Jatiya Kabi Kazi Nazrul Islam University
Industrial & Labour Law
Course Code : HRM-210
Assignment On:
Practice of Bangladesh Labor Act 2018 in RMG Sector
Submitted To:
Sharifa Akter
Lecturer
Department of Human Resource Management
Jatiya Kabi Kazi Nazrul Islam University
Submitted By
Historical Background of Labor Law
The emergence of labor law in Bangladesh is as old as its origin in the Indian sub-
continent dating back to the last half of the 19th century. The Factories Act, 1881 was the first
legislation of its kind in the undivided India. The legislation was enacted in the wake of
pressure of the British merchants and mall-owners as well as on the basis of a report of Major
Moore, Inspector in Chief of the Bombay Cotton Department in 1872-1873 in a bid to
regulate the working conditions in factories. Subsequently, the British Government
introduced several other laws relating to various labor issues such as working hours, wage,
trade union activities, employment of children, maternity benefit etc. Prior to the present
version of the BLA 2006 there were as many as 50 scattered laws regulating employer and
establishment with regard to the rights and interest of workers. Out of those 50 laws, 15 were
enacted during the colonial British regime, 23 were passed during the Pakistan period and
only 12 were made during Bangladesh period. Establishment of the International Labor
Organization (ILO) in 1919 galvanized the legal framework as to labor rights. After the
separation of the India and Pakistan in 1947, almost all the
laws during the pre-partition period have been kept in force
with some minor modifications and amendments
(Wikipedia, n.d., para. 1). After the independence in 1971,
the government of the People’s Republic of Bangladesh
retained the previous laws and also enacted additional laws
in response to the changing circumstances and needs of the
working class and the employers. In many cases those
existing laws were outdated, scattered, inconsistent and
often overlapping each other. As a result, in 1992 a
Labor Law Commission was formed by the Government which examined 44 labor laws
and recommended to repeal 27 laws preparing a draft Labor Code in 1994. This draft of
Labor Code, 1994 underwent series of changes in its vetting stages and finally the
Bangladesh Labor Act, 2006 was passed by the Parliament on October 11, 2006. In 2013,
Bangladesh government approved the new labor law with considerable ammendments to boost
worker rights. The bill was passed keeping the provisions of allowing trade unionism in
factories, ensuring safety measures for workers at their workplace, introducing compulsory
group insurance and stopping children to be involved in hazardous works. To make the law time-
befitting, a total of 87 sections of the 2006 labor law, first of its kind in the country, have been
amended (Munir, 2013). After 2013, a new amendment has been drafted in 2018. The draft
of Bangladesh Labour (Amendment) Act, 2018 aims to make labor law worker-friendly
while regulating the conduct of workers and owners in compliance with the standards of
International Labour Organization (ILO). In the proposal, 2 new sections, 4 sub sections and 8
clauses have been added, 6 sub-sections have been repealed and reform in 41 sections have
been proposed (Bhuiyan, 2018). This law is one of the very recent laws with major overhauling
changes in the field of labor legislation.
Review of the Existing Literature
Many researchers have investigated health, hygiene and safety conditions of the garments
industry of Bangladesh (Hossain and Hameeda, 2007). Researchers have found that
working condition in the RMG sector are below standard and do not meet the ILO
standards.
Some of them are highlighted in the below:
Labor standards and rights are commonly ignored in the RMG factories in Bangladesh.
Moreover workers suffer various kinds of diseases due to the unhygienic environment and
a number of workers are killed in workplace accidents, fires and panic stampedes. Absence of an
appropriate mechanism to ensure the enforceability of the available laws for protecting workers’
rights and maintaining workplace safety continues to be a concern in the RMG sector.
Management does not provide enough for safety and physical comfort of female workers.
In human activities by the security guard to the female workers, discrimination of wages,
not enough maternity leave, weekly holyday, baby care system .not enough fire exit doors
and Ventilation for air circulation of industry building. Most of the Fire and smoke alarm bells
does not work in garment industries and many Garment Industries does not have any Fire and
Smoke alarm system. As the sector is an important foreign exchange earning component, some
changes are required. Many researchers have investigated working conditions in the Bangladesh
garments industry. (Hossain and Hameeda, 2007)
Ahamed F. (2014) said in his study report, “In most of the industries, workers are not
getting proper working environment with security and safety in accord of compliance to
neither the BLA, 2006 nor the ILO based international standard. The working conditions
and pay for the Bangladeshi workers who work in these clothing factories are among the
world's worst. The tendency of the owners of RMG industries to flout the laws engaging
unscrupulous compliance by wild running factories, endangering workers lives, ruining
environments and undermining the future image of the country to overseas countries should
be revamped for the upward surge of workers and employers. All stakeholders involving
employers, workers, governments and international as well as national bodies should come
forward with the sense of togetherness to bring significant change in this industry. The
monitoring of compliance to satisfy buyers cannot bring meaningful changes for the sustainable
industry with stability rather ethical compliance of laws by the employers can make a
booming difference yielding name, fame and glory for the nation”. Manik A. and Bajaj V.
