Labor law in Bangladesh
Labor law is applied to tackle various problems in wages, working conditions,
industrial safety, hygiene and safety, and unionism etc.
- Also applied to solve specific problems for specific industries like RMG, retail,
shipbreaking etc.
First labor law: Factory Law 1881
Which included:
1. Working hour
2. Child employment
3. Maternity benefits
4. Trade union
5. wages
Laws during british period
● Factories act 1881
● The workmen’s compensation act 1923
● The trade union act 1926
● The trade dispute act 1929
● Payment of wages act 1936
● Employment of children act 1938
● Maternity benefit act 1939
Laws during pakistan period
● Factories act 1965
● Shops and establishment act 1965
● Employment act 1965
● Industrial relation ordinance 1969
Current law is, Bangladesh Labor Law 2006, amended in 2013 and 2018
Total act and ordinance 50
- 12 brit, 23 Pak, 12 Bd
Feature of labor law:
1. 21 chapter, 354 section
2. One act instead of 25
3. Clear definition,
Applicable not on
1. Government or any office under the Government;
2. BG press
3. Care / foster home
4. Shop in mela
5. Shop for retail
6. Educational institutions
7. Hostel, mess, hospital
8. railway department;
9. • post, telegraph and telephone
10.department;
11. • roads and highways department;
12. • public works department;
13. • public health engineering
14. department;
15. • Bangladesh Government
16.printing press;
17. seamen, in the cases other than
18.the case of application of
19.Chapters XII, XIII and XIV;
20.• ocean going vessels, in the cases
21. other than the case of the
22.application of Chapter XVI;
23.• any agricultural farm where
24.normally less than [five] workers
25.work;
26.• domestic servants; and
27. • any establishment run by its
28.owner with the aid of
Worker: ‘worker’ means any person including
an apprentice employed in any
establishment or industry, either
directly or through a contractor, to do
any skilled, unskilled, manual,
technical, trade promotional or clerical
work for hire or reward, whether the
terms of employment be expressed or
implied, but does not include a person
employed mainly in a managerial or
administrative capacity.
Types of labor
Apprentice - learner, paid
Casual - ad-hoc basis for a
work of casual nature.
Temporary if he is employed in an
establishment for work which is
essentially of temporary nature, and is
likely to be finished within a limited
period.
Substitute - may be called a substitute if
he is employed in an establishment in
the post of a permanent worker or of a
probationer for the period of his
temporary absence.
Seasonal
Permanent
Probationer - a probationer
if he is provisionally employed in an
establishment to fill a permanent
vacancy in a post and has not completed
the period of his probation in the
establishment
Clerical = 6M
Non clerical = 3M
Child labor = banned
Child = below 14
Adolescent and female cannot work in night shift and hazardous work
Adolescent worker can work with a certificate of fitness granted to him
is in the custody of his employer; and he carries a token containing reference
to such certificate.
Employment of Adolescents – Key Provisions
● Govt. may permit adolescent employment in any occupation/establishment if:
○ An emergency exists, or
○ It is necessary in the public interest
● Fitness Certificate (Sec. 38):
○ Must be issued by a registered physician (previously by District Civil
Surgeon)
○ Cost borne by employer
● False Fitness Certificate (Sec. 302):
○ Punishable with up to 3 months’ imprisonment, or
○ Fine up to 1,000 Taka, or
○ Both
Appointment Letter & ID Card
● Mandatory for all workers
● Must be issued by the employer
● Legal basis: Section 5
Wages – Definition (Section 2(45))
Wages inclde:
● All monetary remuneration payable under the terms of employment
● Additional monetary benefits (if linked to employment)
Wages exclude:
● Value of house, light, water, medical or other amenities
● Employer’s contribution to pension/provident fund
● Travelling allowance/concessions
● Special expenses reimbursed due to nature of employment
Special Definition of Wages (Section 120)
In addition to Section 2(45), wages also include:
● Bonus or extra remuneration under employment terms
● Pay for leave, holidays, or overtime
● Amounts awarded by court, settlement, or agreement
● Payments for termination (retrenchment, discharge, resignation, etc.)
