeks for which make a new section -46.And to cope

benefit. The benefit is not limited with the number

with Countrys population control policy this maternity

of children.It is against the population control

benefit is limited up to having two living child. Section 2(34)

policy of the government.

is define the Maternity Benefit. The subject is very clear

here.

Instead of previous nine months, in present any women

women worker can be able to get the maternity benefit for
working six months under her employer.
12.To inform the authority about dangerous

12.The employees will inform their employers immediately

Building and Equipment-There is no any provision when apparent any dangerous building or equipment in
about it in The Factory Act, 1965.

their working place. After informing if any employee does

accident- then the employer will have to compensate him
at the double rate than natural- this is stated in section 36
as a new provision.

13.Wages for Overtime- Under section 58 of The

13.In section 108 is stated clearly about that wages that,

Factory Act, 1965, have a provision of overtime

overtime wages will be provided at double rate. There have

wages. But it is not clear.

no any scope of wrong explanation.

14.Crook the employer property to payment of

14.A section -136 is prepared including that Court will

wages- The payment of wages Act, 1936 does not crook all the property of the employer and sell in auction to
mentioned this topic clearly and strongly.

remove the unsatisfactorily or to conform the payment of

wages of the employees.

15.Compensation for death from death from

15.To upgrade the compensation amount make section-

accident and for disable According to the Fourth

151 wher Fifth schedule stated that employer will provided

schedule as a complementary of the section-4 of

to employee maximum 1,00,000 tk in case of death and

labor compensation Act,1923, there is a provision

maximum 1.25,000 tk on condition in case of permanent

to provide maximum 21,000 Tk in case of death

disable.Besides this, in section 15(8),it includes the

and provide 30,000 tk on condition in case of

temporary employees who have in the definition of the

permanent disable.

desirable compensation owned employees.

16.In the section-6 of the present IRO-69 have no 16.There is a new provision in the sub-section (3) under
any provision about to inform the employer after

section-178-abor director or any officer who get some

being registered in the trade union.

responsibility related of this kind job, must inform his

authority along a copy (including the list of the union) after
being getting the application to be registered in any trade
union from the employee of that organization.

17.It is stated in the section-7(2) of IRO-69, that if

17. It is stated clearly in the section- 179(5), to discourage

the -30 percent employees are not member of that buildingt more trade union and can not build or register
institution then that institution will not gave right to trade union taking the weakness pount of the law-Any
register in the trade union.But there has no any

establishment or group of establishment can not poses

provision that any institution will not be able to

more than three trade union at the same time.

have more than three trade unions at the same

time.
18. According to sub-section-(1) (kha) of section-

18. It is stated in sec-180, sub-sec (1) (kha) that, if any

7(2) of IRO stated that- except the person

person is not working in the establishment at present than

terminated by suspension any ex- worker have

he has no right to be the member or officer of the trade

right to be the member or officer of trade union of

union.Moreover, if any officer of the trade union involved in

his establishment.

any kind of illegal strike them he will be disqualified or the

next period. It will have a positive impact on the basic trade
union of the establishment and the Industrial relative
sectors.

19. There has no any provision in the section -8 of 19. There is a provision in the sub-section (6) of sectionIRO-69 about appeal in the High Court by the

182, which labour director can appeal in the labour

register against any judgment of the labour court

Tribunal court against the judgment of the labour Court in

on the trade union registration.

favour of getting the permission of the trade union

registration within 30 days. It is a new provision.

20. It the present IRO-69 have no any provision

20. It is mentioned in the sec-183(7) that according to the

about the building of trade union for group of

policy of building the trade union for the group of

establishment and to select the officers of its.

establishment can have maximum one-fourth outsider

officers in the standing committee.This is for the
betterment of the union.

21. At present in IRO-69 according to civil aviation 21. The employees involve in the expertise profession of
has no any different policy for building the trade

the private airlines can build separate trade union for their

union.

own occupation bided on certain conditions. It is a new

provision. It is explained in the section184.

22. There has no any provision to build trade

22. There is a new provision in the sec-185 for the

union in IRO-69 for Bangladeshi sailors who

Bangladehi sailor of the pelagic ship that they can build

works in the pelagic shop.

only one trade union on some conditions.

23. According to the diction-47-kha of IRO-69 is

23. there is a new provision in the sec-185 that, without

stated that without the permission of the decretory the permission of the secretary, general secretary,
or general geometry of the trade union can not

organizing seoretary and treasure of the trade union can

transferred him in another place. Repealed

not transfer him from one distriet to another distriet. It is an

provisions of labour law

extended and clear Changes made in Bangladesh labour

law,2006.

24. Under section 15 of IRO-69, unfair labour

24. Section 195, entitled as unfair labour practices on part

practices on part of the employer are mentioned.

of the employer, has included some additional actions that

will also be treated as unfair labour practices on part of the
employer. /they are:# Delaying intentionally to take any
action as per the suggestion of the participating committee.
# Failing to respond to any letter received from the
collective bargaining agent regarding any industrial
controversy.
# Transferring the Chairman, general secretary, organizing
secretary or treasurer of the union by violating the
provisions under section 187.
# Illegal lock-out.

25. Under section 16 of IRO-69, unfair labour

25. Under section 196, unfair labour praetices on part of

practices on part of the employees are mentioned. the employers have included some additional actions:#
Illegal lock-out or adopting go-slow strategy.
# Besieging / Enelosing, hindering transportation system
and destroying assets or establishments.
26. Under section 22 of IRO-69, guidelines for

26. Under section 202, provisions for electing CBA are

electing the collecting bargaining agent or CBA of

described in details. Here the whole process is mentioned

employees have been mentioned But in many

in an easy and simple manner. For accomplishing each

eases these guidelines are not clear and simple

step time period is fixed up.If any competing trade union

receives less than ten percent of the total vote in the CBA
election, its registration will be cancelled automatically.
This is a new provision.

27. No trade union federation federation is

27. Under section 203, there is a provision which has

allowed to function as CBA as per the IRO-69.

mentioned that when a trade union under any federation is

the CBA, In those cases as per some conditions that BA

can act on behalf of that trade union.

28. Under section 24 of IRO-69, participation

28. As per diction 205,there is a provision for constituting

committee shall be constituted with equal number participation committee. In the process of nominating the
of participants from employer and workers. But

members of the committee from workers, there are

the non-CBA unions are not unclouded here.

arrangements for unifying those CBA and Non-CBA

unions.

29. There is no provision for implementing the

29. Under section-208 there is a new provision entitled as

suggestions of participation committee in the IRO- implementing the suggestions of participation committee.
69

For the sake of cordial industrial relationship it will help the

participation committee to function effectively.

30. The mode of settlement of industrial

30. Under section 210. there is a detailed provision for

disputes has been described in sections 26 to

negotiating industrial disputes. Here in each step there is a

31 of the IRO-69. It has stated that negotiations time limit for negotiation. So, the industrial disputes
related to industrial disputes shall be settled

negotiation process will work faster than before.

down through talks. But there is no definite time

limit for advancing from one step to the next
one. So, there prevails many more conflicts and
lack of transparency.
31. There is a provision for declaring strike or

31. Under section 211 the process of declaring strike or lock-

lock-out under section 32 of IRO-69. But there

out has been mentioned.It is a new as well as advanced

is no provision for applying to law court by the

process. Before going to strike or lock-out, the dispute raising

dispute raising personnel before going on strike party and after the commencement of the strike or dispute;
and lock-out.

any parties relating to dispute can submit the dispute to the

law court.

Besides this, under a new sub-section 8 of the same section,

it is stated that if any new establishment is established under
the foreign or local ownership or joint venture of these two,
strike or lock-out shall be banned for three years for that
particular establishment. But other provisions relating to
negotiation of industrial disputes shall no applicable to them.
32. There is provision for labour court, and the

32. From section 214 to 218 there are provisions for labour

power, proceeding and functions of labour

court and labour appellate tribunal.Here the authority of

appellate tribunal under the sections 35 to 38 in labour court has been extended and the indicial proceedings
the IRO-69.

have been made faster. Lengthy judicial process, the prayer

for extending time period absence on the date of hearing
these complications can be controlled.According to the
present law. The judicial pronouncement regarding the
payment of wages and compensation; made by the labour
court shal be final. In these cades, there is no chance to go
to appellate tribunal. But, ninety percent cases of the labour
court are of these types. On the other hand, those cases
which are related to unkustrial dispute can be appealed in
the appellate tribunal against the decision of labour court,
But, the number of these types of cases is less than tin
percent.
So, to have justified judicial result all pronouncements,
decisions, awards, orders of the labour court have been
qualified for appealing in the appellate tribunal. There is also
a provision of multi-bench for the appellate court. All authority
relating to the supervision and controlling of labour court
have been handled to appeal court.

33.Under sub-section 2(cha) in The Companies 33. Under section 233 (1) (ja). worker is defined as
Profits (Workers Participation) Act, 1968 the

follows:In an establishment worker means those persons

definition of the worker has been defined as

who is working in that company for not less than six months

the following: The term Worker will mean the

irrespective of his designation and position in that company.

employee of an organization the monthly basic

But the following persons shall not be included in the

salary of whom is not more than nine thousand

definition of the worker, persons who are:

and who is employed in the organization not

(1)

Employed in a managerial or administrative capacity;

less than six months.

(2)

Employed in a supervisory work for his duties or for the

powers given to him; functions of administrative or

managerial nature That means to define worker, the
bindings on minimum limit of wages has been omitted.
34. In the existing labour law two acts are there

34. In the existing Act, provident fund provision has been

containing the provisions for establishing

extended. In case of private sector establishments all

provident fund for workers of tea garden and

permanent employed workers shall receive provident fund

newspaper industry. It is not mandatory for

facilities and there is a separate provision for establishing,

other sectors to establish provident fund for

managing and reservation of provident fund under section

there workers. But, only in the Employment of

264 consisting 18 sub-sections. The provident fund will be

lablour (Standing Order) Act, 1965; it is stated

established as per the provisions of the Government and the

that; any worker, who is a member of a

trustee board will consist of equal participants from both

provident fund shall not be deprived from its

employer and workers. But the chairman of such committee

provident fund benefits including employers

shall be the representative from government.

participation in it, if he is entitled to receive it as

It is a social security provision for the workers, within the

per the provisions of the fund.

indirect supervision from the government; this fund will

remain secured, the harassment of the workers will come to
an end and they will be facilitated.

35. The provision for penalty,At the end of each 35. In the chapter 19, from sections283 to 316, total 34
and every exiting Act, there is a provision for

sections are there entitled as Offence, penalty and

penalty. But in most of the cases these are out

procedure. Here, these provisions are combined and

of date and impractical. Besides this, as

updated which are appropriate at this age.Here the rate of

different provisions for penalty are prevailing so, penalty has been increased and adjusted according to the
there is a chance to charge different degrees of level of offence. In most of the cases, fine as well as
penalty in case of same level of offence or

imprisonment is also imposed as penalty. Hopefully, it will

violation of laws.

make everybody to reduce the rate of violation of laws.

36. In the exiting factory Act, 1965; under

36. To ensure enhanced and complex safety measures of

chapter 3- Health provisions for workers chapter establishments, maintain a healthy environment and prepare
4-Safety issues for workers and establishment,

guidelines for implementation of those guidelines under

chapter -7 employment of young persons,

section 323-there is a provision to form a highly powerful

chapter-9 several provisions for safety

committee entitled as National Industry Health and Safety

precautions are stated here.

Council.The honorable minister of labour and Employment

Besides this, under schedule 3 of

Ministry will be the chairman of that council by virtue of his

Compensation act, 1923 the list of occupational position, To ensure female representation in that council, it
diseases is mentioned.

was mandatory for the employers and workers

representative institutions to include at least one female

Under Section 5 of Dock Workers Act, 1934 it is representative in their seven members group.
described in detail that in which sectors
Government can impose regulations to ensure
safety for the dock workers. Besides this, whole
Dock workers Regulation is about heath and
professional safety provisions.

It is a new and updated proposal.

In spite of all those above mentioned

provisions, there is no provision to form a highly
powerful decision making authority as industry,
health and safety council at the national level.
37. There is no provision entitled as The

37. On the way of clarifying the provisions of acts, there is a

responsibility of the workers.

separate provision under section 331 entitled as The

responsibility of the workers.

38. There is no separate provision for the

38. Under section 332 entitled as Conduct with women

functional/applied conduct with women in the

workers it is stated that no one in that establishment shall

workplace.

behave with women workers as though it is a discourteous

conduct, indecent or it is contrary to the deference and
modesty of a women.It is a new provision adjusted with
governments new regulation.

39. Though it is stated in every

39. In the light of ILO Convention-100, confirmed by

consented/approved policy and regulations that Bangladesh regarding the basic rights and in the context of
there is no difference between the wage rate for all approved policy of the country, there is a separate
work of male and female workers, nevertheless

provision under section-345 entitled as equal payment of

this issue is not clearly stated in a separate

wages for equal quantity of work.

provision in the existing labour laws.

40. There is no separate provision to inform the 40. To ensure healthy industrial relations and advancement
acts and provisions of labour laws, through

of industrialization it is very much important to know the

training; to the workers and employers of an

provisions of laws and regulations with proper explanation.

establishment in the current labour law.

