Bangladesh Labor Management QA

Bangladesh Labor Management QA

Email: dac4ww@evershinecpa.com
A-16, 1st Floor, Aruna Asaf Ali Marg, Qutub Institutional Area, Dhaka, 110067, Bangladesh
Manager Punit Singh Negi, speak English.
Skype: cspunitnegi

LRC – Bangladesh Labor Regulations

LRC-CA-20.10
What must be included in the contents of a labor contract in Bangladesh?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), S 4; Amendments to Labor Act, 2015, S 19.
In the absence of a written contract, employees must be given an appointment letter that contains the following:

  • Working hours
  • Type of work
  • Role title
  • Salary
  • Procedures for dismissal

LRC-CA-20.11
Does Bangladesh arrange labor contract in fixed term?
What should be the length of the labor contract in Bangladesh?

Evershine RD:

Yes.
No restriction on the length of the labor contract in Bangladesh.

LRC-CA-20.20
What is the minimum age for hiring new employee in Bangladesh?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), Definitions (63).
Bangladesh’s labor code prohibits employers from employing children under the age of 14.

LRC-CA-20.40
Is it a requirement for employer in Bangladesh to conduct a pre-employment background check?

Evershine RD:

The Labor Act does not address background checks.

LRC-CA-20.50
Is the Non-Competition indemnity clause in labor contract in Bangladesh has legal effect?

Evershine RD:

According to Amendments to Labor Act, 2015, S 20.
Employees must “maintain the confidentiality of the business strategy of the firm in case of performing the duties or changing the job.”

LRC-CA-40.05
What are the regulations on Gender Discrimination in employment specifically for female workers in Bangladesh?

Evershine RD:

According to Constitution of Bangladesh, 1972, S 19.
Bangladesh’s constitution prohibits discrimination on the basis of religion, race, caste, sex, or place of birth.

LRC-CA-50.10
Can the employer in Bangladesh collect, or process data transmitted by employees over the internet?

Evershine RD:

According to Information Communication Technology Act of 2006, S 63.
The Information Communication Technology Act of 2006 prohibits unauthorized entry into any computer system.
Employers also may not disclose any e-mail or text message without the permission of the employee.

LRC-CA-60.10
What are the regulations on working hours in Bangladesh?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), S 116.
The workday is limited to 8 hours per day and 48 hours per week, but an additional 2 hours of overtime are permitted each day.
A worker’s total hours, including overtime, cannot exceed 60 in a week or an average of 56 per week in a year.
Women cannot be allowed to work between 10 p.m. and 6 a.m.

LRC-CA-60.30
What are the regulations on overtime hours in Bangladesh?
What is the overtime premium rate in Bangladesh?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), S 108.
Any work beyond normal working hours of 8 hours a day and 48 hours a week with at least 24 hours of rest per week, is paid at 200% of a worker’s normal remuneration.
Overtime is generally limited to 2 hours a day.
A worker’s total hours, including overtime, cannot exceed 60 hours in a week or an average of 56 hours per week in a year.

LRC-CA-60.50
Is it common to pay 13th month’s salary in Bangladesh?

Evershine RD:
According to Amendments to Labor Act, 2015, S 111(5).
Employees who have completed 12 months of service must be given 2 festival bonuses each year.
Each festival bonus must not be more than the basic wage amount.

LRC-CA-70.10
What are the regulations on general leave policy for employee in Bangladesh?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), SS 115, 117; Bangladesh Export Processing Zones Authority, Guidelines for Employers, 1988.

Industries Years of service Number of Annual leave
Commercial or Industrial establishment 1 1 day for every 18 days of work
Tea plantation 1 1 day for every 20 days of work
Newspaper workers 1 1 day for every 11 days of work
Employers in EPZs N/A 1 day for every 22 days of work

Employees may carry over up to 60 days of unused annual leave.

LRC-CA-70.20

What are the public holidays in Bangladesh?
What is the overtime premium rate during public holiday in Bangladesh?

Evershine RD:

According to Bangladesh National Holidays, Ministry of Public Administration Announcement (Bengali); Factories Act, 1965, S 79.
All employers, except those in EPZs, must provide 11 paid holidays.
Employers in EPZs must provide 10 paid holidays.
Employers may select which paid holidays to give to their employees from the list below:

  •  New Year’s Day
  •  Shahid Day
  •  Sheikh Mujibur Rahman’s Birthday
  •  Independence Day
  •  Bengali New Year
  •  May Day
  •  Buddha Purnima
  •  Shab e-Barat
  •  Jumatul Bidah
  •  Laylat al-Qadr
  •  Eid ul-Fitr (three days)
  •  Shuba Janmashtami
  •  National Mourning Day
  •  Eid ul-Adha three days)
  •  Vijaya Dashami
  •  Ashura
  •  Eid-e-Milad un-Nabi
  •  Victory Day
  •  Christmas Day

Employees who are required to work on a public holiday as prescribed by their employer are entitled to 2 additional days’ pay plus a substitute day off.

LRC-CA-70.30
What is the maternity leave policy for female employee in Bangladesh?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), SS 45-50.
Female employees who have worked for their employers for at least 6 months are entitled to paid maternity leave of 8 weeks before and 8 weeks after the delivery.
Female employees who currently have 2 or more children are entitled to maternity leave but not maternity pay.
Employers have 3 options for providing maternity leave payments:

  1. Pay first 8 weeks salary within 3 days of receiving proof of pregnancy and remaining 8 weeks 3 days after receiving proof of delivery.
  2. Pay first 8 weeks of salary within 3 days of receiving proof of pregnancy and remaining 8 weeks after submission of proof of delivery.
  3. Pay the whole amount (16 weeks’ salary) within 3 days of proof of delivery.

