BEPZA Instruction

BANGLADESH EXPORT PROCESS ING ZONES AUTHORITY

222 New Eskaton Road, Dhaka-1000

INSTRUCTION NO-1 OF 1989

DATED JUNE 14 1989

In exercise of the powers conferred under Section 3A of the Bangladesh Export Processing Zones
Authority Act, 1980 (Act No XXXVI of 1980) the Bangladesh Export Processing Zones Authority,
hereinafter referred to as BEPZA, is Pleased to issue following directives on SERVICE MATTERS
CONCERNING WORKERS & OFFICERS EMPLOYED IN THE COMPANIES OPERATING
WITHIN THE EXPORT PROCESSING ZONES OF BANGLADESH.

PART- I

1. These instructions shall apply to:

Workers, Officers and Apprentices of the companies, unless the terms and conditions of service
have been determined under a contract specifically entered into by and between a company and
the said employee.

Companies operating in the zones may have their own rules regulating the terms and conditions of
employment and in that event no rules or terms and conditions of employment of an individual
company shall be less favorable than those contained in these instructions.

PART- II

2. Definitions:

(a) “Apprentice” means a learner who is paid an allowance or fixed pay during the period of his
training;

(b) “Casual” worker is a person whose employment is of a casual nature;

(c) “Company” shall mean and include any undertaking registered in Bangladesh and operating in
the Export Processing Zone or Zones of Bangladesh.

(d) “Employee” means any worker or officer in the Company;

(e) “Employer” means the Board of Directors of the Company which inter-alia means the
Chairman/Managing Director/Director of the Company or any other officer if so authorized by the
Company in this behalf;

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(f) “Factory” means the factory of the company and it shall include any workshop, premises or the
precincts thereof located in the Export Processing Zones of Bangladesh where ten or more
workers are ordinarily employed ;

(g) “Pay” means the amount drawn monthly or weekly by an employee as basic pay.

(h) “Worker” means any person including an apprentice employed in the office or factory of a
company to do any unskilled, technical, trade promotional or clerical or supervisory work for hire or
reward, whether the terms of employment be expressed or implied, but does not include any
person who is employed mainly in a managerial, executive, or administrative capacity ;

PART-III
Classification of employees

Classification of employees-Employees shall be classified as follows:

(a) Permanent;

(b) Temporary;

(c) Probationer;

(d) On Contract;

(e) Apprentice;

(f) Casual;

4. (a) “Permanent-employee” - is an employee who has been engaged on a permanent basis after
satisfactory completion of four months service.

(b) “Temporary employee” - is an employee who has been engaged for work which is essentially of
a temporary nature and is likely to be finished within a limited time.

(c) “Probationer” - is an employee who is provisionally engaged to fill a permanent, vacancy in a

post and has not completed the period of his probation. If a permanent employee is engaged as a
probationer in a new post, he may be reverted back to his previous post if his work is found
unsatisfactory at any time during the probationary period of six months.

(d) Employee on contract - An employee “On Contract” is a person with whom a specific contract of
employment has been entered into. But the said contract shall not be less favorable to the
employee than those provided in these instructions.

(e) Apprentice-means a learner who is paid an allowance during the period of his training.

(f) “Casual” employee is a person whose employment is of a casual nature.

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PART-IV
SERVICE RECORD

Appointment letter: An Appointment letter, mentioning the terms and conditions of service, nature
of work, pay and/or any other relevant matter shall be given to an employee concerned on his
appointment, excepting in the case of casual employees.

Maintenance of Service records etc: - Service records of the workers shall be maintained in a
“Service Book” which will contain names & other particulars of the persons employed, date of
employment, nature of work, rate of wages, leave taken & records of conduct etc.

PART-V
Leave and Holiday

Right to leave etc:-

(a) Leave is a privilege and cannot be claimed as a matter of right. The manager or the person
empowered to grant leave shall have the discretion to refuse or revoke the leave of any
description when the exigencies of his services so require.

(b) Leave entitlement shall be calculated on the basis of English calendar year.

