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Bangladesh Labor Act & its Amendments

Date: Mar 03, 2017

Barrister Omar H. Khan


Advocate, Supreme Court of Bangladesh
Key facts:
The Bangladesh Labour Act, 2006 (BLA) was enacted in
2006.
Prior to BLA, almost 50 pieces of legislation dealt with
labour issues.
BLA repealed 25 pieces of legislation and codified largely
all labour laws under one piece of legislation.
BLA 2006 contains 354 sections and 5 Schedules.
The process of amending the BLA was a near 7-year
process. Bangladesh Labour (Amendment) Act, 2013 was
enacted on 22 July 2013.
However, BLA was also amended in 2008, 2009 and 2010.
BLA is binding on all employers, excepting a few types of
organizations as defined in the BLA.
Rules under the BLA were formulated and inplemented
from 15 Sep 2015
To which organizations does BLA apply?

It applies to every organization, except for a limited


category of organizations listed in section 1(4) of the
BLA.

However, these exempted organizations cannot have


internal rules, which have less favorable terms than
those in the BLA.
NOTE: In this document, the term he shall mean and include both he and
she
Definition of Worker
The BLA does not refer to the word Labourer, rather it
uses the term Worker.
Worker: Worker includes all persons working in any
establishment or industry other than those working in
managerial, supervisory or administrative capacity.
Classification of Workers: Apprentice, Badli, Casual,
Temporary, Permanent, Probationer and seasonal. All are
Workers. Their rights and benefits varies to some extent
depending on their category. For example notice period for
termination, certain payments etc.
Worker Vs Non-Worker

It is generally seen that there are two types of employees in every


organization:

- Employees falling within Worker category; and

- Employees falling within Non-Worker category.

As such it is important to have a clear understanding of the meaning of


Worker.
Worker Vs Non-Worker

As per Section 2 (65) of the Bangladesh Labour Act 2006


(hereinafter referred to as BLA):

Worker means any person including an apprentice employed


in any establishment or industry, either directly or through a
contractor, in whichever name it is referred to, to do any
skilled, unskilled, manual, technical, trade promotion or
clerical work for hire or reward, whether the terms of
employment be expressed or implied, but does not include a
person employed mainly in a managerial, supervisor or
administrative capacity.
Rules 2 (g) and (j)
Under Rule 2(g) Supervisory officer has been defined as a
person deriving powers in writing from employer or
managing authorities, who under powers so derived, provides
or supervises the objectives, regulations of work,
implementation of control, evaluation or review of work,
directing the workers, in connection with an activity or
service of a section of a factory or establishment.
Rule 2(j) clarifies that Person employed in Administrative or
Managerial capacity derives powers in writing from
employer or managing authorities, and is employed for
approving or controlling the expenses of the establishment
and the recruitment, allocation of wages and benefits,
termination or removal from services, paying out the final
settlement of the workers or employees of the factory or
establishment.
7
Worker Vs Non-Worker
A Worker when on very solitary occasions performs the
functions of a manager or administrative officer is not ceased
to be a Worker.
What is important in determining whether a person is a
Worker is to see the main nature of the job done; not just the
designation.

To be able to say that a person/title is not a Worker, it has to be


established further that he exercises functions mainly of a
managerial or administrative nature.
It has to be resolved in each case by reference to the evidence
on record (i.e. the actual job description i.e. duties actually
performed, meaning not only the paper based record).
Worker Vs Non-worker Checklist
Differentiating Likely to qualify as a Unlikely to qualify as a
Factors worker worker
Job Worker means any person A person employed mainly in
description employed, either directly or a managerial, supervisory or
through a contractor, to do administrative capacity. A
any skilled, unskilled, person who being employed in
manual, technical, trade a supervisory capacity,
promotion or clerical work for exercises, such capacity
hire or reward either by nature of the duties
attached to the office or by
reason of power vested in
him.

