Introduction

Labor Act of Bangladesh, 2006 and amendment of 2013 is currently followed by all the
industries of Bangladesh. Which is published by Ministry of labor and employment, with an
objective to enhance productivity of Factories by creating Friendly working environment
between workers & Employers, ensure welfare of workers in different industrial area, to
implement Labor-Laws, to fix up minimum wages of labor, ensure justice through Labor
Court. ICI Bangladesh Manufacturers Limited was a subsidiary of world renowned
multinational ICI Plc. and was a listed public limited company under Dhaka Stock Exchange.
In 1992 ICI Plc. divested its shareholding through a management buyout and the company
name was changed from ICI Bangladesh Manufacturers Limited to Advanced Chemical
Industries (ACI) Limited. ACI Formulations Limited, a subsidiary of ACI, became a public
listed company through direct listing. ACI has diversified into four major strategic business
divisions which include Health Care, Consumer Brands, Agribusinesses and Retail Chain.
The purpose of our research is to analyze whether ACI follows certain laws or regulations
from the Bangladesh Labor Act, 2006 and amendment 2013 or not. Our major focus was to
relate existing law with the current situation that is already implemented in ACI ltd. As per as
we are concern, we expect ACI to follow a fair labor law practice in their organization.
However, we found ACI has only one labor union in their pharmaceutical sector, where as
there is no labor union on other two strategic business unit. Also they do not have any board
of trustee, which is mandatory for a manufacturing industry. Finally, there are many scope of
research through a quantitative data collection of more workers and employees in ACI to
enhance the usefulness of this report.

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Literature review
In the question of law it is easily say able that we the people of Bangladesh are not too much
respected to the law. Role of labor 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 involves with some major aspect. Besides all
these things labor issues are also very important. Proper management of labor is an essential
matter for growth of industrial sector. ACI limited is a big company with their different sector
in Bangladesh. They have more than 8000 employees in the whole organization and their
whole organization is divided in many SBUs. Labor and industrial law is much important for
ACI limited and as well as employees.
Almost all of those labor laws are practiced by ACI limited in different HR issues. According
to ACI limited has all employees benefits, leaves, provident fund, welfare fund, working
hours, break, holidays all of those issues are practice by them which is fixed by Bangladesh
labor law 2006. ACI limited always try to reduce their gap between their commitment and the
reality in different labor law practice. Their very concern about their very law and code of
conduct and they strictly follow the Bangladesh Labor Act-2006 and 2013in different issues
regarding the HR. ACI limited has some minor mismatches with law which might create
problem for long run. If they eliminate the labor law then they might create problem for them
as well as the labor. Labor dissatisfaction, turnover of employees and workers, employer and
employees clashes will increase if the ACI eliminate the labor law.

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Methodology
For conducting research on ACI Ltd we have done both primary and secondary data analysis.
For primary data analysis we have gone through qualitative data collection through an
interview of HR manager of ACI. So we designed a questioner which covers chapter 1, 15,
and 19 of Bangladesh labor Act, 2006 in very detail. However, that questionnaire was consist
of 105 questions. The main purpose of asking these types of questionnaires is to collect all
the related information regarding some basic labor acts practice that covers workers
participation in companies profit along with penalty and procedure that is related with labor
act. Through our questioner we tried to figure out what benefits are their workers are getting,
what working hours they are having and some profit sharing issues including welfare fund
and tax treatment of income for the workers etc. Our primary research questions also covered
some issues regarding penalty for violating different labor acts and issues. Though we could
not ask for the confidential issues but the overall data collection process was quite helpful for
in-depth data analysis. Besides we have managed to chat with some of other labors as just for
curiosity type to know about the inner reality of the organization. For further reference of the
study we have attached the survey questions as appendix at the end of this report.

Analysis of ACI
The Objective of our research is to analyze whether an organization follows certain laws or
regulations from the Bangladesh Labor Act, 2006 or not. The implementation of certain labor
acts in ACI ltd. To prescribe certain remedies that can be useful to get more efficiency in the
organization. ICI Bangladesh Manufacturers Limited was a subsidiary of world renowned
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multinational ICI Plc. and was a listed public limited company under Dhaka Stock Exchange.
In 1992 ICI Plc. divested its shareholding through a management buyout and the company
name was changed from ICI Bangladesh Manufacturers Limited to Advanced Chemical
Industries (ACI) Limited. ACI Formulations Limited, a subsidiary of ACI, became a public
listed company through direct listing. ACI has diversified into four major strategic business
divisions which include Health Care, Consumer Brands, Agribusinesses and Retail Chain.

