Bangladesh Labor Act(BLA)

2006
 How BLA 2006 Came?
▪ National Labor Law Commission consists of 38 members and lead
by Justice Abdul Kuddus Chowdhury.
▪ The Commission framed a questionnaire and sent to the different
stakeholders i.e. the employers, workers, CBA leaders, NGOs to get
their views and recommendations for amending the than labor laws.
▪ The commission submitted a report after 2 years of its constitution.
▪ The Commission held consultations with the workers’
representatives, CBA leaders and employers’ representatives to
effectively involve them in the process of renovation of labor laws
in Bangladesh.
▪ Subsequently Bangladesh Labor Act 2006 came into force on
October 11, 2006.
 Chapters of BLA 2006
• Chapter 1: Preliminary
• Chapter 2: Conditions of Service and Employment
• Chapter 3: Employment of Adolescent
• Chapter 4: Maternity Benefit
• Chapter 5: Health and Hygiene
• Chapter 6: Safety
• Chapter 7: Special Provisions Relating to Health, Hygiene and Safety
• Chapter 8: Welfare
• Chapter 9: Working Hours and Leave
• Chapter 10: Wages and Payment
• Chapter 11: Wages Boards
• Chapter 12: Workmen’s Compensation for Injury by Accident
• Chapter 13: Trade Unions and Industrial Relations
• Chapter 14: Settlements of Disputes, Labour Court, Labour Appellate Tribunal,
Legal Proceedings, Etc.
• Chapter 15: Workers’ Participation in Companies Profits
• Chapter 16: Regulations of Employment and Safety of Dock Workers
• Chapter 17: Provident Funds
• Chapter 18: Apprenticeship
• Chapter 19: Penalty and Procedure
• Chapter 20: Administration, Inspection Etc.
Conditions of Service
& Employment
(Chapter 2)
According to
Bangladesh Labor Act
2006
 In a Nutshell

This Chapter has total 33 sections

10 Sections were amended in 2013:-
Sections 3,4,9,10,17,19,23,27,28 & 33
 What law Says:
In every establishment employment
of workers and other matters
incidental thereto shall be regulated
in accordance with the provisions of
this chapter 2.(Section 3)
 Why this Act is Important

Put Simply,
To Protect the Rights of the Employees
at all levels in every kind of business
establishments regarding the
employment contract.
 Topics Included:-
Conditions of Employment
Who are the ‘Employees’
Leave, Lay-off & Payment
Separation
Punishment & Fines
Termination of employment by Worker
Eviction from Residential Accommodation
Grievance Procedure
Conditions of Employment
According to BLA 2006, every establishment must follow the
conditions given in section 3 (with 5 sub-sections).
But, if any establishment wish to make their own, no rules
shall be less favorable to any worker than the provisions of
this chapter.

Sub sections say:-

• such establishments need approval by the employer of to
the chief inspector within six months of the receipt.
• Any person aggrieved by the order of the chief Inspector
may, within thirty days of the receipt of the order.
• Establishments owned/ managed by Government are free
from this conditions.
Changes in this Section

S-3(1)

S-3(2)

S-3(4)
 Classification of workers
(according to the nature and condition of work)
Section 4 of the new labor code of 2006 classifies the workers into
following classes:
Apprentice: A worker who is appointed in an establishment as a trainee
and during the period of training he is paid an allowance is called an
apprentice.
BADLI: A worker who is employed for the period of absence of a
permanent or probationer worker.
Casual: A worker who is employed on casual basis with no fixed working
hours & no benefits of a permanent employee.
Temporary: A worker who is employed purely for a temporary nature of
work.
Probationer: A worker who is employed on probation for a fix time with
a view to fill up a permanent vacancy.
Permanent: A worker who is employed to fill up a permanent post or
when a probationer completes his probation period in an establishment.
 EMPLOYMENT: PROBATION PERIOD
⦿ Probationary/TEST period:
Period of probation:
• 6 months for the worker employed in office activities
• 3 months for other workers.
• permanent worker might be given waiver if rejoins as
a probationer for the same post.
• If an employee leaves during the probation period &
joins again under the same employer within next 3
years of such employment, He will be treated as a
probationer but the previous period of probation will
be calculated with new period.
 EMPLOYMENT: SERVICE LENGTH
CALCULATION
Calculation of continuous service:
Section 145 of the new labor law provides for the
method of the calculation of the continuous service
period of a labor for the purpose of this law in the
following manner:
• If the actual number of the working days of a worker
is 240 days during the previous 12 months, He will be
considered to have worked for a continuous period of
one year.
• If the actual number of the working days in the
previous 12 months is 120 days, He will be considered
to be employed there for a continuous period of 6
months.
 EMPLOYMENT: DEATH BENEFIT
⦿ Payment of wages for leave:
In case of the expiry of the employment of any worker by
dismissal, termination, retrenchment or retirement, he
will be entitled to get wages for any leave ‘due to be
availed’.
⦿ Death benefit

