Chapter-1:

Social Compliance & Employment

Compliance
 Compliance means conforming to a rule, specification, policy, standard or law.
 Compliance is the certification or confirmation that the doer of an action or the manufacturer
or supplier of a product or service, meets the requirements of accepted practices, legislation,
prescribed rules & regulations, specified standards or the terms of a contract.
 To be specific, compliance means fulfillment with local labor law on issues such as ------
 minimum wages
 overtime premiums
 workers benefits
 minimum age of workers
 working conditions
 leave policies
 maternity benefits
 safety of worker from fire hazards or from accidents due to moving parts
 safety from chemical hazards
 system and procedures for recruitment
 dealing with misconducts
 system of termination
 legal working hours
 grievance policies
 providing clean and hygienic work environment
 providing hygienic toilets
 providing sufficient and purified drinking water
 no harsh or abusive behaviors
 doing business as per legal law and being a law abiding citizen, caring to country and
environment.

Importance of ‘Social Compliance Standard’

Industrial Aspect
 RMG (ready-made garments) industry accounts for nearly 82% of the country’s export
earnings.
 4 million people is directly and around 20 million is indirectly dependent on the sector.
 Easy to maintain discipline
Buyer’s Aspect
 Conforming to compliance is a prerequisite for a RMG industry to get export orders from
renowned & established buyers.
 Without being a compliant industry no firm can expect to grab orders from any foreign
reputed brands. Internationally recognized RMG buyers of Bangladesh such as Gap, Li &
Fung, Wal-Mart, H&M, JC Penney, Zara etc. always want to deal with compliant factories &
suppliers are also committed to them about ensuring compliance.
 According to International Labor Organization (ILO), buyers make sourcing decisions based
on four factors:
1. Price
2. Quality
3. How long it takes to get available to the market
4. Social compliance (including compliance with labor standards).
 Chief concerns among buyers are ------
 environmental laws & regulation
 labor
 wage differentiation & discrimination
 working hours
 child labors
 freedom of association
 health & safety issues
 working conditions etc.
Employee Aspect
 To ensure safety of the workers/employee.
 To obey the rules of the factory.
 Employee gets the minimum benefits & facilities at work place.
Government Aspect
 Increase the export by obeying the compliance factors.
 To avoid the exploitation of the factory management.
 To maintain the congenial environment among worker and management.
Appointment Letter
Section 5 of “Bangladesh Labor Law” states that each and every worker should be given
appointment letter by their employer free of charge.
An Appointment Letter is a legally binding document that confirms that an organization has
offered a position to an employee (worker) and they have accepted the terms and agreement in
exchange for a salary.
Still there is no fixed format but the following things need to be included in an appointment
letter:
 Worker’s name
 Father’s name
 Spouse’s name
 Address
 Date of appointment
 Type of employment
 Conditions of the employment
 Wages & other benefits
 Signature of both employer & worker etc.
Benefits of Appointment Letter
 An appointment letter makes a worker aware of his duties and responsibilities, benefits etc.
 It ensures job security.
Duty of the Employer
 Abiding Bangladesh Labor Law, employer should provide appointment letter to every worker
and keep one copy of it to the employee’s personal file.
Duty of the Worker
 At the time of appointment a worker should collect it and preserve it carefully.

ID Card
Section 5 of “Bangladesh Labor Law” states that each and every worker should be given an ID
card by their employer free of charge.
An identity document (ID) is any document which is used to prove a person's identity.
Following things need to be included in an ID card:
 Name of ID card bearer
 Picture
 Date of birth
 Blood group
 Employment date
 Validity of ID card
 Workplace name & address
 Designation
 Authorized signature etc.
Benefits of having ID card
 Makes the worker confident in his workplace
 Creates a safe workplace
 Helps him to get different types of benefits
 Helps him to get a social identity & security
Duty of the Employer
 Abiding Bangladesh Labor Law, employer should provide appointment letter to every worker
free of cost.
Duty of the Worker
 Workers should bear and preserve it.

Service Book
According to Bangladesh Labor Law, different information regarding the service of a worker is
preserved in a book which is called service book.
Section 6 of “Bangladesh Labor Law” states ----
 Every employer shall provide a service book to every worker employed by him at the
employer’s cost.
 The worker who has service book already, shall hand it over to the new employer and the
employer shall give a receipt of it to the worker.
 If a worker wants to keep and maintain a duplicate copy of his service book, he may do it at
his own cost.
 The employer shall hand over the service book to the worker on the termination of worker’s
service.
 If the service book handed over to the worker or the duplicate one maintained by him is lost
by the worker, the employer shall provide him with a duplicate service book at the cost of
the worker.
Information contained in a Service Book
 Employee’s name, spouse’s name, mother’s and father’s name
 Address
 Date of birth
 Previous factory owner’s name and address
 Duration of the employment
 Designation
 Wages and allowances
 Leaves availed
 Conduct of the workers
Benefits of Service Book
 Helps to prove a worker’s efficiency and experience.
 Helps regarding the difficulties of getting the payment properly
 Reduces the tendency of the workers to switch their job.
Duty of the Employer
 The employer should preserve the service book for the workers following the government’s
prescribed format.
 If any worker is terminated, then the employer should return it to the worker.
 During employment of any worker, employer should demand the service book of his
previous factory.
Duty of the Worker
 Worker will deposit his previous service book to the new employer against a receipt.
 He should collect a duplicate copy of service book at his own cost.
 If he is terminated, then he must collect it to from the employer.