It can be informed to them through proper training with this

view under section 348 there is a provision for training of
both employers and workers on the law related issues.

41. In the existing Factory Act, 1965 in respect

41. Under sub-section 3 of section 40 it is stated that No

of restrictions of employment of young persons

adolescents shall be appointed in any kind of work which will

on dangerous machineries; there is no separate be announced from time to time, through gazetteer
provision entitled as disclosing the list of highly notification by the government as highly dangerous work.
dangerous type of work.
42. In the existing Factory Act, 1965, under the

42. Under sub-section (4) of section 58 it is stated that if

title Drinking Water, there is no provision for

dehydration occurs due to close working position to an

Oral Rehydration Therapy.

excessive heat generating machine, Oral Rehydration

Therapy shall be provided with.

43. Under the existing provision entitled as

43. Under sub-section (8) of section 62, it is stated as

Precautions in case of fire, it is not mandatory

follows;Factories where 50 or more workers and officials are

to arrange fire drill.

employed, fire drill should be arranged at least once a year

and it should be registered as per regulation.

44. In the existing act, the maintenance of floor, 44. To clarify the issue under sub-section of section72 it is
stairs, and inside passages is not stated clearly. stated as follows:Each and every floor, passage and stairs
shall be kept clean, wide and free.
45.In the existing labour act, there is no

45. To ensure social safety under section 99 there is a

provision for incorporation of compulsory group

provision for introducing group insurance scheme like the

insurance for workers.

followings:In those organizations where at least 200 workers

are working, there group insurance can be introduced as per
the provision of the Government .

46. In the existing Minimum Wage Ordinance

46. Understanding the necessity of determining minimum

-1961. there is no clear provision for

wages for workers of different industrial sectors under private

determining the necessity of minimum wage

ownership, there is a provision to clarify this issue under

and reed fining wage level at regular interval for diction 139(1). At the end of this action there is an
any industrial establishment

explanation of this issue as the following:Explanation:

Government can consider the issue of determining minimum
wage for the workers of that industry as per the application of
both employer and worker of that particular industry,
Under section139 there is a new provision under sub-section
(6):
The settled minimum wages for the worker of an
establishment as per the regulation of govt. shall be
redefined or rescheduled in every five year.

47. There is no provision for establishing

47. For establishing a national trade union federation under

national trade union federation or registration of subsection (5) of section 200 there is new[10].
it .

Whether the changes brings any benefit to the labour

The initial labour law text dates back to 1969. All relevant laws are now included in one
document. On the whole, this new legislation constitutes a progress with regards to the

previous legal framework. Improvements include the extension of maternity leave from
12 to 16 weeks, and the facilitation to create trade unions in specific sectors. Also, all
prosecutions for offences in the Labour Code 2006 must now take place in the Labour
Court rather than in the Magistrates Courts as before and the court should follow the
Criminal Procedure Code (section 313(1)). Complaints can be lodged either by an
inspector [Section 319(5) allows an inspector to lodge a complaint to the Labour Court
with regard to commission of any offence] or an aggrieved person or trade union but
they must be done so within six months of the commission of the offence (section
313(2). However, several actors pointed to the fact that the new labour law is still weak
on many issues. On Working hours for example, the legislation is weak: it fixes the
working hours of a worker to a maximum of 10 hours a day, but specifies that exception
may be allowed in general or in particular for any establishment with the conditional
permission.
WORKING CONDITIONS
WAGES
Chapter 10 of the new labour law deals with the provisions related to the wages of the
labour. Wages include the following items as per section 120 of the new labour law:
Any bonus payable or any other additional wages as per the terms and conditions of
the employment; Any remuneration payable during leave, holiday and overtime; Any
amount payable against the order of the court or against the award of arbitrator; Any
amount payable to the worker against out of the contract between the owner and the
worker after the employment is expired by dismissal, discharge, retrenchment, or
termination; Any amount payable due to lay off or temporary suspension. The new law
has also provided a list of exclusion in section 2(45) to exclude the following accounts
head from the term wages:

Expense of housing facilities like lighting facilities, water supply, medical or any
other facilities;

Owners contribution to the provident fund of the worker;

Traveling allowances or concessions thereof;

Any other sum paid to worker to cover any special expenses entailed to her/him
by the nature of the employment.

But, as per different decisions of the courts of Bangladesh, the following items are also
treated as part of the wages of a worker: Any amount payable to the worker by the order
of the court or the award of the arbitrator shall be treated as the wages; Overtime
allowance shall be treated as wages; Compensation on retrenchment (on ground of

redundancy) shall be treated as wages; Allowance during lay-off or temporary

suspension shall be treated as wages; Increment shall be treated as wages;
Compensation at the expiry of the employment by any means like dismissal, discharge
or otherwise shall be treated as wages; Gratuity on discharge or any other gratuity shall
be treated as wages; House rent allowances shall be treated as wages; 5 Wages during
leaves or holidays shall be treated as wages.
Changes in the present law:
1. Previous law excluded the gratuity on discharge from the wages of a worker but the
new law includes it as part of the wages.
2. The word gratuity was never defined anywhere in the earlier labour law but the new
law defines it properly in section 2 (10) where it is defined as the amount of the wages
of
at least 30 days payable to a worker who worked in a factory not less than 6 months at
the
expiry of her/his employment.
3. Previous law provided only the exclusion list with the definition of the wages but the
present law provides both the inclusion and exclusion lists to make a complete sense.
4. Provident fund is considered to be the wages and is payable within 30 days of the
expiry of the employment.
Persons responsible for the payment of wages Provisions of the new labour law:
Under the new law the following persons shall be responsible for the payment of the
wages of the worker. Owner of the factory; Chief Executive Officer (CEO) of the
company; Manager/person assigned responsibility by the company; The Contractor, for
payment to workers appointed by the Contractor.
Changes in the present law:
In case of the failure of the contractor to pay the wages to the worker, the principal
owner shall pay the same and subsequently it can be adjusted with the accounts of the
contractor.
Fixation of wage periods and time of payment of wages Provisions of the new
labour law:
The person responsible for the payment of wages of the worker shall fix a period of
wages and accordingly pay it as per the time given in the law. Section 122 guides the
paymaster to fix a period not exceeding 30 days and section 123 provides that payment
shall be made within seven working days of the expiry of a wage period.
Changes in the present law:

There is a big change. In previous law, where there is less than 1000 workers
employed, the employer had to pay before the expiry of the 7th day from the end of the
wage period and in the railway or any other factory or industry , the employer had to pay
before the expiry of the 10th day from the end of the wage period. 6
Deductions from the wages Provisions of the new labour law:
Section 125 of the labour law 2006 deals with the deductions made from the wages of
the
workers. Following are the deductions valid under the present law:
1. Fines under section 25 (section 25, however, states that no fine shall be allowed
more
than one-tenth of the total wages receivables by a worker in a particular wage period
and
no fine for a worker aged below 15);
2. Deductions for absence from duty;
3. Deduction for damage or loss of goods entrusted upon the worker in her/his custody;
4. Deduction for house accommodation supplied by the employer;
5. Deduction for such amenities or services supplied by the employer as the
government has authorized;
6. Deduction for recovery of advances or for adjustment of overpayments;
7. Deduction for Income tax payable by the worker;
8. Deduction for subscription to and for repayment of advances from the provident fund
9. Deduction for the payment to the co-operative societies approved by the government.
Up to these 9 points the new law remains exactly the same as section 7 of the earlier
Payment of Wages Act 1936, but the new law added more deductions like the following:
Deductions for the subscription of CBA Union in check-off method; Deduction for any
welfare fund formed by the employer and authorized by the Government.
Grievance procedure in case of illegal deductions or delay in payment Provisions
of the new labour law:
Application by the worker her/himself or her/his successor in case of her/his death;
Application to the labour court only; Application within 12 months from the date of such
illegal deduction or the date of the payment being due, but the court can take it even
after the expiry of the said period; Up to 25% as compensation on the wages due at
that time may be ordered; No court fee is payable by the aggrieved worker; rather, if the
worker wins the case it is the owner who shall reimburse the payable court fees; Single
application on behalf of all the workers so aggrieved. 7
Changes in the present Law:

At present, the Chairman of the Labour Courts is only eligible to hear the cases;
Previously, the limitation period was only six months, now it is twelve months. 8
WORKING HOURS AND LEAVES
Daily hours Provisions of the new labour code:
Section 100 makes a provision of 8 working hours a day for an adult worker, but an
adult worker may work 10 hours a day provided all the conditions of section 108 have
been fulfilled. According to that section, the employer is required to pay the worker,
overtime, double the rate of her/his usual wages. i.e. basic & dearness allowance, if
any. The employer is also required to maintain an overtime register as per the law.
Changes in the present law:
Daily hours has been reduced to 8 hours-a-day from previous 9 hours-a-day
Interval for rest and meal* Provisions of the new labour code:
Interval for rest is provided in the following manner:
1. One hour interval for rest or meal for six hours of work;
2. Half an hour interval for rest or meal for 5 hours of work.
Changes in the present law: No change has been made.
Weekly hours**
Provisions of the new labour code:
The new law makes a provision of total 48 (forty eight) working hours for a worker, but it
can be extended up to sixty hours, subject to the payment of overtime allowances as
per section 108 of the law. However, an average of 56 working hours per week in a year
for a labour must not be exceeded under any circumstances. But the new law makes a
provision for exemption approved by the government if it thinks so fit.
Changes in present law:
Exemption clause has been inserted in the new law, by which the government is
empowered to exempt any of the factories for the purpose of this rule for a maximum
period of six months at a time.
Weekly Holiday***
Provisions of the new labour code:
Section 103 of the new labour code makes the provision of one day weekly holiday for
all the workers employed in a factory.
* Section 101 of the Labour Law, 2006
** Section 102 of the Labour Law, 2006
*** Section 103 of the Labour Law, 2006
Changes in the new law: No change.

PAID ANNUAL LEAVE

Annual leave with wage
Provisions of the new labour law:
Section 117 of the new labour law deals with the provisions for annual leave with
wages. The section provides as follows:
1) Each worker, who has completed one year of continuous service in a factory, shall be
allowed during the subsequent period of twelve months leave with wages for a number
of days calculated at the rate of
i) for adult workers, one day for every 18 (eighteen) days of work performed by her/him
during the previous twelve months;
ii) For adolescent worker, one day for every 15 (fifteen) days of work performed by
her/him during the previous twelve months.
2) An adult worker shall cease to earn any such leave when the leave due to her/him
amounts to 40 (forty) days and an adolescent worker shall cease to earn the said leave
when the leave due to her/him amounts to 60 (sixty) days.
Festival holiday*
Provisions of the new labour law:
1) Every worker shall be entitled to eleven days festival-leave for every calendar year.
The employer shall, at the beginning of the year, fix the day and date of such leaves.
2) The employer may require any worker to work on a festival holiday provided that two
days additional compensatory holidays with full pay and one alternative holiday should
be given to her/him under section 103.
Changes in the present law:
Festival holiday has been increased by a day in the new labour law 2006.
Casual leave
Provisions of the new labour law:
Section 115 of the new labour law deals with the provisions for casual leave of a worker.
It makes a provision for 10 days casual leave with full wages.
Sick leave **
Provisions of the new labour law:
* Section 118 of the Labour Law, 2006
** Section 116 of the Labour Law, 2006
All workers employed in a factory shall be entitled to get 14 (fourteen) days sick leave
with full average wages. Provided, such a leave shall not be granted unless a
Registered Physician employed by the employer or any other Registered Physician has
certified her/his illness.