◼ In case of death of a worker after completing 3 years

continuous service with the same employer, the
worker will be entitled to get the benefit of 30 days
wages for every completed year or 6 months
thereof or gratuity, whichever is higher.
◼ The worker will get this benefit in addition to his
other privilege of the retirement.
 EMPLOYMENT: WORK STOPPAGE
Work stoppage:
Section 12 of the labor law deals with the stoppage of work
by the employer.
Following are the points to be noted:
a) In the event of fire, disaster, breakdown of machineries,
epidemics or civil disorder or any other circumstance beyond
his control, the employer can stop the work of a section or
sections of his factory.
b) In the event of such stoppage occurring at any time
beyond working hours, the employer will issue a notice in
the notice board of the factory to inform the labors as when
to resume the work and whether the worker is to be present
at their place at that time.
c) The notice also mentions that those who are ordered to be
present, and if their presence is required for an hour only,
then they may not be entitled to get any benefit.
 EMPLOYMENT: RETRENCHMENT
⦿ Retrenchment/Cut Back: Retrenchment means the expiry of
the employment of a worker on the ground of termination. For
the retrenchment an employer has to follow the following
provision:
No worker, employed in any shop or commercial or industrial
establishment, who has been in continuous service for not less
than 1 year under an employer shall be retrenched only by the
employer if :
a) the worker has been given 1 month’s notice in writing,
indicating the reasons for retrenchment or the worker has
been paid wages for the period of notice;
b) a copy of the notice in respect of the retrenchment is sent to
the Chief Inspector or any other officer authorized by him
c) the worker has been paid, at the time of retrenchment ,
compensation which shall be equivalent to 30 day’s wages for
every completed year of service or for any part thereof in
excess of 6 months, or gratuity, if any, whichever is higher.
 EMPLOYMENT: DISCHARGE
⦿ Discharge: Discharge refers to the expiry of the
employment of a worker on the ground of inability or
incapacity because of ill health.
⦿ Section 22 of the labor code deals with the system of
discharge. As per the section an employer can
discharge a worker on the basis of the report of a
registered physician.
⦿ Compensation in case of discharge: Every worker
who has completed a continuous service for 1 year
shall be entitled to get a benefit
⦿ The worker will receive a 30 days wages for every
completed year of service or the gratuity, whichever
is higher.
 EMPLOYMENT: DISMISSAL
⦿ Dismissal: Section 23 of the new labor law deals with
the dismissal of the worker on the ground of
misconduct and conviction.
The section makes a room for the employer to dismiss a
worker without serving him a notice or the payment in
lieu thereof for the following two grounds:
If the worker is convicted by any criminal court.
If his misconduct is proved under section 24 of the
Labor Act 2006.
Misconduct as defined in that section:
⦿ Willful insubordination, alone or in combination with
others, to any lawful or reasonable order;
⦿ Theft, fraud or dishonesty;
⦿ Taking or giving bribes;
 EMPLOYMENT: DISMISSAL
…Misconduct cont.
⦿ Habitual absence, without leave, for more than ten days;
⦿ Habitual late attendance;
⦿ Habitual breach of any rule or law applicable to the
establishment;
⦿ Violent or disorderly behavior;
⦿ Habitual negligence or neglect of work;
⦿ Frequent repetition of a work on which fine can be
imposed;
⦿ Resorting to illegal strike or go slow or instigating others
to do so;
⦿ Falsifying, tampering the official document of the
employer
 EMPLOYMENT: DISMISSAL
The new labor law 2013 makes a provision of the
lighter punishment in case of the misconduct. Sub
section 2 of section 23 says:
Any worker, against whom misconduct has been
proved, may be punished by any of the following
punishment other than dismissal from the job:
⦿Termination;
⦿Demotion to lower grade;
⦿Held up promotion for at least one year;
⦿Held up increment for an year;
⦿Fine;
⦿Temporary suspension without wages;
⦿Rebuking and warning;
 EMPLOYMENT: TERMINATION
⦿ Termination: The employer can terminate a worker without
assigning any reason whatsoever, not dismissing or etc, in the
following manner as described in Section 26 of the new labor law
2006.
For the permanent workers:
▪ Serving 120 days notice to the workers employed on the
monthly basis.
▪ Serving 60 days notice to the other workers.
For the temporary workers:
▪ Serving 30 days notice to the workers employed on the
monthly basis.
▪ Serving 14 days notice to the other employees.
Termination without any notice: The employer can even
terminate the employment of a particular worker without any
notice if the employer pays the wages to the terminated worker
for the abovementioned period of notice.
Compensation on termination of a permanent worker: When a
permanent worker is terminated she or he shall be eligible to get
a benefit of 30 days wage for every completed year of service
in an establishment in addition to the other benefit payable to
him.
 Working Condition: WAGES

