Bangladesh Labour Act, 2005

Some of the Provisions of Bangladesh Labour Act, 2006 are as follows:

Bangladesh Labour, 2006 (BLL 2006) has come into force from October 17,2006 repealing 25
existing laws of the countrY.
2.

BLL 2006 shall apply

Bangladesh.
of
Shrimp industry)

With some exceptions

to all establishments (including Garments and

,Establishment'means any shop, commercial establishment, industrial establishment or

premises in which workers are employed for the purpose of carrying on any industry,

"lndustry" means any business, trade, manufacture, calling, Service, employment or occupation'
,worker'means any person including an apprentice employed in any establishment or industry,
either directly or through a contractor, 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 a person employed mainly in a managerial or
administrative caPacitY

CONDITIONS OF EMPLOYMENT AND SERVICE

3.

Appointments Letter and ldentity Card: lt shall be mandatory for the employer to provide the
workers appointment letters and identity cards.

4.

Service Book: Every employer shall, at his own cost, provide a service book for every worker
employed by him.

CESSATION OF SERVICE

5.

years, his
Death benefits: lf a worker dies while in service after a continuous service of three
employer
the
from
receive
shall
nominee or dependent (in the absence of any nominee)
part
thereof
for
any
year
or
service
of
compensation @ thirty days wages for every completed
higher'
is
gratuity,
whichever
in excess of three months or
However, if such worker is covered by any compulsory insurance scheme of the establishment,
or, if any compensation is payable for such death due to accident, the worker sl,all be entitled
to whichever is higher.
Under the previous law there was no provision for payment of death benefit to the workers.

6.

Retrenchment: A worker may be retrenched on the ground of redundancy. Where any worker
belonging to a particular category of workers is to be retrenched, the employer shall retrench
the worker who was the last person to be employed in that category'

!'l

AN

Financial Benefits:

7.

a.

For retrenchment, the worker shall be provided with one month's notice or pay in lieu
of such notice.

b.

The worker shall be paid compensation @ one month's wages (basic + DA, if any) for
every completed year of service or gratuity, if any, whichever higher'

A worker may be discharged from service for reasons of physical

incapacity or continued ill-health certified by a registered medical practitioner.
Discharge:

or

mental

+
Financial Benefits: The worker shall be paid compensation @ one month's wages (basic DA, if
any) for every completed year of service or gratuity, if any, whichever higher.
8.

Terminationg A worker permanent may be terminated from his service by the management
without showing any reasons or causes whatsoever.
Financial Benefits: For terminating the service of a permanent worker employer is required to
provide benefits to the worker as under:

a.

120 days notice or wages (basic + DA, if any) in lieu of notice'

b. Compensation

@ one month's wages (basic + DA,

or gratuity, if any, whichever higher.

9.

if any) for every completed year of service

I

Dismissal: A worker may be dismissed from his service by the management as a measure
punishment for misconduct. However, for dismissing a worker employer is requir6d to follow
certain procedures (disciplinary proceedlng). These procedures include, amongst others,
providing the worker an opportunity to submit his written statement of his defence against the
charges framed against him and hold inquiry to establish/prove the charges against the worker'
However, no compensation shall be payable if the worker is dismissed for misconduct of theft,
fraud or dishonesty in connection with the employer's business or property
Financial Benefits: The worker shall be paid compensation @ 14 day's wages (basic + DA, if
any) for every completed year of service or gratuity, if any, whichever higher.

10.

Resignation from service: Resignation from Service:

(1)

a permanent worker may resign from his service by giving to the employer in writing sixty
day's notice.

(2) atemporaryworkermayresignfromhisservicebygivingtotheemployerinwritingE
(a) thirty days' notice, if he is a monthly rated worker;
(b) fourteen days notice in case of other worker'
(3) where a worker intends to resigns from his service without any notice, he may

do so by
paying to the employer wages in lieu of the notice which is required to be given as above'

Financial Benefits: Where a permanent worker resigns from his service under this section, he
shall be paid by the employer compensationE

(a) at the rate of fourteen

days' wages

for every completed year of service, if he

completed five years of continuous service or more but less than ten years

(b)

has

at the rate of thirty days'wages for every completed year of service. if he has completed
ten years of continuous service or more.

