Labor Law 2
Labor Law 2
Labor Law 2
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 people’s welfare depends on the products of people’s 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 movementhas 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.
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, namely-
1. 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-à-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 worker’s 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 5 th August,
1965 and was published in the Gazette dated 1stSeptember,1965.After liberation of Bangladesh
on the 26thMarch,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 workmen’s compensation Act, 1923 (VIII of 1923)
11. The Maternity Benefit (Tea Estate) Act, 1950 (xx of 1950 )
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)
21. The Employment of labour (standing orders) Act, 1965 (VII of 1965)
22. The companies profits ( workers participation) Act, 1968 (XII of 1968)
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
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.
• 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
• 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
2 with his employer, is also a subject which will come under this retirement benefit.
• 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 employer’s negligence, the compensation amount
shall be double.
• No one, other than those in the pay-roll of the employer, shall be the member or
• 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
• 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, 2006-
According 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 to-
1. 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;
12. seamen, except for the purposes of Chapters Twelve, Thirteen and Fourteen.
13. Ocean going vessels, except for the purposes Chapter Sixteen.
14. Agricultural farms where less than ten workers are normally employed;
15. 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 was made correction in 25 different aets and as much
possible make it unifying to prepare a full Act incluking 21
1. There were total 700 sections of 25 labour Act in chapters and 354 sections. Here removed all the oobscure and
which 10 labour Act were existing since British period inconsistence and bring all the dections in a place. The Act is
and 15 Labour Act exist since Pakistan period. simple ande perfect timing.
2. Section-2 (32) defines the “Group of Establishment” clearly.
2. Industria ! Ordinance, 1969 do not provide any Under section 183 there have act about to make the Trade union
definition about “Group of establishment”. in the group of establishment.
3. Shops and Establishment Act,1965, section 2 (Ta)
defines “Industrial establishment”, but it is not clear. 3.Section 2 (61) defines the “Industrial Establishment” elearly.
4. Here, total 8 Labour Act decide the age of children 4. According to ILO Convention 138 by combining different
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
appointment letter only according to section 3(3) of Road
Transport Workers Ordinance, 1961 and section 4 of the
Newspaper Employees (Conditions of Service) Act,
1974. There have no any compulsory rule to provide 5. To make the contract of the job strong and legal, it is
appointment letter to any workers in any other sectors in compulsory to provide the appointment letter to all the
any industry by the authority. employees under section 5.
6. According to section-6, it is compulsory for the employers to
6. There have a provision to diction the Service book maintain a service book for all the employees except under
according to decided way according to the section 3 and 4 training, transferring or temporary workers. According to
of The Employment (Record of Service) Rules, 1957.But Section-7(2) there have a provision to write down the father’s
there have no any provision to write down the mothers name and mother’s name and husband /wife’s name where
name and where appreciable husband/wife’s name where applicable after the employees’ name.It is necessary for –
applicable along employee’s name labour, Iwner and Government.
7. According to section-19, there have a provision to provide the
monetary benefit to the nominee of the death employee if
7. Provide Monetary benefit for death-in present there ……………………This is a new law of social security of the
have no any provision in the Act. employees.
8.Termination of service by Employee According the 8.In section-27,it is stated that, by providing a notice from
Employment of labour (standing Order) Act 1965, employee or return the wages of that period inin lien of giving
section19(2) employee ………..by giving notice. But in notice to the employer, employee can terminate his job.There
that case, he will have no right to get any compensation have a provision that any permanent worker like above have
from the authority. ehanec to get the compensation.
9.When employee become 57 years old then he will retire from
the job naturally. But if the authority thinks him fit then they
9.Retire from the service of the employee- There have no can appoint him as a contractual basis-there is a provision about
any provision like this in any Act. it in section 28. It is a new provision.
10.There is a new section-30 which stated that; employer should
10.Final period of payment of wages of the employee- In pay the final wages to the employee maximum 30 working days
present there have no any act to decide the time period. after his termination.
11.According to the last ILO conventionit is decide to provide
the maternity benefit for women employee 8+8=16 weeks – for
which make a new section -46.And to cope with Country’s
population control policy this maternity benefit is limited up to
having two living child. Section 2(34) is define the “Maternity
Benefit”. The subject is very clear here.
# Illegal lock-out.
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
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.
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.
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
3. Deduction for damage or loss of goods entrusted upon the worker in her/his custody;
5. Deduction for such amenities or services supplied by the employer as the government has
authorized;
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
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.
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.
