Presented by: Md.

Mozahed Hossain
Deputy Secretary Ministry of Labour and Employment, Bangladesh Secretariat
The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

Informal Sector & Non-Regular Workers of Bangladesh
According to the definition of International Labour Organisation (ILO) '' the informal sector consists of small-scale, selfemployed activities (with or without hire workers) typically a low level of organisation and technology, with primary objective of generating employment and incomes. The activities are usually conducted without proper recognition from the authorities, and escape the attention of the administrative machinery responsible for enforcing laws and regulations.''

’ .Non-Regular Employment Generally Non-regular workers means - ‘Non Regular employment refers to the use of specific form of employment arrangement that provides no security of tenure for workers and exclude them from receiving non wage benefit.

starts privatisation and encourage private investment. Due to increase informal and private sector. . After independent (1971).Background Industrialization starts in Bangladesh in the 1960’s. government nationalized all the major industries and factories. From early 80s Govt. informal sectors are now increasing in large scale and state owned sectors are becoming smaller. In this dilemma. non-regular workers has been increasing as well in both formal and informal sector.

1 million 10.2 million Source: Labor Force Survey 2005-06 by BBS .5 million 37.2 million 37.3 million 12.Present Labor Force Status Total Workforce Male Female Formal Sector Informal Sector : : : : : 49.

5 7.2 1.8 5.8 47.1 0.8 4. public administration & defense Community & personal services Mining & quarrying Electricity. Hotel & Restaurant Transport. forestry & fisheries Manufacturing Construction Trade.6 0.1 0. gas & water Finance & business services and real estate Total Source: Labor Force Survey 2005-06 by BBS Total Number (million) 22.0 2. storage & Communication Health.Sector wise employment Sector Agriculture.4 . education.6 2.

Workers Classification According to the Labour Act. worker should be permanent . namely— (a) apprentice (b) badli (c) casual (d) temporary (e) probationer (f) permanent. ‘permanent type work’ should not be treated as ‘temporary work’ And after 30 days of continuation work. 2006 Workers employed in any establishment shall be classified in any of the following classes according to the nature and condition of work.

69 2.07 10.51 85.98 100 100 100 100 100 Urban M F Total Rural M F 25.85 7.01 7.22 6.24 90.8 100 26.Employed persons by formal and informal sector Sector Bangladesh Total M F Total Percent Total Formal Informal Others 100 13.01 79.54 2.15 100 11.35 68.14 11.44 7.64 100 14.85 9.18 9.9 4.67 76.96 6.91 78.72 66.13 Source: Labor Force Survey 2005-06 by BBS .06 66.74 27.92 82.

poor working conditions.Conditions of the Workers In Bangladesh. absence of social safety net. Low wage. . no job guarantee and so many hazardous things are still existing in the informal sectors. Comparing to the informal sector. more than 80 percent workers are involved in the informal sector. workers of the public sectors are enjoying better condition in Bangladesh.

Increasing women workers in the labour market especially in RMG Sector Fast growing service sectors Fast growing informal sectors Rising Foreign Investment especially in EPZs & Telecommunication Joining Young workers in service & Education Sectors Women Empowerment .Recent Change in Bangladesh Labor Markets Paradigm shift from state owned to Privatizations in last 2 decades.

g.g.g. Informal Sectors) Hour basis Master rolling Employed by labour contractor . Security.Changing Pattern in Employment Outsourcing (e. cleaning etc.) Contractual (e. Multinational Company/Agency) Daily Basis (e.

Major Types of Informal & Non-Regular work Agriculture Construction Domestic work Day labourer Hawker Transport Small manufacturer Fishing Sales Production Service provider .

Reasons for increasing informal work Decrease of state owned organisation & increase of private sector River erosion Cyclone. flood and other natural disaster Decrease of agricultural land Migration Lack of Education Monga .

Labour law amend to regulate the employment relationship and to ensure workers protection Skill develop for internal and external employment Increasing Social Safety net including Labour Welfare Foundation Act. Work for 1 person from 1 family. 2006 . Position & Initiatives Increasing employment opportunity.Govt.

Government Position & Initiatives Govt. is aware enough about workers’ vulnerability due to flexibility of employment. 2006 Section 121 Provided further that when the wages of a worker employed by the contractor is not paid by the contractor. . the wages shall be paid by the employer of the establishment and the same shall be adjusted from the contractor. So there are safety clause in labour law for their wage Bangladesh Labour Act.

established Workers Welfare Foundation where special provision has been made for informal sector workers.Government Position & Initiatives continue.. 2006 Chapter 1 Section 4 (dha) – This act shall not apply to agricultural farms where less than 10 workers are normally employed Due to the initiative of Govt. which created opportunity to cover more workers under legal framework. 2006. the number of workers became 10 instead of 25. Expansion of LL coverage According to the Labour Act. Social Safety Net Scheme has been increasing through alternative skill training arrangement. Govt. Protection of Informal sector workers has considered in upcoming amendment of Labour Act.. .

According to the Labour Act. 2006 Chapter 1. . Due to the initiative of Govt.Government Position & Initiatives continue. Section 2 (7) ‘‘factory’ means any premises including the precincts thereof whereon 5 or more workers ordinarily work on any day of the year and in part of which a manufacturing process is being carried on... which created opportunity to cover more workers under legal framework. the number of workers became 5 instead of 10.

Definition: Service Provision: ensure welfare of the workers and his family initiate and implement different projects for the welfare of the workers and his family provide financial assistance to worker especially who is incapable or disabled treatment or financial assistance for ill worker financial assistance to his family when a worker dies in accident scholarship or stipend to the meritorious family member of worker for education group insurance for the life insurance of worker and for that pay premiums to the insurance company from the fund . 2006 Non-government sector where a worker’s work or job conditions etc. are not covered within ambit of the Labour Act (of 2006) and related rules and where workers’ have limited opportunity to be organized.Bangladesh Labour Welfare Foundation Act.

which will make them more vulnerable. . fisheries in costal belt. Due to fast growing automation informal workers will not be able to cope with new technology.Challenges for Future Environmental Job losses due to climate change especially in the sector of Agriculture. which will make the workers more vulnerable Economic Economic recession Non-tariff Barrier Social Due to over population increase social unrest and decrease employment opportunities.

Vocational and Skill development for alternate.Govt. Capacity building of labour inspection and directorate. rural and agro-based industries to create employment generation. future need Amend and expansion of the labour law to ensure the rights and regulate the informal economy. Create job opportunity in rural areas. Support SME. .

Thank you .

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