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Workers Retrenchment Under Labour Law
Collected by BdLawSource.Com
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ABSTRACT
Role of labour and industrial laws are of paramount importance. We know that the
total economy of a country greatly depends upon the industrial sector. In addition,
the growth of the industrial sector inoles with some ma!or aspect. "hese ma!or
aspects are the local inestment policy, foreign direct inestment policy, labour
management etc. Besides the necessary infrastructure for inestment natural
resources are also important and it is ery clear that if all these essential elements
are not aailable then growth of industrial sector is unfeasible. Besides all these
things labour issues are also ery important. #roper management of labour is an
essential matter for growth of industrial sector. "imely disposal of labour disputes are
also important. We see that in most of the cases the labour law disputes do not sole
with in short time. So the remedy which is essential from the case becomes delayed.
"he labour law is ery much important in Bangladesh perspectie. It is highly
important for the industrial deelopment of Bangladesh. We know that labour is a
most important part of an industry. So, we can not think an industry with out labour.
Labour right is most essential in Bangladesh. But the labours are in ignorance about
their right. "hey don$t know properly about labour laws and education. It is a great
problem. %or this reason, they retrenched by the employee. &ery often, they
retrenched with out any legal process. So I don$t support the retrenchment of the
labour by any illegal process. "he retrenchment of labour should be legal and
humanly treated. In chapter fie I discussed about Labour Court and Labour
'ppellate "ribunal in Bangladesh including application to the Labour court,
(urisdiction of the labour court, #ower and status of the labour court in trying
offences, a labour court is a ciil court and #ower and functions of the labour court
and the tribunal. Lastly in chapter si) I tried to discuss about my conclusion on the
thesis like %indings, Recommendations, and Scope for %urther Study which are my
opinion. In this way I tried to organi*e my thesis.
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CONTENTS
Abstract
4
Chater !
"NTRO#UCT"ON $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
%&$!'(
+.+
Introduction,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
-
+.. /b!ect of the
Study,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,-
+.0 Importance of
Study,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1
+.2 Scope and Limitation of
Study,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1
+.3 4ethodology of
Study,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1
+.5 /rgani*ation of
"hesis,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,6
Chater )
LABOUR LAW "N BAN*LA#ES+ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ %!!$
!,(
..+ 7mployment
Conditions,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,++
... Labour Laws
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,++
..0 Settlement of Labour 8isputes
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,+.
..2 Wages and %ringe
Benefits,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,+.
..3 Leae 9
:olidays,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,+.
..5 Social
Security,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,+.
..- Labour
;nion,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,+0
..1 Working
:ours,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,+0
Chater ,
RETRENC+-ENTS$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$%!4$
!&(
0.+
Retrenchments,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
+2
0.. Conditions for a alid Retrenchment,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
+2
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0.0 #rocedure of
Retrenchment,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,+3
0.2 Retrenchment
compensation,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,+3
0.3 Re,employment of retrenched workers,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
+5
0.5 Condition of re,employment for Retrenchment workers,,,,,,,,,,,,,,,,,,,,,,,,,,,,
+5
0.- 8istinction between lay,off and Retrenchment,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
+5
Chater 4
CASE STU#"ES$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
%!.$,!(
2.+ 4<S Calte) oil =#akistan> Ltd. s. "he chairman second labour,,,,,,,,,,,,,,,,,, +1
2.. 'minul Islam s. (ames %inlay Co.Ltd,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
+6
2.0 Bangladesh tea estate ltd Bangladesh tea estate staff union,,,,,,,,,,,,,,,,,,,,,
.?
2.2 Banks 9 'nother s. Coca,Cola S',,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
.+
2.3 /osthui*en s. "elkom S' Ltd,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
.0
2.5 #erumal 9 another s. "iger Brands,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
.2
2.- @ero 'ppliances =#ty> Ltd s. CC4' 9 /thers,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, .3
2.1 Leppan and Suretrade ++? CC t<a Bra BoutiAue RetrenchmentB breakdown of
trust relationship +2,4'C,?1,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
.- 2.6
@ietsman 9 others s. "ransnet Limited,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, .1
2.+? "hekiso s. IB4 South 'frica =#ty> Ltd ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
0?
Chater /
LABOUR COURT AN# LABOUR A00ELLATE TR"BUNAL$$$$$$$$$$$$ %,)$,/(
3.+
Introduction,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
0.
3.. 'pplication of the Labour
court,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,0.
3.0 (urisdiction of the labour
court,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,00
3.2 #ower and status of the labour court in trying offences,,,,,,,,,,,,,,,,,,,,,,,,,,,,
00
3.3 ' labour court is a ciil court,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
00
3.5 #ower and functions of the tribunal,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
02
Chater 1
CONCLUS"ON$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
%,1$,&(
5.+
%indings,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 05
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5.. Recommendations,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
05
5.0 Scope for %urther
Study,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,0-
BIBLI/DR'#:C,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
01
'BBRIBI'"I/E,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
06
C'S7 IE87F,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
2?