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
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
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
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
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.
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
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
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.
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
work;
4. If the Government considers appropriate, it may as well waive the enforcement of the
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
—-“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
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:
employee’s name, father’s name, mother’s name, spouse’s 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:
Employee’s name, spouse’s name , mother’s and father’s 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
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.
1. It may constitute for the benefits of the worker in the private sector.
employer and workers employed in the establishment, and a person nominated by the
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
12. At least half of the total accumulations shall be invested for the purpose of any of the
following, namely:
15. A statement of account together with audit report shall be forwarded to the director of
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
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.
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:
commotion, or any other circumstance beyond her/his control, the employer can stop the
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.
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.
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;
Habitual late-attendance;
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.
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
2. No door affording exit can be locked or fastened during the working hours so that they
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.
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.
1. All floors, staircases, and passages shall be of sound construction and properly
them.
work.
3. All the floors, passageways, and staircases shall be maintained in a neat and clean
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
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.
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:
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
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
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.
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.
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
a) Stop valves should be used to stop flow of gaseous objects in pipelines before
b) Practicable measures should be taken to reduce pressure inside the pipeline before
c) Entrance of inflammable gases or vapours, into the pipeline through the joints that
4. Operation that requires actions of heat, such as welding, brazing, soldering or cutting,
dangerous fumes, such as tank, vat, pit, pipe, flue or confined spaces if there is not any
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
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
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
- Of injury to eyes from particles or fragments thrown off in the course of the
processing
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.
(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)
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
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
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
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
4. Notice regarding the availability of that person in every working room and a special
factory.
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.
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.
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.
a) Accumulation of dirt and refuge shall be moved daily by sweeping from floors
b) The floors of every work room shall be cleaned by washing at least once in a
c) Effective drainage shall be provided and maintained where the floor is liable to
drainage;
d) All inside walls and partitions, all ceilings or tops of the rooms and walls, side and
* 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
(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.
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
(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
c) Properly illuminated and ventilated and sufficient supplied with water at all times
both
1. Every factory shall provide sufficient number of dustbins and spittoons at convenient
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
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:
2. Failure to respond to any communication made by the CBA as regards to any industrial
dispute
trade union
and vehicles.
1. Where there is only one trade union, that trade union shall be taken as the Collective
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
(a) On being so required by the Registrar, submit to the Registrar a list of all workers
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
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
11. Every employer shall provide for such facilities as are required by the Registrar to
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
c. Conduct the poll in the polling stations where the representative of the contesting
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
i. Undertake collective bargaining with the employer or the employers on matters connected with
the employment, non employment or terms of employment
iv. Nominate representatives of workmen on any committee, fund constituted as per the
provisions of law or agreements.
2. The registration of the trade union which acquires less than 10% of vote in a poll for
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
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
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
2. As regard to the function of the participation committee there is no change in the new
law.
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 doesn’t 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
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:
employers or the Collective Bargaining Agents as per the provisions of the law.
1. If at any time any employer or the Collective Bargaining Agent finds any dispute is
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
1. If the dispute is settled through conciliation the Conciliator shall report it to the
conclusion even after 30 days of initiation. Provided it can be extended beyond the
matter to an arbitrator
4. If the parties disagree about the Arbitration the conciliator shall issue a certificate
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
1. An arbitrator shall be a person from the list made and maintain by the government
2. Arbitrator shall make an award within thirty days or within any Period, mutually
3. The Arbitrator shall provide a copy of the award to the parties and to the government as well
5. The award shall be valid for a term not more than two years.
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
days, provided the government can stop it before the expiry of the above period, if it
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
- 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.
- Ratify ILO conventions, among which the following deserve to be recognized a high level of
priority: ILO (n°155) Occupational Safety and Health Convention,
1981; ILO (n°161) Occupational Health Services Convention, 1985, and ILO (n°187)
Promotional Framework for Occupational Safety and Health Convention, 2006;
- 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 women’s 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
( 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
Versus
Present:
Mr. Amanullah Khan—Chairman.
Mr. M. Karim—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 12-03-1974 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-
(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-
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
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.
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. 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.
3. 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].
Bangladesh Labor Law (Amendment) Bill 2013 was passed on Monday 15 July 2013 in the National
Parliament here in Bangladesh. The new law has seen amendments to a total of 87 sections of the Labor Act
2006. The bill came after a factory building collapse in April which killed more than 1,132 garment workers
and sparked debate over labor safety and rights. This caused increasing international pressure boosting the
drive to bring forward this much awaited amendment. Tax concessions offered by Western countries and low
wages have helped turn Bangladesh’s garment sector into the country’s largest employment generator with
annual exports worth $21 billion. Sixty percent of exports go to Europe.