Changes in the present law:

Earlier laws provided for the same period of leave with half average wages, whereas,
the new law makes provisions for the sick leave to be one with full average wages. The
requirement for certification by a Registered Physician does not exist in the earlier laws.
However, it has been added to the new law.
EMPLOYMENT OF FEMALE
Provisions of the new labour law:
There are a number of sections where the employment and protection of women have
been discussed. The sections are 45, 50, 79, 87, 94, 109, 332 and 345 of the new
labour law, 2006.
Night-shift work of female workers: Section 109 of the labour law, 2006 creates a bar
on the night works of the female workers. The section states as follows: No female
worker shall be engaged for work in any establishment without her consent between 10
pm and 6 am.
MATERNITY BENEFITS
Maternity leave
Provisions of the new labour code:
In section 46 of the new labour law 2006 provisions have been created for maternity
leave of 16 weeks (8 weeks before and 8 weeks after the delivery). But the law also
makes a provision that no worker shall be entitled to receive the benefit unless she has
served under the owner for a minimum period of six months prior to the notice of the
probability of the delivery.
Provisions of the previous labour laws: Section 3 of the Maternity Benefits Act, 1939
provides maternity leave of 12 weeks (6 weeks before and 6 weeks after the delivery).
Changes in present law:
The new law increases the maternity leaves to sixteen weeks from twelve weeks and
decreases the duration of the qualifying service period for availing the benefit to six
months from 9 months. Also, no maternity benefit shall be payable to any woman if at
the time of her confinement she has two or more surviving children.
Procedure of payment of the maternity benefit
Provisions of the new labour code: Three options are open to the mothers as per
section 47 of the new labour law:
1. The owner shall pay the total benefits payable for the preceding 8 weeks within 3
days

from the submission of the certificate of the probability of delivery (childbirth) by a

Registered Physician and shall pay the remaining amount after three working days of
the
submission of the proof-of-delivery.
2. The owner shall pay the benefits payable for the preceding 8 weeks including the day
of the delivery within 3 days from the submission of the proof of delivery and pay the
remaining within the next eight weeks after the proof of delivery is submitted
3. The owner shall pay all the benefits payable within 3 days from the submission of the
proof-of-delivery to the owner.
Provisions of the previous labour laws: Previously the procedure was guided by the
Maternity Benefits Act. 1939. Section 5 of the aforesaid Act provided more stringent
payment procedure as there was the provision of payment within 48 hours after the
certificate from any physician was submitted, whether there remains any working day or
not.
Changes in the present law:
Changes have been made in favor of the management, as the management is required
to pay the benefit within three working days. As per the earlier law, it was binding upon
the management to pay the benefit within 48 hours only.
Amount of the Maternity Benefits
Provisions of the new labour code:
As per sections 48 of the new labour code there is a provision of the payment in terms
of daily, weekly or monthly, as and where applicable, average wages. The section also
provides the formulae for the calculation of the aforesaid average wages as follows:
Benefits in case of the death of mother****
Provisions of the new labour code:
The person nominated by the mother who died, or in the case where no such person is
nominated, her legal representative, shall be entitled to receive the benefits as
described above.
Changes brought by the new law: No change has been made.
* Daily Average Wages
** Weekly Average Wages
*** Monthly Average Wages
**** Section 49 of the Labour Law, 2006
EMPLOYMENT OF ADOLESCENT
Prohibition of employment of children and adolescent
Provisions of the new labour law:

Section 34 of the new labour law creates a bar on the appointment of children in any
establishment. The section states as follows:

No child shall be required or allowed to work in any factory.

Adolescent workers to carry token: An adolescent who has completed fourteen

years of age shall not be required or allowed to work in a factory unless:
1. A certificate of fitness granted to her/him under section 68 is in the custody of the
manager of the factory;
2. Such adolescent carries a token giving a reference to such certificate while he is at
work;
3. Nothing in this section shall be applicable to an adolescent employed in any
occupation or in a factory as an apprentice for vocational training;
4. If the Government considers appropriate, it may as well waive the enforcement of the
pre-conditions of the employment of an adolescent for a particular period.
Child : In the present law child means a person who has not yet completed his fourteen
years of age.
Adolescent: Adolescent means a person who has completed her/his fourteen years but
has not completed her/his eighteen years of age.
Changes in the present law:
In the earlier laws, the term child was used to mean a person who had not completed
16 years of age and the term Young Person was used to mean and include both the
child and adolescent. Under the earlier law, even a child could have obtained a fitness
certificate to get a job in a factory. But in the new law, child means a person who has
completed her/his fourteen years of age and adolescent means the person who has
completed sixteen years and has not completed eighteen years of age. The present law
specifically prohibits employment of children and makes a provision for fitness
certificates for the adolescent only.
Exception : A child who has completed twelve years of age, may be employed in such
light work as not to endanger his health and development or interfere with his education.
Provided that the hours of work of such child, where he is school going, shall be so
arranged that they do not interfere with his school attendance. (as per section 44)
Certificate of fitness
Provisions of the new labour law:
Section 37 of the new labour law requires an adolescent to obtain a fitness certificate to
be employed in any occupation or in a factory.

A registered medical practitioner shall, on the application of an adolescent or

her/his

parent or guardian accompanied by a document signed by the manager of a factory that

13 such person will be employed therein if certified to be fit for the work he or she has
proposed to be employed for, issue a certificate of fitness.

Such certificate shall be valid only for the subsequent 12 months.

The employer shall pay the fees for obtaining such certificate and the fees cannot
be realized from the parents or guardians of the worker.

Working hours of adolescent

Provisions of the new labour law:
Section 41 of the new labour law deals with provisions relating to the working hours of
the adolescent. As per the section following points are important and relevant for the
RMG industry.

No adolescent shall be allowed or required to work 5 hours a day and 30 hours a

week

No adolescent shall be allowed or required to work between the hours from 7 pm

to 7 am

In every factory, the work of an adolescent shall be limited up to two shifts and no
such

shift shall be more than 7 and a half hours

An adolescent can only be appointed in a single relay and such relay shall be
changed
only with the prior approval of the inspector for once in a month.
Restriction of appointment of adolescent in certain work
Provisions of the new labour law:
Section 39, 40 and 42 of the new labour law reports some activities for which the
employment of the adolescent is strictly prohibited. As per the above mentioned
sections, the employment of the adolescent are strictly restricted for the following
activities:

Cleaning of the machinery while it is in motion.

Lubrication or for other adjustment operation of the machinery while it is in

motion.

Any work in-between the moving parts of a machine.

Any work under ground or under water.

EMPLOYMENT
Employer
Definition in New Labour Law:
The Term Employer is defined in section 2, Subsection (XLIX), previously the term was
defined in different law for different purposes like for payment of wages, for
Employment, for Factories and for Shops and establishment. But the new law provides
a single definition to cover all the purposes. As per the above section any person in
relation to an establishment who employs workers therein and includes:

An heir, Successor, Assignees, Guardian or legal representative of such persons

Manager or the person responsible for the management and control of the
establishment

The authority appointed by the government or the head of the Ministry or division
concerned for the State owned establishment

Officer appointed for the purposes or where no such authority is appointed the
CEO of the Local authority for the establishment run by the local authority.

For any other establishment, the Owner of the establishment and every director,
Manager, Secretary or the agent of such persons

The person in occupation of the establishment or the person in ultimate control of

the establishment

Forced labour
Provisions of the new labour law:
Forced labour is strictly prohibited by the Constitution of the Peoples Republic of
Bangladesh. Therefore, any Law approving forced labour is Void ab initio 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 Labour are prohibited and any contravention of this provision
shall be an offence and shall be punishable in accordance with the Law
Again, the two ILO fundamental rights Conventions (nos. 29 and 105) also addresses
the abolition of forced labour, and Bangladesh has ratified these two conventions long
time ago. But, this constitutional guideline is still ignored in the new Labour Law as the
Law has not defined the word forced labour in it and has not provided for the
punishment and procedure thereof. 15 Therefore, forcing the worker to work in a factory
for days together continuously by the factory owners against their intention should be

strictly prohibited and law should address this issue as per our Constitution and ratified
ILO Conventions.
Discrimination
Provisions of the new labour law:
Any discriminatory behavior on the basis of sex, color and creed is totally prohibited in
any law in Bangladesh. Articles 27 and 28 have provided a guideline to the legislator to
make the discrimination free environment in every walk of national life. Section 345 of
the new labour law is, however, noteworthy in this connection. The section is stated as
follows: In determination of the wages for a worker or in fixation of the minimum wages
equality irrespective of the sex of the worker, shall be maintained. No discrimination in
this regard shall be tolerated by law. Article 27 of the Constitution is stated as follows:
-All citizens are equal before Law and are entitled to equal protection of Law
Article 28 of the Constitution is stated as follows:
-The State shall not discriminate against any citizen on the grounds of religion, race,
caste, sex or place of birth.
Therefore, discrimination on the grounds of any of the above issues is prohibited in the
country.
Service rules
Provisions of the new labour code:
Section 3 of the new labour law allows an industrial establishment to make a service
rule
pursuant to the labour laws of the land.
Provisions of the previous labour laws: Section 3 of the Employment of Labour
(Standing Orders) Act, 1965 has the same provisions as above.
Changes brought by the new law: No change has been made.
Comments: Framing of the service rules by an employer is not mandatory, but if these
are made, they must comply with the relevant laws.
Appointment Letter and ID Card
Provisions of the new labour code:Section 5 of the new Labour Law 2006 provides
that each and every worker should be given appointment letter and ID card by their
employer free of charge.
Provisions of the previous labour laws: Previously there was no such law. Only the
Newspaper Employees (Conditions of Services) Act, 1974 and The Road Transport
Workers Ordinance of 1983 made the provision of the appointment letter for their
employees.

Comments: Rules are yet to-be-made to provide with a form of the appointment letter
or ID card but from the earlier two Laws the following should be there in the
appointment letter: employees name, fathers name, mothers name, spouses name
and address, date of appointment, type of employment and conditions of the
employment.
Service book
Provisions of the new labour code: The law provides for a separate section i.e.
Section 8 of the law for the entries of the service book of a labour. As per the section
following entries shall be there in the service book of a labourer:

Employees name, spouses name , mothers and fathers name and address

Date of birth

Mark of recognition

Previous owner and her/his address if applicable

Duration of the employment

Occupation or designation

Wages and allowances

Leaves availed

Conduct of the worker

Provisions of the previous labour laws: Employment of Labour (Standing Orders) Act
1965 does not provide any provisions related to this. Only the provisions for the
maintenance of the service book were available in the Employment (Record of
Services) Act 1952 and Employment (Record of Services) Rules 1957.
Changes brought by the new law:
No significant changes are there in the provisions for the service book in the new
law. But the new law makes it mandatory for the service book to be signed by both the
worker and the employer. The law provides for a list of information to be maintained in
the service book of each labour.
Classification of workers
Provision of the new labour code:
Section 4 of the new labour code of 2006 classifies the workers into following classes:
17
a) Apprentices
b) Badlies (transfer workers)
c) Casuals

d) Temporary
e) Probationer and
f) Permanent
These terms of classification have been properly defined in the present legislation
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.
Badlies (transfer workers): 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.
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 her/his probation period in an establishment.
Probationary period
Provisions of the new labour law:
Period of probation:

Six months for the worker employed in clerical activities

Three months for other workers.

If the employment of a probationer expires during the probation and if the same
person is re-employed under the same employer within next three years of such
employment shall be treated as a probationer and the previous period of probation
shall be calculated with in new period.

If a permanent worker starts a new job as a probationer, then during that period
of probation he can be shifted to her/his permanent post during the subsequent
period of probation.

Changes in the present law:

There is no change in the classification of labour. But in the calculation of the period of
probation, the earlier laws included all the leaves and strikes and lockouts during that
period which the new law has ignored and refrained from specific provisions in this
regard.
Calculation of continuous service
Provisions of the new labour law:
Section 14 of the new labour law provides for the method of the calculation of the
continuous service period of a labour for the purpose of this law in the following manner:

If the actual number of the working days of a worker is 240 during the previous
twelve calendar months he or she shall be deemed to be worked for a continuous
period of one year.

If the actual number of the working days in the previous twelve calendar months
is 120 days s/he shall be deemed to be employed there for a continuous period of six
months.

For counting continuous service, the following issues will come under consideration:

Days the worker was laid off;

Days of leave with or without wages due to accident or illness;

Non-working days due to legal strike or illegal lock out;

Days on maternity leave for a female worker.

Changes in the present law:

No significant change has been noticed in this purpose except for the inclusion of the
number of days not-working due to legal strike or illegal lockout. And for calculation of
six months of continuous employment the number of actual working days is 120, which
was previously 140.
Payment of wages for un-availed leave*
Provisions of the new labour law:
In case of the expiry of the specific employment of any worker by way of discharge,
dismissal, termination, retrenchment or retirement, if there remains any un-availed leave
of the aforesaid worker, he or she shall be entitled to get the wages of those days so unavailed.
Changes in the present law:
Actually this was also in previous law under section 5 (4) of SO Act 1965 .
* Section 11 of Labour Law, 2006
Provident Funds for workers:
Provisions of the new labour law
Section 264 of the Labor Law 2006, provided for an establishment of a Provident Fund if
so demanded by the three fourths of the total workers employed in a factory. The
section also provided for the following:
1. It may constitute for the benefits of the worker in the private sector.
2. Such provident fund shall be constituted prescribed by the rules.
3. The Government may make rules for constitution of provident fund.
4. Such Provident Fund shall be held and administered by a Board of Trustee.