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Chater 2 !
"NTRO#UCT"ON
+.+ Introduction
+.. /b!ecties of the study
+.0 Importance of Study
+.2 Scope and Limitation of Study
+.3 4ethodology of study
+.5 /rgani*ation of "hesis
%!3!( "ntroduct4on
Barriers to timely resolution of labour disputes inole two types of issuesG one is the
legal barrier and the other is the practical one. "o deal with the first one, we begin by
outlining the origin of Labour Courts, its constitution, composition, powers and
procedures, including the Labour 'ppellate "ribunal, as the machinery for disposal of
arious types of labour cause. "his outline is then followed by a short account for the
territorial and other !urisdictional aspects of Labour Court. "he ne)t, third, section
offers a detailed e)pose of the barriers, along with suggestion for facilitating timely
disposal of labour cases, ending with a concluding section. "his thesis includes
numerical representations of the state of labour case under arious releant laws.
%!3)(The Ob5ect46es o7 Stud8
"he ob!ect of both the law is to establish a continuous process of harmonious
relationship between the employers and employee. "hey hae another ob!ect of
fastening together both the labour and capital in order to create an atmosphere that
they are an indiisible whole in production. "he ultimate ob!ect of labour and
industrial law is to maintain industrial peace security and steady growth of
production.
"he origin and growth of labour law may be ascribed mostly to the deelopment of
organi*ed industry where a large number of workers including women and children
are employed under conditions which tend to be detrimental to their safety and
welfare and against which they are often to protect themseles.
%rom historical point of iew labour law has gien birth to some fundamental
industrial rights to labours in the field of production. 't the same time it has also
proided protection for those rights.
%rom a practical point of iew labour and industrial law proide for three types of
dispute settlement measures oluntary settlement machinery, Auasi !udicial
machinery and !udicial machinery.
%!3,( "mortance o7 the Stud8
Labour and industrial legislation is necessary for the following reasonsB
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"he indiidual workers are economically weak. "hey cannot bargain with the
employees for the protection of their rights and een for subsistence wages. 's such
legislation for protection of labour against long hours of work unhygienic conditions
of work low wages and e)ploitation is needed. "he workers are e)posed to certain
risks in factories mines and other establishment. 's such in order to make proisions
for their health safety and welfare legislation is needed. In order to increases the
burning power of labour legislation is necessary to encourage the formation of trade
unions.
%!34( Scoe and L4m4tat4on o7 Stud8
"he discussion of this dissertation will be limited within the scope of the /rigin and
historical deelopment of Labour law of Bangladesh, the #roblems of Labour law of
Bangladesh, problems of Labour education in Bangladesh and some case studies. "he
system of enrolment in the Bar Council also discussed. "here will be discussed about
some nature of crimes committed usually.
%!3/( -ethodo9o:8 o7 Stud8
"he methodology used in the thesis is Hualitatie 4ethodology. /ur research works
are based on +. :istorical Study and .. 'nalytical Study.
!3 +4stor4ca9 Stud8; It has a historical back ground of worker$s moement for the
establishment of their rights. "he worker$s moement becomes successful. Eow the
modern world, 4odern state and ;nited Eations /rgani*ation highlighted the worker
in their dignity, honor, position, participation social work political actiity etc.
In Bangladesh the worker$s retrenchment are guaranteed in their constitution, state
laws, and social and state actiities. "hrough the historical reolution the worker$s
right has come to this position. "he history worker$s moement started from +6-+
after successful ictory of the Bangladesh war of Independence. So, to write this
thesis we hae to use historical study.
)3 Ana98t4ca9 Stud8; In this thesis the formation deelopment and solutions
regarding worker$s right and retrenchment are to be discussed. In this process of
analysis the laws related to the sub!ect and solutions from the !udicial process are to
be discussed. "he enforcement of worker$s right is !udicial matter. So in this process
of study the analytical study is necessary and important for this thesis. %or our
research works we followed the analytical study.
"he main ob!ect of the study is to ealuate effects and importance on persons,
society and the state. "he study is mainly Aualitatie in nature because, the impact
that the study has searched would not be possible to assess without Aualitatie data.
Legal issues, !udicial rulings and administratie management of the goernment and
the public, all are related with the issues. "he research work is inoled with the
legal matter, administratie matter and !udicial decision of the worker$s
retrenchment. ;nder these circumstances a regulated research work will be suitable
to sole the problems after inestigating different ariables such as laws relating to
I' Study on Worker$s Retrenchment under Labour LawB Bangladesh #erspectieJ.
Eormally researchers depend on different methodological approaches. Research
method is an important factor for all kinds of study. "here are two kinds of empirical
research methods namely.
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+. Hualitatie Research 4ethod and ..Huantitatie Research method.
Research on I' study on worker$s retrenchment of BangladeshJ a new admiration
has emerged among the !udicial persons, educators, sociologists, psychologists and
public interest, lawyers, politicians, scientists and many others. #eaceful, legal,
moral, ethical happy life in the society is the ital issue for the man kind. So
considering all the aboe factors this research works utili*es the following
methodologies K
1. Case study method,
2. (udicial method,
3. Dround theory method.
4. Sociological 4ethod,
5. Statistical 4ethod.
4ethod ;sed in this thesisB
"he method is used in this dissertation is action oriented. "he study has been
conducted on the basis of two principal sources of data collection. "hese areB +.
#rimary Source, .. Secondary source.
"he basic data has been collected from the administratie source, legislatie laws
and historical eents. /ther data has been collected from !udicial rulings and
affected person$s information. By focusing efforts on critical issues of authority
concern, and the ictim persons concern are the important sources of data collection.
%!31( Or:an4<at4on o7 Thes4s
Labour Law is ery importance in Bangladesh perspectie. Labour law of Bangladesh
is deeloped by origin and historically. "here are many problem of labour law of
Bangladesh, problems also labour education in Bangladesh and some cases studies. I
try organi*ed this thesis and mentioned that condition for a alid retrenchment of
labour. I include procedure of retrenchment of Bangladesh and retrenchment
compensation with studies. I also try includes Labour court and Labour appellate
tribunal.
In the first chapter I tried to include Introduction, /b!ecties of the study,
Importance of Study, Scope and Limitation of Study, 4ethodology of study and
/rgani*ation of "hesis. It is the introductory chapter of the thesis.
In the second chapter I tried to discuss about Labour laws in Bangladesh like
7mployment Conditions, Labour Laws, Settlement of Labour 8isputes, Wages and
%ringe Benefits, Leae 9 :olidays, Social Security and Labour ;nion for the better
improement of industrial sector of Bangladesh.
In the third Chapter I tried to discuss about retrenchments including Conditions for a
alid Retrenchment, #rocedure of retrenchment, Retrenchment compensation, Re,
employment of retrenched workers, Condition of re,employment for retrenchment
workers and 8istinction between lay,off and retrenchment.
In the fourth chapter I discussed about +? cases like 4<S Calte) oil =#akistan> Ltd.
s. "he chairman second labour Court, 'minul Islam s. (ames %inlay Co.Ltd,
Bangladesh tea estate ltd s. Bangladesh tea estate staff union, Banks 9 'nother s.
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Coca,Cola S', /osthui*en s. "elkom S' Ltd., #erumal 9 another s. "iger Brands,
@ero 'ppliances =#ty> Ltd s. CC4' 9 /thers, Leppan and Suretrade ++? CC t<a Bra
BoutiAue, RetrenchmentB breakdown of trust relationship+2,4'C,?1
@ietsman 9 others s. "ransnet Limited, "hekiso s. IB4 South 'frica =#ty> Ltd
LRedundancy 9 77' reAuirement etc.
.