(2010, December 14) in their report discuss the present condition of Bangladesh garment
sector about safety of the workers. “Piles of clothes in garment factories are easily combustible.
Fires can be very deadly because some factory owners lock exits to prevent workers from
leaving their machines. Hossain (2007) said the doors at the company’s factory had not
been locked. International labor groups have criticized the safety of Bangladesh’s
garment factories. A factory fire outside Dhaka in February cause many people’s death”. “Work
areas are often overcrowded with limited workspaces, causing occupational hazards such
as musculoskeletal disorders and contagious diseases. Injuries, fatalities, disablement and
death from fire and building collapses are frequent in the RMG sector. The absence of labor
standards monitoring system and ineffective building codes, poor enforcement and
outdated labor laws, and a lack of awareness of labor rights among workers”. Many of the
factories do not meet the minimum standards prescribed in building and construction legislation
(Factory Rules 1979). As a result, fire is common, buildings often collapse and faulty building
design regularly results in the death of workers. Compensation following an incident is
rare. The Spectrum Factory building collapse of April 2005 killed 54 workers, injured
over 70 and left hundreds jobless. Furthermore places of employment in the garments sector
are notorious for fire, which are said to have claimed over 350 lives in the past two years,
though exact figures are difficult to find’(Majumder, 1998).
According to Kumar (2006) Garments workers are concerned with unsafe work
environment, poor working conditions. Indeed, employers treat the RMG workers as
slaves, exploiting workers to increase their profit margins and keep their industry
competitive in the face of increasing international competition. Working conditions in the
RMG sector frequently violate international labor standards, and Codes of Conduct (Quddus,
M. and Rashid, S. 2000). Akhter, Salahuddin , Iqbal , Malek and Jahan (2010) focused in the
problem of health and safety issues of female workforce of garments industries in
Bangladesh based upon the industrial environment, their residential environment, working
condition, age, problems of health, causes of diseases, causes of fire accident and their medical
facilities. They found that there is lack of enough congenial and hygienic working
atmospheres in industry and discrimination in case of wages fixation and other facilities
between male and female. They also found that there is lack of toilet and washroom facilities in
industry. Overall management is not aware about the safety of workers and lack of fire exist
doors and ventilation for air circulation of industry building. Fair Wear Foundation (2013)
found that the structure of building in garment industries is underdeveloped and weak and
that is why accidents are happening every year. It also focused that the level of safety in
most RMG factories is low. There is a growing awareness of safety, but there is also still a
clear lack of safety knowledge in many factories across the country. It recommended that
government should play important role for the development of RMG sector. (Majumder, 2004)
suggested regulatory measures and its strict implementation and monitoring by the
government agency that could overcome work place in security problem of garments
workers in Bangladesh. Work areas are often overcrowded with limited workspaces,
causing occupational hazards such as musculoskeletal disorders and contagious diseases.
Injuries, fatalities, disablement and death from fire and building collapses are frequent in the
RMG sector.
The Bangladesh Labor Act 2018 (referred to as the "Labor Act") is a comprehensive piece of
legislation aimed at governing the rights, responsibilities, and working conditions of laborers in
Bangladesh. It covers a wide range of sectors, including the Ready-Made Garment (RMG)
sector, which is a critical component of the country’s economy. The RMG sector is the largest
employer in Bangladesh and has historically been plagued with challenges related to workers'
rights, safety, working conditions, and wages.
The Bangladesh Labor Act 2018 introduced several significant provisions aimed at improving
working conditions, ensuring workers' rights, and addressing labor-related issues in the RMG
sector.
Key Provisions of Bangladesh Labor Act 2018 for the RMG Sector
1. Working Hours, Overtime, and Rest (Chapter 4 - Sections 100-115)
Regular Working Hours (Section 100)
- Section 100(1): The standard working
hours for workers in any factory, including
the RMG sector, are 8 hours per day and a
maximum of 48 hours per week.
- Section 100(2): Workers should not be
made to work more than 6 days a week,
with a minimum of one weekly holiday.
Overtime (Section 104)
- Section 104: If the worker is required to
work beyond the regular working hours, they are entitled to overtime pay.
- Subsection (1): Overtime is paid at twice the ordinary rate for the first two hours, and three
times the ordinary rate for any additional overtime beyond that.
Weekly Holiday (Section 102)
- Section 102: Every worker is entitled to a weekly holiday (typically Friday or Saturday), and if
they work on the holiday, they must be compensated at double the normal rate.
Rest Interval (Section 101)
- Section 101: Workers must be provided with a rest interval of at least 1 hour if they work more
than 6 hours in a day.