5. Such Board of Trustee 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. Representative will be nominated by the employer and collective bargaining agent.
7. The above nomination shall be under the supervision of the Director of Labour.
8. All the representatives shall hold office for a period of two years.
9. A permanent worker shall subscribe to the fund not less than seven percent and not
more than eight percent from his basic wage unless otherwise mutually agreed.
10. In the case of provident fund one fourth of total workers will claim in writing to their
employer.
11. In order to provide provident fund the employer will establish rules within six months
and the fund shall start by this period.
12. At least half of the total accumulations shall be invested for the purpose of any of the
following, namely:
a) I.C.B. Mutual Fund Certificates.
b) I.C. B. Unit certificates and
c) Government securities including Defence and Postal Saving Certificates
13. The cost of maintenance shall be borne by the employer.
14. The accounts of provident fund shall be audited.
15. A statement of account together with audit report shall be forwarded to the director
of
Labour within one month of the submission of audit report.
16. Where the government is satisfied, he may by order exempt the establishment from
the operation of this section.
17. A provident fund shall be deemed to be a public institution for the purposes of the
Provident Funds Act, 1925 (XXIX of 1925).
18. Establishment in private sector means an establishment which is not managed
directly by the Government.
Death benefit**
Provisions of the new labour law:
If any worker died after completing 3 (three) years continuous service with an employer,
the worker shall be entitled to get benefits for 30-days wages for each completed year
or service, or six-months thereof, or gratuity, whichever is higher. The worker shall get
this benefit in addition to her/his other emoluments during the retirement.
Changes in the present law:

This is also a new addition to the labour law as previously no labour law has provided
for the death benefit except for the Wage Board award for the Newspaper worker.
Stoppage of work
Provisions of the new labour law:
Section 12 of the new labour law deals with the stoppage of work by the employer. As
per the above-mentioned section following are the points to be noted:
a) In the event of fire, other catastrophes, breakdown of machinery, epidemics, or civil
commotion, or any other circumstance beyond her/his control, the employer can stop
the
work of a section or sections of her/his factory.
b) In the event of such stoppage occurring at any time beyond working hours, the
employer shall by issuing a notice in the notice board of the factory inform the labourers
as and when to resume the work and whether the worker is to be present at that specific
place at that time.
c) The notice also mentioned that those who are ordered to be so present, and if their
presence is required for an hour only, then they may not be entitled to get any benefit.
** Section 19 of Labour Law, 2006
Right of laid off workers*
Provisions of the new labour law:
Lay off: Failure, refusal or inability of an employer, on account of shortage of coal,
power or raw material or the accumulation of stock or break down of machinery or for
any other reason, to continue the employment to workers whose names are brought to
the muster-roll of the factory. Any worker, whose name is there in the muster-roll of the
factory and who has completed a continuous period of one year service, if laid off, shall
be entitled to get the benefits of compensation for all the days except for the weekly
holidays. A badli (transfer) worker whose name is brought in the muster roll shall not be
treated as badli for the purpose of the compensation under this chapter.

Compensation during lay off = (Total basic + dearness allowance + ad hoc

wages)/2 +
the house rent he or she would get if not so laid off.

No worker shall get the compensation for more than 45 days in a calendar year
of lay off

If any worker is laid off for 15 days or more after the first 45 days of lay off in a
single calendar year the employer can retrench the worker instead of lay her/him off.

But, if the lay off extends beyond that 45 days up to a period of 15 more days,
then the labour so laid-off shall be entitled to get benefits at the following rate:

Compensation during lay-off beyond 45 days = (Total basic + dearness allowance +

adhoc wages)/4 + the house rent he or she would get if not so laid-off.
Retrenchment**
Provisions of the new labour law:
Retrenchment means the expiry of the employment of a worker on the ground of
redundancy. For retrenchment, an employer has to follow the following provision of the
new labour law: No worker, employed in any shop or commercial or industrial
establishment, who has been in continuous service for not less than one year under an
employer shall be retrenched by the employer, unless
(a) The worker has been given one months notice in writing, indicating the reasons for
retrenchment or the worker has been paid in lieu of such notice, wages for the period of
notice;
(b) A copy of the notice in respect of the retrenchment has been sent to the Chief
Inspector or any other officer authorized by her/him; and
(c) He has been paid, at the time of retrenchment, compensation which shall be
equivalent to 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.
* Section 16 of Labour Law, 2006
** Section 20 of Labour Law, 2006
Discharge
Provisions of the new labour law:
Discharge means the expiry of the employment of a worker on the ground of inability or
incapacity because of ill health. Section 22 of the new labour code deals with the
procedure 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 one year shall be entitled to get a benefit of 30 days wages for every
completed year of service or the gratuity, whichever is higher.
Dismissal
Provisions of the new labour law:
Section 23 of the new labour law deals with the dismissal of the worker on the ground of
misconduct and conviction. The section makes room for the employer to dismiss a

worker without serving her/him a notice or the payment in lieu thereof for the following
two grounds:
If the worker is convicted by any criminal court If her/his misconduct is proved under
section 24 of the labour law 2006. Misconduct, as defined in that section, is:
Willful insubordination, alone or in combination with others, to any lawful or reasonable
order;
Theft, fraud or dishonesty; Receiving or giving bribes;
Habitual absence, without leave, for more than ten days;
Habitual late-attendance;
Habitual breach of any rule or law applicable to the establishment;
Riotous 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.
Changes in the present law:
The new law makes a provision of lighter punishment in case of the misconduct. Sub
section 2 of section 23 says: Any worker, against whom misconduct has been charged
and proved, may be punished by any of the following punishment other than dismissal
from the job: Removal Demotion to lower grade; Withholding promotion for at least one
year; Withholding increment for an year; Imposition of fine; Temporary suspension
without wages; Censuring and warning;
Termination
Provisions of the new labour law:
The employer can terminate a worker without assigning any reason whatsoever except
for
dismissal, etc. in the following manner as described in Section 26 of the new labour law
2006.
For the permanent workers:
1. Serving 120 days notice to the workers employed on the monthly basis.
2. Serving 60 days notice to the other workers.
For the temporary workers:
1. Serving 30 days notice to the workers employed on the monthly basis.
2. 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 as described in the section above, if the employer
pays the wages to the terminated worker for the aforesaid period of notice.
Compensation on termination of a permanent worker: When a permanent worker is
terminated she or he shall be entitled 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
her/him.
OCCUPATIONAL HEALTH, SAFETY AND WELFARE
SAFETY
Fire
Present law with regards to fire:
Section 62 deals with the provisions for measures to be taken by a factory to avoid
dangers and damage due to fire. The section provides for the following:
1. At least one alternative exit with staircases connecting all the floors of the factory
building as described in the rules for each and every factory.
2. No door affording exit can be locked or fastened during the working hours so that
they
can be easily or immediately opened from inside.
3. The doors affording exit must be open outwards, unless it is sliding in nature, if the
door is between two rooms it must open in the direction of the nearest exit.
4. Marking in red letter in proper size, in the language understood by the majority of the
workers, on such doors, windows or any alternative exit affording means of escape in
case of fire.
5. There shall be an effective and clearly audible means of fire-warning system to every
worker.
6. There shall be a free passage-way giving access to each means to escape.
7. Where more than ten workers are employed other than in the ground floor, there shall
be a training for all the workers about the means of escape in case of fire.
8. There shall be at least one fire-extinction parade and escape-drill at least once a year
in a factory where more than fifty workers are employed.
Changes in the present law:

The new law makes a provision of an alterative staircase affording means of

escape
connecting all the floors

Fire extinguishing and escape parade shall be arranged at least once every year.

Floors, stairs and means of access

Provisions of the new labour law:
Section 72 of the new labour law deals with the floors, stairs and means of access. The
section states as follows:
1. All floors, staircases, and passages shall be of sound construction and properly
maintained, and if it is necessary to ensure safety, hand-railings shall be provided with
them.
2. Reasonable safe passageway or access shall be maintained in a place where
employees
work.
3. All the floors, passageways, and staircases shall be maintained in a neat and clean
manner, wide enough, and free from any blockade.
Excessive Weights
Provisions of the new labour law:
Section 74 of the new labour code states that, no person shall be employed in any
factory to lift, carry or move any load so heavy as to be likely to cause him injury.
Safety of building and machineries
Provisions of the new labour law:
Section 61 of the labour law 2006 provides for the measures to be taken as regards the
safety measures related to building and machineries. The present law entrusts
everything to be done in this regard with the Inspectors. The section goes as follows:
1. If it appears to an Inspector that any building or part thereof or any passageway or
machine of the factory is in such a condition which is injurious for the life and health of
the workers working therein, the Inspector may issue an order to the owner of the
factory
to take necessary steps immediately within the specified time therein.
2. If the Inspector is of the opinion that the building or any machine is seriously
dangerous for the life of the worker, he shall issue an order to repair or alter that
immediately failing which, to not run the factory unless and until the building is so
repaired or replaced.
Changes in present law:
Earlier laws didnt empower the Inspector to stop the operation of a factory in a risky
building but the present law has given sufficient discretion on the part of the Inspectors
to take necessary steps so as to ensure building security and the like.
Fencing of machinery*
Provisions of the new labour law:

1. Factories are required to secure the following parts of machinery in order to ensure
safety of the workers:
* Section 63 of Labour Law, 2006
26
a. Every moving part of a prime mover and every fly wheel connected to a prime
mover
b. The head-race and tail-race of every water wheel and water turbine
c. Any part of a stock-bar which projects beyond the head stock of a lathe
d. Every part of an electric generator, transmission machinery and other dangerous
part of any machinery.
2. Fencing must also be done on any other parts (in motion) that contains screw, bolt
and
key on any revolving shaft, spindle wheel or pinion and all spur, toothed friction gearing,
etc. The fencing is required to prevent these items from harming the workers coming in
close contact to them.
3. The Government may exempt fencing of the aforesaid objects, if and only if certain
other measures are adopted that will ensure safety of the workers.
4. The Government may prescribe such further precautions to fence certain other parts
of the machineries which are not mentioned above for ensuring safety of the workers.
Work on or near machinery on motion*
Provisions of the new labour law:
1. In case of examining, adjusting and lubricating part of machinery in motion, it is
required to employ a well-trained adult male worker. The worker must wear tight-fitted
clothing while conducting such jobs and no other person will be allowed to work on
behalf of him during his absence.
2. Women and adolescent are not allowed to do the above-mentioned tasks and they
are not also entitled to work in places between fixed and moving parts of any machinery
in
motion.
3. The Government may prohibit the cleaning, lubricating and adjusting, of any
machinery in motion, by any person.
Explosive or inflammable dust or gas**
Provisions of the new labour law:
1. The following practicable measures must be taken in factories to avoid explosions
caused
by inflammable dust, gas or vapour produced during the manufacturing process:

a) Effective enclosure of the plant or machinery used in the process

b) Removal or prevention of the accumulation of inflammable objects
c) Proper enclosure of all possible sources of ignition.
* Section 64 of Labour Law, 2006
** Section 78 of Labour Law, 2006
2. In case of the impossibility of placing a strong enclosure for the above-mentioned
sources of inflammable objects, provisions of chokes, baffles, vent or other effective
appliances have to be kept.
3. Enclosed parts of the plant that contain potentially explosive materials shall only be
opened if certain required precautionary measures are met:
a) Stop valves should be used to stop flow of gaseous objects in pipelines before
working on any joint of that pipeline.
b) Practicable measures should be taken to reduce pressure inside the pipeline before
working on joints of that pipeline
c) Entrance of inflammable gases or vapours, into the pipeline through the joints that
are to be worked on, must be carefully prevented.
4. Operation that requires actions of heat, such as welding, brazing, soldering or cutting,
shall not be conducted in a factory that contains or previously contained inflammable
objects without taking appropriate safety measures.
Precautions against dangerous fumes*
Provisions of the new labour law:
1. No person shall be allowed to enter potentially hazardous chambers, containing
dangerous fumes, such as tank, vat, pit, pipe, flue or confined spaces if there is not any
manhole of adequate size.
2. No portable light of voltage exceeding 24 volts shall be permitted to use inside places
mentioned above.
3. No person shall be allowed to enter the places mentioned above until the following
measures are taken:
a. A certificate in writing has to be given by a competent person stating that the
space is free from dangerous fumes and is fit for persons to enter.
b. It has to be ensured that the worker wears a suitable breathing apparatus and a belt
securely attached to a rope before going into any confined space.
4. No person shall be allowed to enter the places mentioned above for the purpose of
working or making any examination before sufficiently cooling the places down by
ventilation.

5. Suitable breathing apparatus, reviving apparatus and belts and ropes shall be kept
ready beside the confined space for instant use. Other workers must also be trained
and
proficient in the use of all such apparatus.
* Section 77 of Labour Law, 2006
Personal protective equipment
Provisions of the new labour law:
There are several sections in the new law where the personal protection of the worker
has been discussed. Section 75 deals with the protection of eyes. Effective screens or
suitable goggles shall be provided for the protection of persons eye where there is a
risk:
Of injury to eyes from particles or fragments thrown off in the course of the
processing
To the eyes, by reason of exposure to excessive light or heat.
Section 79 also makes a provision of personal protection, sub-section (d) and (e) stated
as
follows:
(d) Providing for the protection of all persons employed in the operation or in the vicinity
of the places where it is carried on, and
(e) Providing notice about the hazardous chemical to the workers.
Risk assessment and prevention
Provisions of the new labour law:
There are several sections in the new labour code regarding the assessment of risk and
prevention thereof. Section 40 and 79 of the new labour law made provisions for the
government to asses certain occupation. The sections state as follows:
(a) The government shall, by notification in the official gazette, provide a list of the
dangerous machines and risky operations for the adolescent workers (Section 40[3])
(b) The workers employed in such machines and/or operations shall be sufficiently
trained and supervised
(c) The Government shall identify and provide a list of dangerous operations (section
79)
Powers of inspectors on certain matters:
i) Power to require any measures as to the safety of building and machinery:

The inspector may serve an order specifying the measures which should be
adopted or an order prohibiting its use until it has been properly repaired. (s. 61)

The Chief Inspector may permit the continued use of machine on such conditions
for ensuring safety as he may think fit to impose. (s. 66)

The Chief Inspector may permit the continued use of a hoist or lift installed in a
factory

upon such conditions for ensuring safety as he may think fit to impose. (s. 69 (7)).