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Chater )
LABOUR LAW "N BAN*LA#ES+;
..+ 7mployment Conditions
... Labour Laws
..0 Settlement of Labour 8isputesB
..2 Wages and %ringe Benefits
..3 Leae 9 :olidays
..5 Social Security
..- Labour ;nion
..1 Working :ours
Labour Law 4n Ban:9adesh;
Bangladesh offers an abundant supply of disciplined, easily trainable and low,cost
work force suitable for any labor,intensie industry. /f late, there is an increasing
supply of professionals, technologists and other middle and low leel skilled workers.
"hey receie technical training from uniersities, college, technical training centers,
polytechnic institutions etc. "he e)penditure incurred by an employer to train his
employee is e)empted from income ta).
=)3!(3 Em9o8ment Cond4t4ons
"he minimum age for workers in Bangladesh is +5 years in factories and
establishments. Contracts are made in the form of a letter of offer. Workers may also
be engaged on erbal agreements. In goernment organi*ations and in some priate
organi*ations as well, a probation period e)ists for skilled or semi,skilled workers
arying between three month$s to one year and during this period either party may
sere one monthMs notice for "ermination from or giing up to the !ob. In the priate
sector, the dignity of labor is ensured in accordance with the principles enunciated in
the IL/ conention and recommendations.
=)3)(3 Labour Laws
In Bangladesh 2- labour laws are now in operation. "hese relate to =a> wages and
employment, =b> trade union 9 industrial disputes, =c> working enironment and =d>
labour administration and related matters. "he main labor laws areB
WorkmenMs Compensation 'ct, +6.0,
#ayment of Wages 'ct, +605
4aternity Benefit 'ct, +605
7mployment of Labour =Standing /rders> 'ct, +653
Shops 9 7stablishments 'ct, +653
%actories 'ct, +653
Industrial Relations /rdinance, +656
%)3,(3 Sett9ement o7 Labour #4sutes
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Contract or agreement is usually made between the management and the Collectie
Bargaining 'gent =CB'> on settlement of industrial disputes as per proisions of
Industrial Relations /rdinance, +656
+
. In case a bipartite negotiation fails,
conciliation machinery of the goernment is reAuested by the aggrieed party to
interene and the conciliation process is undertaken. If succeeds agreement is signed
between the parties and the Conciliation /fficer becomes a witness. If it fails, the
party raising the dispute may go for strike or lockout as the case may be. "he
goernment may, howeer, prohibit the same after one month in the interest of the
public. In the essential serices like, =a> electricity, gas, oil 9 water supply etc. =b>
hospital 9 ambulance serice, =c> fire brigade, =d> railway 9 Bangladesh Biman and
=e> ports etc., strike is prohibited.
.
%)34(3 Wa:es and =r4n:e Bene74ts
In the public sector, wages and fringe benefits of the workers are determined by the
goernment on the recommendation of the Eational Wages Commission established
from time to time. Such commissions were appointed in +6-0, +6--, +612, +616 9
+66.. Wages 9 fringe benefits declared by the goernment in +6-- haing .? grades
of wages. "he public sector employees are, howeer, coered by the #ay Commission
declared by the goernment from time to time.
In the priate sector, the wages 9 fringes benefits of the workers and employees are
determined through collectie bargaining process. Sometimes priate industries
follow the public sector wages 9 salary structure for their workers and employees
respectiely.
%)3/(3 Lea6e > +o94da8s
Leae 9 holidays of the workers 9 employees are regulated by the %actories 'ct,
+653 and shops 7stablishment 'ct, +653.
%)31(3 Soc4a9 Secur4t8
Workmen Compensation, 4aternity Benefit ="ea 7state> 'ct, +63?, 4aternity Benefit
'ct, +606, 7mployment of Labour =standing orders> 'ct, +653 etc. deal with
proident fund and gratuity.
%)3&(3 Labour Un4on
Industrial Relations /rdinance, +656
+
deals with trade union in Bangladesh. In any
industrial and commercial establishment, a trade union may be formed with 0?N of
the total number of workers employed. If there is more than one union in any
establishment, Collectie Bargaining 'gent is determined by the Registrar of "rade
1
2
1.Industrial Relations Ordinance, 1969(Ordinance No. XXIII of 1969).
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;nion through sector ballot for a term of two years. /nly the Collectie Bargaining
'gent is authori*ed to raise industrial disputes and negotiate with the management.
"he 8irector of Labor of the goernment acts as the Registrar of "rade ;nion in
Bangladesh. "ill 8ecember +665G 2633 trade unions =workerMs union , 2+?2 9
employers association, 13+> e)its in Bangladesh haing +-, 0?, 6.- members.
Industrial Relations /rdinance, +656 and "he Industrial Relations Rules, +6--
.
proides that any worker or employer< has the right to form a union<association
without preious authori*ation. But such a union<association can not function as a
trade union without being registered under the law.
%)3.(3 Work4n: +ours
Workers in the public or priate sector remain at their !ob for eight and a half hours
daily =including half an hour for meal or rest> with %riday as weekly holiday marking
21 working hours a week. Work in e)cess of these, is paid as oertime. "he rate of
oertime is . hours pay for +,hour !ob.
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Chater $,
RETERNC+-ENTS
0.+ Retrenchment
0.. Conditions for a alid Retrenchment
0.0 #rocedure of retrenchment
0.2 Retrenchment compensation
0.3 Re,employment of retrenched workers
0.5 Condition of re,employment for retrenchment workers
0.- 8istinction between lay,off and retrenchment

%,3!( Retrenchment
Section .=++> define the term retrenchment as the termination by the employer of
serice of workers not as a measure of punishment inflict by way of discipline action
but on the ground of redundancy. IRetrenchmentJ means the termination by the
employer of the serices of workers on the ground of redundancy Osec. .=A>P. "hus
retrenchment measure to remoe surplus staff it results in a complete seerance of
employer relationship. "he definition also makes it clear that retrenchment is a kind
of termination but eery termination is not retrenchment. "o be retrenchment the
termination must be on the ground of sedentary.
+
%,3)( Cond4t4ons 7or a 6a94d Retrenchment
'ccording to section .? read with section .=++> the conditions of a alid
retrenchment are as followsB
1. "he workers to be retrenchment must be gien one month$s noticeG
2. "he notice must be gien in writingG
3. the notice must be contain reasons for retrenchmentG
4. alternatie to condition =.> aboe, instead of giing one months, a worker
may be retrenched instantly by giing him payment of wages for the period
of noticeG
5. a copy of the notice of retrenchment must be send to the chief inspectorG
6. a copy of the notice must be send to the CB'G
7. there must be termination of serices of a workman on the ground of
redundancy or surplus labourG
1. Md. Abdul Halim, The Bangladesh Labour Code, 2006,CCB Foundation, Ed.1, .!6
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%,3,( 0rocedure o7 retrenchment

Section .? of the code incorporates the well recogni*ed principle of retrenchment in
industrial law
+
, namely, the Ilast come first goJ or Ifirst come last goJ. "he principal
laid down in section .? for retrenchment procedure are to be adhered to by eery
employer. "he conditions which this section prescribes for the procedure of
retrenchment are as followsB
1. "he claiming the protection of retrenchment procedure under section .?
must be a Qworker$ within the definition in clause=53> of secion.G
2. "he person must belong to a particular category of workers in the
establishment concernedG
3. "here should not be any agreement between the employer and employee
contrary of Qlast come first go$.
4. "he employer is bound to comply with all the aboe conditions while
retrenching a worker. :oweer, the employer can deiate from this procedure
on !ustifiable reasons which must be recorded.
%,34( Retrenchment comensat4on

;nder clause =c> of section .?=.> payment of compensation for retrenchment is
mandatory. "he proisions of compensation for retrenchment are as followsB
(1) 't the time of retrenchment the worker must be paid compensation eAuialent to
thirty day$s wages for eery completed year of serice or for any part thereof
in e)cess of si) month$s or gratuity, if any, whicheer is higher,
(2) "o claim compensation for retrenchment the worker must show that he has been
in continuous serice for not less than one year under that employer who
has retrenched himG
(3) If a worker who is to be laid,off een after first 23 days in a calendar year under
section +5=->, is retrenchment instead of laying,off, no notice will be
reAuired. :oweer, he shall be paid +3 day$s wages in addition to the
compensation or gratuity which may be payableG
(4) Wages as compensation for retrenchment will mean the aerage of the basic
wages plus dearness allowances, if any, paid during the period of twele
months immediately preceding the date of retrenchment.
1. Md. Abdul Halim, The Bangladesh Labour Code, 2006,CCB Foundation, Ed.1, .!!
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%,3/( Re$em9o8ment o7 retrenched workers
Retrenchment of surplus workers causes undue suffering not only to the retrenched
worker but to all his dependents. "herefore in order to aoid hardship to the worker
and his family the proisions hae been made in section .+ of the code that such
workman should be gien an opportunity to !oin serice wheneer an occasion arises
to employ another hand. "his principle was regarded as of general application in
industrial ad!udication on the ground that it was based on considerations of fair play
and !ustice. "he section proides that after effecting retrenchment, if the employer
proposes to take into his employment any personB
(1) :e shall gie opportunity to the retrenched workers who offer themseles
for re,employmentG and
(2) "hese retrenchment workers will hae preference oer the new applicants.
"hus section .+ imposes legal obligation on the employers to gie
preference to retrenched workers when he subseAuently employers any
person.
%,31( Cond4t4on o7 re$em9o8ment 7or retrenchment workers
' retrenched worker may claim preference under section .+ on the fulfillment of the
following conditionsB
=+> to apply for preference under section .+ the worker concerned must hae been
retrenched in last one year time prior to re,employment =thus a dismissed or
discharged worker cannot claim preference in employment>
=.> "he worker must offer himself for re,employment in response to the notice by
the employerG
=0> Workers will hae priority according to the length of his serice under the
employerG
%,3&( #4st4nct4on between 9a8$o77 and retrenchment