Under the previous law, employers were not required to pay any compensation to the workers
for resignation.

/
Lt.

Retirement: On attaining 60 years of age, all workers shall retire from their services. A wcrker,
on his own, shall also be entitled to retlre from his service if he completes 25 years of service
under the same emPloYer.
Financial Benefits: The worker shall be paid compensation @ one month's wages (basic + DA, if
any) for every completed year of service or gratuity, if any, whichever higher. A retired worker
shall receive compensation @ thirty days wages for every completed year of service or gratuity,
whichever is higher.
Under the previous law there was no provision for retirement'

PROHIBITION OF EMPLOYEMENT OF CHILDREN

L2.

No child (who has not completed 14years of age) shall be permitted to work in any occupation

or establishment'
A certificate granted by a registered medical practitioner shall be conclusive evidence as to age
of person to whom it relates'

13.

Exception: A child who has completed 12 years of age may be employed in such light work as
not to endanger his health and development or interfare with his education.

MATERNITY BENEFIT

t4

A pregnant female worker who has worked in the establishment for not less then six months
(under the previous law it was nine months) immediately preceding the day of her delivery shall
be entitled to maternity benefit (eight weeks leave with pay preceding the day of her delivery
and eight weeks leave with pay after the day of delivery) from his employer.
However, a female worker who has two or more surviving children shall not be entitled such
benefit, but in that case she shall be entitled to the leave to which she would otherwise be
entitled.

WORKING HOURS AND LEAVE

15.

Daily hours: The daily working hours of a worker shall be 8 hours. With overtime work the
working hours in a day may be 10 hours.

16.

lnterval for rest or meal:

i.

A worker shall be entitled to an interval of at least one hour during that day for rest or meal
if his working hour exceeds six hours in any day.

ii.

A worker shall be entitled to an interval of at least half an hour during that day for rest or
meal if his working hour exceeds five hours in any one day'

iii. A worker shall be entitled to an interval of either a "one-hour" or two "half an hour" during
that day for rest or meal if his working hour exceeds eight hours in any one day.

77.

Weekly

hours; No adult worker shall ordinarily be required or allowed to work in

an

establishment for more than forty-eight hours in any week. However with overtime work the
total hours of work of an adult worker shall not exceed sixty hours in any rveek and on the
average fifty-six hours per week in any year:

18.
19.

Weekly holiday: An adult worker employed in an establishment sfralt be allowed in each week
one and half davs holiday and in factory and establishment one dav in a week;
Extra-allowance

for overtime: ln respect of overtime work a worker shall be entitled to

allowance at the rate of twice his ordinary rate of basic wage and Cearness allowance and adhoc or interim pay, if any. The calculation may be in the following manner:
Monthly Salory (Basic) + 208 hours X 2 X No, of hours of overtime work= Overtime Poyment.

20.

Limitation of Working Hours for Women: No women worker, without her consent, shall be
allowed to work in an establishment between the hours of-10.00 PM and 6.00 AM. Earlier
women workers were strictly prohibited to work between 8.00 PM and 7.00 AM'

2L,

Casual Leave: All workers shall be entitled to casual leave with full wages for 10 days in
calendar year. Leave unused in a year cannot be carried forward to the next year.

22.

Sick Leave: All workers shall be entitled to sick leave with full wages for 14 days in a calendar
year. Leave unused in a year cannot be carried forward to the next year.

Under the previous taw, vrorkers working in factories were entitled to 14 days sick leave with
half wages.

?3.