Findings
Preliminaries (Chapter 01. BLA, 2006 and Amendment 2013)
The chapter 1 is mainly based on definitions. There are definitions of different terms that will
be applicable for the labor and their rights. So in the analysis part we have tried to focus on
the topic that will be relevant for ACI Limited for the discussion. Some of the terms of
Chapter 1 of BLA-2006 is not applicable for ACI Limited as they discuss something else
different from our area of interest. From ACI Limited we have found that the retirement age
is 57 (BLA-2006, Section-2, Subsection-1) and there is no fixed age of voluntary retirement
(BLA-2006, Section-2, Subsection-1). But if they have less than 8 years of service age then
they will not be eligible for the facilities that they are supposed to get after the retirement
(BLA-2006, Section-2, and Subsection-10). For the compensation purpose of different
industrial accidents or injury they have group insurance policy and the company has a fixed
fund for employee welfare. They provide breaks within the work schedule and also provide a
30 minutes lunch break in the lunch time (BLA-2006, Section-2, and Subsection-4). For the
overtime issues they have a limitation. No employee is allowed to work overtime more than 5
hours in a day. Generally for the industry worker they have 1 holiday /week and for the
administrative worker they have 2 holidays/week. The male and female ratio is 75/25. They
provide food facilities for the industrial workers. In the ground of bad behavior or other cases
discharge rate is 0. They have only one trade union in their organization and that is in
Pharmaceutical sector. They maintain fully automated machinery in the industry sector so
there is no scope to go slow in the production line. There are two working shifts in the
industry sectors starts at 6am and ends at 10pm.

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For maternity leave they provide 4 months paid leave (BLA-2006, Section-2, and Subsection34) and for paternity leave they give 5 days leave to new fathers. The average wage of the
workers varies from 10-15 thousands according to their grade and work tenure (BLA-2006,
Section-2, and Subsection-53). They workers get 1 weekly holiday and get all the registered
government holidays as per the calendar. The work schedule is same for the male and female.
The workers get 2 festival bonuses in a year and the company also shares the annual profit in
an equal basis. The workers get breaks within the work schedule. The workers who work
generally in night schedule means 6pm-10pm get a bit more allowance then the day time
workers. The company gives compensation if the workers have to work in any government
holiday due to extra demand of products.
The employees are entitled to get 24 casual leave, 14 days sick leave in a calendar year.
There is a procedure of leave encashment. In the case of emergency the employees are
allowed to take on the job leave and for that day they will get the payment. Generally the
payment method is monthly. There is no single child labor in the organization. The
employees have to give a 30 days notice period before leaving the job but if they fail to
follow that then there will deduction from their salary as per day basis. The employees get
loan facilities especially for car and house. They can repay that loan from salary. The
industrial workers get living facility only for individual workers and that is free of cost.

Workers Participation in Companies profit (Chapter 15, BLA 2006 and

Amendment 2013)

Chapter 15 of BLA-2006 talks about the participation of the employees in companys

earnings or profit. In our research work and from the answers of the questionnaire we have
tried to figure out the different aspects of ACI Limited in these particular issues. The total
turnover amount of ACI Limited in the year ended in 31st December, 2013 was BDT 2216
Crore. In this sector whatever we have discussed, we tried to do that from the very recent data
of the organization.
ACI Limited shares the 5% profit within the employees (BLA-2006, Section-234, and
Subsection-2). Unlike the other organizations, ACI distributes the whole amount equally with
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all the current workers of the organization (BLA-2006, Section-234, and Subsection-2). That
means the profit sharing is equal for all the people living in the different level of the
hierarchy. If someone dies after that period then the amount is handed over to the family
members in the AGM of the company. The employees who have passed the initial 6 months
probationary period are allowed to participate in that profit sharing (BLA-2006, Section-241,
Subsection-1, 2). The company has released the factory workers from paying the income tax
(BLA-2006, Section-246).
The company doesnt have any Board of Trustees but have The Board of Directors (BLA2006, Section-235). These people are responsible for the distribution of the amount to the
employees and for the other distribution works. Generally the boards of directors people are
selected in the annual general meeting (AGM).