(1) In case of lay,off there is failure, refusal or inability of the employer to
gie employment to a workman for a temporary period while in
retrenchment the workman is depried of his employment permanently by
his employer.
(2) "he grounds of lay,off are 4ay. In lay,off the failure refusal or inability to
gie employment is on account of one or more of the reasons specified in
section .=31> such as shortage of coal shortage of power, raw materials,
break down of machinery etc. while in retrenchment the termination of
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serice is on the ground of surplus labour only. "hus the ground of
retrenchment and lay,off are completely different.
(3) "he reasons of lay,off are completely different as compared to reasons of
retrenchment. "he situation of surplus labour may arise due to economic
drie, rationalisation in the industry installation of new labour saing
machinery etc. But in lay,off reasons of non,employment are mainly non,
aailability of power raw materials, coal or break down of machinery etc.
(4) In lay,off labour force is not surplus but in retrenchment labour force is
surplus which is to be retrenched.
(5) In lay,off employment relationship of employer and employer and
employers is not terminated but suspended while in retrenchment
relationship is terminated.
+


1.Md. Abdul Halim, The Bangladesh Labour Code, 2006,CCB Foundation, Ed.1, .!"
www.bdlawsource.com
www.bdlawsource.com
Chater 2 4
CASE STU#"ES
2.+4<S Calte) oil =#akistan> Ltd. s. "he chairman second labour
2..'minul Islam s. (ames %inlay Co.Ltd
2.0Bangladesh tea estate ltd s. Bangladesh tea estate staff union
2.2Banks 9 'nother s. Coca,Cola S'
2.3/osthui*en s. "elkom S' Ltd
2.5#erumal 9 another s. "iger Brands
2.-@ero 'ppliances =#ty> Ltd s. CC4' 9 /thers
2.1 Leppan and Suretrade ++? CC t<a Bra BoutiAue
RetrenchmentB breakdown of trust relationship
+2,4'C,?1
2.6 @ietsman 9 others s. "ransnet Limited.
2.+? "hekiso s. IB4 South 'frica =#ty> Ltd LRedundancy 9 77' reAuirement

%43!( -?S Ca9te@ o49 %0ak4stan( Ltd3 As3 The cha4rman
Second 9abour court %!B1&( !B #LR )14
!
(udgeB S.8 'hmed and 'bdul :akim Rhan
:eard onB 0
rd,
5
th,
-
th
4arch +65-
(udgment dateB 6
th
4arch +65-
8r. %.R.4.' 4uslim SSS.. =#etitioner>
&s.
4.4 Dolam :afi* SSS =Respondandent>
"ssue;
Whether to effect retrenchment condition of the section must be fulfilled or not
=act;
In the present, case serice of the employees hae not been terminated in the
manner proided in section =+.>

of the 'ct. "he termination of the serice on the
ground of retrenchment in terms of section +. can only take place when all the
condition mentioned there under hae been complied with and not before.
1. M#$ Calte% oil &'a(istan) Ltd. *s. The +hairman se+ond labour +ourt &1"6!) 1"
,L- 26.
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In the present case it is obious that one of the condition, namely, dispatching the
notice in respect of the retrenchment to the chief inspector was not complied with.
"he Labour court was, therefore !ustified and acted Auite within its !urisdiction in
holding that the termination of the serice of the respondents concerned was under
section +6 of the 'ct and not under section +. and claimed by the petitioner. "he
essential of a termination on the ground of retrenchment as prescribed under section
+. are =a> the worker must be gien one month notice is writing indicating the
reason for retrenchment or he has been paid in lieu of such notice in respect of
retrenchment in sent to the chief inspector and=c> the worker has been paid at the
time of retrenchment compensation or gratuity which eer is higher as reAuired
under clause =c> of the section +. .
If notice in the chief inspector has not been sered in terms of diction +., the
retrenchment of the employee by the employer is not is according with law.
Cud:ment;
%or the purpose of calculation of the compensation under the section, wages shall
mean the erge of the basic wages plus dearness allowance. If any paid to the
worker during period the date of retrenchment. %or the reasons stated aboe, we
don$t think that the impugned order passed by the labour court suffers from any
illegality. We accordingly discharge the rule in each one of the two petitioners without
any order as to costs. (udge 'bdul :akim Rhan also agrees with.
%43)( Am4nu9 "s9am As Cames =4n9a8 Co3
Ltd )1#LR %SC( ,,
!

=act;
4r.'minul Islam was a head Clerk,cum 'ccountant under (ames %inally Company Ltd
at Rhulna. :is serice was terminated allowing him wages in lieu of 6? days notice.
"he company preferred to pay his wages for that period in addition to compensation
at the rate of +2 days wages for eery completed year or part thereof in e)cess of si)
months. It was asserted that the termination was for trade union actiities of the
workers and that it was case of ictimi*ation. "he labour court upheld the contention
of the worker. /n the appeal before the high court no opinion was e)pressed on
merits as the case was remanded to the labour court since the opinion of a member
was not obtained. /n farther appeal to the 'ppellate diision, it was held on fact that
the worker$s serice was terminated without any stigma or charge and it was a
termination simplicater.
Cud:ment;
It has been contended that the serice of 'minul Islam ware terminated due to his
trade union actiities and as such it was act of ictimi*ation and the termination
1. Aminul /slam *s 0ames Finla1 Co. Ltd 26,L- &$C) 22
irtually amounted to dismissal under the cloak of the tram Qtermination $. But his
contention does not hold good as on e)amination of the impugned order it has been
found that the termination simpliciter under section +6 and as such he was no longer
a worker within the meaning of the 'ct.
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%43,(Ban:9adesh tea estate 9td 6 Ban:9adesh tea estate sta77 un4on
%!B&1().#LR %A#( !B'
!
=acts;
/ne 4r. Eurul 'bser Chowdhury was appointed as a clerk by the Bangladesh tea
7state ltd. /n +
st
(une +652. :e was subseAuently promoted to grade ., gardener
clerk on 0,-,5-. "he employer company terminated his serice under section +6 of
the employment of labour act +653 by a letter with all termination benefits. "he
employer instead of receiing his dues raised a labour2 dispute through the union
under the estate #akistan labour dispute act +653. "he labour court on consideration
of eidence held that the termination of serice of Eurul 'bser was malafide a code
of ictimi*ation for his trade union actiities and according made an award directing
to be a unit representatie of the union.
/n appeal by the employer company the high court of 7ast #akistan made an
elaborate discussion of eidence and dismissed the appeal on the ground that Eurul
'bser was ictimi*ed for his trade union actiities. Because of his participation in
trade union actiities the order of termination was passed by the management in
disapproal of such actiities.
"he employer company obtained leae from the supreme court of #akistan.
"ssues;
1. Whether the Auestion of termination under section +6 should only be decided
under section .3 of the standing orders act +653 and cannot be raised as an
industrial dispute under the labour dispute act or it can be raised as an
industrial dispute.
2. Can the court go behind the order of termination to see if it is really
ictimi*ation or not.
Cud:ment;

