4/13/2022
Retrenchment & Misconduct
Md. Salauddin Saimum
Assistant Professor, Department of Law
University of Rajshahi
Retrenchment
Section 2(11)
Retrenchment means the termination of a worker from service by the
employer on the ground of needlessness caused by redundancy.
Conditions for a valid Retrenchment
According to section 20-
✓The workers to be retrenchment must be given one month’s notice.
✓The notice must be given in writing
✓the notice must be contained reasons for retrenchment
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RETRENCHMENT
Conditions for a valid Retrenchment
❑ instead of giving one months, a worker may be retrenched instantly by
giving him payment of wages for the period of notice
❑ a copy of the notice of retrenchment must be send to the chief inspector
❑ a copy of the notice must be sent to the CBA
❑ there must be termination of services of a worker on the ground of
redundancy or surplus labour
Leading Case References
Hariprasad vs Divelkar, AIR 1957 (SC) 121
Retrenchment means the discharged of surplus labour or staff by the
employer. It is not a punishment measure.
Santosh Gupta vs State Bank of Patiala, AIR 1978
Retrenchment includes every kinds of termination.
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Doctrine of ‘Last Come First Go’
Section 20(4) of the BD Labour Act, 2006 incorporates the well
recognized principle of retrenchment called- the “last come first go”.
Where a worker of any particular category is required to be retrenched,
the employer shall, in the absence of any agreement between him and
the worker in this behalf, retrench the worker who was the last person to
be employed in that category.
Retrenchment compensation
Under Section 20(2) payment of compensation for retrenchment is
mandatory. The provisions of compensation for retrenchment are as
follows:
At the time of retrenchment, the worker must be paid compensation
equivalent to thirty day’s wages for every completed year of service or
for any part thereof in excess of six month’s or gratuity, if any,
whichever is higher
To claim compensation for retrenchment the worker must show that he
has been in continuous service for not less than one year under that
employer who has retrenched him
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Re-employment of retrenched workers
Section 21
Where any worker is retrenched and the employer intends to employ
any worker again within a period of one year of such retrenchment, the
employer shall send a notice to the last known address of the retrenched
worker asking him to apply for employment, and any worker who
applies for re-employment in response to such request shall be given
preference. If more than one such retrenched workers apply, preference
shall be given on the basis of their seniority in their previous services.
Retrenched worker subsequently taken back-entitled to re-employment
and not to reinstatement.
Leading Case Reference
Sultana Jute Mills Ltd. vs Chittagong Labour Court, 42 DLR
(1990) 340
There is no law prohibiting the employer from retrenching his worker
during pendency of Labour dispute.
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Discharge
Section 2(17)
Discharge means the termination of service of a worker by the employer
for reasons of physical or mental incapacity or continued ill health.
Discharge means discharge of a person in a running or continuous
business, not discharge of all worker when the industry itself ceases.
Grounds and Compensation
Section 22
A worker may be discharged from service for reasons of physical or
mental incapacity or continued ill-health certified by a registered
medical practitioner.
If a discharged worker completes not less than one year of continuous
service he shall be paid by the employer, as compensation, 30 (thirty)
days’ wages for his every year of service, or gratuity, if payable,
whichever is higher.
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Grounds of Misconduct
• Willful disobedience whether alone or combination with other to any lawful
order of a superior.
• Theft, fraud, dishonesty
• Habitual absence without leave or without obtaining leave , absence for more
than 10 days.
• Habitual late attendance.
• Habitual breach of any law, rules and regulation.
• Habitual negligence in work.
• Altering, wrongfully changing, damaging or causing lose to employer’s official
records.
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Punishment for Misconduct
A worker found guilty of misconduct may be awarded of the punishment
instead of being dismissed like –
• Removal
• Reduction to a lower post
• Stoppage of promotion for a period not exceeding 1 year
• Withholding of increment for a period not exceeding 1 year
• fine
• Suspension without wages and subsistence allowance for a period not
exceeding 7 days
• Warning
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