Separation and Final Settlement Payments details from Service

As per Bangladesh Labor Law 2006

1. Introduction: To operate any organization as like recruitment is a continual process same as the
process of recruited worker/employees willful resign, willful termination by the employer, efficiency
reduction, physical and mental disability, more worker, appointment age or service length pass,
death related reason including violation for any order with those reason any worker are separating
from the organization by final settlement and it’s also a continual process. To ensure the final
settlement equal, fair justice and transparence in any establishment according to Bangladesh Labor
Law 2006 the final settlement shall be completed by different type of identification and the payment
shall be calculated base on that identified type. Following are the details of applicable condition,
other related circumstances, final settlement types and payment base on the type of workers as per
Bangladesh Labor Law 2006.

2. As per Bangladesh Labor Law 2006 any establishment can are doing any separation or termination
from the service by following;

2.1. Resignation
2.2. Dismissal
2.3. Removal
2.4. Termination
2.5. Retrenchment
2.6. Discharge
2.7. Death Benefits
2.8. Retirement

The details definition, related final settlement payment and other necessary notes/ conditions for the
above types of service separation are describe below-

2.1. Resignation : Where in any establishment any worker willingly are separating by informing the
concern authority by following proper process that process is called resignation.

For the final settlement of the resigned worker will be facilitated by considering three service length
situations as follows-

a. If the worker Service length less than five (05) years.

b. If the worker completed five (05) years of continuous service or more but less than ten (10)
years.
c. If the worker completed ten (10) years of continuous service or more but less than ten (10)
years.

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For the final settlement of the resigned worker and payment calculation including debt as per the above
three types, conditions/ notes are following:

a. For whom job (Service) length less than five (05) years -

Employer shall give/ reimburse to resigned Resigned worker shall provide to the employer
worker
1. A Permanent worker 60 days notice/ a temporary
1. Arrear wages.
worker (if monthly wages worker) 30days notice,
2. Leave, Holiday or Excess work related payment or
in case of other temporary worker (as daily or
arrears or any other remuneration.
weekly wages basis) have to give written notice to
3. As per employment condition any arrear bonus or
the authority with 14 days. Where a worker
any other remuneration.
intends to resigns from his service without any
4. Payment for unveiled annual leave (Calculated
notice, he may do so by paying to the employer
from gross wages). wages in lieu of the notice which is required to be
5. If the worker is a member of provident fund and if
given as the case may be (Basic/ Basic wages) .
he is entitled to it under the rules of that fund
including the employer’s contribution thereto, so 2. Any payable amount to the employer if have such
have to give the benefit amount of the fund. as- cash advance, house rent paid from employer,
6. As per Company policy gratuity shall be paid if excess mobile bill etc.
applicable.
7. For the resigned worker ( apprentice, temporary 3. Resignation letter to Authority
or permanent) have to give back the “service
book”
8. Every worker other than a casual or badli worker
shall be entitled to a “certificate of service” ( as
per from 13 within 15 days)

Note/Condition:
1. In this case the service length of the worker is less than five (05) years that’s why he/she is not
entitled for any compensation.
2. The above resignation related explanation was as per Bangladesh Labor Law 2006, section 27.

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b. If the worker completed five (05) years of continuous service or more but less than ten
(10) years -

Employer shall give/ reimburse to resigned Resigned worker shall provide to the employer
worker
4. A Permanent worker 60 days notice/ a temporary
1. Arrear wages.
worker (if monthly wages worker) 30days notice,
2. Leave, Holiday or Excess work related payment or
in case of other temporary worker (as daily or
arrears or any other remuneration.
weekly wages basis) have to give written notice to
3. As per employment condition any arrear bonus or
the authority with 14 days. Where a worker
any other remuneration.
intends to resigns from his service without any
4. Payment for unveiled annual leave (Calculated
notice, he may do so by paying to the employer
from gross wages). wages in lieu of the notice which is required to be
5. 14 days wages for every completed year of
given as the case may be (Basic/ Basic wages) .
service as compensation (basic/ basic wages) or
gratuity, if any, whichever is higher shall be paid. 5. Any payable amount to the employer if have such
6. If the worker is a member of provident fund and as- cash advance, house rent paid from employer,
if he is entitled to it under the rules of that fund excess mobile bill etc.
including the employer’s contribution thereto, so
have to give the benefit amount of the fund. 6. Resignation letter to Authority
7. For the resigned worker ( apprentice, temporary
or permanent) have to give back the “service
book”
8. Every worker other than a casual or badli worker
shall be entitled to a “certificate of service” ( as
per from 13 within 15 days)

Note/Condition:
1. The above resignation related explanation was as per Bangladesh Labor Law 2006, section 27.