"he ratio decldendi of the two cited decision reported in .3 8LR =SC> 13 and in +0
8LR =SC> .1? =#8L +65+ =SC> 2?0> appear to be that the employer has a right to
terminate the serice of a worker under section +6 of the standing order act without
disclosing any cause and that the court should not go behind an order of termination
simpliclter to find out whether the order was malafide or not.
1. Bangladesh tea estate ltd 3 Bangladesh tea estate sta44 union &1"!6)25,L- &A,)
1"0

"here is howeer an e)ception to the rule that court not to go behind the order of a
serice of the termination to see if it really was ictimi*ation. "his e)ception is
contained in section +6, itself when read with section .3. it says that if purported
termination is in reality ictimi*ation of an officer of a registered trade union for his
trade union actiities the court can go behind the order to see the real purpose of
termination and grant such relief as it thinks fit. "he two propositions should be read
together in order to arrie at the true import of section +6 of the standing orders act.
Labour dispute is broad enough to include a dispute of a terminated worker under
section +6 of the standing act +653 if the dispute centres round the ictimi*ation of
the worker for his trade union actiates. It is to be remembering that section .3 of
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the standing orders act has clearly proided that an indiidual worker can claim relief
before the labour court under the said act unless the grieance ha was raised as
labour dispute under labour dispute act =IR/>. "hrough section .3 bars all complaints
against the order of termination under section +6 of the said act yet it authori*ed the
worker to claim relief if the termination is of an officer of the registered trade union
for his trade union actiities or the worker is depried of his benefits under section
+6. "he two acts are pair material and the proision in section .3 indicates that if the
termination of a worker is for his trade union acties and if he is an officer of a
registered trade union his code may be raised as an industrial dispute.
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%434(Banks > Another 6 Coca$Co9a SA
!
Case Eo. ( +++2 < ?-
'ward 8ate .6 (une .??-
(urisdiction Labour Court (ohannesburg
(udge ' &an Eiekerk '(
Sub5ect; procedural fairness in Retrenchment.
"ssue;
'n application to interdict the employer from implementing a dismissal based on
operational reAuirements on the grounds of procedural fairness. "here was a delay in
the launch of the proceedings and disagreement on what the appropriate remedies
were. "here was also a material dispute of fact. "he matter was referred to trial for
the hearing of oral eidence.
1. Ban(s 6 Another 3 Co+a7Cola $A
Summar8 o7 7acts;
"he two applicants, both senior e)ecuties were dismissed due to operational
reAuirements after the process of consultation had broken down. "wo and a half
months later they approached the Labour Court for relief in terms of Section +16'
=+0> and sought compensation in the eent that the court found that their dismissal
had been procedurally unfair.
"he allegations of the process being a IshamblesJ was denied by the Respondent
Company and the disputes were therefore factual and material to the issue.
"he notice of termination was due to take place on the 0? (une .??- and therefore
the urgency of the matter being heard to interdict the employer from dismissing the
applicants and directing the respondent to commence the consultation process afresh
as reAuired by Section +16 of the 'ct.
"he facts as alleged by the applicants on the consultation process used by the
Respondent were ery comprehensie and the basis of the claim was that the
respondent failed to engage in any meaningful indiidual consultations about a
structure that could sae their !obs and that the consultation process was Inothing
less than a shambles, that ague and sub!ectie selection criteria were applied, that
the respondent made a decision on restructuring and sought to consult thereafter
and that it failed to make a proper seerance proposalJ.
"he respondent alleged that the applicants$ referral was opportunistic and that the
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applicants are seeking to do no more than secure themseles reinstatement for the
purposes of negotiating a more generous seerance package.
Summar8 o7 Cud:ment;
"hree considerations were apparent.
"he first was a material dispute of fact, the second was the time passed since the
breakdown of consultations and the launching of the application and the third is the
acrimonious relationship between the parties, best described as a hostile stand,off, in
so far as is releant to the remedy sought by the applicants.
It was held that no purpose would be sered by reAuiring the respondent and
applicants to go back to sAuare one in the process and it was held that Section +16'
would not sere its purpose if the court would grant an interdict against dismissal
and issue directions on how the parties should conduct themseles in a resurrected
consultation process.
"he court did not make a finding on the papers before court as to whether either
party had discharged their obligations in terms of Section +16 and held that the
ineitability of a future referral to the court on the substantie fairness of the
dismissal, that the procedural and substantie aspects of the dispute are dealt with
simultaneously in a trial action.
"he order granted by the court was thereforeB
+. "he application in terms of section +16' =+0> was referred to the trial roll for
hearing of oral eidence.
.. "he application in terms of section +16' =+0> to be enrolled simultaneously with
any action that the applicants may institute in relation to the substantie fairness of
the dismissal. Should the applicants not institute this action then the application
made in terms of section +16' =+0> should be enrolled on the trial role.
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%43/( Oosthu4<en 6 Te9kom SA Ltd
!
Case Eo. #' 3 < ?2
(udgment 8ate .6 (une .??-
(urisdiction Labour 'ppeal Court, (ohannesburg
(udge @ondo (#, Rruger '('
Sub!ectB 8ismissals based on /perational ReAuirements Substantie %airness in
Retrenchment.
"ssue;
Whether the respondent employer ought to hae redeployed the appellant, rather
than make retrench him, and whether the selection criteria that did not include
length of serice were fair in the circumstances.
Summar8 o7 =acts;
"he appellant had been retrenched by the respondent. :e lodged a claim in the Court
that partially rested on the fact that the respondent had not negotiated with him
personally but with a union that was representatie at the workplace. "he Court
dismissed the applicant$s claim.
"he appellant appealed to the L'C on the basis that =+> the respondent ought to
hae aoided the redundancy by redeploying to one of the positions that he applied
for and =.> on the basis that the respondent$s selection criteria was unfair.
1. 8osthui9en 3 Tel(om $A Ltd
Summar8 o7 Cud:ment;
/n the issue of redeployment, the Court noted that the appellant had applied for .5
positions, some of which he was short listed for. "he respondent led no eidence at
to why he was not appointed to those positions and the Court found that it had failed
to !ustify the dismissal of the appellant. Interestingly, the Court found that if the
appellant reAuired training to be suitable for an alternatie position, that the
respondent must arrange such training as part of its obligations to look for
alternaties to redundancy.
/n the issue of the selection criteria, the respondent$s eidence was that skills,
suitability and employment eAuity policy were the criteria adopted. "he respondent
did not take into account length of serice, which was a significant issue gien the
appellant had been employed for 0? years with the respondent. "he Court did not
making any findings on this point, haing already ruled that the dismissal was
substantiely unfair because the appellant could hae been redeployed. "he L'C did
appear to find that the length of serice was also releant to the obligation to
redeploy.
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"he L'C ordered that the appellant be reinstated. It also made specific orders about
the need for a fair reasons and procedures to be adopted should the respondent
maintain that it has a surplus because of the reinstatement. Costs were awarded
against the respondent.
%431( 0eruma9 > another 6 T4:er Brands
Case Eo. 8 61- < ?2
(udgment 8ate + (une .??-
(urisdiction Labour Court, 8urban
(udge #illay (
Sub!ectB 8ismissals based on /perational ReAuirements Substantie %airness in
Retrenchment
"ssue;
In what circumstances can an employee allege that in the Labour Court that his or
her dismissal, as part of a Qmass redundancy$ =necessitating s.+16' procedures>, is
procedurally unfairT