LRC-CA-70.40
What is the paternity leave policy for male employee in Bangladesh?

Evershine RD:
There are no provisions for paternity leave in the Labor Act.
However, new fathers may use the casual leave provision of 10 days when their child is born.

LRC-CA-70.50
What are the provisions on sick leave, bereavement leave and personal leave for employees in Bangladesh?

Evershine RD:

Sick Leave

According to Bangladesh Labor Act, 2006 (as amended in 2013), S 116
Most employees are entitled to 14 days of paid sick leave with full wages.
Newspaper workers are entitled to sick leave with half pay for not less than one-eighteenth of their period of service.
In order to receive sick leave benefits, employees must obtain a certificate from a medical professional stating that they are ill.
Unused sick leave cannot be carried over.

Other leave

All employees are also entitled to 10 days of paid casual leave each year.
Unused casual leave cannot be carried over.

LRC-CA-70.60
What are the regulations on pension benefits and social security insurance benefits for employee in Bangladesh?

Evershine RD:

There are no government-sponsored pension schemes in Bangladesh.
Retirement plans are fully funded by the government and do not require any employer or employee contributions.
The Ministry of Social Welfare administers the old age pensions. Old age pensions are paid to all individuals 75 and older.

LRC-CA-70.70
What are the regulations on Workers’ Compensation for employee in Bangladesh?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), S 151, Schedule 5.
Employees who suffer a temporary injury or illness on the job are entitled to 100% of their pay for the first 2 month, 2/3 of pay for the next 2 months, and 50% for subsequent months of disability up to 1 year.
Employees who are permanently disabled must be paid half their wages for up to 2 years.

LRC-CA-80.05
Can the employee in Bangladesh join labor union?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), S 179.
Bangladesh’s labor code provides for the freedom of association and the right to form unions.
An application for a trade union must be made to the Registrar of Trade Unions.
A union cannot be registered unless it has a minimum membership of 20% of the total number of employees working in the establishment in which it is formed.

LRC-CA-80.06
How to handle labor dispute in Bangladesh?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), SS 209-210.
If an employer or a collective bargaining agent finds that an industrial dispute is likely to arise, the parties can arrange a meeting aimed at reaching an agreement within 15 days from the date on which the issue was raised.
If no settlement is reached, either party may within 15 further days serve a notice of conciliation on the other party.
If the conciliation fails within 30 days from the date of receipt of the dispute, the conciliator will try to persuade the parties to refer the dispute to an arbitrator.
If the parties refer the dispute to the arbitrator, the arbitrator will give his or her award within a period of 30 days or a period agreed upon by the parties.
The award of the arbitrator is final and valid for a period not exceeding 2 years.

LRC-CA-90.10
What are the regulations on workplace safety and health for employee in Bangladesh?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), SS 49, 80-81.
Employers with more than 25 employees must maintain a safety record and a safety information board.
Factories with 50 or more workers must have a safety committee to help ensure the safety of workers.
The committee must be comprised of between 6 and 12 members depending on the number of employees in the establishment, one-half representing the employees and the other half the owners.
If at least one-third of the employees in the company are female, at least one-third of the workers’ representatives must be women.

LRC-CA-100.10
What are the circumstances that an employer can terminate an employee in Bangladesh?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), SS 23-26.
Employers may terminate an employment contract without notice only in cases of criminal misconduct.

LRC-CA-100.11

What is the notification period for terminating an employee in Bangladesh?
How much is the severance pay?

Evershine RD:

When dismissed for any reason other than criminal misconduct, employers must provide 120 days’ notice when dismissing permanent employees.
30 days’ notice must be given when the employee is a temporary worker.
The employee has 7 days to contest the firing.
If the employee is not successful, the employer must call a hearing, consisting of an equal number of representatives of the employer and the worker, to determine whether the employee should be dismissed.
Employees who are discharged are entitled to 30 day’s pay for each year of service with the employer.
If an employer terminates the employee without following proper notice procedures, the employee must be remunerated for this notice time.
Employees who terminate the employment relationship are entitled to:

Year of service Termination pays
More than 5 years but less than 10 14 days’ pay for each year served
10 years or more 30 days’ pay for each year served

LRC-CA-100.12
What is the reporting requirement for employer in Bangladesh to notify the termination of employees to the competent authority?

Evershine RD:

Employers seeking to implement a mass layoff must give 30 days’ notice to the Chief Inspector of Factories and Establishment (CIFE).

LRC-CA-100.20
What are the regulations on mass layoffs in Bangladesh?

Evershine RD:
According to Bangladesh Labor Act, 2006 (as amended in 2013), SS 20-22.
Employers seeking to implement a mass layoff must give 30 days’ notice to the Chief Inspector of Factories and Establishment (CIFE).
Employers are obliged to terminate workers on a “last in, first out” basis.

LRC-CA-100.30
What is the time limit for employer in Bangladesh to pay employees upon termination?

Evershine RD:

According to Bangladesh Labor Act, 2006 (as amended in 2013), SS 20-22.
All termination pay must be paid by the employer within 30 days of the date of termination.

Contact 

Dhaka Evershine BPO Service Limited Corp.
Email: dac4ww@evershinecpa.com
A-16, 1st Floor, Aruna Asaf Ali Marg, Qutub Institutional Area, Dhaka, 110067, Bangladesh
Manager Punit Singh Negi, speak English.
Skype: cspunitnegi

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