(c) For the purpose of these instructions, the expression “Service” means-

i) Actual days of work;

ii) Period of leave with pay;

iii) Compulsory “off” days;

iv) Period of probation of the employee who is confirmed in a permanent post on the

expiry of the probation period and

v) The period of leave without pay not exceeding ten days.

(d) An employee shall be deemed to have completed a year‟s service notwithstanding any
interruption in service during the year on account of authorized absence.

(e) An employee who remains absent for any period in excess of the period of leave originally
sanctioned or subsequently extended shall be liable to disciplinary action unless he is able
to explain his overstay in a satisfactory manner to his Manager. Such absence shall be
treated, as “Misconduct” and the employee shall be liable to such punishment as may be
specified herein.

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(f) Friday or Holiday falling in between the first & the last days of any leave period shall count
as part of the leave.

(g) A “day or days off” which an employee becomes entitled to by virtue of having worked one
a Friday or on a Holiday notified by the Management shall be allowed to be affixed or prefixed to
privilege leave.

(h) If the application for leave is on medical ground, the employee shall submit with his
application a certificate from the Doctor of the Company at Stations where such Doctor is available
or from a qualified registered Medical Practitioner at places where his employer‟s Doctor is not
available stating the probable period for which leave is required.

8. Casual leave and sick leave:-

1) Every worker shall be entitled to casual leave with full wages for ten days in a year.

2) Every worker shall be entitled to fourteen days‟ sick leave on half-average wages in a year.

Provided that sick leave or casual leave admissible under this section shall not be accumulated
and carried forward to the succeeding year.

9. Day-off:-

An employee when required to work on a Friday or holiday a “day off” shall be given as a substitute
on any other day.

10. Maternity Benefit:

A female employee who has completed a minimum of ten months service shall be entitled, on
application, to maternity leave with pay for six weeks before a six weeks after the confinement on
ground of maternity (Child-birth). This benefit may be granted only twice in the whole period of
service life of a female employee.

Provided further that maternity leave for the second time shall be admissible only after a period of 3
years from the date of availing of first such leave.

11. Earned Leave:

An employee shall be eligible for earned leave with pay for every completed year of service as
under:-

a) One day for every twenty two days of work performed by him during the previous period
of 12 months.

b) If an employee does not, in any such period of 12 months service, takes such leave to
which he is entitled under sub-Para (a) either in whole or in part, any such leave not taken
by him shall be allowed to be added to the succeeding year provided that an employee
shall cease to earn any leave when the earned leave due to him amounts to thirty days. If

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earned leave is refused in the interest of the company, employee shall have the option to
en-cash the leave so refused.

12. Festival leave:

(a) Every employee shall be allowed at least ten days festival holiday with pay in a Calendar year.
The day or days and the dates for such festivals shall be fixed by the Management in such manner
as they deem fit but in keeping with the general consensus of the employees.

(b) The day or days and dates of festival holidays shall be fixed and conspicuously notified in the
month of January i.e. at the beginning of the year.

(c) An employee may be required to work on any festival holiday but two days compensatory
holidays with pay shall be allowed to the employee within thirty days immediately after that holiday.

(d) If an employee so desires in writing, two days‟ pay in lieu of compensatory holiday may be
granted.

PART-VI

TERMINATION/RESIGNATION OF EMPLOYMENT

13. Termination of service:-

For termination of the services of a permanent/temporary employee by the employer, 120 days‟
notice in the case of permanent employee and 60 days‟ notice in the case of Temporary Employee
shall be given by his employer. Provided that pay for 120 days or 60 days, as the case may be
shall be paid in lieu of such notice provided further that the worker whose employment is so
terminated, shall be paid compensation at the rate of one moth‟s pay for every completed year of
service or for any part thereof in excess of six months in addition to any other benefits to which he
may be entitled to under the terms of employment.

14. Resignation:

1) A permanent employee shall be required to give one month‟s notice, should he wish to resign
from the services of the company.

2) An employee who resigns from service of the company but fails to give the required notice shall
surrender pay in lieu of such notice thereof.

3) The employer shall accept the resignation if due notice is given or due payment in lieu of notice
is made or pay is surrendered in lieu of such notice.

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4) Notwithstanding anything stated above no employee against whom a disciplinary proceeding is

pending shall resign from the services of the company unless 60 days‟ have elapsed form the
drawing up of the departmental proceeding.