2. Wage and Payment (Chapter 5 - Sections
124-135)
Minimum Wage (Section 134)
- Section 134: The Minimum Wage Board sets the
minimum wage for workers in different sectors, including
the RMG sector. The minimum wage must be paid to all
workers in the sector, ensuring that they receive a living
wage.
- Subsection (2): If an employer pays below the minimum wage, they are violating the law,
and workers are entitled to file complaints to the Labor Court.
Payment of Wages (Section 125)
- Section 125: Wages must be paid to workers in cash or through bank transfers, and employers
must ensure timely payment. Employers cannot deduct wages without valid reasons.
- Subsection (2): Payment must be made within 7 days after the end of the wage period.
Wage Deductions (Section 130)
- Section 130: Employers are prohibited from making unauthorized deductions from workers'
wages. Only authorized deductions, such as those for fines or loans, are allowed.
- Subsection (3): If the employer makes illegal deductions, the worker has the right to reclaim
the amount through legal procedures.
3. Health, Safety, and Welfare (Chapter 7 - Sections 43-76)
Health and Safety (Sections 44-46)
- Section 44: Employers must ensure that the workplace is safe and free from health hazards.
This includes ensuring proper ventilation, lighting, and sanitary facilities.
- Section 45: Employers must provide adequate fire safety measures, including fire exits, fire
extinguishers, and emergency preparedness plans, especially in RMG factories where fire
hazards are prevalent.
- Section 46: There should be regular health checks and medical facilities available for workers,
including access to first-aid kits and medical assistance.
Accident and Compensation (Section
47)
- Section 47: In the event of workplace
accidents or injuries, workers are entitled to
compensation. If the worker is permanently
disabled due to an accident, the employer
must provide adequate compensation.
Welfare Measures (Section 48)
- Section 48: Employers must ensure the provision of basic welfare facilities, such as:
- Drinking water
- Sanitary toilets
- Restrooms
- Canteens for workers, if applicable.
4. Rights of Workers and Employment Contracts (Chapter 3 - Sections 13-
23)
Employment Contracts (Section 13)
- Section 13: Employers are required to provide written contracts for workers. These contracts
must specify:
- Terms of employment
- Workplace conditions
- Wages
- Working hours
- Overtime policies
Termination and Severance (Section 22-23)
- Section 22: If a worker is dismissed, the employer must follow a legal process, which includes
providing the worker with written notice and severance pay.
- Subsection (2): Workers are entitled to severance pay if they are terminated after one year of
service.
- Subsection (3): If a worker is unfairly dismissed, they can file a complaint with the Labor
Court.
Retrenchment (Section 23)
- Section 23: If an employer needs to lay off workers due to economic reasons or factory closure,
they must follow due process, including paying severance compensation and providing prior
notice.
5. Social Security and Benefits (Chapter 8 - Sections 77-90)
Social Security Fund (Section 77)
- Section 77: Employers are required to contribute to a social security fund that provides benefits
to workers in case of illness, injury, retirement, or death.
Provident Fund (Section 80)
- Section 80: Employers must establish a provident fund for their workers, and both the
employer and worker contribute to this fund. The worker can withdraw the accumulated amount
after retirement or in case of financial need.
Maternity Benefits (Section 46)
- Section 46(3): Female workers are entitled to 16 weeks of paid maternity leave, with at least 8
weeks taken after childbirth.
6. Trade Unions and Collective Bargaining (Chapter 9 - Sections 206-218)
Freedom to Form Unions (Section 206)
- Section 206: Workers have the right to form or join a trade union. This right is fundamental for
workers in the RMG sector, as it allows them to collectively negotiate for better wages, working
conditions, and benefits.
Collective Bargaining (Section 207)
- Section 207: Workers, through their trade unions, have the right to engage in collective
bargaining with employers to negotiate employment terms, including wages, working conditions,
and benefits.
Trade Union Registration (Section 208)
Section 208: Trade unions must be registered with the Department of Labor to operate legally
and represent workers in negotiations with employers.
7. Child Labor and Forced Labor (Chapter 10 - Sections 34-38)
Prohibition of Child Labor (Section 34)
- Section 34(1): The Labor Act prohibits the employment of children under the age of 14 in any
factory, including RMG factories.
- Subsection (2): If a child is found working, the employer is subject to penalties.
Forced Labor (Section 35)
- Section 35: The Act prohibits forced labor and any form of bonded labor. Workers must be free
to leave their employment if they choose, without being subjected to coercion or threats from the
employer.
Conclusion
The Bangladesh Labor Act 2018 outlines comprehensive provisions for the protection of
workers' rights and improving working conditions in the RMG sector. While the Act provides a
solid legal framework for labor rights, effective implementation and enforcement of these
provisions remain crucial. Some challenges still persist in the RMG sector, such as poor
enforcement of safety regulations, low wages, discrimination, and lack of proper implementation
of social security benefits. However, the Labor Act marks a significant step forward, and with
continuous improvements in monitoring, the RMG sector can evolve into a more ethical and
sustainable industry.