The Inspector may serve on the employer an order in writing requiring him to
furnish drawings, specifications and other particulars as may be necessary to
determine whether such buildings, ways, machinery or plant can be used safely and
to carry out such tests as may be necessary to determine the strength or quality of
nay specified parts and to inform the Inspectors of the results thereof. (s. 76).
ii) Power to require measures as to the precautions in case of fire:

The inspector may serve an order specifying the measures which should be
adopted
before a date specified in the order.( s.62 )
iii) Notice to be given to the Inspectors:

When any accident occurs in an establishment causing loss of life or bodily

injury, the employer of the establishment shall give notice of the occurrence to the
Inspector within two working days. ( s. 80)

Where in an establishment any dangerous occurrence occurs whether causing

any bodily injury or not the employer of the establishment shall send a notice to the
Inspector within three working days. ( s. 81 )

Where any worker contacts any disease , the employer or the worker concerned
or any

person authorized by him shall send notice to the Inspector.( s. 82)

iv) Power to take samples:

An Inspector may at any time take a sufficient sample of any substance used or
intended
to be used in the establishment such use being , in the opinion of him in contravention
of
the provisions of this Act or likely to cause bodily injury to the health of workers.( s.84 )

Where the Inspector takes such sample, he shall divide the sample into three
portions and effectively seal and suitably mark them and shall permit the employer to
add his own seal and mark thereon.

 If the Inspectors requires the employer shall provide the appliances for dividing,

sealing
and marking the sample.

The inspector shall give one portion of the sample to the employer , send the
second
portion to a Government analyst and report thereon and retain the third portion for
production to the Court.
v) Power of Inspectors in case of certain dangers;

If, it appears to the Inspectors that any establishment or any part thereof or with
the
control, management or direction thereof, is dangerous to human life or safety or
defective, so as to threaten to the bodily injury of any person, he may give notice in
writing to the employer in respect of which he considers the establishment or the thing
or
practice, to be dangerous or defective and require the same to be remedies within such
time and in such manner as he may specify in the notice.

The Inspector may, by order in writing direct the employer prohibiting the
extraction or
reduction of pillars in any part of such establishments.

The Inspector may by an order in writing prohibit the employer if he thinks that
there is urgent and immediate danger to the life.

The employer if is aggrieved by the order may, within ten days of the receipt of
the order appeal against the same to the Chief Inspector who may confirm , modify
or cancel the order.

The inspector making an order report the same to the Government and shall
inform the employer concerned that such report has been so made.

The Chief Inspector shall report to the Government any order, except the order of

cancellation passed by him and shall also inform the employer concerned that such
report
has been so made.
WELFARE
First aid appliances
Provisions of the new labour code:
Section 89 of the new labour law provided the following:

1. First Aid boxes or cupboard equipped with the contents prescribed by rules should be
provided in every establishments
2. A well equipped first aid box or cabinet for every 150 labour
3. A person, who has to be always available in the factory, trained in first aid knowledge
assigned for every first aid box
4. Notice regarding the availability of that person in every working room and a special
badge issued for that person
5. An ambulance and a well-equipped dispensary for every 300 workers employed in a
factory.
Changes in present law:
The facility of ambulance and dispensary has to be provided by the owners of the
factories in which at least 300 workers are employed. Previously, this facility was
required for factories with a minimum of 500 workers.
Washing facilities
Provisions of the new labour code:
Section 91 of Bangladesh Labour Law, 2006 provides for the washing facilities for
workers in a factory. But the new law is exactly the same as the earlier Factories Act
1965. Rules regarding the washing facilities are yet to be made. The number of taps in
the workplace was fixed in the earlier laws as per the following schedule:
1. One tap for every 15 worker who are coming into close contact of noxious
substances
2. Workers who are not working with noxious substances shall be entitled to get the
following facilities:
Canteens
Provisions of the new labour code:
Section 92 of the new labour law provides a canteen for every 100 workers as opposed
to the earlier Factories Act which provided a canteen for every 250 workers.
Changes brought by the new law:
Number of workers per canteen has been decreased to ensure better canteen facility.
All other provisions related to the management and quality of the services and food in
the canteen remains unchanged.
Shelters/ rest rooms and lunch rooms
Provisions of the new labour code:
Section 93 of the new labour code makes a provision of a rest room for every 50 or
more workers and a separate rest room for the female workers numbering over 25. But
if the number of female workers is below 25 then the factory management shall manage

a curtain in the same rest room to create a separate resting space for the female
workers.
Changes in present law:
Taken from Factory Rules, 1979.
Required minimum number of workers for a rest room has been decreased to 50 from
100 and a separate rest room provision for female workers came into being in the new
law.
Rooms for children*
Provisions of the new labour code:
The new law has made a provision of a childrens room for every 40 female workers
with
children below 6 years of age. The room is required to be of such an area so that it can
provide 600 square centimeters (previously it was 20 sft) of space for each child and the
minimum height of such room shall not be less than 360 centimeters.
Changes in present law:
Required minimum number of the female workers, with children below 6 years of age,
has been decreased to 40 from 50, for a childrens room in a factory.
HEALTH AND HYGIENE
Cleanliness
Provisions of the new labour law:
Section 51 of the new labour law deals with the provisions of cleanliness. It is exactly
the same as section 12 of the earlier Factories Act, 1965. The law provides for the
following:
1. Every factory shall be kept clean and free from effluvia arising out of any drain, privy,
or any other nuisance in the following manner:
a) Accumulation of dirt and refuge shall be moved daily by sweeping from floors
and benches of workrooms, staircases and passages;
b) The floors of every work room shall be cleaned by washing at least once in a
week using disinfectant;
c) Effective drainage shall be provided and maintained where the floor is liable to
become wet in course of any manufacturing process to such extent as is capable of
drainage;
d) All inside walls and partitions, all ceilings or tops of the rooms and walls, side and
top of the passageways and staircase shall be* Section 94 of Labour Law, 2006 repainted or re-varnished at least once in every five
years from when they are painted or varnished cleaned at least once in every fourteen

month where they are painted and varnished and have smooth impervious surfaces.
kept whitewashed or color washed at least once in every fourteen months
2. A register shall be maintained in every factory for all the required activities as
described in the clause (d) above.
Drinking water
Provisions of the new labour law:
Section 58(1) of the new labour law provides for an effective arrangement of sufficient
supply of wholesome drinking water conveniently located at suitable point for all
workers. The section further provides for the following
(2) The word Drinking water shall be legibly marked on the place;
(3) Cooling the drinking water in a factory during the hot weather where more than
250 workers are employed;
(4) Oral Re-hydration Therapy for the workers, working close to the machine
producing excessive heat.
Changes in the present law:
A number of changes are there in the new legislation in this regard:

The Factories Act 1965 made a provision that the drinking water cannot be
located in any place within 20 feet of distance of latrines, urinals, or washing-places,
but the new law has directed for a place convenient to all.

Oral re-hydration therapy has been instructed for installation for the employees
working close to machines producing excessive heat.

Overcrowding
Provisions of the new labour law:
Section 56(1) of the labour law 2006 makes provisions for required spaces for a single
worker employed in a factory. Following are the points important in this regard.
(2) 9.5 (Nine and half) cubic metres of space for every single worker in a factory;
For calculating the dimension of the aforementioned-space, ignore the height beyond
4.25 meter;
(3) The Factory shall post a notice in each workroom, specifying the maximum number
of workers who can be employed therein as per the above calculation, if the Inspectors
so
require;
(4) The Inspector can exempt any workroom of any factory from the compliance of this
rule if satisfied that for the health of the worker it is not necessary.
Changes in the present law:

No noteworthy change is there except for the conversion of the measurement of space
in the metric system from the existing British system.
Lighting
Provisions of the new labour law:
Section 57(1) of the new labour law provides for the arrangement of sufficient and
suitable lighting of natural or artificial or both. The section further provides for the
following:
(2) Glazed windows or skylights shall be kept clean on both the pouter and inner
surface free from obstructions;
(3) Provisions shall be made
(a) to prevent glare either directly from any source of light or by reflection from a
smoothened or polished surface;
(b) Provisions shall be made for the prevention of the formation of shadow to such
extent
as to cause eye strain or risk of accident to any worker.
Latrines and urinals
Provisions of the new labour law:
Section 59 of the new labour law makes the provisions of the latrines and urinals for the
workers employed in a particular factory. The section provides for the following:
a) Sufficient number of latrines and urinals located at convenient places and
accessible to all the workers
b) Separate arrangements for male and female workers
c) Properly illuminated and ventilated and sufficient supplied with water at all times
d) Clean and sanitary condition be maintained by detergents or disinfectants or with
both
Dust bins and spittoons
Provisions of the new labour law:
Section 60 of the present law deals with the provisions of dustbins and spittoons. The
sections provides for the following:
1. Every factory shall provide sufficient number of dustbins and spittoons at convenient
places in clean and hygienic conditions
2. No person shall spit or litter except in the spittoon or bins, kept and maintained forthis
purpose
3. A notice shall be posted at every conspicuous places for the workers to the effect that
Spitting or littering in contravention of clause 2 is a punishable offence.

Changes in the present law: Previously the provision was only for the spittoons;
however, now it is paraphrased as Spittoons and Dustbins to include littering as well.
The earlier laws made the provision of a Taka 2 fine for the violation of the spitting rules
which is eliminated in the new law and only a notice has been provided for to that effect.
INDUSTRIAL RELATIONS
Unfair Labour Practices from the Part of the Employers
Provisions of the new labour law:
Section 195 of the new labour law, 2006 provides a list of conducts or activities, which
tantamount to unfair labour practices from the part of the employer. Following are the
actions in brief:

Imposition of any condition in a contract of employment seeking to restrain the

right of a person to join a trade union or to continue her/his membership of a trade
union.
Refusal to employ or refusal to continue to employ on the ground that a person

is, or is
not a member or officer of a trade union.

Discrimination against any person in regard to any employment, promotion or

condition
of employment on the ground that such person is or is not the member or officer of trade
union.

Discharge or dismissal of any person on the ground that the person is or is not
the
member or officer of a specific trade union.

Instigating or seeking a person to be the member of a particular trade union.

Inducing a person to refrain from becoming, or to cease to be a member or

officer of a trade-union.

Compelling any officer of the CBA to sign a memorandum of settlement by

intimidation or by coercion

Interfering with or in any way influence the balloting provided for the election of
the CBA.

Recruitment of new workman during the currency of a legal strike.

Changes in the present law:

The new law makes the list of the activities of unfair labour practices much longer. In the
earlier laws there were eight different activities which had been termed as unfair labour

practices. In the new law, however, there are 12 different activities of the employer that
are termed as unfair labour practices.Following are the additional four activities of the
employer that can be termed as the unfair labour practices from now on:
1. Willful failure in implementing the recommendation of the participation committee
2. Failure to respond to any communication made by the CBA as regards to any
industrial
dispute
3. Transfer of the President, General Secretary, Organizing Secretary and Treasurer of
a
trade union
4. Imposition of an illegal lock-out and continuance thereof and persuading a person to
participate in that.
Unfair Labour Practices from the Part of the Workmen
Provisions of the new labour law:
Section 196 of the new labour law deals with the provisions of unfair labour practices
from the part of the labour. Following activities of the labour constitute the unfair labour
practice from the part of the labour:

Persuading a workman to join or refrain from joining a trade union during the
working hours

Intimidating any person to become or refrain from becoming a member or officer

of a trade union

Inducing any person to become or refrain from becoming a member or officer of

a trade union

Compelling or making any attempt to compel an employer to sign a

memorandum of settlement by using intimidation

Compelling or making any attempt to compel any workmen to pay or refrain from
paying any subscription towards the fund of the trade union.