The amendment incorporates some provisions including allowing formation of trade unions without informing
the factory owners.
Other provisions including resolution of conflicts over legal financial rights through arbitration, ensuring
safety measures for workers at their workplaces, mandatory election for workers’ participation committees and
introducing compulsory group insurance policies have also been included in the new law.
Besides, the law also includes provisions for formation of a central fund to improve living standards of
workers, depositing a 5.0 per cent net profit of companies with different workers’ welfare and provident funds.
The amendment restricts transfer of trade union members from one factory to another of the same owner after
any labor unrest.
Labor and Employment Minister Raziuddin Ahmed Razu moved the bill which was later passed in voice vote.
According to the amendment, employees would no longer need approval from factory owners to form trade
unions. Now, workers would just need to apply to the Labor Directorate for authorization. The amendment also
allows trade unions to be formed in different administrative wings of a factory, which was not permitted under
the existing law.
One woman representative would be included in the trade union executive committee if the factory has 20 per
cent women workforce.
Any conflict between the workers and the owners over any legal issues including financial ones will be
resolved through arbitration and both the parties can file case at the Labor Court in case of no mutual
settlement.
Some ILO conditions have also been included in the law, Mr Shipar said adding both workers and owners can
take assistance from experts regarding formation of trade unions. The participation committee should be
elected, not selected.
Inspection of a factory has been made mandatory at the time of giving license to any factory or its renewal.
To improve the living standards of workers, the government, the buyers and the owners will have to form a
central fund for the employed beneficiaries of 100 percent export-oriented industries and wholly foreign-
owned companies.
No change can be made in the factory layout plan without the permission of factory inspectors, the amended
law states.
If any worker dies after two years in service, the management of the industries will have to pay compensation
equivalent to one month’s salary. And, if a worker dies in an accident during service, his relatives will be given
a compensation equivalent to 45 days’ salary.
If an owner sacks a worker who has served for more than a year at the factory, he/she will be entitled to 15
days’ salary for every year of service.
A permanent health center would be established if there are 5,000 workers or more who are employed and a
welfare officer should be employed and a safety committee to be established in the factories that employ 500
workers or more.
The bill defined an expert as the one who has at least 10 years of experience in trade union and was not
punished for any criminal offense by a court.The amended bill includes rice mill, saw mill, fishing trawler, fish
processing industry and ocean going ship in the industry sector.It said that to identify any misconduct of a
labor, there will be a committee comprising the same number of representatives from the owner’s and labor’s
sides.Under a provision of the bill, the owner of an industrial unit will provide office and its furniture for the
collective bargaining agent (CBA) of the industry.
The law has brought outsourcing (subcontracting) under registration to improve management of companies and
prevent exploitation of the workers.
Group insurance of the workers has been made mandatory for companies with minimum 100 workers.
The amended bill provides that in case of the death of a worker the employer will realize the insurance claim
from the insurance company and handover the money directly to the dependent of the deceased worker.
In case of voluntary retirement or termination with minimum 10 years of service, a worker will be entitled to
one month’s basic salary for each year of service. But s/he would get one and half month’s basic salary for
each year in case of more than 12 years of service.
There is a provision in the bill to keep consistency between the structural design and outlay of a factory while
Welfare Fund will have to be constituted for the workers of the export-oriented companies.
However, these amendments already met with criticism regarding its claim to have maintained international
standards.
The chief criticisms that has risen after this amendment can be outlined as follows:
1. There are discriminatory anti-strike provisions in the law favor foreign investors by prohibiting strikes in
any establishment during the first three years of operation if it is owned by foreigners or is established in
collaboration with foreigners.
2. The amended law also seeks to redirect attention to so-called “Participation Committees” and “Safety
Committees,” largely powerless bodies made up of management and workers.
3. The compensation amount being too low to drive any change of attitude from the owners.
Apart from the amendment, criticisms include the fear that Mr. Soheil Rana of Rana Plaza might go
unscratched, just like Mr. Delwar Hossain of Tazreen Factory Fire and also the owner of Spectrum Garment
collapse. The concern over not solving the labor leader Aminul Islam’s murder case also have continued to be
a major criticism and is believed to be among the major barriers to protecting the interest of the workers and
ensuring security for their freedom to associate.