1. 'erumal 6 another 3s. Tiger Brands
Summar8 o7 =acts;
"he applicant challenged the substantie and procedural fairness of her redundancy.
"he respondent contended that the proisions of the LR' prohibited the applicant
from disputing the procedural fairness in this instance.
In relation to substantie unfairness, the applicant alleged that the respondent had
applied its selection criteria in an unfair manner, a contention denied by the
respondent.
Summar8 o7 Cud:ment;
In respect of procedural fairness, the Court agreed with the respondent. It found that
s.+16' =+1> of the LR' operates to bar procedural challenges from being raised in
s.+6+ =3> =b>=ii> disputes =relating to dismissals for operational reAuirements>,
because s.+16'=+0> allows for challenges to procedural defects by way of an order
compelling the employer to conform to fair procedure. In other words, because the
applicant had not brought the procedural flaws to the attention of the employer ia
s.+16' =+0>, she forfeited the right to challenge the procedural fairness altogether.
In respect of the substantie fairness, the Court noted that the respondent had
sub!ected the applicant and her colleagues to a competency test and also reAuired
them to attend a meeting held by an interiewing panel. "he Court found that in
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both the test and the interiew, the respondent had acted in a biased manner
towards the applicant. 'ccordingly, it found that the dismissal was substantiely
unfair. It ordered that the applicant be reinstated, paid compensation of +. months
with a partial costs order against the respondent
%43&( Dero A94ances %0t8( Ltd 6 CC-A > Others
!
Case Eo. (R 1?3 < ?5
(udgment 8ateB .1 4arch .??-
(urisdictionB Labour Court, (ohannesburg
(udgeB Rampai '(
Sub!ectB #ractice and #rocedure<'ppeal and Reiew
"ssue;
"he matter rested on the correct !urisdiction for a claim relating to a mass
retrenchment
1. :ero Alian+es &'t1) Ltd 3s. CCMA 6 8thers
Summar8 o7 =acts;
"he applicant employer implemented a redundancy program that included, at the
union$s reAuest, the appointment of a facilitator from the CC4' and the e)ecution of
a facilitation agreement. Some three months after they hae been made redundant,
50 employees lodged unfair dismissal claims alleging procedural unfairness. "he
employer alleged that the referral was out of time and had been directed at the
wrong body. Eeertheless, a CC4' commissioner condoned the later referral and
issued a certificate to the effect that the dispute remained unresoled.
"he employer approached the Court to hae the commissioner$s condonation and the
certificate set aside.
Summar8 o7 Cud:ment;
"he Court found that the mere fact that the CC4' had been inoled during the
facilitation phase of the retrenchment did not Qentail the transfer of !urisdiction oer
the dispute$.
"he Court noted that it is the correct forum for lodging disputes about the procedural
fairness of Qmass retrenchments$ pursuant to s.+16'=+0>. "he employees had
embarked on the wrong dispute referral procedure. 'ccordingly, the Court held that
the certificate was issued in error and set it aside.
's to the condensation, the Court noted that the retrenched employees did not
dispute or Auestion the retrenchment process while it was in progress and only did so
6- days after their contracts were terminated, which Qraised serious Auestions about
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their bona fides$. It took the employees .01 days, from date of termination of their
contracts, to raise the dispute in the Court. It also found that the employees
proided no e)planation and had not applied for condensation.
%inally, the Court assessed the employer$s chances of success as Qe)cellent$. "he
condensation was also set aside.
Costs were awarded against the employees.
%43.( Lean and Suretrade !!' CC t?a Bra Bout4Eue
Retrenchment; breakdown o7 trust re9at4onsh4
!4$-AF$'.
!
Case Eo. RE8B 5??.,?-
'ward 8ate ?2 %ebruary .??1
(urisdiction CC4', 8urban
Commissioner L Williams,de Beer
Sub!ectB Retrenchments, (urisdiction
"ssue;
"he 7mployer had retrenched an employee with whom the 7mployment relationship
had irretrieably broken down. "he Commissioner held that 7mployer was entitled to
do this, and that CC4' does not hae !urisdiction to entertain procedural challenges
in disputes concerning retrenchments of single employees.
Summar8 o7 =acts;
"he 7mployer was a close corporation in which the 7mployee held a +3N
membership. /ther members were his mother =+3N>, 'ndre 8ippenaar =2?N>, and
Lynette and Rim "hompson =each +3N>.
"he 7mployee had also been the general manager for a period of . years. When a
fellow employee complained about him to the C7/, Ian "hompson =not a member of
the CC>, "hompson suspended him.
"he 7mployee then called a meeting with all the members where he pointed out that
"hompson was an un rehabilitated insolent, and as a result, not allowed to act as
the C7/, with the result that "hompson was remoed from this position.
8ippenaar, the ma!ority shareholder then indicated that he would take oer as C7/
and the employee indicated that he was not prepared to IbackJ 8ippenaar in this
position.
:e failed to return to work and attempted to negotiate an e)it package ia his
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attorneys. "his was followed by another letter from his attorneys, indicating that he
would return to work under certain conditions. "he conditions were not accepted by
the new C7/, and indicated that he was not prepared to work with the 7mployee.
1. Lean and $uretrade 110 CC t#a Bra Bouti;ue -etren+hment< brea(do=n o4 trust
relationshi
1.7MA>705
"he 7mployer then inited the 7mployee to participate in consultation pending a
dismissal for operational reasons. Eo agreement was reached and the 7mployee was
retrenched.
Summar8 o7 Award;
"he Commissioner held that, with reference to the LC decision in Rand Water
Bracks E/ 9 others, she did not hae !urisdiction to ad!udicate the procedural
fairness of the dismissal. "he LC held in that matter thatB I's soon as the procedural
fairness of the dismissal is put in issue by a single employee, I am satisfied that
section +6+=+.> of the LR' must be interpreted as meaning that such cases must still
be referred to the Labour Court and that the CC4' will not hae !urisdiction to hear
them.J
She held, howeer, that she was entitled to split the issues and make a finding in the
substantie fairness of the dismissal. In this regard she held that the wordingB
IreAuirements based on the economic, technological, structural or similar needs of an
employerJ in section .+0 of the LR' was wide enough to include a breach of trust or
a breakdown in the relationship.
In this matter, the 7mployee was unable to function in a harmonious work
enironment with the C7/ and a breakdown in the employment relationship resulted.
"he breakdown was mutual in this case.
"he Commissioner held that there does not need to be a long history of problems for
trust to be damaged, particularly at a senior leel and where parties are co,members
of a close corporation. 's a result, the dismissal was held to hae been substantiely
fair
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%43B( D4etsman > others 6 Transnet L4m4ted
!
Case Eo. (S 5+2 < ?5
(udgment 8ate .+ (une .??-
(urisdiction Labour Court, (ohannesburg
(udge 4olahlehi (
Sub!ectB RetrenchmentB Seerance #ay
1.:ietsman 6 others 3 Transnet Limited
"ssue;
"he 7mployees sought a determination on whether the calculation of the seerance
pay by the 7mployer should hae included the dealer bonuses of each of the
7mployees as proided for in a bonus scheme agreed to by the 7mployer.
"he court held that as long as the 7mployer complied with the statutory minimum
payments, there was no additional entitlement to other payments.
Summar8 o7 =acts;
"he 0 applicant 7mployees were retrenched by the 7mployer. "hey had all
participated in a bonus scheme in terms of which bonuses were paid to them bi,
annually.
When they were retrenched they were paid a seerance package of . weeks$ salary
for each completed year of serice. "he 7mployees claimed that their seerance
packages were calculated incorrectly as the bonuses were e)cluded from the
Auantum of remuneration on which the . weeks$ seerance pay was calculated.
Summar8 o7 Cud:ment;
In e)ercising powers gien to him in terms of section 03=3>, the 4inister published a
schedule indicating payments to be included in an employeeMs remuneration for the
purposes of calculating pay for seerance pay in terms of section 2+ of the 'ct.
In terms of this notice discretionary payments not related to an employeeMs hours of
work or performance do not form part of the remuneration for the purpose of
calculating seerance pay. "he court held that where an employer paid more than
what section 2+ of the 'ct reAuired, a section 03=3> calculation would not apply. In