Degree of In some reasonable sense, The employee may not always


control there has to be control of the be supervised.
employer over the method of
doing the work. The fact that
the worker has to work under
certain amount of
supervision by the
management.
Worker Vs Non-worker checklist
Exercising A Worker when on very To be able to say that
functions solitary occasions someone is not a Worker
mainly and performs the functions it has to be established
occasionally of a manager or further that he exercises
administrative officer is functions mainly of a
not ceased to be a managerial or
Worker. What is administrative nature. It
important in has to be resolved in each
determining whether a case by reference to the
person is a Worker or evidence on record (i.e.
not is to see the main the actual job description
nature of the job done and actual duties
by him/her. performed).
Designation The designation is not at Managerial or supervisory
all the decisive factor. designation will not
The designation may conclusively make
have, for example a someone non-worker.
manager title. But it is
the job description,
Worker Vs Non-worker checklist
White collar Vs While it is no longer a Blue collar unlikely to
Blue Collar touch-stone, most of the qualify as non-worker.
blue collar is likely to fall But, most of the white-
within Worker. BUT, some collar will.
white collar may also
qualify as worker

Physical labour Non-decisive. BUT, more Not conclusive. But,


involved likely to qualify as worker unlikely to qualify as
Non-Worker
Why is the distinction important ?

The distinction is very important, as:

- For Worker category of employees the BLA


is applicable.

- For Non-Worker category of employees,


BLA is not applicable.
Why BLAs applicability is important?

The BLA provides specific duties, responsibilities and


obligations of the employers and corresponding rights,
benefits and privileges for the Workers.

Consequently, these become legally binding and obligatory for


the employer to abide by, with penal and other consequences
for non-observance.

BLA sets the minimum standard.


Why BLAs applicability is important?

ON THE OTHER HAND, for non-worker category of employees


the BLA does not apply.
The only governing rule is the master-servant rule.
The master-servant rule provides that the employment contract will
dictate all the terms of employment between the employer and the
employee.
All the rights and obligations of the employer and the employee will
flow from the employment contract. Unless any clause in the
employment contract contravenes any provision of the laws of the
land and basic principles of the law of contract, the employment
contract will be the governing law for the employer and the
employee of non-worker category.
Other relevant areas of law
The following is a non-exhaustive list of relevant areas of laws that also
applies to an employment scenario:

Discrimination and harassment


Conflict of interest
Privacy and Confidentiality of information, Privacy of communication
Natural Justice Investigation procedure
Law of Contract (so far as the employment contract is concerned)
Income Tax Ordinance 1984(so far as the salary etc. is concerned)
Relevant Circulars, orders etc. that is passed by the Govt. (e.g. circulars of
Bangladesh Bank for banking companies etc.) from time to time (for
example, on office timing), etc.
Internal rules Vs BLA
Many establishments have their HR related
internal rules, regulations and policies.
What to follow? Internal rules or BLA?
Both. BUT, in case where the internal rules
restricts the rights and benefits of the Workers than
those provided in the BLA, that internal rule cannot
be followed.
So, internal rules must give equal or better rights
and benefits to employees. [S.3]
The internal rules must be approved by the Chief
Inspector within 90 days of the receipt. [s.3(2)]
Practice Vs BLA
Best practice is something that most of us like to
follow. For example: Provident fund, when not
compulsory, paternity benefit, Eid or festival
bonus etc.
Shall we follow practices ??
Answer depends: As long as they do not
contradict/restrict the provisions of BLA.
Key areas covered under BLA
Rights, benefits, privileges for the Workers:
- Conditions of service and employment [Chapter: II]
- Child labour [Chapter: III]
- Maternity benefit [Chapter: IV]
- Health and Hygiene [Chapter: V]
- Safety [Chapter: VI & VII]
- Welfare [Chapter: VIII]
- Working hours and leave [Chapter: IX]
- Wages and Payments [Chapter: X]
- Wages Board [Chapter: XI]
- Compensation for injury by accident [Chapter: XII]
- Trade Unions & Industrial Relations [Chapter: XIII]
Key areas covered under BLL
Workers participation in Companies Profit [Chapter:
XV]
Provident Fund [Chapter: XVII]
Apprenticeship [Chapter: XVIII]
Procedural aspects and disputes
- Labour Court and Labour Appellate Tribunal [Chapter:
XIV]
- Penalty for violation- criminal offence [Chapter: XIX]
- Administration and inspection [Chapter: XX]
- Miscellaneous [Chapter: XXI]
Thank you!

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Copyright: The copyright of the material belongs to Barrister Omar H
Khan . Any unauthorized dissemination or reproduction is prohibited.

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