● Payments due to lay-off or suspension
Minimum Wage Declaration
● Sector-wise minimum wage to be declared every 5 years
Section 121 – Responsibility for Payment of Wages
● Employer is liable to pay all wages under the Act
● For non-contractor workers:
○ CEO, manager, or person supervising the establishment also holds
liability
● For contractor-employed workers:
○ If contractor fails to pay, establishment employer must pay
○ Amount recoverable from the contractor
Section 122 – Fixation of Wage Periods
● Wage periods must be fixed by the employer
● Maximum wage period: 1 month
Section 123 – Time of Payment of Wages
● Wages must be paid within 7 working days of the end of the wage period
● In case of termination (retirement, discharge, retrenchment, etc.):
○ Payment must be made within 30 working days from termination
● All wages to be paid on a working day
Section 2(10) – Gratuity (Definition)
● Gratuity = A terminal benefit payable upon termination of employment
● Payable at the last drawn wage rate, as follows:
○ 30 days’ wages for each completed year of service or for 6+ months
○ 45 days’ wages per year if service exceeds 10 years
● In addition to: compensation, notice pay, or other dues related to termination
Section 124A – Payment of Wages & Dues Through Conciliation
Applicability:
● Applicable at any stage of employment — during service, on retirement,
termination, or dismissal
● Application can be made to:
○ Chief Inspector, or
○ An authorized officer for conciliation
Procedure:
1. On receiving an application, the officer must take steps within 20 days
2. Officer acts as a conciliator:
○ Organizes meetings
○ Facilitates discussions
3. If a unanimous decision is reached:
○ It is binding on both parties
○ Decision must be provided in writing
If No Agreement:
● Either or both parties may file a suit in the Labour Court
● Labour Court will consider the conciliator’s decision during the trial
Wages vs. Salary – Key Differences
Aspect Wages Salary
Basis of Pay Hourly or daily rate Fixed amount (monthly/annually)
Pay Varies with hours worked Fixed, predictable income
Variability
Overtime Calculated based on extra Usually not eligible for overtime
hours worked (depends on role)
Pay Period Based on hours worked in Includes payment date; consistent
past period schedule
Calculation Requires tracking hours + Simple fixed payment after
overtime tax/deductions
Stability Perceived as less stable Often seen as more stable
Working Hours (Sections 100, 102, 108)
● Daily Limit (General):
○ Max 8 hours/day (ordinary)
○ Max 10 hours/day (with overtime)
● Weekly Limit:
○ Max 48 hours/week (ordinary)
○ Max 60 hours/week (with overtime)
○ Average limit: 56 hours/week (annually)
● Transport Sector Exception:
○ Max 150 additional hours/year
● Govt. Relaxation:
○ Govt. may relax/exempt rules for up to 6 months for certain industries
○ Based on public interest or economic development
Rest or Meal Intervals (Section 101)
● >6 hours/day work:
○ At least 1 hour break
● >5 hours/day work:
○ At least ½ hour break
● >8 hours/day work:
○ Either 1 full break (1 hour) or 2 short breaks (½ hour each)
● Special Rules:
○ Govt. to prescribe specific work/rest hours for physically hazardous
industries like:
■ Construction
■ Ship breaking
■ Steel/re-rolling mills
■ Welding, etc.
Section 103 – Weekly Holiday
Establishment Type Weekly Holiday
Entitlement
Shops, 1.5 days/week
Commercial/Industrial
Factories 1 day/week
Road Transport 1 day (24 consecutive
Establishments hours)
● No wage deduction allowed for holidays (All types)
Section 109 – Work Hours for Women
● No female worker shall be required to work between
10:00 PM and 6:00 AM, without her consent
Section 114 – Closure of Shops, etc.