Provided that the employer may allow such employee to resign on such conditions as he may
deem fit.

15. Discipline and grievance procedure:

(1) Where an employee of the Company in the opinion of the employer is inefficient, or (b) corrupt,
or (c) guilty of misconduct, the employer may impose on him one or more of the penalties specific
in Para 16, if after enquiry, he is found guilty of any of the above charges.

Note 1: ‘Misconduct’ means conduct prejudicial to good order or service discipline un-
becoming of an employee or a gentleman and shall include-

a) Willful insubordination or disobedience, whether alone or in combination with others, to

any lawful or reasonable order of a superior;

b) Theft, fraud or dishonesty in connection with the business or property of the factory/
enterprise;

c) Causing damage to any property of the factory/enterprise;

d) Taking or giving bribes of any illegal gratification;

e) Habitual late attendance or habitual absence from duty without leave or without
sufficient cause. Absence without leave for ten days in a year shall be regarded as habitual
absence without leave.

f) Continuous absence for more than ten days without permission and without satisfactory
cause of absence;

g) Habitual breach of any law, order, instruction application to him;

h) Habitual neglect or negligence of work.

i) Willful abstention or absence from work singly or with others.

j) Drunkenness, fighting & riotous, disorderly or indecent behavior;

k) Taking part in or suspected or being engaged in subversive activities either alone or with
others:

l) Collecting or canvassing or the collection of any money within the premises of the
enterprise/company factory for any purposes not approved by the employer.

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m) Smoking within the premises of the company or enterprise/factory where it is prohibited;

n) Distribution or exhibition within the boundaries of the premises of the Company/factory

of any hand bill, pamphlets or poster without the previous permission of the competent
authority.

o) Holding meeting within the boundaries of the premises of the Company/factory without
sanction of the employer;

p) Gambling within the boundaries of the premises of the Company/factory;

q) Habitual indiscipline;

r) Leaving work without permission.

s) Sleeping while on duty;

t) Theft of any kind inside the premises of the factory/company or within the zone.

u) Giving false information regarding name, age, qualifications, previous service etc;

v) Carrying on money lending or any other private business, within the premises of the
factory/company.

w) Sabotage or wastage caused to materials & stores of the Company/factory.

x) Malingering and slowing down work either alone or in collaboration with others;

y) Conviction in any court of law for any criminal offence.

(z) Improper use or non-use of protective clothing, uniforms (if any) while on duty;

16. Penalties -

1) The following are the penalties which may be imposed by the employer upon an employee-

a) Censure;

b) Stoppage of increment or promotion on grounds of inefficiency, irregular attendance and

misbehavior;

c) Recovery from the pay of the employee of the whole or part of a pay to defray any
pecuniary loss caused to the company/enterprise by negligence, default or breach of
orders or of contract on the part of the employee;

d) Reduction in rank;

e) Dismissal from service;

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2) No penalty shall be imposed on any employee without disciplinary proceedings. If the employee
concerned remains under suspension during the period of the enquiry, he will be entitled to
subsistence allowance for the period of suspension equivalent to half of his average basic pay and
full amount of house rent allowance and medical allowance. In the enquiry if he is found not guilty
of the charges he shall be entitled to the rest of the amount of his pay for the period of suspension.

17. Enquiry procedure:

1) When an employee is to be proceeded against for any offence under Para 15 above, the
employer shall:

a) Frame a charge sheet specifying the charges brought against an employee and
communicate it to the employee concerned (hereinafter called the accused) on which it is
based;

b) Require the accused to submit within three days from the day the charge has been
communicated to him, a written statement of his defense.

2) The employer shall appoint an Enquiry officer/committee to hold an enquiry.

3) The employer may nominate any person/officer to present the case in support of the charge
sheet before the Enquiry officer/Committee.