this case, the 7mployees seerance packages e)ceeded what they would hae
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receied had they been paid the statutory minimum calculated to include the
bonuses.
's the 7mployees receied more than what was proided for in section 2+ of the 'ct
and in the absence of an agreement to use the formula proided for in section 03,
the court held that the 7mployer had complied with the reAuirement of the 'ct and
that the 7mployees were not entitled to payment of their bonuses.
%43!'( Thek4so 6 "B- South A7r4ca %0t8( Ltd
GRedundanc8 > EEA reEu4rementH
!
Case Eo. (S2+3<?3
(udgment 8ate +1 /ctober .??5
(urisdiction Labour Court, (ohannesburg
(udge %reund, 'cting (udge
Sub!ectB #rocedural %airness in Retrenchment
"ssue;
"he applicant was made redundant and challenged the decision on a number of
grounds, namelyB
+. "hat she had not been adeAuately consultedG
.. "hat her employer used an inherently sub!ectie selection criteria and she should
hae been informed of the merits of each employee that was sub!ect to the
redundancy processG and
0. "hat the redundancy was unfair because the employer failed to consider the
obligations contained in the 7mployment 7Auity 'ct =77'>.
Summar8 o7 =acts;
"he applicant worked in the employer$s asset management diision which lost a
number of contracts that necessitated redundancies. #ositions in the diision were
made redundant and affected employees were inited to apply for a more comple)
post of asset administrator. "he applicant applied but was unsuccessful. "he
employer appointed a white male.
"he applicant$s claim for inadeAuate consultation relied on the fact that the employer
commenced consultation meetings on the same day that she was gien a s.+16
letter.
Interestingly, the applicant initially pleaded that her dismissal was automatically
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unfair because of direct discrimination =on the grounds of race and gender>. 8uring
the hearing, by leae of the Court, she amended her claim to plead that the
employer failed to consider the obligations of the 77' when determining parties for
retrenchment. "he applicant relied on s.+3 of the 77'.
1. The(iso 3 /BM $outh A4ri+a &'t1) Ltd ?-edundan+1 6 EEA re;uirement@
Summar8 o7 Cud:ment;
"he Court dismissed the applicant$s contention that she had not been adeAuately
consulted, noting that the applicant, when asked to attend a meeting on the same
day as receiing her s.+16 letter, had not ob!ected or asked for more time. ' number
of consultation meetings were also held subseAuent to the initial meeting.
/n the issue of the selection criteria, the Court found against the employee, noting
that Qa retrenching employer that has one post to fill is not reAuired to debate the
merits of each employee with the others before making the selection$.
"he Court noted that the applicant relied on the 77' to claim that the employer was
obliged to retain the applicant =a black woman> in preference to a white male
proided she was Qsuitably Aualified$ for the aailable position.
"he Court was Auick to re!ect this claim, referring to its earlier decision of 8udley y
City of Cape "own in which it was determined that the 77' does Qnot bring about an
indiidual right to affirmatie action$. "he applicant had submitted to the Court that
8udley was wrongly decided and should not be followed.
"he Court did not agree and it noted, Qthe obligation imposed by the 77' obliges
designated employers to take measures to retain and deelop people from
designated groups does not mean that designated employees should be afforded a
preference when it comes to selection in the retrenchment conte)t$.
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Chater$/
LABOUR COURT AN# LABOUR A00ELLATE TR"BUNAL
3.+ Basic Idea
3.. 'pplication of the Labour court
3.0 (urisdiction of the labour court
3.2 #ower and status of the labour court in trying offences
3.3 ' labour court is a ciil court
3.5 #ower and functions of the tribunal
%/3!( Bas4c "dea
"o promote industrial peace and to establish a harmonious and cordial relationship
between labour and capital by means of conciliation mediation and ad!udication. With
this end in iew different authorities hae been created under the code to resole an
industrial dispute. /f these tow bodies are ad!udicatory or !udicial. "hey are the
labour court and the labour appellate tribunal. "he code has streamlined for some
non,ad!udicatory as well as ad!udicatory authorities. Eon,ad!udicatory authorities
include participation committee conciliator and arbitrator while ad!udicatory
authorities include labour court and labour appellate tribunal.
%/3)( A94cat4on o7 the 9abour court
!
'n industrial dispute may be referred to the labour court in any of the following
waysB
(1) If no settlement is arried by way of conciliation and the parties agree not
refer the dispute to an arbitrator and the parties hae receied a
certificate of failure under section .+?=++> the worker may go on strike or
the employer may declare lock out. :oweer the parties raising the
dispute may either before or after the commencement of a strike or lock
out make an application to the labour court for ad!udication of the matter
=section .++>
(2) 'gain if a strike or lock out lasts for mare than 0? days the goernment
may prohibits such strike or lock out and in that case the goernment
must refer the dispute to the labour court
+
=section .++,=0,2,3>>
(3) 'gain under section .+0 any collectie bargaining agent or any employer
or worker may apply to the labour court for the enforcement of any right
guaranteed or secured to it or him by or under this code or any award
settlement.
1. Md. Abdul Halim, The Bangladesh Labour Code, 2006,CCB Foundation, Ed.1,
.250
%/3,( Cur4sd4ct4on o7 the 9abour court
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;nder section .+2=+?> a labour court shall hae e)clusie !urisdiction to
(1) 'd!udicate and determine an industrial dispute which has been referred to
or brought before it under this codeG
(2) 7nAuire into and ad!udicate any matter relating to the implementation or
iolation of a settlement which is referred to it by the goernment
(3) "ry offences under this code
(4) 7)ercise and perform such other powers and functions as are or may be
conferred upon or assigned to it by under this code or any other law.
%/34(0ower and status o7 the 9abour court 4n tr84n: o77ences
Section .+3 and .+5 of the code proides the procedure and powers of labour court
which is may be of two typesG
+
(1) #ower and status in trying offences and
(2) #ower and status in ciil maters
(a) "he labour court shall follow as nearly as possible summary procedure as
prescribed under the code of criminal procedure +161 ='ct & of +161>
(b) ' labour court shall for the purpose of trying an offence under the code
hae the same powers as are ested in the court of a magistrate of the
first class under the code of criminal procedure.
(c) "he labour court shall for the purpose of inflicting punishment hae the
same powers as are ested in Court of Session under that code.
(d) ' labour court shall while trying an offence hear the case without the
members.
%/3/( Labour court 4s a c4649 court
In the case of #ubali Bank & the Chairman +
st
labour court 228LR='8>2? the Auestion
was raised whether a labour court is a ciil court or not their. Lordship of
1. Md. Abdul Halim, The Bangladesh Labour Code, 2006,CCB Foundation, Ed.1,
.252
the appellate diision upon consideration of releant proision of the industrial
relations ordinance +656 held that the labour court acts as ciil court for limited
purpose but not a ciil court at all it is only by a legal fiction or a statutory
hypothesis that it is to be treated as a ciil court.
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Labour Ae99ate tr4buna9 Const4tut4on
(1) "he labour 'ppellate tribunal shall consist
+
of a chairman or the
goernment deems fit of a chairman and such number of members as
determined by the goernment additional !udge of the high court diision
=section .+1=+>>
(2) "he chairman of the tribunal shall be from amongst persons who is or has
been a !udge or an additional !udge of the Supreme Court or is or has
been a district !udge for at least three years.
(3) If the chairman is absent or unable to the tribunal the chairman any
reasons the senior the senior member of the tribunal if any shall discharge
the functions of the chairman.
(4) 'n appeal or any matter before the tribunal may be heard and disposed of
by the tribunal sitting as a whole or by any bench thereof.
%/31( 0ower and 7unct4on o7 the tr4buna9
)
(1) Sub!ect to this code, the tribunal shall follow as nearly as possible such
procedure as are prescribed under the code of ciil procedure, for hearing
of an appeal by and appellate court from original decrees.
If the members of a bench are diided in their opinion as to the decision
to
be gien on any point,