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c. If the worker completed ten (10) years of continuous service or more but less than ten
(10) years -

Employer shall give/ reimburse to resigned Resigned worker shall provide to the employer
worker
1. A Permanent worker 60 days notice/ a temporary
1. Arrear wages.
worker (if monthly wages worker) 30days notice,
2. Leave, Holiday or Excess work related payment or
in case of other temporary worker (as daily or
arrears or any other remuneration.
weekly wages basis) have to give written notice
3. As per employment condition any arrear bonus or
to the authority with 14 days. Where a worker
any other remuneration.
intends to resigns from his service without any
4. Payment for unveiled annual leave (Calculated
notice, he may do so by paying to the employer
from gross wages). wages in lieu of the notice which is required to be
5. 30 days wages for every completed year of given as the case may be (Basic/ Basic wages) .
service as compensation (basic/ basic wages) or
gratuity, if any, whichever is higher shall be paid. 2. Any payable amount to the employer if have such
6. If the worker is a member of provident fund and as- cash advance, house rent paid from employer,
if he is entitled to it under the rules of that fund excess mobile bill etc.
including the employer’s contribution thereto, so
have to give the benefit amount of the fund. 3. Resignation letter to Authority
7. For the resigned worker ( apprentice, temporary
or permanent) have to give back the “service
book”
8. Every worker other than a casual or badli worker
shall be entitled to a “certificate of service” ( as
per from 13 within 15 days)

Note/Condition:
1. The above resignation related explanation was as per Bangladesh Labor Law 2006, section 27.

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2.2. Dismissal: ‘Dismissal’ means the termination of services of a worker by the employer for
misconduct; (Bangladesh Labor Law 2006, section 2, subsection 39)

Employer shall give/ reimburse to dismissed Dismissed worker shall provide to the employer
worker
1. Arrear wages 1. Any payable amount to the employer if have such
2. Leave, Holiday or Excess work related payment or as- cash advance, house rent paid from employer,
arrears or any other remuneration. excess mobile bill etc. shall compensate by the
3. As per employment condition any arrear bonus or worker.
any other remuneration.
4. Payment for unveiled annual leave (Calculated
from gross wages).
5. 15 days wages for every completed year of service
as compensation for those who work continually
one year (basic/ basic wages) or gratuity, if any,
whichever is higher shall be paid (If the dismissal
happen for owners business or asset steal, fraud
or dishonesty so in that case any worker is not
entitled to receive any wages as compensation)
6. If the worker is a member of provident fund and if
he is entitled to it under the rules of that fund
including the employer’s contribution thereto, so
have to give the benefit amount of the fund.
7. For the resigned worker ( apprentice, temporary
or permanent) have to give back the “service
book”
8. Every worker other than a casual or badli worker
shall be entitled to a “certificate of service” ( as
per from 13 within 15 days)

Note/Conditions:

1. Dismissal is one kind of punishment by the employer for misconduct.

2. Owners business or assets steal, fraud or dishonesty so in that case any worker is not entitled to
receive any wages as compensation. But as per company policy gratuity shall pay in applicable.
3. For the dismissal of any worker shall follow the section 23 and 24 of Bangladesh Labor Law
2006.

Explanation of Section 23 about punishment: For taking punishment steps as a disciplinary process
by the employer against any worker shall follow section 23 of Bangladesh Labor Law 2006 wherein

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mentioned acts and omissions of misconduct and in this section have mentioned about the minimum
and maximum punishment and process/ condition of the punishment. For taking any action for
punishment owner or management can make sure about the steps by following section 24 of this Law.

