Lecture-04

UNITED INTERNATIONAL UNIVERSITY

Post Graduate Diploma in Human Resource Management

Course Title: Employee Relations and Employment Laws

in Bangladesh
Facilitator:
Abul Hashem Mazumder
MBA (HRM), PGDHRM(BIM), LLB (NU)
Fellow & Former GS, BSHRM
Member : Labour Court, Dhaka

Corporate Head of HR,

Mirpur Ceramic & Khadim Ceramics Ltd.
Email: ahmazumder2009@gmail.com
Cell : 01730010520, 01811343402
 Recap
1. Framing service rules is mandatory/not mandatory ?
2. Provision period for a worker is six months/three months ?
3. Can we extend provision period for any category of employee. ?
4. Whether Letter of confirmation is mandatory for confirmation of servie ?
5. Whether Letter of appointment is mandatory to issue to the workers ?
6. Is there is any liability for the management to workers employed through
contractors. ?
7. When management can stop the work in an establishment. ?
8. Whether management can Lay off a worker beyond 45 days at a time ?
9. What is the rate of compensation for first 45 days and during laid of period.?
10. What is the rate for compensation for the period beyond 45 days ?
11. What is the entitlement during weekly and govt. Holidays during laid off
period. ?
12. Is there any right to the workers to get reemployment after retrenchment. ?
13. Always we are considering basic wages during separation but what is the
reference in support of this decision. ?
14. Can we make fine for any kind of damage by a worker in the organization. ?

2
 Chapter – 2 (Contd..)
Topics to be covered
What are the provision of punishment for conviction
and misconduct as per BLA?
What do you know about different types of Punishment
as per BLA ?
What are the list of misconduct as per BLA?
What is the procedure of punishment as per BLA?
What are different Mode of Separations as per BLA?
Is there any time limit for making final settlement bill?
What is the grievance handling procedure as per BLA ?

3
 Chapter - 2
What are the provision of punishment for conviction and
misconduct as per BLA?

23. Punishment for conviction and misconduct : (1)

Notwithstanding anything regarding lay-off, retrenchment,
discharge and termination of service as provided elsewhere
in this Act, a worker may be dismissed without prior
notice or pay in lieu thereof if he is-
(a) convicted for any criminal offence ; or
(b) he is found guilty of misconduct under section 24.

4
 Chapter - 2
What are the other Punishment instead of dismissal as per BLA ?
23(2) Any worker found guilty of misconduct may, instead of being
dismissed under sub-section (1), in consideration of any
extenuating circumstances, be awarded any of the following
punishments, namely:
(a) Removal;
(b) Reduction to a lower post, grade or scale of pay for a period not
exceeding one year;
(c) Stoppage of promotion for a period not exceeding one year;
(d) Withholding of increment for a period not exceeding one year;
(e) fine;

5
 Chapter - 2
(f) suspension without wages and subsistence
allowance for a period not exceeding seven days;
(g) censure or warning.
23 (3) A worker who is removed under sub-section (2)(a)
shall, if his continuous service is not less than one year,
be paid by the employer compensation at the rate of
fifteen days wages for every completed year of service.
Provided that no compensation shall be payable if
the worker is dismissed for misconduct as specified
in sub-section (4) (b) & (g). But in such respect the
concerned worker will get his other lawful payables
accordingly. 6
 Types of Punishment
• Major Punishment:
1. Dismissal
• Minor Punishment:
1. Removal
2. Reduction to a lower post, grade or scale of pay for a period not
exceeding one year
3. Stoppage of promotion for a period not exceeding one year
4. Withholding of increment for a period not exceeding one year
5. Fine
6. Suspension without wages and subsistence allowance for a period
not exceeding seven days
7. Censure or warning. 7
 Chapter - 2
List of misconduct as per BLA? 23(4)

(4) The following acts and omissions shall be treated as

misconduct -

(a) willful insubordination or disobedience, whether alone

or in combination with others to any lawful or
reasonable order of a superior;
(b) theft, Embezzlement, fraud or dishonesty in connection
with the employer's business or property;
(c) taking or giving bribe in connection with his or any
other worker's employment under the employer;
(d) habitual absence without leave or absence without leave
for more than ten days;
(e) habitual late attendance; 8
 Chapter - 2
(f) habitual breach of any law or rule or regulation
applicable to the establishment;
(g) Violence or Riotous activity, arson or Vandalism
in the establishment;
(h) habitual negligence of work;
(i) habitual breach of any rule of employment,
including conduct or discipline, approved by the
chief Inspector;
(j) falsifying, tampering with, damaging or causing
loss of employers official records.