What is the difference between salary and wages?

•Wages usually refer to hourly pay, whereas salaries
refer to annual pay.
•Wages are calculated by counting the number of
hours worked and multiplying it by an hourly rate.
•While salaries are calculated annually and divided by
the number of payments received.
 Working Condition: Wage period
Person responsible for the payment of wages of the
worker will fix a period of wages and thus 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

7 days of the expiry of a wage period.
 Working Condition: Deductions of
wages:

Section 125 of the labor law 2006 deals with the

deductions made from the wages of the workers.
•Worker aged below 15 is exempt from this regulation

Fines: (under section 125)

•Fines can not be more than one tenth of the total
wages receivables by a worker in a particular wage
period
•No fine applicable for worker below the age of 15.
 Working Condition: Deductions of
wages

There are 8 primary reasons of deductions of wages:

1.Deductions for absence from duty
2.Deduction for damage or loss of goods entrusted upon
the worker in his custody
3.Deduction for house accommodation supplied by the
employer
4.Deduction for such amenities or services supplied by
the employer as the government has authorized
5.Deduction for recovery of advances or for adjustment
of overpayments
 Working Condition: Deductions of
wages
6. Deduction for Income tax payable by the worker
7. Deduction for subscription to and for repayment of
advances from the provident fund
8. Deduction for the payment to the co-operative
societies approved by the government.