Offences, Penalties, and Procedure (Chapter 19. BLA, 2006 and BLA,
Amendment 2013)

Chapter 19 of BLA-2006 discusses about the different aspects of the penalty procedure
regarding any misconduct in any issues. Generally the BLA-2006 discusses the different
issues regarding illegal industrial disputes and about their penalty procedures or the
settlement of different industrial misconduct. There are many kind of definitions in BLA2006 regarding the illegal work practice or illegal lock out and others. But the company we
are studying for the research work has given us some information that makes them quite a
perfect organization regarding industrial disputes. ACI limited maintain the BLA-2006 for
the compliance issues. Beside that they have their own COC that has collaboration with the
BLA-2006 regarding the compliance issues. As ACI Limited is a FMCG as well as
Pharmaceutical manufacturer, they have to work with a large number of employees. But there
is not enough prominent evidence of any kind of industrial disputes in their organization.
Among the whole ACI Limited only the Pharmaceutical unit maintains a labor union and they
maintain a very smooth communication with the separate HR dedicated for that unit. In last 5
there was a little workers unrest in their factory but was dissolved within a few hours. Till
now no illegal lockout or this kind of incident took place in their organization. As per the
BLA-2006, ACI has maintained the minimum wage level in the organization. The whole
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organization has a restriction on child labor. The candidates have to submit the NID or any
relevant documentation that proves that s/he is 18+. There are regular increments in all levels
so maintain the market. Now if there is any disputes and if there are cases that went to the
Labor Court then there are few things. If the employee is found fresh with no guilt then after
the settlement the authority pays the basic payments of days, means if the case run for 3
months then after getting the fresh certificate from the labor Court ACI will re employ
him/her and pay 3 months basic salary as the compensation. But this never happened as till
now no cases went to the labor court.
For any kind of illegal activities like theft or fraud in funds is taken care by the COC
compliance which is collaborated with the BLA-2006. Giving false statement of anything or
information disclosure are taken care according to their level of damage and decisions are
made according to that. In case of absence in working place without prior notice for 9 or
more days which is a compliance as per BLA-2006, the authority asks for the reason and the
company has to show cause. If the reasons are proper then they get consideration but if the
information or documents are not satisfactory then the authority takes actions as per the labor
law.

Results
Bangladesh is a under developing country with a majority of working class people. Employer
and employee relations in industrial sector is not much friendly in Bangladesh. To solve the
disputes and to make the things right Bangladesh labor Law was introduced in 2006.This law
is for recruitment of laborers relation between employers and employees, fixing minimum
wages rate, payment of wages, compensation for accident, formation of trade union,
industrial disputes and solution, health, security, welfare and condition of job and
environment and probationary period and concerned issues .This law is applicable for all the
labors from all the sectors expect (Bangladesh labor law, 2006)
1. Officers of or under the Government
2. Security printing press
3. Ordnance factories
4. Establishments for the treatment or care of the sick, infirm, aged, destitute ,mentally
disabled, orphan, abandoned child, widow or deserted women, which are not run for
profit and gains
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5. Shops or stalls in any public exhibition or show which deal in retail trade and which is
subsidiary or to the purpose of such exhibition or show.
6. Shops or stalls in any public fair or bazaar for religious or charitable purpose.
7. Educational training and research institutions (not maintained for profits and gains)
8. Hostels messes
This labor law contains 21 chapters which includes all the issues relating to labors. In this
report we are focusing on chapter 1 which is preliminary laws, chapter 15 which is workers
participation in companies profits and chapter 19 which is penalty and procedure.

Chapter 1
Chapter 1 basically talks about the preliminary laws. Chapter 1 has two sections (Short title,
commencement and application, and the definitions). Chapter 1 also says that whom to apply
and whom not to apply these law. Chapter 1 also introduce us with many definitions like
retirement, factory, working hour, retrenchment, trade union etc. In ACI there are 8000
employee with 75% of male employee. They have only one trade union in the pharmaceutical
sector.

Chapter 15
This chapter has 22 sections which deals with the workers participation in companies profits.
Section 232 (1) says that,
This chapter shall be applicable to all such establishment or companies which and satisfy
any of the following conditions, such as
The paid up capital of the company or establishment as on the last date of accounting year is
at least Tk. One crore;
The value of the fixed assets of the company or establishment at cost as on the last date of the
accounting year is Tk. Two core.

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ACI limited shares 5% of their total profit with the workers and they distribute these amount
equally.
This chapter also talks about the management of funds utilization of welfare fund.