4) The enquiry officer/Committee shall follow the following course of actions while conducting
enquiry against any accused employee.

a) The Enquiry Officer/Committee shall issue a notice asking the accused to appear before
the Enquiry Officer/Committee at a particular place stating the specific time of appearance
with all documentary evidence and witnesses if any with a copy to the nominee of the
employer/company who will present the case in support of the charge sheet before the
Enquiry Officer/Committee.

b) The accused shall be entitled to cross examine the witnesses against him and he
should be allowed to present witnesses in his defense.

c) The Enquiry Officer/Committee shall record the statement of the accused and witnesses
of both sides and shall obtain signature of all the witnesses in their respective statements
duly read over to them in the language they understand. If the accused so agrees, his
signature should be obtained in the statements of all witnesses to keep a record that the
evidence of all the witnesses were taken in his presence. If the accused refuses to sign the
statement at the time of enquiry, this fact should also be recorded and signed by other
witnesses and the Enquiry Officer/ Committee.

5) If the accused person admits the charge against him the Enquiry Officer/Committee will record
‘Pleads Guilty’ and thereafter shall give his/ its findings.

6) If the accused pleads „not guilty‟ then all witnesses in support of the charge sheet will be
examined individually in presence of the accused. No witness shall be allowed to be present during
the examination of another witness.

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7) If the accused, after being duly informed, absents himself from the enquiry without proper
reason or permission, the enquiry shall proceed expert.

8) The enquiry shall be confined to the charges and no irrelevant evidence shall be admitted by the
Enquiry Officer/Committee.

9) The Enquiry Officer/Committee shall submit his/its report to the employer with his/its findings.

10) The employer, having regard to the findings on the charges, shall pass appropriate orders.
18. Suspension: An employee against whom a disciplinary action is proposed to be taken may be
placed under suspension pending enquiry into the charges.

Provided that the company may, instead of his suspension, require him to proceed on such leave
as may be due and admissible to him from such date as may be specified in that order.

19. Grievance procedure –Any individual employee including a person who has been dismissed,
discharged, laid off or otherwise removed from employment and who has a grievance in respect of
any matter covered by these instructions and intends to seek redress thereof shall observe the
following procedures.
a) The employee concerned shall bring his grievance to the notice of his employer in
writing within 15 days of the occurrence of the cause of such grievance and the employer
shall, within 15 days of receipt of such grievance, inquire into the matter, and give the
employee concerned an opportunity of being heard and communicate his decision, in
writing, to the said employee.

b) If the employer fails to give a decision under clause (a) or if the employee is dissatisfied
with such decision, he may make a representation to BEPA within 30 days from the last
date of the decision with which he is dissatisfied or within 30 days from the last date of
imposition of the fire penalty under Para 17(10), as the case many be.

c) On receipt of the said representation under clause (b) the Executive Chairman, may
constitute a Committee of Enquiry with one or more officer of the BEPZA not below the
rank of a Deputy General Manager or equivalent who will enquire into matter giving due
hearing to the parties concerned and submit the report to the Executive Chairman of
BEPZA or to an officer designated by the Chairman for the purpose.

d) In deciding the matter the Chairman or such designated officer may pass such orders as
he may deem just and proper.

20. “Lay off”:-

a) Whenever a worker (other than a badli or casual worker) whose name is borne on the
muster-roll of a company and who has completed not less than one year of continuous
service under the employer is laid-off, he shall be paid by the employer, for all days during
which he is so laid-off, except for such weekly holidays, as may intervene, compensation
which shall be equal to half of the total of the basic wages and dearness allowance, and
the full amount of housing allowance, if any, that would have been payable to him had he
not been so laid-off.

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Provided that a badli worker whose name is borne on the master-rolls of the company shall cease
to be regarded as such for the purpose of this section, if he has completed one year of continuous
service in the company.

Provided further that no worker shall, unless there is an agreement to the contrary between him
and the employer, be entitled to the payment of compensation in the aforesaid manner for more
than forty-five days during any calendar year.