Changes in present law:

In the earlier laws there were six activities of the labour that were considered to be
unfair labour practices. But the new law extended the purview of unfair labour practices.
Following are the addition to the list of unfair labour practices from the part of the
workmen:
1. Imposing illegal strike or go slow or persuading thereto
2. Gherao or blokcade on the highways or destruction of the property including transport

and vehicles.
Determination of the Collective Bargaining Agent (CBA)
Provisions of the new labour law:
Section 202 of the new labour code deals with the provisions relating to the
determination of Collective Bargaining Agents (CBA). The Law provides for the following
procedure:
1. Where there is only one trade union, that trade union shall be taken as the Collective
Bargaining Agent (CBA) for that establishment
2. Where there are more than one trade union in an establishment , the Registrar shall
take necessary steps to elect the Collective Bargaining Agent, upon the application of
any of the trade unions having members of more than one third of the total workers
employed in the establishment
3. Upon the receipt of the application as above the Registrar shall, by notice in writing,
communicate to all the trade unions as to whether they would want to contest for the
secret ballot for their representation in the CBA or not giving a time limit of fifteen day
4. If a trade union fails to indicate within the time specified in the notice, its desire to be
a
contestant in the secret ballot, it shall be presumed that it shall not be a contestant in
such
a ballot/poll
5. Every employer shall
(a) On being so required by the Registrar, submit to the Registrar a list of all workers
employed in the establishment, excluding those whose period of employment in
the establishment is less than three months or workers with records of insubordination
and negligence-to-duty
(b) Provide such facilities for verification of the list submitted by her/him as the
Registrar may require.
6. On receipt of the list of workers from the employer, the Registrar shall send a copy of
the list to each of the contesting trade unions and shall also affix a copy thereof in a
conspicuous place of her/his office and another copy of the list in a conspicuous place
of
the establishment
7. The objection, if any, received by the Registrar within the specified time shall be
disposed of by her/him after such enquiry as he deems necessary
8. The Registrar shall make such amendments, alterations or modifications in the list of

workers submitted by the employer as may be required by any decision given by

her/him
on objections received under previous sub-section
9. After amendments, alterations or modifications, if any, made under above sub-section
or where no objections are received by the Registrar within the specified time, the
Registrar shall prepare a list of workers employed in the establishment concerned and
send copies thereof to the employer and the contesting trade unions at least four days
prior to the date fixed for the poll
10. The list prepared under the aforesaid sub-section shall be deemed to be the list of
voters and every person whose name appears in the list shall be entitled to vote to elect
the Collective Bargaining Agent
11. Every employer shall provide for such facilities as are required by the Registrar to
conduct the poll
12. No person shall canvas for vote within a radius of fifty yards of the polling station
13. For the purpose of holding the secret ballot to determine the CBA, the Registrar
shall do the following:
a. Fix a date and intimate the same to the contesting trade unions and the employer
b. Set the sealed ballot boxes, which are sealed in presence of the representative of
each of the contesting trade unions if any one present
c. Conduct the poll in the polling stations where the representative of the contesting
trade unions shall have the right to enter
d. Count the votes in presence of the representative of the contesting trade unions if
anybody is present
e. Declare the result and the name of the elected Collective Bargaining Agent.
14. Where a registered trade union is declared as the Collective Bargaining Agent
according
to the above rules, no such application for the determination of the CBA shall be
entertained within the subsequent two years.
The Right of the Collective Bargaining Agent
Provisions of the new labour law:
The Collective Bargaining Agent in relation to an establishment or group of
establishments shall be entitled toi. Undertake collective bargaining with the employer or the employers on matters
connected with the employment, non employment or terms of employment
ii. Represent all or any of the workmen in any proceedings
iii. Give notice of and declare a strike in accordance with provisions of the law

iv. Nominate representatives of workmen on any committee, fund constituted as per the
provisions of law or agreements.
Changes in the present Law:
1. The previous law required a trade union for being a CBA to consists of at least onethird of workers as its member, even if it is the only trade union in the establishment but
the new law has made a direct provision that if there remains only a single trade union,
then that shall be treated as the Collective Bargaining Agent
2. The registration of the trade union which acquires less than 10% of vote in a poll for
determination of CBA shall stand cancelled forthwith
3. The new law provides for a right to the Collective Bargaining Agent (CBA), in addition
to the right of representation of the workers in a proceedings, the right of litigation for
and on behalf of the one or all of the workers under this Act
4.5 Participation Committee
Provisions of the new labour law:
Section 205 of the new labour code deals with the provisions of the Participation
Committee as follows:
1. The owner of a factory, where more than fifty permanent workers are employed, shall
form a Participation Committee as per the rules made by the law in this behalf
2. That Committee shall be formed in combination of both the workers and employers
3. The representation of the workers shall not be less than that of the employer
4. Workers in the committee shall be selected on the basis of the selection of the trade
unions
5. All other trade Unions, except for the CBA, shall select their representatives equally;
the number of representative of the CBA shall be one member more than the total
numbers of representative selected by the other trade unions
6. The workers representatives shall be selected in accordance with the rules, where
there is no trade union in the organization.
7. Where there is a separate unit in an organization with at least 50 workers employed
therein, as per the recommendation of the Participation Committee of the establishment,
a
unit Participation Committee can be formed there, as per the rules in this behalf
8. The unit Participation Committee shall be formed with the participation of the workers
employed in that unit and the representative of the employers there.
Functions of the Participation Committee*
Provisions of the new labour law:

The functions of the Participation Committee shall be to inculcate and develop a sense
of
belongingness and workers commitment and in particular:

To endeavor to promote mutual trust, understanding and co operation between

the
employer and the workmen

To ensure application of labour laws

To foster a sense of discipline and to improve and maintain safety, occupational

health and working condition

To encourage vocational training, workers education, and family welfare training

To adopt measures for improvement of welfare services for the workers and their
families
To fulfill production target, reduce production cost, and wastes and raise quality

of
products.
Changes in the present Law:
1. Sub section (5) of the section 205 clearly determines the relationship between the
number of representatives from the Collective Bargaining Agent and the other trade
unions in the Participation Committee, as per the sub-sections mentioned above:
The number of the representative of the Collective Bargaining Agent Number of
the representative of all the trade unions + 1
The earlier laws didnt mention any such relation between the representatives of the
groups.
2. As regard to the function of the participation committee there is no change in the new
law.
Meetings of the Participation Committee
Provisions of the new labour law:
Section 207 deals with procedure of the meetings of the Participation Committee to
realize all or any of the functions of the participation committee. As per the section

The Participation Committee shall meet at least once in every two months to
discuss and exchange views and recommend measures for the performance of the
functions under section 206.

The proceeding of each such meeting shall be forwarded to the Director of

Labour and the Conciliator within seven days of meeting.

* Section 206 of Labour Law, 2006

Implementation of the Recommendation of the Participation Committee*
Provisions of the new labour law:

The employer and the trade union shall take necessary steps to implement the
specific recommendations of the Participation Committee within the time specified
therein

Should the employer or the trade union fail to implement the measures
suggested by the Participation Committee, it shall forthwith communicate the matter
to the respective committee and take every possible step to implement it as early as
possible.

Changes in the new law:

Although the meeting procedure is exactly the same as the earlier law, it makes a
provision of the implementation of the recommendations of the committee within the
time period provided by the committee itself. Otherwise, willful negligence will be treated
as unfair labour practices.
Trade Unions
Provisions of the new labour law:
Special definition of worker for the purpose of industrial relation:
For the purpose of the industrial relations the word worker means and includes every
worker as defined under section 2(65), and any labour who is laid off, retrenched ,
discharged or dismissed or otherwise terminated for which an industrial dispute has
been arisen. But it doesnt include any security staff like guards and fire fighter or any
confidential assistant etc.
Trade union and freedom of associations:
Section 176 of the new labour code deals with the provisions related to trade union and
freedom of association:

Fundamentally to control the relation between workers and workers, Workers and
employers or employers and employers, without distinction whatsoever, shall have the
right to establish and join the union of their choice subject to the constitution of the
respective trade union

Basically to control the relation between workers and workers, Workers and
employers or employers and employers, without distinction whatsoever, shall have
the right to establish and join the union of their choice subject to the constitution of
the respective association

The employers and the workmen shall have the right to form a federation of their
trade Unions and they can also affiliate that federation with any international
federation or confederation of trade unions

The trade unions and the associations of the employers shall have the freedom
to adopt any constitution as per their choice/requirement.

* Section 208 of Labour Law, 2006

Application for Registration and Required Documents for Registration
Provisions of the new labour law:
Section 177 and 178 deals with the procedure for the registration of the trade unions
Section 176 states that any trade union can Application for its registration to the
registrar of the trade unions of the respective zone under the signature of the President
and Secretary of the respective trade unions. Section 178 of the new labour code
provides a list of documents, required, for the registration of the trade unions:

The Name and Head Office of the trade unions

The date of formation of the trade union

The Names, Age, Occupation and designation of the executive committee

members of the union

Description of all subscribed members

The Name of the Establishment to which it is related and the total number of
workers in that establishment

In case of a federation of a trade union, the names and addresses of the

members of

the union

Three copies of the constitution of the Union and the resolution of the meeting in
which the constitution is proposed and accepted

A resolution of the meeting empowering the Secretary and President of the union
for the registration of the union

In case of federation the acceptance letter of the member union to become the
member of the proposed federation.

Industrial Dispute
Provisions of the new labour law:
Section 2(62) of the new labour code defines the term Industrial Dispute. As per the
section, any distance and difference between workers and workers, Workers and

employers or employers and employers as regards the employment, non employment

or terms of employment of workers has been termed as an industrial dispute.Then
Chapter 14 of the Labour law 2006 deals elaborately with the procedure of raising
industrial dispute and settlement thereof. Following are the provisions relating to
industrial dispute in the present Law:
Raising of Industrial Dispute
Provisions of the new labour law:
No industrial dispute shall be treated as being existent unless it is validly raised by the
employers or the Collective Bargaining Agents as per the provisions of the law.
Settlement of Industrial Dispute*
Provisions of the new labour law:
Section 210 of the present law deals the procedure as the following:
1. If at any time any employer or the Collective Bargaining Agent finds any dispute is
likely to arise, it shall communicate the other party in writing
2. The recipient of the above-mentioned communication shall take initiative to arrange
a negotiation within fifteen days of the receipt of the communication.
Negotiation
The proceedings under the above arrangement between two parties shall be treated as
negotiation and if they are to produce a positive solution to the disputed issues, a
settlement deed shall be executed and be sealed and signed by both the parties. A copy
of
the settlement deed shall be forwarded to the Government and the Conciliator
thereupon.
Conciliation
If the above mentioned negotiation fails, then it shall be forwarded to the Conciliator for
the process of conciliation.
1. If the dispute is settled through conciliation the Conciliator shall report it to the
government along with the settlement deed
2. The conciliation shall be treated as to have failed, if it cannot reach any
conclusion even after 30 days of initiation. Provided it can be extended beyond the
period if both the parties agree in writing
3. If it fails the conciliator shall try to manage the parties in dispute to refer the
matter to an arbitrator
4. If the parties disagree about the Arbitration the conciliator shall issue a certificate
that the conciliation has failed.
Arbitration

When both the parties agree to refer the dispute to an Arbitrator then the matter shall be
forwarded by the conciliator to the concerned Arbitrator (chosen by both the parties).
The
relevant procedure is as follows:
1. An arbitrator shall be a person from the list made and maintain by the government
in this regard or any person mutually agreed upon by the parties
2. Arbitrator shall make an award within thirty days or within any Period, mutually
agreed upon after the matter is received
3. The Arbitrator shall provide a copy of the award to the parties and to the government
as well
4. No appeal shall lie against the award of the Arbitrator
5. The award shall be valid for a term not more than two years.
* Section 209 of Labour Law, 2006
Strike and Lock Out
Provisions of the new labour law:
Section 211 of the new labour code deals with the provisions of the strike and lock-out
in
an industry and other establishments. The relevant procedure is as follows:
1. The party raising the industrial dispute, within a period of fifteen days of the receipt of
the certificate of failure from the conciliator shall serve a written notice of Strike or lock
out whatever is applicable, and the party also mention the date of commencement of
the
aforesaid strike or lock out within 7 to 14 days of serving such notice or the party raising
the dispute may file a case to the labour court, on the matter
2. No such notice of strike shall be issued by the CBA unless a secret ballot is held in
this
behalf under the supervision of the Conciliator and three fourth of the members of the
CBA opted for the strike
3. When the strike or Lock-out has already commenced, then any party can go to the
labour court for the settlement of dispute
4. The Government can stop any strike or lock-out if it continues up to a period of 30
days, provided the government can stop it before the expiry of the above period, if it
believes that it is expedient for public interest.
Changes in the present law:

In earlier laws there were provisions of joint application to the labour court by both
parties at any stage of the commencement or before the commencement of the strike or
lock-out, but in present law this provision has been removed.
Labour Court:
Formation of court under the New Labour Law:

Section 214 of the labour law 2006 deals with the formation of the Labour Court,
as per that section, the labour court shall consist of a chairman and two members to
advise him.

But for the trial of any offence under section 215 or for the trial of any matter of
chapter X and XII the court shall consist of the chairman only. S 214(3)

A running District Judge or an Additional District Judge shall be appointed by the

government as the chairman of the labour court. S 214(4)

Members shall be the representatives of both the employers and workers

respectively. S 214 (6)

Jurisdiction Under the New Labour Law:

Following are the Jurisdiction of the Labour Court:

To adjudicate and determine industrial dispute

Enquire and adjudicate any matter relating to implementation or violation of any

settlement referred by the government

Try offences under this Act.

Any others function conferred upon or assigned by the Labour law 2006 or by
any other law

Procedure of the Labour Court:

Procedure in case of the trial of any offence:

The Labour court shall follow the summary procedure of the code of Criminal
procedure as described in chapter XXXV of the aforesaid Act and for this purpose the
court shall be deemed to be a criminal court.

The Labour court in trial of an offence shall be treated as a court of a Magistrate

first class but in case of imposing penalty it shall have the jurisdiction of a Court of
Session. S 215

Procedure in case of Other Matter:

In adjudicating any other matter other than the trial of an offence it shall be treated as a
civil court

Changes in the Present Law:

As per section 313 of the Labour law 2006, No Magistrate court can try the
offences under this Act. But previously Magistrate could try the offences.