Explanation of Section 24 about punishment: No order of punishment under section 23 shall be

made against a worker unless -
a. the allegations against him are recorded in writing;
b. is given a copy thereof and not less than seven day’s time to explain;
c. is given an opportunity of being heard;
d. is found guilty, after inquiry by an inquiry committee comprised of the equal number of
representatives from the owner and workers’ sides;
e. Base on the Inquiry if found guilty so as a punishment can dismiss from service;
f. The employer or the manager approves of such punishment order;
g. One copy of dismissal order shall be given to the worker;

Exceptional: If any worker who is punished for any criminal offence, so without providing any notice or
official inquiry means without following Bangladesh Labor Law 2006, section 24 employer can dismiss
his/ her service. But If a worker who is dismissed from service under sub-section (1) (a), is acquitted on
an appeal, he/ she will be reinstated to his original post without back wages or to any new post suitable
to him; and if such reinstatement is not possible, he shall be paid compensation at the rate payable to a
person on discharge excluding the compensation already paid to him for his dismissal (Bangladesh Labor
Law 2006, section 23, sub-section 1-and 5.

2.3. Removal: Removal is when any worker is getting terminated from employment for found any
guilty of misconduct as a punishment (Bangladesh Labor Law 2006, section 23.

For the final settlement of the removed worker shall consider the following note/ conditions –

Employer shall give/ reimburse to removed Removed worker shall provide to the employer
worker
1. Arrear wages 2. Any payable amount to the employer if have such
2. Leave, Holiday or Excess work related payment or as- cash advance, house rent paid from employer,
arrears or any other remuneration. excess mobile bill etc. shall compensate by the
3. As per employment condition any arrear bonus or worker.
any other remuneration.
4. Payment for unveiled annual leave (Calculated
from gross wages).
5. 14 days wages for every completed year of service
as compensation for those who work continually
one year (basic/ basic wages) or gratuity, if any,
whichever is higher shall be paid (If the dismissal
happen for owners business or asset steal, fraud

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or dishonesty so in that case any worker is not
entitled to receive any wages as compensation) .
6. If the worker is a member of provident fund and if
he is entitled to it under the rules of that fund
including the employer’s contribution thereto, so
have to give the benefit amount of the fund.
7. For the removed worker ( apprentice, temporary
or permanent) have to give back the “service
book”
8. Every worker other than a casual or badli worker
shall be entitled to a “certificate of service” ( as
per from 13 within 15 days)

Note/Conditions:

1. Removal is a punishment same as dismissal for misconduct by the employer for misconduct.
Benefits is same for all other misconduct without owners business or assets steal, fraud or
dishonesty, the explanation of this as following in 2. Note/condition. In this case for the type of
punishment generally using two type of punishment such as, if the suspect’s previous record is
good and have contribution to company , so by considering this previous record for the new
misconduct using ‘Removal’ instead of “Dismissal”. The difference between these two
(Dismissal and Removal) only by words for social respect.
2. If any worker is dismissed by the reason of theft, fraud or dishonesty in connection with the
employer’s business or property, so he or /she is not entitled to receive compensation wages,
but if by the special consideration for the above offence of worker is getting removed so in that
case worker is entitled to receive wages as compensation. Therefore, whenever any worker is
getting removed he/ she shall receive the above benefits.
3. For removal of any worker shall follow the section 23 and 24 of Bangladesh Labor Law 2006

Explanation of Section 23 about punishment: For taking punishment steps as a disciplinary

process by the employer against any worker shall follow section 23 of Bangladesh Labor Law 2006
wherein mentioned acts and omissions of misconduct and in this section have mentioned about the
minimum and maximum punishment and process/ condition of the punishment. For taking any
action for punishment owner or management can make sure about the steps by following section 24
of this Law.

Explanation of Section 24 about punishment: No order of punishment under section 23 shall be

made against a worker unless -
a. the allegations against him are recorded in writing;
b. is given a copy thereof and not less than seven day’s time to explain;
c. is given an opportunity of being heard;

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d. is found guilty, after inquiry by an inquiry committee comprised of the equal number of
representatives from the owner and workers’ sides;
e. Base on the Inquiry if found guilty so as a punishment can dismiss from service;
f. The employer or the manager approves of such punishment order;
g. One copy of dismissal order shall be given to the worker;

2.4. Termination: Wherein for any service separation process employer/owner are ending worker’s
service without show any cause that process is termination. This Punishment is not for any offence
but Employer/owner has legal rights to end any workers service without show any cause. By this
process if any worker is getting dismissed so cannot file in labor court

Exceptional: If there’s have any allegation is that the terminated worker is getting termination for
the trade union work activities by employer/owner for any specific objective so in that case
terminated worker can file case in labor court.