9
 PROCEDURE OF PUNISHMENT
24. (1) No order of punishment under section 23 shall
be made against a worker unless-
(a) the allegations against him are recorded in writing;

(b) he is given a copy thereof and not less than seven day's
time to explain;

(c) he is given an opportunity of being heard;

(d) he is found guilty, after inquiry by the committee

consisted with the same number of representatives from the
employer’s side and the employee’s side;
Provided that, the inquiry must be completed within 60 days;

(e) the employer or the manager approves of such order. 10

 26. Termination of employment by employers
27. otherwise
Termination ofthan employment bybe retrenched by workers etc.
dismissal, : (1) A permanent
20. Retrenchment : (1) A worker employed in an establishment may from service : (i) The

Mode of Separation
worker may resign from his service by giving to the employer in
on the ground of redundancy. employment
writing sixty day's
ofnotice
a permanent worker may be
(2) No worker who has been in continuous 28.
22. terminated
Discharge
23. Retirement
Punishment
service forbyfrom
notthe for
less of
service worker
one : year
conviction
than (i): and
A worker
under misconduct
an employermay be :
(2) A temporary worker mayemployer,resign from otherwise, his service bythan givinginto the the
shall be retrenched by the employer unless-discharged(1)
manner (1)
A Notwithstanding
worker from employed
service anything
for in any
reasons regarding
establishment
of physicallay-off, or
employer provided
in writing- else-where in this chapter, by giving to
(a) The worker has been given one month's
mental
him days
(a) thirty retrenchment,
notice
inshall, in writing, indicating
notice, notwithstanding
incapacity
writing- if he isor adischarge
continued
monthly
the and reasonstermination
ratedanything
ill-health
worker; certified of
for contained
by
retrenchment, or the worker has been paid in lieu of such notice,
service as providedwages for the periodin
elsewhere of this
notice;Act, a worker
(b) fourteen
(a) aoneregistereddays notice
hundred
elsewhere and intwenty
medical case
in of this other chapter,
days'
practitioner. worker.
notice, if he
(2) Ifisaa worker
retire monthly
from
Death
(b) a copy of the notice is sent to the chief Inspector may or any
be other
dismissed officer authorized
without by
prior him notice or pay inany
(3) Where
rated a worker
worker; intends to resigns from his service without
and also to the collective bargaining agent in who employment
has
the establishment, completed if any;ipso and facto
not less on the
than completion
one year of
in lieuofof
(b) notice,
sixty lieu
he may
days' thereof
notice,do so ifin he
by
case is- of(a)other
paying toconvicted
theworker.
employer for any wages criminal
(c) he has been paid, compensation which shall
continuous the besixtieth
equivalent
service year tois thirty
of so his days
age.
discharged, wages orhe shall be
the notice which is required to be givenguilty under of sub-section (1) or
Retirement (2) (2),
gratuity for every completed year of service
19.
ifThe
Death
paid
(3) Notwithstanding anything contained in sub-section
3(a) terminated
offence
by
asunder
employment
any, whichever
(2) For
benefit
the
Notwithstanding
the
case the
;
may
section
(2),byinthe
or
is higher.
:
employer
(b)
purpose
If be.
the employer,
anything
a
24.
of he
worker
a is
case of retrenchment
of
found
temporary
counting
dies
compensation
otherwise
contained in
while
ofthan
worker
age
a worker
subsection
in
misconduct
at
may
of
service
the
in the(3),manner
the
rate
be
if any
after of
under section 16(7), no notice as mentioned ain(2) worker
continuous
thirty
Any
sub-section days under
worker
(2) service
(a) wages this
found
shall of
be section
not
for
guilty
necessary;less
everyof the
than
but date
two
completed
misconduct
the worker of birth
year
may,
Resignation
so retrenched, shall be paid fifteenyears,
case may be, which may be payable to
days of
him
provided
worker is absent
his
wages
