An Assignment

On
Course Title: Bangladesh Labor Law
Course Code: HRM-5307
Program: MBA-1 Year
Semester: 1st Year 3rd Semester

Submitted to:
Anisur Rahman
Senior Lecturer
Department of Business Administration
North Western University, Khulna

Submitted By:

Afsana Amin Sinthia

Id:20191007501
Department of Business Administration
North Western University, Khulna.

Date of Submission: 19.08.2020

 Answer no:1(a)
“Background of Bangladesh Labor Act, 2006 and it’s Subject matters/issues”
The Bangladesh Labour Act, 2006;
Labour laws, no doubt, play a crucial role in the industrial relations system, labour laws were
enacted at different times to meet the surge of current problems and in most of the cases
relationship with another law was not taken into consideration which necessary Ied into
anomalies and contradiction with another. For example the definition of worker has been
envisaged in different laws indifferent ways, minimum ages for children in different statues are
different and so on. It resulted in gross difficulty in application of laws.
BACKGROUND OF THE LABOUR ACT, 2006;

Laws regulating employer and establishment with regard to the rights and interests of workers
were introduced during the colonial time before the emergence on Bangladesh as an independent
country. The Factories Act, 1881 was the first law of this kind. Workmen's Compensation Act,
1923, Trade Unions Act, 1926, Trade Disputes Act, 1929, Payment of Wages Act, 1936,
Maternity Benefit Act, 1939, and the Employment of Children Act, 1938 are the subsequent
legislations of the colonial era. As stated above the Factories Act, 1881 was the first labour law
legislation of Bangladesh. It was subsequently repealed by the Factories Act, 1934, which was
again repealed by the Factories Act, 1965, which gave effect to some of the ILO conventions.
The Act of 1965 applies to manufacturing establishments employing ten or more persons with or
without the aid of any mechanical power. The workers to whom the Factories Act of 1965 does
not apply are covered by the Shops and Establishment Act 1965. The other labour law
legislations which were in force immediately before enactment of the 2006 Act were the
followings:

i. The Workmen’s Compensation act,1923

ii. The Children (Pledging of labor) act, 1833
iii. The Dock Laborers act, 1934
iv. The Workmen’s Protection act, 1934
v. The Payment of Wages act, 1936
vi. The Employer's Liability Act, 1938
vii. The Maternity Benefit Act, 1939
viii. The Mines Maternity Benefit Act, 1941
ix. The Motor Vehicles (Drivers) Ordinance, 1942
x. The Maternity Benefit (Tea Estate) Act, 1950
xi. The Employment (Records of Service) Act, 1951
xii. The Bangladesh (Plantation Employees) Provident Fund Ordinance,1959
xiii. The Plantation Labour Ordinance, 1962
xiv. The Employees Social Insurance Ordinance, 1962
xv. The Industrial Relations Ordinance, 1969
Laws other than labour law 2006 applicable in Bangladesh:
The other Labour laws applicable in Bangladesh after the enactment of Bangladesh Labour law -
2006.

The Control of Employment Ordinance, 1965:

An ordinance is provided for the collection of information relating to employment in industrial
undertaking and available of persons therefore, and for the control and such employment, and
matters connected therewith or incidental thereto.

The State-owned Manufacturing Industries Workers (TerIIs and Conditions of Service)

Ordinance, 2000:
An ordinance is provided for the implementation of certain recommendations of the National
Workers wages and productivity Commission.

The Agricultural Labonr (Minimum Wayes) Ordinance, 1984:

An ordinance is provided for the fixation of minimum rates of wages for the agricultural
workers.

The Fatal Accidents Act, 1855:

An Act lo provide compensation of families for loss nocasioned by the dcath of a person caused
by actionable wrong.

The Inland Water Transport (Regulation of Employment) Act, 1992:

An act to regulate methods of recruitment and conditions of services of workers employed in the
Inland water Transport vessels.

Merchant Shipping Ordinance, 1976: Sections 98-117.

The Code of Conduct, 1993:

For Newspaper,News Agencies and Journalists of Bangladesh.