For the final settlement of the terminated worker shall consider the following note/ conditions –

Employer shall give/ reimburse to terminated Terminated worker shall provide to the
worker employer

1. Arrear wages 1. Any payable amount to the employer if have such

2. Leave, Holiday or Excess work related payment or as- cash advance, house rent paid from employer,
arrears or any other remuneration. excess mobile bill etc. shall compensate by the
3. As per employment condition any arrear bonus or worker.
any other remuneration.
4. Payment for unveiled annual leave (Calculated from
gross wages).
5. For the monthly rated permanent worker one
hundred and twenty days’(120)/Permanent other
worker( such as Daily or weekly wages basis) sixty
60 days/ Temporary monthly rated worker
thirty(30) days/ temporary other worker( such as
Daily or weekly wages basis) fourteen (14)days
notice or where an employer intends to terminate
the employment of a worker without any notice, he
may do so by paying to the worker, wages in lieu of
the notice,
6. Thirty(30) days wages for every completed year of
service as compensation for those who work
continually one year (basic/ basic wages) or
gratuity, if any, whichever is higher shall be paid (If

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the dismissal happen for owners business or asset
steal, fraud or dishonesty so in that case any
worker is not entitled to receive any wages as
compensation) .
7. If the worker is a member of provident fund and if
he is entitled to it under the rules of that fund
including the employer’s contribution thereto, so
have to give the benefit amount of the fund.
8. For the Terminated worker ( apprentice, temporary
or permanent) have to give back the “service book”
9. Every worker other than a casual or badli worker
shall be entitled to a “certificate of service” ( as per
from 13 within 15 days)

Note/Conditions:

1. Termination: Termination is not a punishment against any allegation. So in this case cannot
claim any offence or crime. One hundred and twenty days notice period or where an employer
has legal rights to terminate the employment of a worker without any notice by paying to the
worker wages in lieu of the notice. In this case any terminated worker cannot file case in Labor
Court but If there’s have any allegation is that the terminated worker is getting termination for
the trade union work activities by employer/owner for any specific objective so in that case
terminated worker can file case in labor court.
2. A temporary worker who is employed in an establishment for work which is essentially of
temporary nature which is finished, stop, extinct or abandoned so for that temporary worker
not entitled to receive any compensation benefits namely section 26, 33(9) will not be
applicable regarding this.
3. The explanation for termination related details is as per Bangladesh Labor Law 2006 – section 26
and 33(9).

2.5. Retrenchment: “Retrenchment” meaning worker’s service ending by employer on the ground of
redundancy( Bangladesh Labor Law 2006)

Employer shall give/ reimburse to retrenched Retrenched worker shall provide to the
worker employer

1. Arrear wages 2. Any payable amount to the employer if have such

2. Leave, Holiday or Excess work related payment or
arrears or any other remuneration.
3. As per employment condition any arrear bonus or
any other remuneration.
4. Payment for unveiled annual leave (Calculated from
as- cash advance, house rent paid from employer,
excess mobile bill etc. shall compensate by the
worker.

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gross wages).
5. worker who has been in continuous service for not
less than one year shall be given one month’s
notice in writing or the worker has been paid in lieu
of such notice, wages for the period of notice( Basic
/ Basic Salary;
6. Thirty(30) days wages for every completed year of
service as compensation for those who work
continually one year (basic/ basic wages) or
gratuity, if any, whichever is higher shall be paid
7. If the worker is a member of provident fund and if
he is entitled to it under the rules of that fund
including the employer’s contribution thereto, so
have to give the benefit amount of the fund.
8. For the retrenched worker ( apprentice, temporary
or permanent) have to give back the “service book”
9. Every worker other than a casual or badli worker
shall be entitled to a “certificate of service” ( as per
from 13 within 15 days)

Note/Conditions:

1. Retrenchment: Retrenchment is not a punishment against any allegation. In this process if the
number or worker more than actual needs that time the excess number of worker are
retrenching by the employer/owner by providing all the benefits. As this is not punishment, so in
the cannot mention any claim in the “certificate of service” of the retrenched worker, but have
to mention the cause of the retrenchment.
2. For the retrenchment from any section have to select from the last appointed worker for
retrenchment. Therefore retrenchment shall be done by following the service length of the
worker and shall follow from the newly hired worker.
3. For the retrenchment of that factory which is close than forty five (45) days have to give notice
for one (1) month or the worker has been paid in lieu of such notice, wages for the period of
notice including 15 days extra wages(Basic/ Basic Salary);
4. One copy of the retrenchment letter has to send to chief inspector or any selected officer.
5. When need to hire worker in the retrenched worker’s place within one year, so between the
retrenched worker shall consider to appoint by senior basis.
6. The above explanation is given as per Bangladesh Labor Law 2006, section 20.