due recoded
service,
instead
without any
under
in
elsewhere
nomineeor
additionof
to permission,
sub-section
indays
the in
for more
gratuity,
being
to
(2)
consideration
the or
the
in than
service
in
if
this 10
dismissed
completion,
(c).
any the
compensation
chapter,
book
the employer cessation,
of and
days without
under of
absence
whichever or
and any
the is
sub-section
gratuity,
shall send a abolition
any
if it notice
concerned
of
higher.
as any
the
is not
(1),
notice, giving
extenuating
or
or
nominee, him 10worker his time
discontinuance shall
dependant
to
ofgive beexplanation
the theshall
temporary conclusive be
work proof.
paid
to rejoin byandthe
duty
for which in such
he was
Termination
(4) Where any worker belonging to a particularcircumstances,
employer shall, in the absence of anyemployer
respect,
appointed,
agreement
category of workers
a ifcompensation
(3) between
Every
following
writingday's
(a)employed
thirty or does
the
byhim concerned
retiring
giving
notice,not
and the
punishments,
join
if he
be
to worker
him
duty
worker
is
worker
atinthe
within
is adeath
to
awardedbe
does
inunder
writing-
monthly
rate
this
namely:
retrenched,
notof
behalf,
the rated
any
give
the thirty
(a)own
stipulated
retrench
Removal;
worker;
the
ofdaysthe in
explanation
provisions
time, shall (b)be
the worker who was the last person towagesbe andof section
in
in that case
category. 26(4)
of or under
at work inservice
the
Discharge (b)
given Reduction
fourteen
establishment
(3)
defense.
Where
the concerned
rule
foran
days or
Ifaeven
period
notice,
of inthe
employer
to worker
the case
not
a in lower
concerned
case
establishment,
with
of death
exceeding
intends
post,
of
07 more
worker
to
othergrade days
afterwards
one
terminate
not join
year; the
time for
or scale
worker.
doshall be due
(c)duty
paid
of his
or to
Stoppage
employment
payself
his
defend
an accident
himself, benefits thatdue
thenduring worker to
the ahim.
shallwork
notin
be supposed favor of
to be exempted the from
Retrenchment of
the a
(4)
establishment,
of promotion
worker
service
(4)
(d)
the worker,
(4) Where
withwithout
effect from
Appropriate
a permanent
forty
Withholding
wages worker
for
any
fiveofthe
period he
notice,date of wages
authority,
in lieu resigns
days
increment
of the notice,
exceeding
may
his absencedo
ifforthinks
from hiswhich a
so
service
one
by
forstarted.
period
year; to
paying
proper,
every
is under notthis
enquired
completed be may year
exceeding ofafterwards,
service,
one sub-byyear; oremployer
foremploy
(e) any
fine; (f)the
part thereof retiring
suspension inmay
Removal
section,
to he shall
given under be paid the
section (1) orcompensation-
(2), as the case
excess
(a) atbe.the of worker
without
rate of under
sixfourteen
wages months contract
daysandwages or
subsistence gratuity,
for every allowance if any,
completed for of
year
(4) service,
whichever Where a ifperiod
he has
isthe higher, not
completed
employment exceeding
in additionfiveof yearsseven todays;
of
a permanent any(g) worker
continuous censure
service or
other is
Dismissal benefit
more but
toorwhich
terminated
less
warning. than
under
ten
the this
years;
deceased section, worker
(b) at the rate of thirty days wages for every completed year of service
he shallwould be paid have by the
beenemployer
ifentitled compensation
had
he has completed he retired ten years atfromthe rate of thirty
service:
of continuous service day's wages
or more; or
for every
gratuity (forcompleted
a&b), if any, year of service
whichever is higher,or gratuity,
in additioniftoany; any
whichever is higher, in addition
other benefit to which he may be entitled under this Act. to any other benefit11 to
which he may be entitled under this Act.
 TEST CASE

Suppose you are working as Manager in a reputed

company. One day you have been instructed to terminate
an employee due to his poor performance. Is it justified
according to BLA ?
 If answer is yes then what is the procedure and
his entitlement?
 If answer is no what is the reason ?