Mandatory Weekly Closure:
● Shops/Commercial/Industrial establishments must remain closed at least 1.5
days/week
● Chief Inspector determines closure days area-wise (can revise in public
interest)
Daily Closing Time:
● Shops must close by 8:00 PM
○ Exception: Ongoing customer purchases may continue up to 8:30 PM
Government Flexibility:
● Govt. may alter closing hours (via Gazette notification) based on season or
special circumstances
Exemptions from Closure Rules:
Certain establishments are exempt, including:
● Transport terminals (docks, stations, airports)
● Shops selling essentials: vegetables, meat, fish, dairy, medicines, funeral items
● Tobacco, newspapers, snacks (light tiffin)
● Petrol pumps & service stations
● Barber shops
● Sanitation & public utility services (power, water)
● Clubs, hotels, restaurants, cinemas, theatres
● Mixed businesses: If majority are exempt, entire shop is exempt
Shops in Malls/Markets:
● Closure rules apply even if shop falls under exempt category
Leave Provisions
Casual Leave (Section 115)
● Every worker is entitled to 10 days casual leave per calendar year with full
wages.
● Casual leave cannot be carried forward or accumulated.
● Exemption: Workers in tea plantations.
Sick Leave (Section 116)
● All workers (except newspaper workers) entitled to 14 days sick leave with full
wages per year.
● Newspaper workers get sick leave with half wages (minimum 1/18th of service
period).
● Leave granted only with medical certificate from a registered medical
practitioner.
● Sick leave cannot be carried forward or accumulated.
Annual Leave with Wages (Section 117)
Worker Type Leave Accrual Rate per 12 months
Adult Workers Shop/Industrial/Factory/Road Transport: 1 day/18 days
worked
Tea Plantation: 1 day/22 days worked
Newspaper Workers: 1 day/11 days worked
Adolescent Factory: 1 day/15 days worked
Workers
Tea Plantation: 1 day/18 days worked
Shop/Industrial: 1 day/14 days worked
● If a holiday falls during leave, it counts as leave.
● Unused leave can be carried forward to the next 12 months.
● Maximum leave accumulation limits:
Worker Type Max Leave Accumulation
Adult Workers 40 days (factory/transport), 60 days
(tea/shop/industrial)
Adolescent 60 days (factory/tea), 80 days (shop/industrial)
Workers
● If leave is refused by employer, it is added to leave credit beyond max limit.
● Continuous service includes interruptions due to:
○ Holidays, sick leave, maternity leave (up to 16 weeks), lay-off, strikes, or
lock-outs.
Festival Holidays (Section 118)
● Every worker entitled to 11 days festival holidays with wages per year.
● Employer sets the dates.
● If worker works on a festival holiday, they must be given 2 days compensatory
wages and a substitute holiday.
Wages During Leave and Holidays (Section 119)
● Leave wages = daily average of full wages + allowances (excluding overtime and
bonus).
● Cash in lieu of food grains is included in wages.
● Annual leave of 4+ days (adult) or 5+ days (adolescent) should be paid in
advance if practicable.
Working Hours
● No worker should be required to stay on duty more than 10 hours a day,
including breaks.
● Working hours must be distributed so that this limit is respected.
Benefits and Wages
● Wages must be paid within specified time limits; unpaid wages can be
recovered through the court.
● Sector-wise minimum wages declared every 5 years (Sections 120-137).
● Current minimum monthly wage is 12,500 BDT (set Dec 18, 2023).
● Retirement age: 60 years, with full benefits at retirement (Section 28).
● Voluntary retirement after 25 years of continuous service also qualifies for
retirement benefits (Section 2.1).
● Death benefits apply both for normal and non-accidental deaths during
employment (Section 19).
Maternity Benefits
● Maternity leave extended to 16 weeks (from 12 weeks).
● Qualifying service reduced to 6 months.
● Payment based on daily, weekly, or monthly average wages, paid fully in cash.
● Benefits limited to the birth of two living infants (Sections 45-50).
● Facilitation for trade unions in specific sectors.
Non-Discrimination
● Strict enforcement of “Equal pay for equal work” policy (ILO Convention).
● Prohibition of discrimination and indecent behavior toward female workers
(Section 345).
Health and Safety
● Extensive focus on occupational health and safety (78 sections out of 354).
● Establishment of a National Industrial Health and Safety Council to develop
policy (Section 323).
● Mandatory maintenance of safety record books and introduction of group
insurance.
● Welfare facilities such as:
○ Children’s room for every 40 female workers with children under 6.
