Summary of Bangladesh Labour Law
An auditor should be well-versed in the Labour Laws before conducting any audit involving people management, compliance, or payroll. Likewise, every employee should have a clear understanding of the labor laws to protect their rights and maximize their career growth. Today, I will provide a brief but informative summary:
1. Scope and Application
Applicable To: All establishments except government, defense, and domestic service. (Sections 1 & 2)
2. Definitions
Worker: Anyone employed for hire/reward to do skilled/unskilled work (excluding managerial/admin). (Section 2-65)
Employer: Person responsible for the control/supervision of workers. (Section 2-31)
3. Employment Terms
Appointment Letter: Mandatory for each worker. (Section 5)
Service Book: To be maintained by the employer. (Section 6)
Probation Period: 6 months (skilled), 3 months (unskilled). (Section 4-8).
4. Wages and Benefits
Minimum Wage: Fixed by the Wage Board. (Section 140)
Payment of Wages: Within 7 working days of the wage period. (Section 123)
Overtime Pay: Twice the regular rate (Section 108)
Festival Bonus: Two bonuses/year (50% of basic salary each). (Labour Rules 2015, Rule 111)
Severance/Termination Compensation: One month’s wages per year of service.
(Sections 19–22)
5. Working Hours
- Daily Hours: Max 8 hours. (Sec-100)
- Weekly Holiday: One full day. (Sec-103)
6. Yearly Leave:
Casual-10 days, Sick-14, Annual-1 for every 18 days worked (Sec- 115-117)
Maternity: 16 weeks (8 before, 8 after delivery). (Sec-45)
7. Termination & Discipline
- Termination with Notice: 120 days (monthly-rated), 60 days (others) (Sec-26)
- Dismissal for Misconduct: After a domestic inquiry and opportunity to be heard. (Sec-24)
- Retrenchment: 30 days' notice and one month’s wage per year. (Sec-20)
- Resignation: 30 days' notice for permanent workers. (Sec-27)
8. Health, Safety & Welfare
- Clean and Safe Workplace: Lighting, ventilation, and drinking water. (Sec- 51–78)
- Welfare Officer: Required for 500+ workers. (Sec-89)
- Fire Safety & First Aid: Must be ensured. (Sec-62 & 73)