Legal Framework for the Industrial Relation System

An Overview of Labor law ACT 2006 Bangladesh

What is industrial law?
Industrial law, or the law of
employment, is the body of law that
regulates the relationship between
employers and employees,
employers and trade unions, and
trade unions and employees.
• Example: The Bangladesh labor LAW
2006
What is Trade union?
An organization whose membership
consists of workers and union
leaders, united to protect and
promote their common interests.
Example:
• Bangladesh SrOmic federation (BSF)
• Bangladesh Jatio SrOmik League
• Bangladesh Jatyatabadi Sramik Dal
Labor law ACT 2006 Bangladesh Principal purposes of a labor union are

Among them • Negotiate wages and working

• WORKING CONDITION condition terms,
• EMPLOYEMENT • Regulate relations between workers
(its members) and the employer
• OCCUPATIONAL HEALTH, SAFETY
AND WELFARE • Take collective action to enforce the
terms of collective bargaining
• Raise new demands on behalf of its
members, and
LABOR ACT 2006
• help settle their grievances.
Trade union picture
 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 & Holiday
PAID ANNUAL LEAVE:
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 & Holiday
Festival 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