○ First-aid boxes accessible during working hours.
○ Sick room with medical staff in establishments with 300+ workers.
○ Safety records and safety boards for establishments with 25+ workers.
○ Washing facilities, canteens, restrooms (Sections 89-99)
Compensation
● Increased compensation for workplace death or injury:
○ Death: 200,000 BDT per worker
○ Permanent total disability: 250,000 BDT per worker
● If accident caused by employer negligence, compensation is doubled (Sections
150-174).
Inspector of Labour and Trade Union Provisions
Inspector of Labour
● The Chief Inspector heads the Department of Inspection for Industry and
Establishment under the Ministry of Labour and Employment, overseeing 22
district offices and the head office in the capital.
● Special Powers of the Chief Inspector (Section 318):
○ Supervises and controls subordinate inspectors.
○ Delegates powers.
○ Holds jurisdiction nationwide.
● Powers and Functions of Inspectors (Section 319):
○ Approve factory/industrial establishment designs.
○ Conduct investigations.
○ Inspect premises, vessels, and vehicles.
○ Inspect and seize documents.
○ File complaints with the Labour Court.
Trade Unions and Collective Bargaining
● Both employers and workers have the right to form trade unions (Sections 2(15)
and 176).
● Only employees on the employer’s payroll can be members or officers of an
establishment-based trade union.
● Officers of trade unions must be employed in the establishment and not
convicted of any offense.
● Trade unions and employers’ unions may form federations and affiliate with
international organizations.
● The scope of unfair labour practices for workers, employers, and unions is
expanded (Sections 195-196).
● Employment contracts cannot restrict a worker’s right to join or remain in a
trade union.
● Workers need employer permission to engage in trade union activities during
office hours.
● Collective Bargaining Agent (CBA):
○ Defined as the union/federation representing workers in collective
bargaining (Section 2(52)).
○ CBA determination among multiple unions in an establishment must be
completed within 120 days.
○ If only one union exists, it is deemed the CBA.
○ Federations of trade unions may act as CBA under certain conditions.
● Participation Committees:
○ Mandatory formation in establishments with 50+ permanent workers
(Sections 175-208).
✅ Determination and Election of Collective Bargaining Agent (CBA)
Section 202 – Two Methods of CBA Determination:
1. By Operation of Law:
○ When only one registered trade union exists, it becomes the CBA
automatically.
2. By Secret Ballot (via Registrar):
○ When more than one registered trade union exists in an establishment.
✅ Participation Fund
● Applicability: Companies with:
○ Paid-up capital ≥ Tk 1 crore or
○ Immovable assets ≥ Tk 2 crore.
● Profit Distribution (within 9 months of financial year-end):
○ Workers' Profit Participation Fund – 80%
○ Welfare Fund – 10%
○ Bangladesh Workers’ Welfare Foundation Fund – 10%
● Eligibility: All workers of the establishment, regardless of designation or wage
scale.
● Provident Fund: Mandatory for private sector establishments (Sections
232–252).
✅ Unfair Labour Practices
Definition: Prohibited acts/omissions by employers or employees as per Bangladesh
Labour Act 2006.
🔸 By Employers (Section 195)
● Preventing workers from joining a trade union
● Refusing employment based on union affiliation
● Discrimination or punitive actions for union involvement
● Dismissal/discharge/removal for trade union activities
● Offering inducements to avoid unionization
● Interfering with trade union elections
● Transferring workers to weaken union activity
● Imposing illegal lock-outs
🔸 By Workers/Trade Unions (Section 196)
● Conducting union activities during working hours without permission
● Intimidation or inducement regarding union membership
● Initiating or participating in illegal strikes
● Go-slow tactics
● Gherao, obstruction, destruction of property
● Interference in CBA elections
✅ Punishment for Unfair Labour Practices
Section 291 – Penalties for contravening Sections 195, 196, or 196A:
● Employer or others violating Section 195 / 196A:
○ Imprisonment: Up to 1 year
○ Fine: Up to Tk 10,000
○ Or both
● Worker violating Section 196:
○ Imprisonment: Up to 6 months
○ Fine: Up to Tk 5,000
○ Or both
● Trade Union or non-worker violating Section 196:
○ Imprisonment: Up to 1 year
○ Fine: Up to Tk 10,000
○ Or both
✅ Key Labour Action Definitions
● Go-Slow (Section 2(18)):
○ Deliberate slowing down of normal work output by workers in a
concerted manner.