Discharge: ‘discharge’ means the termination of services of a worker by the employer for reasons of
physical or mental incapacity or continued ill-health of a worker;

Exceptional: If a worker who is dismissed from service under sub-section (1) (a), is acquitted on an
appeal, he will be reinstated to his original post without back wages or to any new post suitable to him;
and if such reinstatement is not possible, he shall be paid compensation at the rate payable to a person
on discharge excluding the compensation already paid to him for his dismissal.
For the final settlement of the discharged worker shall consider the following note/ conditions –

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Employer shall give/ reimburse to discharged Discharged worker shall provide to the
worker employer

1. Arrear wages 1. Any payable amount to the employer if have such

2. Leave, Holiday or Excess work related payment or as- cash advance, house rent paid from employer,
arrears or any other remuneration. excess mobile bill etc. shall compensate by the
3. As per employment condition any arrear bonus or worker.
any other remuneration. 2. In the certificate shall mention of physical or
4. Payment for unveiled annual leave (Calculated from mental incapacity or continued ill-health from
gross wages). registered doctor.
5. Thirty(30) days wages for every completed year of
service as compensation for those who work
continually one year (basic/ basic wages) or
gratuity, if any, whichever is higher shall be paid (If
the dismissal happen for owners business or asset
steal, fraud or dishonesty so in that case any
worker is not entitled to receive any wages as
compensation) .
6. If the worker is a member of provident fund and if
he is entitled to it under the rules of that fund
including the employer’s contribution thereto, so
have to give the benefit amount of the fund.
7. For the discharged worker ( apprentice, temporary
or permanent) have to give back the “service book”
8. Every worker other than a casual or badli worker
shall be entitled to a “certificate of service”.

N0te/Conditions:

1. Discharge is not a punishment against any allegation. In this a process of a worker by the employer for
reasons of physical or mental incapacity or continued ill-health.
2. Before discharge no need to give any notice and no need to pay any monetary benefits lieu of this notice
period.
3. The explanation for discharged related details is as per Bangladesh Labor Law 2006 – section 22.

2.7. Death: Wherein any process is used to separate/ final settlement when any worker dies while in
service that process is death benefits process.

When any worker dies while he/she is in still in service, so for that worker shall follow the following
calculation for separation/ final settlement –

Employer shall give/ reimburse to the Nominee Nominee of the dead worker shall provide to
of the dead worker the employer

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1. Dead Worker’s Arrear wages. 1. Shall give immediate news for worker’s death to
2. Dead Worker’s Leave, Holiday or Excess work management authority.
related payment or arrears or any other 2. Death certificate from registered doctor for such
remuneration. worker.
3. As per employment condition of the dead worker 3. If such worker is including in insurance scheme
any arrear bonus or any other remuneration. so for receiving the monetary facilities the
4. Payment for unveiled annual leave of the dead nominee of the death person shall provide all
worker (Calculated from gross wages). the necessary papers such as: Death Certificate,
5. If a worker dies while in service after a continuous Nationality Certificate etc. on management
service of not less than two (02) years employer authority demand.
shall be paid compensation at the rate of thirty (30)
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.
6. If such worker is covered by any compulsory
insurance scheme of the establishment or if any
compensation is payable for such death under
chapter XII of Bangladesh Labor Law 2006, so in
that case by adding the above 4 and 4 number the
worker shall be entitled to whichever is higher.
7. If the worker is a member of provident fund and if
he is entitled to it under the rules of that fund
including the employer’s contribution thereto, so
have to give the benefit amount of the fund.
8. The Insurance Benefit shall pay within 120 days by
the support of employer and insurance company.
Note/Conditions:

1. If any payable amounts to the death worker such as- cash advance, house rent paid from employer,
excess mobile bill etc. so the employer can adjust the amount from the death worker’s
compensation and benefits.
2. The insurance money has to be paid to the person nominated by the worker or to his/her legal
dependant.
3. The explanation for death benefit related details is as per Bangladesh Labor Law 2006 – section 19
and 99.