Classification of Workers
According to Bangladesh Labor Law workers are classified into six categories:
1. Apprentice: A worker who is employed in an establishment as a trainee and during the
period of training he is paid an allowance is called an apprentice.
2. Transfer Workers: A worker who is employed in an establishment for the period of
temporary absence of a permanent or probationer worker.
3. Casual: A worker employed on a casual basis.
4. Temporary: A temporary worker in an establishment for work that is basically temporary in
nature and is likely to be finished within a limited period.
5. Probationer: A worker provisionally employed in any establishment to fill up a post of
permanent vacancy and his probationer period has to be completed.
6. Permanent: A worker employed with a view to fill up a permanent post or if he completes
satisfactorily his probation period in the establishment.

Probation Period
 Six month 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 within new
period.

Calculation of Continuous Service

Section 145 of the 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 working days of a worker is 240 during the previous twelve calendar
months he or she shall be deemed to be worked for a continuous period of one year.
 If the actual number of working days in the previous twelve calendar months is 120 during
he or she shall be deemed to be employed there for a continuous period of six months.
For counting continuous service, the following issues will come under consideration:
 Days of leave with or without wages due to accident or illness
 Non-working days due to legal strike or illegal lock out
 Days on maternity leave for a female worker

Stoppage of work
Section 12 of the labor law deals with the stoppage of work by the employer. As per the above
mentioned section following are the points to be noted:
 In the event of fire, other catastrophes, breakdown of machinery, epidemics or civil
commotion, or any other circumstances beyond his or her control, the employer can stop the
work of a section or sections of his factory.
Misconduct
The following acts and omissions shall be treated as misconduct according to section 23(4) of
Bangladesh Labor Law.
 Willful insubordination or disobedience, whether alone or in combination with others, to any
lawful or reasonable order of a superior
 Theft, fraud or dishonesty in connection with the employer’s business or property
 Taking or giving bribes in connection with his or any other worker’s employment under the
employer
 Habitual absence without leave or absence without leave for more than 10 days
 Habitual late attendance
 Habitual breach of any law or rule or regulation applicable to the establishment
 Riotous or disorderly behavior in the establishment, or any act of subversive of discipline
 Habitual negligence of work
 Habitual breach of any rule of employment, including conduct or discipline, approved by the
chief inspector.
 Falsifying, tampering with, damaging or causing loss of employer’s official records.
Procedure of Punishment
No order of punishment under section 23 shall be made against a worker unless:
 The allegation against him/her are recorded in writing
 S/he is given a copy thereof and not less than 7 days’ time to explain
 S/he is given an opportunity of being heard
 S/he is found guilty after enquiry
 The employer or the manager approves such order

Workers Responsibilities
Workers should ------
 Count money at the time of receiving wage
 Inform immediately to the responsible person if any mistake found in wage calculation
 Give sixty (60) days’ notice before resigning from service
 Apply for leave in advance
 Try not to be absent without granted leave
 Report immediately to the supervisor if not being able to attend the factory due to any
unavoidable circumstances; such as sudden sickness, accident or else
 Obey all legal and reasonable orders of the superiors
 Do not involve in any act which is subversive of discipline
 Do not falsify, tamper with, damage or cause loss of employer’s official records.

Child Workers
Child labor can be a contentious issue, especially between developed and developing
economies. Although most would agree that young children should not be forced to work, many
disagree on the costs and benefits of child labor, especially in situations where the child is
living in extreme poverty or is forgoing basic education for work.
Definition of Child Labor as per ILO Convention No. 138
 0-13 years are prohibited from all kinds of works.
 More than 13-15 years, can do light work if not harmful to education or development (In
developing countries 12-14 years).
 The minimum age for non-hazardous work is more than 15-18 years
 More than 18 years can do all legal works
Definition of Child Labor as per Bangladesh Labor Law (BLL)
 Section 2(63) of BLL states that “child means a person who has not attained the age of 14
years.”
 Section 34 (1) of BLL states that “a child will not be allowed to work or to be employed in
any establishment.”
 Section 35 of BLL states that “no parents or guardian of any child can give any sort of
permission for the purpose of employment of the child under his/her custody.”
Exception of Child Labor in BLL (Section 44)
 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 interfere with his education.
 If a school going child is employed in an establishment, the working hour should be
arranged in a way that does not hamper his/her school attendance.