Another big change is brought about in determining limitation in taking

cognizance of offence in section 314 of the labour law 2006. As per that section no
labour court shall take cognizance of any offences after six months of the date of the
offences alleged to have been committed

Major labour rights violations still found

Despite recent improvements described above, the mission, through factory visits and
interviews with various actors confirmed that major labour rights violations are still found
in Bangladesh factories, including:
No freedom of association: although unions exist as federations, they are de facto
prohibited at the factory level; participation committees, where they exist, consist of
workers appointed by the management while they should be chosen by the workers;
No living wage: the legal minimum wage, where implemented, is insufficient to cover
basic needs; wages are paid with delay and overtime is often not paid in accordance
with the law;
No access to remedies;
Excessive working hours, inappropriate maternity leave and benefits, harassment,
blocked exits, etc[11].
At a view-exchange meeting at Dhaka Reporters Unity auditorium, she said a total of 80
Decent workers would be deprived of its benefit as agricultural and domestic workers
have been kept out of its purview.
As per the new law, working hour in factories will be 10 hours which go against the ILO
rules.
For instance, the maternity leave has been extended to 16 weeks from 12 weeks, but
the way it has been fixed before and after giving birth to a child. It would not let the
female workers to enjoy the leave according to their needs, the said.
Besides, the amount of compensation fixed for the workers in the law is not time worthy
and it should be re-fixed at Tk 3-5 lakh.
The bill was passed in parliament at a time when the industrial belts in the capltal and
its suburbs were witnessing violent labour unrests for wage hike.
The Anti-labour provisions and numerous inconqruities of the law, passed hurriedly in
parliament, will give rise to further unrest, said top leaders of labour fronts.

The law keeps the Labour Cort with no authority to get its verdict executed, he said.
The whole trick of deprivina and repressing the workmen lies in making the labour court
virtuallv a toothless institution in implementing the law.
The labour court, as per the new law, can only determine and declare fine of the
offenders and due wages of the workmen but cannot. Ensure them, he said.
Section 133 of the law provides that any due wages of a workman declared by a labour
court shall be recoverable as a Public Demand Recovery (PDR) at a district level civil
court. It implies a perennial legal fight for a poor workman year after year to get his due
wages. On the other hand, any compensation unpaid by the factory owners, will be
exactable in the manner land revenue is collected.
So, the question remains unanswered as to who is going to recover the PDR and land
revenue for a workman,
If an aggrieved labourer has to go to a certificate court to recover his compensation and
due wages, the labour court remains a quasi court, said Dr Shahdeen Malik, a lawyer of
the High Court.
A fundamental flaw of the act is that the labour court is not empowered to realize
compensation and wages and execute penalty, said Barrister Tanjib_ul Alam. Another
major flaw is that the court has no specifically laid down execution procedure.
The law has been passed hurriedly keeping the labour fronts in the darkness. It limits
the emplovees from taking part in trade union activities as it provides that there can be
only one labour union in an entire industrial area,
One of the fundamental aims of framina the labour law afresh annulling 27 old ones was
to have a modern law. But unfortunately, it has been another outdated law flawed with
absence of adequate instruments to ensure weifare of the labourers, said legal experts.
Section 283 of the new law provides for three months jail or a fine of Tk 5,000 or both
for unjustly lay-off, discharging, dismissing or removing a workman from the job.
Reducing imprisonment in the new law to three months from six months in the previous
law a trick to keep the owners on the safe side in the event of doing injustice to
workmen, said advocate zafrul Hasan Sharif.
The provision for alternative punishment, a fine of Tk 5,000 in place of imprisonment of
various terms in different sections of the law, makes the punishment provision trickily
weak keeping scope for exemption of the offenders.
A workman will not be entitled to any compensation in the event of on-the-job death if
three years of service is not completed.
To the Government of Bangladesh

 Immediately lift the state of emergency and restore fundamental rights guaranteed in
the Constitution;
Ensure adequate implementation of international covenants ratified by Bangladesh,
and submit initial report to the UN Committee on Economic, Social
and Cultural Rights (CESCR);
Ratify ILO conventions, among which the following deserve to be recognized a high
level of priority: ILO (n155) Occupational Safety and Health Convention,
1981; ILO (n161) Occupational Health Services Convention, 1985, and ILO (n187)
Promotional Framework for Occupational Safety and Health Convention, 2006;
Ensure effective and impartial labour administration; increase effectiveness of Labour
inspections and Labour courts, notably by allocating adequate resources for their proper
functioning;
Revise and increase the minimum wage so as to ensure it covers basic needs;
Ensure that garment villages projects do not have adverse impacts on the enjoyment
of human rights and in particular on womens rights;
Ensure that investment agreements do not contain provisions that may have a
negative impact on the enjoyment of human rights in Bangladesh.
Obligations and Remedies
To pay the workers all necessary wages (S. 121 of new labor law 2006). Owner of the
factory, Chief Executive Officer (CEO), Manager/person assigned responsibility by the
company, The contractor, for payment to workers appointed by the Contractor. Up to 25
% as compensation on the wages due at that time may be ordered (S.134). A single
application may be presented to the labor court under S. 132 on behalf or in respect of
any number of workers belonging to the same unpaid. To fix a period not exceeding 30
days and under S. 123 the payment shall be made within seven days of the expiry of
the wage period. (s.122).Ditto Ditto No deductions shall be made from the wages of a
worker except those authorized (S. 125). The employer Ditto Ditto Not to pay below the
minimum rate of wages (S. 149). The employer Any employer who pays shall be
punishable with imprisonment for a period up to one year or with fine up to five
thousand Taka or with both (S.289). Ditto To give notice and claim within two years of
the accident or in the case of death of labor (157). The labor. No compensation. No
claim for compensation shall be entertained by a Labor Court unless the notice is given
after the happening thereof (S.157). Not to disclose any information relating to
manufacturing or commercial secret (S. 304 ).The employer and the worker. Shall be
punishable with imprisonment up to six months or with fine up to ten thousand taka or
with both. Application to the Labor Court.47

Obligation Who is responsible Remedies Procedure to avail the remedies

Not to bound any worker to work more than eight hours (S. 100). The employer. Shall
be entitled to allowance at the rate of twice his ordinary rate of basic wage ( S. 108.)
Through the register and inspector (S.319 (5).To allow interval for rest or meal for the
worker (S. 101). The employer. If the employer does not comply with this section, he will
be punished with imprisonment up to three months, or with fine which may extend to
one thousand Taka, or with both. Application to the labor court only. Single application
on behalf of all the workers so aggrieved. To allow one day weekly holiday for all the
workers employed in a factory ( S. 103 ). The employer. Compensatory holidays of
equal number of holidays so deprived (s.103 ) . Ditto To allow the worker annual leave
with the wages (S.117). The employer. If this kind of leaves are not enjoyed the
employer must add these leaves with next years leave. The worker can Apply to the
labor court if these provisions have not been com-lied with by the employer. To allow the
worker the festival leave (S. 118 ). The employer. Failing which the worker will get a
compensatory holiday of 2 days with full pay and a substitute holiday is given to her/him
under S. 103. The worker can Apply to the labor court if these provisions have not been
com-lied with by the employer. To allow casual leave with full wages for the workers (S.
115). The employer No remedy Not Applicable To allow the workers14 days sick leave
with full average wages (S.115). The employer The worker can realize the wages
receivables during the continuance of illness with dearness allowances an others The
worker will Apply for the sick leave with a medical certificate, if denied he can Apply to
the labor court against the employer. 48
Obligation The person responsible Remedy Procedure
To allow maternity leave of 16 weeks for the mother ( S. 45 ). The employer If any
employer contravenes, he shall be punished with the fine
which may extend to five
thousand taka (S. 286). The worker can Apply to the labor court if these provisions have
not been complied with by the employer. To pay the maternity benefit to the worker (s.
46) The employer Ditto Serve 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. To
pay the worker the maternity benefit in case of a womens death (S. 49). The employ
Ditto Ditto Not to work in lieu of any cash or kind during the permitted period of absence
by the employer (S. 287). The worker Shall be punishable with fine up to one thousand
taka. Not available in the law, Rule may provide for subsequently Not to permit any
children or adolescent to work in any occupation or establishment (S. 34). The
employer Whoever employs or permits any child or adolescent to work shall be

punishable with fine which may extend to five thousand Taka (S. 284). Application to
the Labor Court.Not to make any agreement, to allow the service of the child to be
utilized in any employment (S. 35 ). Parent or Guardian Whoever Contravenes of this
law shall be punishable with fine which may extend to one thousand taka. Application to
the Labor Court. To submit the certificate of fitness (S. 37). The adolescent worker.
Penalty for using false certificate of fitness is punishment with the imprisonment for up
to three months or fine up to one thousand taka or with both. Application to the
LaborCourt.
Obligation The person Remedy Procedure responsible
Not to allow the adolescent in certain work ( S. 39 ) The employer Whoever employs
any child or adolescent to work in contravention of any provision of this Act, shall be
punishable with the fine which may extend to five thousand Taka ( S. 284 .) Application
to the Labor Court. Not to be employed the adolescent on dangerous machine (S.40).
The Employer If such contravention results in loss of life the employer shall be
imprisoned up to four years or up to one lakh Taka fine or both, if it results in seriously
bodily injury he shall be imprisoned up to two years or up to ten thousand taka fine or
both or if such contravention causes injury or danger to workers the employer shall be
imprisoned up to six months or up to two thousand taka fine or both ( S. 309 ). Any
Court imposing a sentence of fine passed under this section may when passing
judgment order the whole or any part of the fine recovered to be paid as compensation
to the person injured , or in the case of his death to his legal representative To issue an
appointment letter and an identity card with photograph (S. 5) to every worker. The
employer To issue and punishment or Fine as well under S. 307. The Chief Inspector or
if authorized by him in this behalf , any other officer subordinate to him , ma lodge
complaint with the Labor Courts for action.(Section 319 (5) To Maintain a service book
for every worker (S.6). The employer Ditto Ditto To entry in the service book and signed
by both the employer and worker ( S. 8 ). The worker and the employer Ditto Ditto To
pay the workers the wages for unavailed leave. The employer wages Application by
the worker.

Application to the Labor Court only. To allow the workers Death benefit ( S. 19).
The employer 30 days wages for each completed year or service, or six months
thereof, or gratuity, whichever is higher in addition to her/ his other emoluments
during the retirement.Application by the worker her/him self or her/his successor in
case of her/his death.

Application to the labor court only. Application by the worker her/him self or
her/his 50 successor in case of her/his death.

Obligation The person responsible Remedy Procedure

To maintain the Master-roll for the laid- off workers (S. 17). The employer Compensation
during lay off = (Total basic + dearness allowance + ad hoc wages)/2 +the house rent
he or she would get if not so laid of. If denied he can apply to the labor court with that
against that denier To allow the compensation in case of Discharge wage to the worker.
The employer 30 days wages for every completed year of service or the gratuity,
whichever is higher. Every worker who has completed a continuous service for one year
can apply to the labor court and shall be entitled to get the benefit. To allow
retrenchment wage to the worker. The employer Compensation equivalent to 30 days
wages for every completed year of service or for any part thereof in excess of six
months,or gratuity, if any, whichever is greater. Every worker who has completed a
continuous service for one year can apply to the labor court and shall be entitled to get
the benefit.To give one months notice to the worker in writing, indicating the reasons for
retrenchment. The employer Unless in lieu of such notice, wages for the period of notice
is given to the worker the retrenchment will be ineffective. Ditto To give notice to the
worker to dismiss unless he is convicted by any criminal court or his her misconduct is
proved under S. 24 of the labor law 2006.( S. 23). The employerThe payment in lieu.
Ditto To terminate a worker, serving notice to the workers (S. 27). The employer The
wages to the terminated worker for the aforesaid period of notice. Ditto Not to deprive of
worker from the payment of provident fund ( S. 29 ) The employer Imprisonment for 3
years and also liable to fine ( S. 298 ). The worker may lodge a complaint to the Labor
Court. No Court fees shall be payable for lodging complaint or appeal under this section
(S. 33 ).
Obligation The person responsible Remedy Procedure
To issue the certificate of service at the time of the workers retrenchment, discharge,
dismissal, removal, retirement or termination of service (S. 31). The employer To have
the certificate issued by the employer Ditto. To send notice of certain disease
of
worker ( S. 82 ) The employer or the worker concerned or any person
authorized by him in this behalf. Imprisonment up to three months or up to one
thousand taka or both ( s. 307). The Chief Inspector or if authorized by him in this behalf
, any other officer subordinate to him , may lodge complaint with the Labor Courts for
action.(Section 319 (5) To provide alternative exit to avoid dangers and damage due to
fire. (S. 62). The Employer If any injury is caused to any worker because of the use of

such equipment, machinery or building, the employer shall be liable to pay

compensation to the worker injured at a rate which may be double the rate of
compensation payable for such injury .The worker may apply to the labor court if these
provisions have not been com-lied with by the employer. To ensure safety measures
relating to building and machineries (S. 61)The employer Ditto Ditto To be precaution
against dangerous fumes The employer Ditto Ditto To Provide suitable goggles for the
protection of the worker (S. 75). The employer Ditto Ditto 52
Obligation The person responsible Remedy Procedure
To maintain a first aid box fro the worker in the factory (in S. 89). The employer If the
employer does not comply with this section, he will be punished with imprisonment up to
three months, or with fine which may extend to one thousand Taka, or with both.

Application to the labor court only.