12
TIME FOR FINAL PAYMENT OF DUES OF WORKER

Where the employment of a worker ceases due to

retirement, discharge, retrenchment, dismissal, termination
or any other reason, . all amounts due to him shall be paid
by the appointing authority within a maximum period of 30
(thirty) working days following the date of cessation of his
employment. 30.

13
 Chapter - 2
What is the grievance handling procedure as per BLA (33).
33. Grievance procedure : (1) Any worker, including a worker
who has been laid-off, retrenched, discharged, dismissed,
removed, or otherwise removed from employment, who has
grievance in respect of any matter covered under this chapter,
and intends to seek redress thereof under this section, shall
dispatch his grievance to his employer, in writing, by registered
post within thirty days of being informed of the cause of such
grievance.
Provided that if the employer acknowledges receipt of the
grievance, in that case the service by registered post shall not
be essential.
(2) The employer shall within thirty days of receipt of such
grievance, enquire into the matter, give the worker an opportunity
of being heard and communicate his decision, in writing to him.
14
 Chapter - 2
(3) If the employer fails to give a decision under sub-section
(2) or if the worker is dissatisfied with such decision, he may
make a complain in writing to the Labour court within thirty
days from the last date under sub-section (2) or within thirty
days from the date of the decision, as the case may be.

(4) The Labour court shall, on receipt of the complaint hear

the parties after giving notice to them and make such orders
as it may deem just and proper.

(5) The Labour court, may amongst other relief, direct

reinstatement of the complainant in service, either with or
without back wages and convert the order of dismissal,
removal or discharge to any other Lesser punishment
specified in section 23(2). 15
 Chapter - 2
(6) Any person aggrieved by an order of the Labour court,
may, within thirty days of the order, prefer an appeal to the
tribunal, and the decision of the Tribunal on such appeal shall
be final.
(7) No court-fees shall be payable for lodging complaint or appeal
under this section.
(8) No complaint under this section shall amount to criminal
offence under this Act.
(9) Notwithstanding anything contained in this section, no
complaint shall lie against an order of termination of
employment of a worker under section 26, unless such order is
alleged to have been made for his trade union activities or
passed motivated or unless the worker concerned has
been deprived of the benefits specified in that section.
16
 Recap
• Management can dismiss any worker instantly do you agree ?
• In case of dismissal worker is entitled for compensation @ 30
days basic salary / 15 days basic salary ?
• An worker may be warned for his minor irregularity wihout
holding the inquiry ?
• If any worker dies outside workplace, he will not be entitled to
the death benefit ?
• Can management discharge a worker if he is found guilty of
misconduct ?
• Do you think dismiss and removal is same ?
• Inquiry is to be completed 30days/60 days time?
• Can any worker submit grievence petition on his termination of
service from the company?
• What would be the termination benefit when a worker is
terminated after working 4 yrs 5 months.?
• What would be compesation when a worker resigned after
working 4 yrs 6 months in the company ?
17
 Case Study
A permanent Driver of your company died outside the company
premises while he was driving company vehicle. Please calculate his
final settlement bill considering the following:

 Length of Service is 10 years 06 months 1 day.

 His monthly basic salary is BDT 10,000.00 and Gross Salary is
Tk.20,000.00
 Gratuity Scheme is there in the company.
 Group life insurance is also there (benefit equivalent to 30 months
basic salary).
 His earned leave balance was for 30 days.

Calculation for financial benefits:

???
18
 19
Domestic Enquiry & Disciplinary
Procedures
20