Annual Leave: All workers who have completed one year of continuous service shall be allowed
during the subsequent period of twelve months one day leave with wages for everylQ days of
work in the previous year. Leave unused in a year can be carried forward to the next year under
certain limitations.
Under the previous law, workers working in the factories were entitled to one day leave with
for every 22 days of work.

wages

24.

Festival Holidays: For every workers festival holidays have been increased

to 11 days from

previous 10 days.

WAGES AND PAYMENT

25"

Responsibility for payment of wages: Every employer shall be responsible for the payment to
workers employed by him of all wages required to be paid under this Act:
The chief executive officer, the manager or any other person responsible to the employer for
the supervision and control of an establishment shall also be responsible for such payment.

When the wages of a worker employed by the contractor is not paid by the contractor, the
rvages shall be paid by the employer of the establishment and the same shall be adjusted from
the contractor.

jb

26.

Fixation of wage-periods: No wage period shall exceed one month.

27.

Time of payment of wages: The wages of every worker shall be paid before the expiry of the
seventh day after the last day of the wage period in respect of which the wages are payable.

whether
Where the employment of any worker is terminated by retirement or by the employer,
payable
to him
wages
by way of retrenchment, discharge, removal, dismissal or otherwise, the

his
shall be paid before the expiry of the seventh working day from the day on which

emploYment is so terminated.

MINIMUM WAGES

2g.

of any industry, if
Recommendation of minimum rates of wages for certain workers: ln respect
minimum rates
the
to
fix
the Government is of the oplnion that it is reasonable and necessary
the Wages
direct
it
may
of wages for all or any class of workers employed in such industry,
rates of
minimum
fit,
the
Board to recommend, after such enquiry as the Wages Board thinks
wages for such workers or class of workers'
notification in
Upon receiving recommendation from the Wage Board the Government may, by
by
the Wages
recommended
wages
rates
of
the official Gazette, declare that the minimum
in the
specified
be
may
as
exception
to
such
Board for the various workers shall, subject
workers'
for
such
wages
notification, be the minimum rates of

29.

into
to be considered: ln recommending the minimum wages, the Wages Board shall take
price
of
productivity,
production,
of
cost
living,
conslderation cost of living, standard of
locality
of
the
and
country
of
the
conditions
social
and
products, business capability, economic
Factors

concerned and other relevant factors.

COMPENSATION

30.

payable to the dependents

ln case of death resulting from injury, the amount of compensation,
previous
Tk. 21,000/- (Fifth
from
of the deceased worker has been increased to Tk. 100,000/Schedu I e).

31.

has
ln case of permanent total disablement resulting from injury, the amount of compensation
been increased to Tk. 125,000/- from previous Tk' 30,000/-'

TRADE UNIONS

32.

ln a given time, there cannot be more than three registered trade unions in an establishment'

33.

ward or
All workers apart from persons, who are employed as a member of the watch and
or
operator
fax
or
security staff or fire-fighting staff or confidential assistant or telex operator
union.
cypher assistant of any establishment, are entitled to be members of a trade

34.

membership in the trade

An ex-worker of an establishment shall not be entitled to maintain his
union of that establishment'

35.

membership of
A trade union of workers shall be entitled to registration if it has a minimum
in which it is
establishment
in
the
employed
workers
of
number
percent
total
of
the
thirty
formed.

36.

shall re:!function
A trade union which is unregistered or whose registration has been cancelled
as a

trade union.

37.

No worker shall be entitled to enroll himself, as, or to continue

one trade union at the same time.

38.

Workers shall be entitled to form trade union on "Establishment" basis. But in certain sectors
(like private road transport, private inland river transport, tea, jute bailing, tennary, bidi etc.),

workers working

to be, a member of more than

in different establishment shall be entitled to form trade union only

on

specified area basis.

39.

While registration application is pending before the Registrar of Trade Unions, the services of
the members of the trade union cannot be terminated by the employer.
Federation of Trade Unions:

40.

Any two or more registered trade unions formed in establishments engaged, or carrying on,
same, similar or identical industry shall be entitled to form Federation of Trade Unions on
"lndustry Basis".