Single application on behalf of all the workers so aggrieved. To maintain

adequate washing facilities and canteen in all the factory (S. 91 in labor law 2006).
The employer Ditto Ditto. To have a rest room and a children room for the worker (S.
93). The employer Ditto Ditto. To keep the factory cleans (S. 51). The employer Ditto
Ditto To maintain Oral rehydration therapy. The employer Ditto Ditto To arrange
sufficient free space for the workers (S. 56). The employer Ditto Ditto To maintain the
register for the worker. The employer Ditto Ditto To maintain the effective
arrangement of sufficient supply of drinking water (S. 58) The employer Ditto Ditto To
maintain the arrangement of sufficient and suitable lightning (S .57). The employer
Ditto Ditto To have sufficient number of latrines and urinals for the workers (S. 59).
The employer Ditto Ditto To maintain sufficient number of dustbins and spittoons (S.
60).S. 195 deals with unfair interference about being member of trade union. The
employer Whoever breach this section, shall be punishable with imprisonment for a
term up to two years, or with fine which may extend The aggrieved person shall
Application to the labor court under S. 213 for violation. 53 to ten thousand taka, or
with both under S. 291 (1 )

Obligation The person responsible Remedy Procedure

S. 196 deals with unfair labor practice in relation to trade union The worker Under S.
291 (2) any worker who fails to comply with it he shall be punishable with imprisonment
for a term which may extend to one year, or with fine which may extend to five thousand
Taka or with both. Ditto To register the Trade Union and issue a registration certificate
( S. 182 ). The employer Punishment with imprisonment up to six months or fine up to
two thousand taka or both (S. 299). Application to the Labor Court. To issue Certificate

of registration ( S. 189) The Director of Labor. Issue the certificate within seven days
When the director of Labor rejects the application, the trade Union may Appeal to the
Labor Court within 30 days Not to be a member of more than one trade union (S.193).
Worker and employer. Imprisonment up to six months and fine up to two thousand taka
or both (S. 300). Application to the Labor Court. Not to take part any unlawful strike and
lock-out (S. 227). Worker and employer. Imprisonment of one year or fine with five
thousand taka or both (S. 294). Application to the Labor Court. Not to instigate illegal
strike or lock out. Worker and employer. Imprisonment for one year fine with five
thousand taka or both (S.295). Application to the Labor Court. Not to take part or
instigate or incites to go slow. Worker Imprisonment for one year or five thousand taka
fine or both (S.296). Application to the Labor Court. To establish the participation fund
and welfare fund (S. 234). The Company. Fine with not more than ten thousand taka
and one thousand taka more in case of failure (S.236) Application to the Labor Court.
Not to produce false statement ( S. 303) Worker and employer. Six months
imprisonment or five thousand taka fine or both. Application to the Labor Court.[12]
SOME LEADING CASES
In the first labour court of Bangladesh
Complaint Case No.24 of 1974
Majibur Rahman First Party
Versus
A.K.M. Nurul IslamSecond Party,
Present:
Mr. Amanullah KhanChairman.
Mr. M. KarimMember
Mr. M.A. Mannan Member
This is an application under section 25(1)(b) of the Employment of labour (Standing
Orders) Act, 1965.The First Party Majibur Rahman alleges that he has been a driver of
Truck No. DHAKA TA: 577 belonging to the second party Nurul Islam. He was appointed
on 25-12-1972. He has been removed from service on 18-07-1974. From 3 months prior
to his removal he had been driving another truck No. DHAKA TA :2115 also belonging to
the second party. He further alleges that he was never paid wages regularly and was
paid only Taka 1,150.00 for the total period of his service and thus Taka 5,882.00 fell
due as arrear wages. He further claims that the second party also took a loan of Taka
1,000.00 from him and has not paid it as yet. He now claims arrear wages along with
termination benefits, overtime dues and the amount of loan advanced. According to him,
his last wages had been Taka 375.00 per month.

The second party Nurul Islam submits in his written statement that for misconduct he
dispensed with the service of the first party on 23-11-1973 clearing all his dues.
Thereafter, at the request of well-wishers of the First party he re-employed him on 1203-1974 at Taka 12.50. per day on no work no pay basis and finally terminated the
services of the first party on 18-07-1974 settling up all his dues. It is further contended
that this case is not maintainable as the first party is not a worker under the employment
of labour (S.O.) Act,1965.I shall take up the question of maintainability first as this will
dispose of the case without going through the merits of the case on facts as any finding
in facts may prejudice the parties in their future litigation over these facts at any other
forum.A worker has been defined in the Employment of labour (S.O.) Act,1965 in the
following terms: worker means any person including an apprentice employed in any
shop commercial establishment, or industrial establishment to do any skilled, unskilled,
manual, technical, trade promotional or clerical work for hire or reward, whether the
terms of employment be expressed or implied, but does not include any such person(I) Who is employed mainly in a managerial or administrative capacity; or
(II) Who, being employed in a supervisory capacity exercise, either by nature, of the
duties attached to the office or by reason or power vested in him functions mainly of
managerial or administrative nature.Now let us see if a truck service is included in either
the industrial establishment or commercial establishment.Industrial establishment, has
been defined in the said Act as follows:Industrial establishment means any workshop
or other establishment in which articles are produced, adapted or manufactured or
where the work of making, altering, repairing, ornamenting, finishing or packing or
otherwise treating any article on or any such other class of establishments, including
water transport vessels or any class there of which the provincial Government may, by
notification in the official gazette, declare to be and industrial establishment for the
purpose of this Act, and includes(I) any tramway or motor omnibus service;
(II) any dock, wharf or jetty;
(III) any mine, quarry, gas-field or oil-field;
(IV) any plantation; or
(V) a factory as defined in the Factories Act,1934.
So a truck service is not included in any industrial establishment. Now let us see if a
truck service falls under the category of commercial establishment which has been
defined in the following terms:Commercial establishment means an establishment in
which the business of advertising, commission or forwarding is conducted, or which is a
commercial agency, and includes a clerical department of a factory or of any industrial

or commercial undertaking, the office establishment of a person who for the purpose of
fulfilling a contest with the owner of any commercial establishment or industrial
establishment employ workers, a unit of joint stock company, an insurance company, a
banking company or a bank, a broker office or stock exchange, a club, a hotel or a
restaurant or an eating house, a cinema or theatre or such other establishment or class
there of as the provincial Government may, by notification in the official gazette, declare
to be commercial establishment for this Act.
So this definition too does not cover a truck service. The learned advocate for the first
party submits that commercial undertaking in the definition of commercial establishment
will include a truck service. But the words commercial undertaking has been used there
with reference to clerical departments of such commercial undertaking and not each
and every worker of a commercial undertaking. I, therefore, find that the first party is not
worker under the employment of labour (S.O.) Act.1965 and has no remedy under this
Act. This case is not, therefore, maintainable in this Court. In fact his remedy lies under
Road Transport Workers Ordinance, 1961.
Leading case (high court division):
Md. Idris Khan Petitioner
Versus
Chairman, 1st Labour court
Dhaka & others . Respondents
[Employment of labour (standing orders) Act,1965 (VIII of 1965) S. 2(j)]
A bus can not be called a commercial or industrial establishment.
Having regard to the definition of commercial and Industrial establishment as contained
in the said act, a bus cannot be termed as a commercial or industrial establishment with
in the meaning of section -2 of the act.
(Writ petition No.5 of 1971)
Judgment:
Abdur Rahman chowdhary, I.. this Rule is directed against the judgment and order
dated 14.12.70 passed by the first labour court, Dhaka Facts leading to this rule in brief
are that respondent no-2(herein after called the respondent) filed an application under
section 25(1) of the Employment of laour (standing orders) Act, 1965 (herein after
referred to as the Act) on the allegations that he was a motor driver under the
petitioner at a monthly pay of TK.360 from 1965 and his services were terminated on
the ground that he was an active worker of motor transport Employees union which
staged a strike. After the strike was called off, the respondent went to resume his duty,
but he was not allowed to join and he was verbally dismissed. He sent a grievance

petition for re-instantement with all his legal dues and the petition having been refused,
he moved the labour court.
The petitioner contested the said case by filing written statement wherein he denied the
allegations made in the complaint petition and also denied that he was the owner of the
bus or employer of the respondent.
1.
The respondent adducted oral evidence, but the petitioner did not adduce any
evidence. One consideration of the evidence on record, the [Government] consider to
be representative organization of such employers and worker respectively.
2.

3.

The members referred to in the proviso to sub-section (1) to represent the

employers connected with and the workers engaged in the industry concerned shall
be appointed after considering nomination if any, of such organizations as the
Government considers to be representative organization of such employer & workers
respectively.
The term of office of the members of the Board, the manner of the filling casual

vacancies therein the appointment of its committees if any, the procedure and
conduct of the Board and its committees and all matters connected therewith
including the fees and allowances to be paid for attending such meeting and other
expenses, including expenses for the services of experts and advisers obtained by
the Board, shall be such may be prescribed by rules made under section 17[14].
Recommendation & Conclusion
Labor problems constituted a serious menace to the society, and needed solution, if not
to eradicate then at least to mitigate them in the very beginning. Employers paid their
sole attention to the maintenance of machines and the improvement of the technical
know how to the utter neglect of the human hands employed to man the machines
because they were readily available and could be easily replaced. Workers were
illiterate and poor and therefore unconscious of their rights. The socio-economic status
of the workers was far below the status of their employer. As such they could not
exercise their free will in negotiating with the employer for employment. The employer
taking advantage of the poor condition of the workers dictated their own terms and
conditions with regard to wages, hours of work, leave, etc. The workers were left with no
choice but to accept such terms because service was the sole means of earning their
livelihood.
Neither the Government nor the law courts took special notice of these problems
because they laid to much emphasis on the policy of the non-interference and freedom
of contract. Thus, with the lapse of time the situation turned out to be so worse and the

society became so much adversely affected that the Government was compelled to take
some action to remedy these problems.Ultimately some philanthropic agencies like
Servants of India society, social service league and some industrial social workers
raised their voice against these problems. They were successful in mobilizing the public
opinion in support of their view point. Workers also started to form their own
organization to fight against exploitation at the hands of industrialists. In the beginning
the effort of the workers was not very successful because of their weak bargaining
power and lack of resources on which they could rely for their livelihood in the absence
of wages.
Some employers also realized the seriousness of the problem and the necessity of
mitigating these evils for they affected the production of the industry, they felt that
investment on labour welfare was a policy with pursuing because a contended worker
would produce better yields and would increase the efficiency.The Government too later
on realized the gravity of the problem and could not remain a spectator for the workers
constituted a large section the society. Moreover, the government had to intervene to
settle the disputes in the interest of national economy and the welfare of the society at
large. If some key industry is thrown out of gear, the whole system is paralyses.
Frequent break downs of even a part of the economic system tend to impoverish the
community. The prevention of industrial strife thus assumes an important role in national
policy and the State, therefore ,cannot afford to remain indifferent to the problems
leading to industrial conflict.
After independence the national government paid much attention to the improvement of
the conditions of labour in industry, for the prosperity of a country depends upon the
development and growth of industry. No industry can flourish unless there is industrial
peace and co-operation. Industrial peace is possible only with the co-operation of labour
and capital. To ensure better co-operation the wage earner who is a partner in the
production should be allowed to have his due share of the profit for increased
production. Therefore, we have to shape our economic policy in such a manner as to
give labourer his due status by offering him reasonable working conditions and due
share in production. That means social justice and social security has to be restored to
the labourer. Our Constitution guarantees social justice to the people of India. Social
justice means achievement of socio-economic objectives. Labour legislation is one of
the most progressive and dynamic instruments for achieving socio-economic progress.
There is no other branch of law which embraces such a wide and effective role in social
engineering and social action. It is here that the industrial law distinguishes itself rrom

other branches of law and awaits the development of wholly different jurisprudence to
explain and expound it[15].

[1] Nirmalendu Dhar, Labour &Industrial Laws of Bangladesh,(Remisi Publishers), P.8

[2] Wikipedia,[http://www.en.wikipedia.org/wiki/labour_ law, accessed 16 April 2010]
[3] Iqbal Ahmad, Basic labour laws of Bangladesh,p.1.2.
[4] Principal Md. Altaf Hossain,Bangladesh Labour code,2006 with commentary & case
law(Jolly law book center),p.2
[5] Nirmalendu Dhar,Student`s Mate Labour & Industrial laws of Bangladesh,(Remisi
Publishers)p.7-9
[6] Iqbal Ahmad, Basic Labour Laws Of Bangladesh,p.3
[7] Md.Abdul Halim & Masum Saifur Rahman,The Bangladesh Labour Code,2006(CCB
FOUNDATION: LIGHTING THE DARK,2007),P.258-259,S.353
[8] http://www.gtz-progress.org/2008/index2.php
[9] Md.Abdul Halim & Masum Saifur Rahman,The Bangladesh Labour Code,2006( CCB
Foundation:Lighting the dark,2007),p.22-23,s.1(4)
[10]
[11] http://www.politiques socials.net /IMG /pdf/,accessed 15 April 2010
[12] http://www.politiques socials.net /IMG /pdf/,accessed 15 April 2010
[13]Iqbal Ahmad,Basic Labour Laws Of Bangladesh,p.309-311
[14]Prof. A.A .Khan, Bangladesh labour & Industrial Law(Pravati Prakashani),p.342-343
[15] S.N.Misra,Labour & Industrial Laws(22 nd edition,Central Law Publications),p.5-6
http://www.bdlawnews.com/perspective-of-labour-law-in-bangladesh-advocatewasim-khalil/