2) Notwithstanding anything contained in the above proviso, if during a calendar year a worker is
laid-off for more than forty-five days, whether continuously or intermittently, and the lay-off after the
expiry of the first forty-five days comprises periods of fifteen days or more the worker shall, unless
there is an agreement to the contrary between him and the employer, be paid for all the days
comprised in every subsequent period of lay-off for fifteen days or more, compensation which shall
be equal to one-fourth of the total of the basic wages and dearness allowance, and the full amount
of housing allowance if any, that would have been payable to him had he not been so laid-off.

b) In any case where, during a calendar year, a worker is to be laid-off, after the first forty-
five days as aforesaid, for any continuous period of fifteen days or more, the employer may,
instead of laying-off such a worker retrench him under section 21.

c) Master-roll for laid-off workers: Notwithstanding that the workers or any section thereof
employed in a company have been laid-off, it shall be duty of every employer to maintain a
muster-roll, and to provide for the making of entries therein by or for the laid-off workers
who may present themselves for work at the company at the appointed time during normal
working hours.

d) Workers not entitled to compensation in certain cases:-

i) If he refuses to accept, on the same wages, any alternative employment not

requiring any special skill or previous experience, in the same shop or the
commercial or industrial establishment from which he has been laid-off, or in any
other company belonging to the same employer and situated within a radius of five
miles from the company.

ii) If he does not present himself for work at the company at the appointed time
during normal working hours at least once a day if so required to the employer : or
`
c) If such lay-off is due to unauthorized absence from work by workers in another part of
the company.

21. Retrenchment:

1) Where any employee is to be retrenched on ground of redundancy and he belongs to a

particular category of employee, the employer shall ordinarily follow the procedure of ‘Last come
first go.’ The employer may deviate from this order for reason of special efficiency of an employee
and in exceptional circumstances.

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An employee who has rendered a continuous service for not less than one year under his employer
shall be given one month‟s notice or one month‟s pay in lieu of such notice for his retrenchment.

2. Re-employment of retrenched employee where any worker is retrenched and later on the
company proposes to recruit any person within a period of one year from the date of such
retrenchment, the employer is expected to give an opportunity to retrenched employee
belonging to the particular category concerned.

3. A retrenched employee shall be entitled to receive one month‟s pay as compensation for
every completed year of service or for any part thereof in excess of 6 months.
22. Discharge -

An employee may be discharged form service for reason of physical or mental incapacity or
continued ill-health or such other reasons not amounting to misconduct. Such employee having
completed one year of continuous service, is so discharged, shall be paid compensation by the
employer at the rate of one months‟ pay for every completed year of service or for any part thereof
in excess of 6 months.

23. Stoppage of work –

The employer may at any time, in the event of fire, catastrophe, break-down of machinery or plant,
or stoppage of power supply, epidemics, civil commotion or other causes beyond his control, stop
the work of any section of the company wholly or partly for any period. An employee who has
completed not less than one year of continuous service under his employer may be laid off in case
of this stoppage of work, but he shall be paid compensation for all days during which he is so laid-
off, at the rate of half of his basic pay including full amount of house rent and medical allowance if
such allowances are paid as part xxxxxxx of the pay every month as per rules of the company,
provided that no employee shall be entitled to the payment of such compensation for more than 45
days unless there is an agreement between the parties. After 45 days‟ “of lay off”, if there is no
agreement, the employees may be retrenched by giving him 30 days‟ pay as notice pay and
compensation @ one month‟s pay for every completed year of service of for any part thereof in
excess of 6 months if the stoppage of work so continues after 45 days.

24. If an employee refuses to accept any notice, letter, charge sheet, or any other order or document
addressed to him by his employer, it shall be deemed that such notice, letter, charge-sheet or
document has been delivered to him if a copy of the same has been exhibited on the Notice Board
and another copy has been sent to the address of the employee, as available from the record of
the employer, by registered post.

25. Provident Fund -

No employee, who is a member of a Provident Fund of the company, shall be deprived of his
subscription to Provident Fund due to retrenchment, dismissal, discharge or termination from
service, if he is so entitled to it under the rules of the Fund.

26. If the services of an employee are dispensed with as a result of retrenchment, termination,
retirement or by reason of his resignation before he has availed any of his earned leave, the
employer shall pay in lieu of the unavailed Earned Leave.

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27. In case of any general disagreement on any common issue between the employer and the
employees, the mater may be referred to BEPZA in which event BEPZA may appoint an officer, not
below the rank of a Deputy Secretary or equivalent to act as an Arbitrator or conciliator for
settlement of such an outstanding issue.