4!.

At least 20 trade unions of more than one industry/sector shall be entitled to form Federation
of Trade Unions on 'National Basis'.

42.

A "lndustry Basis'' Federation of Trade Unions shall be deemed to be the Collective Bargaining
Agent (CBA) in any establishment if its federated union of that establishment authorizes the
Federation to act as CBA on its behalf.

PARTICIPATION COMMITTEE

43.

The employer in an establishment in which fifty or more workers are normally employed shall
constitute a Participation committee.

44.

Such a participation committee shall be formed with representatives of the employer and the
workers. The number of representatives of workers in such committee shall not be less than the

number of representatives of the employer.

45.

Functions of Participation Committee: The functions of the Participation Committee shall be to

inculcate and develop sense of belonging and workers commitment and, in particularE

(a)

to endeavour to promote mutual trust, understanding and co-operation between the

employer and the workers

(b)
(c)

to ensure application of labour laws;

to foster a sense of discipline and to improve and maintain safety, occupational health
and working condition

(d)
(e)

to encourage vocational training, workers education and family welfare trainlng;

to adopt

measures

for improvement of welfare services for the workers and their

families;

(f)

to fulfill production target, improve productivity, reduce production cost and wastes
and raise quality of products.

INDUSTRIAL DISPUTE

46.

agent
Settlement of industrial disputes: lf, at any time, an employer or a collective bargaining
or any of
workers
the
and
employer
the
between
arise
to
is
likely
dispute
industrial
an
finds that
shall
the workers, the employer, or, as the case may be, the collective bargaining agent
communicate his or its views in writing to the other party'

47.

(by the conciliator),

Negotiation (bi-partite between the employer and CBA), conciliation
prescribed in as the
arbitration (by the arbitrator) for settlement of such dispute have been
may be.
case
as
the
compulsory steps to be taken before resorting to strike or lock-out,

48.

date of
No strike is permissible in an establishment for a period of three years from the
by
is
owned
one
or
a
new
commencement of commercial production if such establishment is
foreigners or is established in collaboration with foreigners'

49.

lf the party raising an lndustrial dispute fails to make a request (after failure of the bi-partite
or
negotiation) to the conciliator to conciliate or fails to serve notice of strike/lock-out
case
the
as
for
settlement,
Court
commence strike/lockout or refer the dispute to the Labour
exist on the expiry of
may be, within the specified period, the industrial dispute shall cease to
such sPecified Period.

50.

dispute on the
lf an industrial dispute is ceased to exist in the above manner, no fresh industrial

same subject can be raised within a period of one year'

LABOUR COURT AND LABOUR APPELLATE TRIBUNAL

51.

presently there are seven Labour Courts, three in Dhaka, two in Chittagong, one in Khulna and
Tribunal at Dhaka'
one in Rajshahi, functioning in Bangladesh. There is one Labour Appellate

52.

aggrieved parties
Against all decisions, judgments, awards or sentences of the Labour Courts,
relief for the
huge
is a
are now entitled to piefer appeal to the Labour Appellate Tribunal. lt
parties
aggrieved
worker. Earlier, in most of the cases, to challenge the propriety of the order
were required to go the Supreme Court of Bangladesh'

WORKERY PARTICIPATION IN COMPANIES PROFITS

53.

of certain undertakings (including garment and shrimp) are required to establish

participation Fund and welfare Fund in their respective companies and to pay every year 5
funds are
percent of its net profits to those funds. Thereafter, the amount deposited in the
with the
supposed to be distributed amongst the workers and invested in accordance
provisions of the law.
Employers

PROVIDENT FUND

54.

constitute a Provident Fund for

An establishment in the private sector at its own discretion may
the benefits of its workers.

55^

Provident Fund in its

However, it shall be mandatory now for an employer to establish
such fund in the
establish
to
him
to
applies
workers
total
the
establishment if three-forth of
establishment.