The Bangladesh Cha Sramik Kallyan Fund Ordinance, 1968:

An ordinance to provide for the establishment of a Kallayan Fund for the Bangladesh Cha
Sramik.
 Answer no:1(b)
“Bangladesh Labor Law for benefiting Workers amid COVID-19 pandemic”
In the wake of the current Covid-19 pandemic, the government of Bangladesh has extended the
earlier declared national holiday till May 5, 2020. The authorities have ordered to close down all
the government as well as private offices during this period. All shops except hospitals,
pharmacies, kitchen markets will remain closed and transportation services will be very limited
during this period. The government has also advised the citizens not to go out except for
emergency reasons. Only the companies associated with emergency supplies like food, medicine
and technology-based companies are exempted from the purview of what is practically a
"lockdown".
It is important to look at what the Bangladesh Labour Act (BLA), 2006 has in store for
employers:

 Stoppage of work
According to the provisions of BLA, an employer is entitled to stop the work of any particular
section or the whole establishment due to any "epidemic".

The condition is that such stoppage cannot extend beyond three working days. If the period of
stoppage of work extends beyond three working days, the workers may be laid- off in accordance
with the provisions of section 16. A lay-off mentioned in sub-section (8) shall be effective from
the day of stoppage of work and any wage paid to a worker for the first three days may be
adjusted against the compensation payable for such subsequent layoff.

During the period of stoppage of work, if it lasts for more than a day, the workers will be entitled
to their respective wages. However, casual workers' will not be entitled to such wages. For the
affected piece-rated workers, their average daily earnings in the previous month shall be taken to
be the daily wages. However, this provision of "stoppage of work" may not be applicable in this
situation as the COVID-19 crisis is continuing and is expected to linger much longer. As such,
the mechanism of "stoppage of work" is not a suitable one for employers for this current crisis.

 Forced leave:
A mechanism now being used around the world is to force employees to use earned annual leave
days. The obvious benefit from an employer perspective is that workers going on leave during a
lockdown or low-demand period will mean more workers will be available when the situation
returns to normalcy later. However, the BLA does not provide any mechanism to force workers
to go on leave, whether paid or unpaid. So even if an employer intends to use this mechanism, it
must be upon mutual and informal negotiation with workers.
 Lay-off:
A method being used globally to cut labour costs during the current economic shutdown is
temporarily laying off workers. As per the BLA, lay-off means failure, refusal or inability of an
employer to employ workers due to shortage of coal, power or raw materials or accumulation of
stock or the breakdown or malfunction of machinery.
As general holidays are continuing and transportation services are very limited to emergency
supplies, it is probable that shortage of raw materials might occur and employers may have to
lay-off its employees to reduce its business loss.The first period of lay-off can extend up to 45
days. The lay-off period may then be extended for periods of 15 days. During the first 45 day
lay-off period, workers laid off are entitled to half of their basic wages and dearness allowance
and ad-hoc or interim wages.
In order to qualify for lay-off, a worker must be one other than a casual worker and must have
completed at least one year of continuous service. The employer is responsible for keeping a
muster-roll of laid-off workers during the period.

 Retrenchment:
The employer can terminate a worker under the ground of retrenchment if only where a worker
has given one month’s notice in writing indicating the reason of retrenchment or the worker has
been paid in lieu of such notice wages for the notice period, a copy of the notice in respect of
retrenchment has been sent to chief inspector and the worker has been paid at the time of
retrenchment compensation or gratuity whatever is required.
Retrenchment is dealt with in section 20 of the Act. Section 20 of the Act allows any worker to
be retrenched from service of any establishment on the ground of redundancy. Where workers
have been in continuous service with the organisation for not less than 1 (one) year, the employer
can retrench workers by paying them compensation at the rate of 30 (thirty) days' wages for
every completed year of service or gratuity, whichever is higher. In addition to the above
payments, employees will still be entitled to their provident fund payments, if any. All final
payment of dues of the retrenched employees will need to be paid/cleared within 30 (thirty)
working days following the date of cessation of their employment and the retrenched employees
shall be furnished with certificates of service at the time of retrenchment.

In the eye of law, the employer has an options to terminate a worker under the provisions of law.
But the employer before terminate any employee should consider the dedication and contribution
of their worker to the company in the previous months, years or even their whole life. A mutual
understanding based on sacrifice, helpful mind and sympathetic view between employer and
employee may overcome this critical time in the amid of pandemic Covid-19.