28. Notwithstanding anything contained hereinabove, an in case of an unauthorized absence from

work or slowing down of work by a group, the company may discharge or dismiss some or all of
such employees or inflict such other punishment on them by notice posted on the Notice Board,
after obtaining written permission from the BEPZA. Before giving such permission, BEPZA may
endeavor to cause an amicable settlement of the point at issue.
29. Settlement of individual grievances –In case of any individual grievance:-

1) The employee concerned shall place his grievance before the competent Authority of the
company through proper channel.

2) If the employee is not satisfied with the decision of the employer he may make a representation
to the Manager (Industrial Relations) of the zone who may dispose of the case himself or in
appropriate cases refer the same to BEPZA for decision and BEPZA will give a decision in the
matter after hearing the parties.

CHAPTER- VIII
Welfare

30. Washing facilities -

There shall be provided and maintained in every company a reasonable number of toilets and
washing facilities.

31. FIRST AID to the injured-

There shall, in every factory, be provided and maintained, so as to be readily accessible during all
working hours, FIRST-AID boxes or FIRST-AID Cupboards equipped with at least-

i) Sterilized dressings (small size)

ii) Sterilized dressings (Medium size)

iii) Sterilized dressings (Large size);

iv) Sterilized Burn dressings:

v) One (One ounce) bottle containing 2% alcoholic solution of iodine or its substitute;

vi) One (One ounce) bottle containing rectified spirit.

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vii) Analgesic tablets, ointment for burns & suitable surgical antiseptic solution;

viii) Roller bandages 4” wide.

ix) Roller bandage 2” wide;

x) Tourniquet;

xi) Suitable splints;

xii) One pair of scissors;

xiii) One packet of safety pins; and

xiv) A FIRST-AID leaftlet.

32. REST ROOM / CANTEEN:-

In every company there shall be a suitable rest room where employees can take rest or can eat
their meals brought by them and where the number of the employees is more then 100 the
employer shall provide canteen facilities for the employees. Rest room/Canteen must have
adequate drinking water available for the employees.

33. Protective Clothing: The Management shall provide proper protective clothing gears etc, to
employees, who work on machines, handle toxic chemicals or perform specialized jobs or in cases
where the Management considers protective clothing‟s or uniform necessary for them in the
interest of preventing accidents.

34. Each company shall contribute a sum of money to BEPZA per year as prescribed by the Authority
for the maintenance of EPZ Medical Center established for providing First Aid medical services to
the employees of the companies within EPZ.

CHAPTER-IX
SOCIAL SECURITY

35. COMPENSATION FOR INJURY SUSTAINED WHILE ON DUTY

The relevant laws of the country shall apply.

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CHAPER-X
PAYMENT OF WAGES

36. Payment of Wages:

a) For employees paid on monthly basis, salary shall be paid by the 7th day of the
following month.

b) For employees paid on weekly basis, wages shall be paid by the 1st working day of the
following week.

c) For terminated employees, termination benefit and any other dues payable to the
terminated employees shall be paid within 7 days from the date of termination.

The Authority may determine from time to time the minimum wages of the employees of any
company operating within EPZ. The Authority shall communicate its decisions in this regard from
time to time to the company concerned for implementation.

38. Every employee, having completed a minimum of six months continuous service, shall be entitled
to 2 (two) months‟ basic wages as festival bonus in a year payable in 2 (two) installments i.e. one
on the eve of Edi-ul-Fitre & the other on the occasion of Eid-ul-Azha for Muslim employees. For
employees belonging to other communities, the festival bonus may be paid on the eve of their
major religious festivals.

39. Management of each company operating in EPZ shall establish a Provident Fund for the
employees of the company and required rules shall be framed therefore for the operation of the
said Fund.

40. BEPZA may, in its discretion, revise or amend the above instructions if it so likes or may issue,
from time to time, such additional instructions, as it may deem fit, covering any matters pertaining
to employees and such instructions shall be complied with by companies operating in EPZs of
Bangladesh.

DHAKA: (ABU SAUD ABDUN NUR)

JUNE 14,1989 Member (Investment Promotion)
Bangladesh Export processing Zones Authority

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