The new amendment of 2013 added few more

regulations for deduction of wages:
• Deduction for subscription of CBA Union in
check-off method
• Deduction for any welfare fund formed by the
employer and authorized by the government
 Working Condition: Grievance
procedure
• According to the labor law of 2006, settlement of any
grievance in an industrial setting is conducted through a
structured dispute settlement process
• The mechanism contains both judicatory &
non-judicatory process and provides a specific
timeframe for each stage
• Worker will have to submit his grievance to his
employer in writing if not settled by discussion between
the parties
• This mechanism for the settlement of disputes which
starts with conciliation and ends with provision by court
 Working Condition: Grievance procedure
Grievance procedure in case of illegal deductions or delay in
payment
Provisions of the new labor law:
•Application by the worker himself or his successor in case of his
death
•Application can be made to the labor court only
•A worker or his successor must submit the application within 12
months from the date of such illegal deduction or the date of
the payment being due
•The Labor court have the authority to accept or deny a case
after the expiry of the said period
•Up to 25% as compensation on the wages due at that time may
be ordered
•No court fees are payable by the aggrieved worker
•Single application to be made on behalf of all the workers
 Working Condition: Working hour and
leave
Working hours & Break:
•Section 100 makes a provision of 8 working hours a day for an
adult worker
•An adult worker may work up to 10 hours a day provided all
the conditions of section 108 have been fulfilled.
•According to section 108 It is obligatory on the employer to
pay the worker overtime for working more then 8 hours/day
•An overtime of pay is double the rate of his/her usual wages.
Interval for rest and meal:
Provisions of the new labor code: Interval for rest & meal is
provided in the following manner:
1.1 hour break for rest or meal for 6 hours of work
2.Half an hour break for rest or meal for 5 hours of work.
Working Condition: Weekly Working Hour &
Holiday
Weekly hours:
According to the amendment of 2013, total working hours of an
adult worker should be up to 48 hours in a week
If required, the working hours can be extended up to 60
hours/week, subject to the payment regulations of section 108
However, an average of 56 working hours per week in a year for
a labor must not be exceeded under any circumstances
But the new amendment to the law (2013) makes a provision for
exemption approved by the government if it thinks so fit.
Weekly Holiday:
Section 103 of the new labor code makes the provision of 1day
weekly holiday for all the workers employed in a factory.
 Working Condition: Leave &
PAID ANNUAL LEAVE:
Holiday
Section 117 of the new labor law deals with the annual leave
Every worker who has completed 1 year of continuous service
in a factory, will be allowed to avail annual leave
The subsequent period of leave with wages are calculated at
the rate of
1.1 day for every 18 days of work performed by an adult workers
during the previous period of 12 months.
2.1 day for every 15 days of work performed by a young worker
during the previous period of 12 months.
An adult worker shall cease to earn any such leave when the
leave due to him amounts to 40 days
adolescent worker shall cease to earn the said leave when the
leave due to him amounts to 60 days
 Working Condition: Leave &
Festival holiday:
Holiday
1.Every worker will be allowed to get 11 days of festival leaves
in a calendar year.
2.The employer will, at the beginning of the year, fix the day
and date of such leaves.
3.The employer may want any worker to work on a festival
holiday provided a compensatory holiday
4.Under section 103 and an alternative holiday must be given
to the worker along with the additional payment
Casual leave:
Section 115 of the new labor law deals with the casual leave
of the worker. It makes a provision for 10 days casual leave
with full wages.
Working Condition: Leave & Employment of Female
Workers
Sick leave:
All workers employed in a factory shall be eligible to get 14 days
sick leave with full average wages. Provided, such a leave shall not
be granted unless a registered physician employed by the employer
or any Registered Physician has certified his or her illness.
Employment of Female Worker:
Evening working hours (female workers): Section 109 of the labor
law of 2006 states : “No female worker shall be engaged for work
in any establishment without her permission between 10 pm and
6 am”.
Maternity leave:
Section 46 of the labor law 2006, maternity leave is of 16 weeks (8
weeks before and 8 weeks after the delivery).
The law also makes a provision that no worker will be allowed to
receive the benefit unless she has served under the same employer
for a minimum period of 6 months prior to the notice of the
probability of the delivery.
 Working Condition: Employment of Female
Workers
Amount of the Maternity Benefits:
In sections 48 of the new amendment, there is a provision of
the payment of maternity benefit in terms of daily, weekly or
monthly average wages.
The section also provides formula for the calculation of the
above-mentioned average wages.
DAW or WAW or MAW= ‘The total amount received by the
worker during the immediate preceding three months’
divided by the ‘Total actual working days during that period’.
Benefits in case of the death of mother:
A nominee is selected by the mother to receive the maternity
benefits if she passes away
In the case where no such person is nominated, her legal
representative will be entitled to receive the benefits as
described above.
 Working Condition: Adolescent & Children
EMPLOYMENT OF ADOLESCENT:
Section 34 provides the regulations to employ an adolescent & prohibits
employment of children
“No child who has not completed 14 years of age
shall be required or allowed to work in any factory”
Non adult workers to carry token: An adolescent who has completed 14 years of
age will not be required or allowed to work in a factory unless:
1.A certificate of fitness granted to him under section 68 is in the custody of the
manager of the factory;
2.Such adolescent carry a token giving a reference to such certificate while he is at
work
3.Nothing in this section will be applicable to an adolescent employed in any
occupation or in a factory as an apprentice for vocational training
4.The Government if considers appropriate may waive up the enforcement of the
pre conditions of the employment of an adolescent for a particular period.
Children: According to the present labor law, a child is a persons who has yet to
complete their 14 years of age.
Adolescent: According to the present labor law, an adolescent is a person who
has completed 14 years of age but has not completed 18 years yet
Thank You Very Much!