=a>"he same shall be decided according to the opinion of the ma!ority, if any
=b> If the member of the bench is eAually diided, they shall state the point on
which they differ and the case shall be referred by them to the chairman for
hearing on such point by the chairman himself, if he is not a member of the
tribunal, and such point shall be decided according to the opinion of the
chairman or member or ma!ority of the members hearing the points, as the
case may be.
1. The Labour Code o4 Bangladesh 2006, Ase+tion 215&1)B
2. Md. Abdul Halim, The Bangladesh Labour Code, 2006, CCB Foundation, Ed.1,
.25!
=.> Where a bench includes the chairman of the tribunal as one of its members
and there is a difference of opinion among. "he members and the members are
eAually diided, the 8ecision of the chairman shall preail and the decision of "he
Bench shall be e)pressed in terms of the opinion of the Chairman.

=0> "he !udgment of the tribunal shall be deliered within a period of not more
then 5? days following the filing of the appeal.

=2> "he tribunal shall hae authority to punish for contempt of its authority, or
that of any labour court as if it$s were a high court diision of the Supreme Court.
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=3> "he tribunal may, on its own motion or on the application of any party,
transfer a case from one labour court to another.
=5> "he tribunal shall hae superintendence and control oer all labour courts.
Chater 1
CONCLUS"ON
5.+ %indings
5.. Recommendations
5.0 Scope for %urther Study
%13!( =4nd4n:;
Worker$s retrenchment is a ery essential function of the labour law. It$s a ery effect
for Labours and the 7mployers. Eo worker employed in any shop or commercial or
industrial establishment who has been in continuous serice for not less then one year
under an employees shall not be retrenched by the employer unless,
(a) the worker has been gien one month$s notice in writing, indicating the
reason for retrenchment or the worker has been paid in lieu of such
notice, wages for the period of noticeG
(b) a copy of the notice in respect of the retrenchment is send to the chief
inspector or any other officer authori*ed by him G and
(c) the worker has been paid, at the time of retrenchment , compensation
which shall be eAuialent of fourteen days$ wages for eery completed
year of serice or for any part thereof in e)cess of si) month, or gratuity,
if any, whicheer is higher B
%or the purpose of calculation of compensation under this Section, wages shall mean
the aerage of the basic wages plus dearness allowance, if any, paid to the worker
during the period of twele month immediately preceding the date of retrenchment.
%13)(Recommendat4ons
"he importance of labour law is ery much in Bangladesh perspectie. It is highly
importance in Bangladesh perspectie of labour law. We know that labour is a most
important part of an industry. So, we can not think an industry with out labour.
Labour right is most essential in Bangladesh. But the labours are aware about their
right. "hey don$t know properly about labour education. It is a great problem.
%or this reason, they retrenched by the employee as the employers wish. &ery often,
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they retrenched with out any legal process. "his is in!ustice and in human. "his
should be protected for the interest of industrialisation in Bangladesh. #roper and
strict proisions should be included in Labour laws and state laws. "he labours
should not be depried. "heir rights should be protected.
Illegal retrenchment by the employer is inhuman and increased the suffering of the
labours. In this respect he following action should be takenB
+. "he cause of retrenchment should genuine and proper in the eye of law.
.. #roper notice for three months should be gien to the respectie labour for his self
defence,
0. If not the labour should be paid three months salary and other benefits allowable
as per law.
%13,( Scoe o7 the 7urther stud8
"he discussion of this thesis will be limited within the scope of the origin and
historical deelopment of Labour law of Bangladesh, the problems of Labour law of
Bangladesh, problems of Labour education in Bangladesh and some case studies.
In Bangladesh perspectie we find that there are seeral problems remain related
with Labour disputes, Workers #roblem, "rade ;nion #roblems, 7mployments
problems, Working :our Schedule etc. So we think further study may be done on the
following issuesB
+. Labour disputes solution process.
.. "rade ;nion #roblems and their functions
0. 7mployers and 7mployees relation.
B"BL"O*RA0+F
+. 4d. 'bdul :alim, the Bangladesh Labour Code, 2006, CCB %oundation, =(uly,

.??1> 8haka, Bangladesh.
.. 4d. 'bdul :alim 9 4asum Saifur Rahman, the Bangladesh Labour Code, 2006,
CCB %oundation, 7d.B 0
rd
, =(une, .??-> 8haka, Bangladesh.
0. Eirmalendu 8har, Labour 6 /ndustrial La=s o4 Bangladesh, Remisi #ublishers, and
7d.B .
nd
, ='ugust, .??2> 8haka, Bangladesh.
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2. ===.s(illsortal.+o.9a net. &*isited on7 2C
th
ma1200") .
33 ===. HumanDresour+eDmanamement#+asela= net. &*isited on7 2C
th
ma1200")
ABBREA"AT"ON
'8 B 'ppellate 8iision
'8R B 'lternatie 8ispute Resolution
BCR B Bangladesh Case Reports
BLC B Bangladesh Law Chronicles
BL8 B Bangladesh Legal 8ecisions
BL" B Bangladesh Law "imes
B&C B Bar ocational Course
C8 B Case 8airy
C#C B "he Code of Ciil #rocedure, +6?1
Cr#C B "he Code of Criminal #rocedure, +161
8LR B 8haka law Reports
8# B 8epartmental #rocedure
SC B Supreme Court
CASE "N#EI
+. 'minul Islam s. (ames %inlay Co. Ltd .58LR =SC>00.
.. Bangladesh "ea 7state Ltd. s. Bangladesh tea estate staff union =+6-5>.18LR
='8> +6?.
0. Bangladesh !ute corporation s..nd Labour court, 8haka =+616> 2+ 8LR .53.
2. 4<S Calte) oil =#akistan> Ltd. s. "he chairman second labour court =+65-> +6
8LR .52.
3. #akistan "obacco Company Ltd. s. #akistan "obacco Company 7mployee union,
8haka, +0 8LR =sc> .1?.
5. ;.B. 8att Co. s. workmen 'IR +630=SC> 2++

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