Young Workers
Though there is no specific ILO Convention on young worker, the definition of young worker is
embedded in other conventions (above 16 and below 18).
Definition of a Young Worker as per Bangladesh Labor Law (BLL)
 Section 2 (8) of BLL states that “young worker means a worker who has completed 14 years
but has not completed 18 years of age.”
Working Hours for a young worker (Section 41)
 5 hours a day and 30 hours a week
 No work between 7 pm to 7 am
Restrictions
Employment of the young persons are strictly restricted for:
 Cleaning of machinery while it is in motion
 Lubrication or for other adjustment operation of the machinery while it is in motion
 Any work in-between the moving parts of a machine
 Any work underground or under water.
Note: Young workers are not allowed to engage in hazardous, unsafe or unhealthy works.
Examples of non-compliance
 Recruitment of child labor
 No remediation policy on child labor
 Young workers work as an adult
 No maintenance of records required for young workers, i.e. no certificate of fitness, no
separate working hours register etc.

Forced Labor
Definition of Forced Labor as per ILO Convention 29
This fundamental convention prohibits all forms of forced or compulsory labor, which is defined
as: "all work or service which is extracted from any person under the menace of any penalty
and for which the said person has not offered himself voluntarily or for which such work or
service is demanded as a means of repayment of debt."
Bangladesh Constitution
Article 34 of the Constitution of the People’s Republic of Bangladesh states that:
All forms of Forced Labour are prohibited and any contravention of this provision shall be
an offence and shall be punishable in accordance with the Law.
Abolition of Forced Labor as per ILO Convention 105
This fundamental convention prohibits forced or compulsory labor -------
 as a means of political coercion or as punishment for holding or expressing political views or
views ideologically opposed to the established political, social or economic system; as a
method of using labour for purposes of economic development
 as a means of labour discipline
 as a punishment for having participated in strikes
 as a means of racial, social, national or religious discrimination.
Common requirements of buyers regarding forced labor, as per their Code of
Conducts
 Buyers do not want to be associated with any vendor who uses any form of mental or
physical coercion;
 Buyers don’t do business with any vendor who utilizes forced labor whether in the form of
prison labor, indentured labor, bonded labor or otherwise.
Examples of non-compliance
 No policy on forced labor;
 Restrictions on the use of toilets;
 Overtime work not voluntary;
 Delayed wages (salary and overtime);
 Withholding original documents i.e. passport, ID cards, educational certificates;
 Keep deposit as a condition of employment.

Non-Discrimination
Non-Discrimination as per ILO Conventions
ILO Convention no. 100 – Equal Remuneration
The states shall promote and ensure the application to all workers of the principle of equal
remuneration for men and women workers for work of equal value.
ILO Convention no. 111 – Discrimination (Employment and Occupation)
The Convention assigns the states the fundamental aim of promoting equality of opportunity
and treatment in respect of employment and occupation.
Discrimination is defined as any distinction, exclusion, or preference based on race, colour, sex,
religion, political opinion, social origin etc. which has the effect of nullifying or impairing equality
of opportunity or treatment in employment or occupation.
Non-Discrimination as in Constitution of Bangladesh
Article 27: All citizens are equal before Law and are entitled to equal protection of Law
Article 28: 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.
Section 345 of BLL states that “gender discrimination is prohibited in determining wage.”
Common requirements of buyers regarding discrimination, as per their Code of
Conducts -----
Buyers will not do business with any vendor who discriminates in employment; including hiring,
salary, benefits, advancement, discipline, termination or retirement; on the basis of gender,
race, religion, age, disability, sexual orientation, nationality or social or ethnic origin.
Examples of non-compliance
 No policy on non-discrimination
 Discrimination in respect of religion, sex, race, caste, political affiliation, union affiliation
etc.

Harassment & Abuse

Section 332 of BLL states that “all female workers in an establishment shall be treated
respectfully no matter whatever the position.”
Common requirements of buyers regarding harassment & abuse as per their Code of
Conducts -----
 Factory must treat employees with respect and dignity.
 No employee shall be subjected to any physical, sexual, psychological or verbal harassment
and/or abuse.
Examples of non-compliance
 No policy on harassment & abuse
 Female workers harassed by their male co-workers or superiors
 Workers are punished corporally as disciplinary practices.
Consequences of child & young labour ------
 It deprives children of their right to education
 It is an impediment to children‘s and young workers‘ physical and mental growth
 Work with dangerous machinery, the handling of heavy loads, exposure to hazardous
substances and excessive noise, temperature, sound etc. may damage children‘s and young
worker‘s health
 High risk of loosing business when child labour is detected
 Damage to a country‘s reputation
 Creates an unhealthy, unehtical working environment
Consequences of forced labour, discrimination, harassment & abuse -----
 When workers‘ original documents are retained or their payments withheld, their freedom of
movement is restricted
 Silent suffering of those who get discriminated and harassed (especially female workers)
when these practices are tolerated by the management
 Economic disadvantages for those who get less pay for the same work
 Decrease in motivation and productivity
 Decrease in sense of loyalty to the organization
Sometimes workers may get vindictive and create unrest