Chapter 19
Chapter 19 of Bangladesh labor law talks about the crime, penalty and procedure. This
chapter has 33 sections which deals with different penalties for different crime. For example
section 284 talks about the penalty for employment of child and adolescent. Section 294 talks
about penalty for illegal strike or lockout. Section 299 talks about penalty for activities for
unregistered trade unions. Section 303 talks about penalty for false statements. ACI has a
restriction on hiring child labor. ACI has their own code of conduct which completely
follows chapter 19 of Bangladesh labor law.

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Recommendation

Establish worker fund according to section 234, BLA, 2006 According to the
Bangladesh labor law 2006 section 234, ACI limited have to establish worker fund.
They already have worker participation fund in their company. ACI limited is applies
the chapter 15 which is workers participation in companies profits, so they have to
establish workers fund in accordance with the provisions of this chapter within one
month of the date on which this chapter becomes applicable to it.

ACI should establish medical center with registered medical practitioner in their
factory site.
According to the Bangladesh labor law 2006 section 89 ACI limited should have to
establish medical center with registered practitioner or they have to maintain first-aid
boxes or almirah equipped with the prescribed content, the number of boxes or
almirah shall not be less the one for every one hundred fifty workers.

ACI need to establish Board of Trustees as soon as possible according to section 235,
or else they might have to pay fine according to section 236 of BLA, 2006.
ACI limited has broad of director but they dont have any board of trustee. According
to the labor law 2006 section no 235, ACI limited should have to board of trustee in
their factory premises. Otherwise they have to pay fine according to section 236 of
BLA, 2006 which is fixed that the member of individuals involved with the activities
of the trust should pay the penalty a sum which may extend to maximum one lac taka.
So they need to establish board of trustee in their factory premises.

Strictly follow their workers working time as they dont have fixed working time in
all the SBUs.
ACI limited should have to fix the workers working time in all the SUBs according
by the BLA-2006 in section 100 and section 103.

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Conclusion

In our total report we tried to find out the implementation of Bangladesh labor act, 2006 at
ACI ltd. We have found that the overall system was quite satisfactory and employee friendly.
But the profit sharing process need more improvement in employee benefit system and more
worker beneficial project should be initiated as per Bangladesh labor act, 2006.
Limitation of the study: Though we have prepared more than 90 questions we could not
collect all the answers of the questions that we prepared. It was not possible for MR. Kaiser
Rajib Senior HR manager of ACI ltd. To answer all the question answers at a very short
period time. However, we tried to collect some relevant information regarding labor acts that
covered all of our necessary queries. One of the other problems was the time regarding the
research was not enough for us to go in depth of our study.
Suggestion for future research: First of all more interviews from the worker level should
enhance the quality of the report. And some other issues like workers demographic
information including age, salary structures etc. would certainly enrich our total report.
Besides time constraints was also a factor that could be more helpful to make the research
paper more useful for a generalized view to judge or forecast the implementation of labor acts
in an organization like ACI ltd. Besides the sample size of this report is just 1 if it can be
increased to minimum 5 to 7 people and if the survey could be arranged for more industries
the report would be more reliable and informative.
Practical implementation: For understanding the present scenario whether the
implementation of labor act regarding workers participation in companies profit is
implemented according to law in ACI or how this are related with the organizations over all
philosophy can be determined through this report. Besides what procedures regarding penalty
for different violation of the act should be taken can discussed according to the analysis part
of chapter 15 and 19 of this report. Who are worker or who do not fall under this labor act
can also be determined by this report. Penalties regarding unfair labor practices such as
breach of agreement and other issues like what steps should be taken if the rules are violated
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are thoroughly discussed in the analysis part. The relevant theories and references from the
Bangladesh Labor Act, 2006 are used for authenticity of the report.

Reference
ACI Limited. (n.d.). Retrieved December 14, 2014, from http://www.aci-bd.com/
ACI Limited. (2013, January 1).Annual report Retrieved from http://www.acibd.com/ACILtd/2014/ACIAnnualReport2013.
Asaduzzaman, M. (2014). Workers participation in companies profits. In Labor Laws Of
Bangladesh (1st ed., pp. 387-408). Dhaka: Mohammad Ali Miah on behalf of
National Law Book House.
Bangladesh Labor Act, 2006, Ministry of labor and employment, Government of
Bangladesh, Dhaka
Bangladesh Labor Act (amendment), 2013, Ministry of labor and employment, Government
Of Bangladesh, Dhaka

Jsshim Uddin, N. (2014). Preliminary. In Bangladesh Labor Law, 2006 (4th ed., pp. 1-26).
Dhaka: Central Law Book House , Islamia Market , Nilkhet, Dhaka.

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