2.8. Retirement: ‘Retirement’ Means normal termination of employment of a worker on attaining certain
age 60 years under section 28 of the Act. Provided that retirement shall also include voluntary
retirement from service on completion of 25 years of service in any establishment (Bangladesh Labor
Law 2006, section 2, subsection 1)

For the final settlement of the retired worker shall consider the following note/ conditions –

Employer shall give/ reimburse to the Nominee Nominee of the dead worker shall provide to
of the dead worker

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the employer

1. Arrear wages. 1. Any payable amount of such worker to the

2. Leave, Holiday or Excess work related payment or employer if have such as- cash advance, house
arrears or any other remuneration. rent paid from employer, excess mobile bill etc.
3. As per employment condition of the dead worker shall compensate by the worker.
any arrear bonus or any other remuneration. 2. For voluntary retirement from service on
4. Payment for unveiled annual leave of the retired completion of 25 years of service in any
worker (Calculated from gross wages). establishment any worker shall apply for
5. Thirty(30) days wages for every completed year of retirement by providing specific document to
service as compensation for those who work the authority.
continually one year (basic/ basic wages) or
gratuity, if any, whichever is higher shall be paid
(this compensation is only for permanent worker).
6. If the worker is a member of provident fund and if
he is entitled to it under the rules of that fund
including the employer’s contribution thereto, so
have to give the benefit amount of the fund.
7. For the retired worker ( apprentice, temporary or
permanent) have to give back the “service book”
8. Every worker other than a casual or badli worker
shall be entitled to a “certificate of service”.

Note/ Condition:
1. Any worker who continually works 25 years in any establishment can take voluntary retirement
or if the workers age reaches the retirement age of 60 years automatically entitle to retire from
his/her.
2. For the age verification the mentioning date of birth in the worker’s service book will be
considered competent evidence.
3. If employer/management things that the retired worker is efficient to worker so afterwards can
appoint again by contract basis.
4. The explanation for retired related details is as per Bangladesh Labor Law 2006 – section 28.

3. Time limit of the wages payment: The benefits/compensation for the final settlement or separation
of the worker from service shall pay by the following time limit;
a. The wages and overtime shall pay within seven (07) working days of separation/ final settlement of
the worker (Bangladesh Labor Law 2006, section 123).
b. Earn leave encashment, compensation wages, and compensation for notice pay and if any have
other shall pay within 30 days of separation order. (Bangladesh Labor Law 2006, section 30)

4. Service book: The employer shall hand over the service book to the worker on the termination of
the workers’ service with him. Nothing in this section shall apply to an apprentice, badli or casual
worker.”(Bangladesh Labor Law 2006, section 6, subsections 7 and 9.

5. One year and Six month calculation : For the purpose of the worker’s separation calculation;

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a. One year- a worker who, during the preceding twelve calendar months, has actually worked in
an establishment for not less than two hundred and forty days as the case may be shall be
deemed to have completed ‘one year’ respectively of continuous service in the establishment.
For the purpose of calculation of the number of days on which a worker actually worked in an
establishment as mentioned in sub-section (1) the days on which-

i. The day during which he/she has been laid-off;

ii. He/ she has been on leave with or without wages due to sickness or accident;
iii. He/she has been on legal strike or out of work due to illegal lock-out;
iv. In the case of female worker, she has been on maternity leave not exceeding sixteen
(16) weeks shall be counted.

b. Six months- a worker who during the preceding twelve calendar months, has actually worked
in an establishment for one under and twenty days as the case may be shall be deemed to have
completed ‘six months’ respectively of continuous service in the establishment.
For the purpose of calculation of the number of days on which a worker actually worked in an
establishment as mentioned in sub-section (1) the days on which-

v. The day during which he/she has been laid-off;

vi. He/ she has been on leave with or without wages due to sickness or accident;
vii. He/she has been on legal strike or out of work due to illegal lock-out;
viii. In the case of female worker, she has been on maternity leave not exceeding sixteen
(16) weeks shall be counted.

6. Wages Calculation: For the purpose of calculation of compensation for Resignation, Dismissal,
Removal, Termination, Retrenchment, Discharge, Death, Retirement ‘wages’ shall mean the average
of the basic wages and dearness allowance and ad-hoc or interim pay, if any, paid to the worker
during the period of twelve months immediately preceding the date of his retrenchment, dismissal,
removal, discharge, retirement or termination of employment, as the case may be. ( Bangladesh
Labor Law 2006, section 14, subsection 3)
7. Gratuity: ‘gratuity’ means wages payable on termination of employment of a worker which shall be
equivalent to not less than thirty (30) days’ wages for every completed year of service or for any
part thereof in excess of six months or for the ten (10) years of continues service shall pay Forty Five
(45) days basic salary for every completed year of services, which one is higher. It shall be in addition
to any payment of compensation or payment in lieu of notice due to termination of services of a
worker on different grounds (Bangladesh Labor Law 2006, section 2, subsection 10).

a. Definition of Gratuity and payment condition: As per Bangladesh Labor Law Gratuity is not
mandatory but by the gratitude to the worker during his/ her separation from the service, thirty
days (30) benefits of such worker by the basis of “one year” or more than “Six” months
continues service. This kind of benefits is known as Gratuity which is directly managing by
company own policy; but if such company agree to pay gratuity upon hiring by employment
condition so the gratuity benefits shall pay.

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b. Compensation Benefit( Basic/ Basic Salary) or Gratuity whichever is higher shall pay : If
gratuity is extent in the policy adopted by management authority so in that case for any final
settlement;
If the compensation benefit is higher than the provided gratuity of the establishment so in that
case compensation benefit shall pay to such separated worker and in that case gratuity is not
applicable, while if the such worker is entitled to get compensation as per Bangladesh Labor Law
2006 as per yearly service and if that compensation is less than that organization’s gratuity so in
such case worker shall receive Gratuity and in that case compensation benefit shall not paid to
the such separated worker.

8. Provident Fund Payment: No worker, who is a member of any provident Fund, shall be deprived
due to retrenchment, dismissal, removal, discharge or termination of service of the benefit of the
provident Fund including the employer’s contribution thereto, if he is entitled to it under the rules
of that Fund.( Bangladesh Labor Law 2006, section 29)

9. Group Insurance Implementation Mandatory: Government may, in the manner provided by

rules, introduce group insurance, in the establishments wherein minimum 100 permanent workers
are employed.(Bangladesh Labor Law 2006, section 99.

10. Certificate of Service: Every worker other than a casual or badli worker shall be entitled to a
certificate of service from his employer at the time of his retrenchment, discharge dismissal,
removal, retirement or termination of service.( Bangladesh Labor Law 2006, section 31)

11. Explanation of the definitions: All the explained definition of the type of separation and final
settlement was to explain as per Bangladesh Labor Law 2006. But those what not mentioned in
Bangladesh Labor Law 2006 were explained by the connotation of the explanation.

12. Sixty (60) days written notice before resign from the worker or the deduction explanation
afterwards notice: If the worker don’t give sixty (60) days written notice before resign or 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 the case may be (Basic/ Basic
wages). If the worker cannot provide sixty (60) days written notice so the days provided by the
worker without those days he/she may do so by paying to the employer wages in lieu of the notice
which is required to be given as the case may be (Basic/ Basic wages) from the remaining days from
sixty (60) days.

13. Suspension: A worker charged for misconduct may be suspended pending enquiry into the charges
against him and unless the matter is pending before any court, the period of such suspension shall
not exceed sixty days. If the charge against the worker is not proved in the enquiry, he shall be
deemed to have been on duty for the period of suspension for enquiry, if any and shall be entitled
to his wages for such period of suspension and the subsistence allowance shall be adjusted
accordingly.

Following are the note/ conditions for monetary facilities for suspension –

Employer shall give/ reimburse to the suspended worker

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1. Provided that during the period of such suspension, a worker shall be paid by his employer a
subsistence allowance equivalent to half of his average wages, and dearness allowance and ad-hoc or
interim pay, if any.
2. If, on enquiry, a worker is found guilty and is punished under section 23 (1), he shall not be entitled to
his wages for any period of suspension but shall be entitled to the subsistence allowance for such
period.
3. If the charge against the worker is not proved in the enquiry, he shall be deemed to have been on duty
for the period of suspension for enquiry, if any and shall be entitled to his wages for such period of
suspension and the subsistence allowance shall be adjusted accordingly.

Note/ Condition:
1. Suspension is charged for inquiry against his/her misconduct but this is not a punishment.
2. Maximum suspension is for sixty (60) days. On the other hand the suspension period can
exceed more than sixty (60) days if any pending enquiry into the charges against him/her
and the matter is pending any court for verdict.
3. An order of suspension shall be in writing and shall take effect immediately on delivery to
the worker.
4. The explanation was as per Bangladesh Labor Law 2006, section 24.

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