○ Not caused by mechanical failure, power issues, or material shortages.
● Lock-Out (Section 2(57)):
○ Employer-initiated: Closing, suspending, or refusing to employ workers
in connection with industrial disputes or to compel agreement on
employment terms.
● Strike (Section 2(22)):
○ Coordinated cessation or refusal to work by a group of employees.
✅ Closure and Work Stoppage by Employer (Section 12)
● Employers may shut down any section (partially or fully) of an establishment:
○ Due to:
■ Fire
■ Catastrophe
■ Machinery breakdown
■ Power failure
■ Epidemics
■ Civil unrest
■ Or other causes beyond employer's control (Section 12(1))
● Concern: Section 12 gives wide discretionary power to employers, increasing
risk of involuntary unemployment for workers.
✅ Lay-Off
Definition (Section 2(58)):
● Temporary inability, failure, or refusal of the employer to provide employment
due to:
○ Shortage of coal, power, raw materials
○ Accumulation of stock
○ Machinery breakdown
Conditions & Provisions:
● If stoppage exceeds 3 working days, lay-off applies under Section 16
● Effective from the day of stoppage
● Wages paid during first 3 days can be adjusted against lay-off compensation
(Section 12(8)-(9))
✅ Misconduct (Examples)
Considered punishable under the Labour Act:
● Willful disobedience or insubordination
● Theft, fraud, or dishonesty
● Taking/giving bribes related to employment
● Habitual late attendance or negligence
● Riotous/disorderly behavior
● Subversive acts, falsification, damage to records
● Breach of rules/regulations (habitual or intentional)
● Violation of conduct/discipline rules approved by Chief Inspector
✅ Procedure for Disciplinary Action (Section 24)
No punishment under Section 23 unless:
1. Allegation recorded in writing
2. Copy of allegation provided to worker with minimum 7 days to respond
3. Worker is given opportunity to be heard
4. Found guilty after proper inquiry
5. Order approved by employer or manager
✅ Retrenchment (Section 2(11))
Definition:
● Termination due to redundancy, not as punishment
Conditions (Section 20):
● Worker must have ≥1 year of continuous service
● Before retrenchment:
○ 1 month’s written notice or wages in lieu
○ Copy of notice sent to:
■ Chief Inspector/authorized officer
■ Collective Bargaining Agent (if any)
○ Compensation:
■ 30 days wages OR gratuity for each completed year of service
(whichever is higher)
🔗 Interlinks: Stoppage, Lay-Off & Retrenchment
Concept Cause Nature Legal
Provision
Stoppage Temporary closure of section(s) Short-term, Section 12(1)
due to fire, machinery breakdown, emergency
etc.
Lay-Off Inability to provide work due to Temporary, Section 2(58),
shortage, stockpile, machinery not punitive 12(8)-(9), 16
breakdown
Retrenchme Reduction of workforce due to Permanent Section 2(11), 20
nt redundancy termination
➡ Progression Link:
If stoppage exceeds 3 working days, it may legally convert into a lay-off → Prolonged
lay-offs can lead to retrenchment if redundancy is identified.
❌ Termination of Employment
✅ By Worker (Section 27)
Type Notice
Period
Permanent Worker 60 days
Temporary (monthly 30 days
paid)
Other Workers 14 days
● May pay in lieu of notice to resign immediately.
✅ By Employer (Section 26)
Permanent Worker
Type Notice
Period
Monthly Paid 120 days
Worker
Other Workers 60 days
Temporary Worker
Type Notice
Period
Monthly Paid 30 days
Worker
Other Workers 14 days
● If work is completed/ceased/abandoned, no notice required.
✅ Payment in lieu of notice allowed in all cases.
✅ Compensation:
● Permanent workers get:
○ 30 days' wages or gratuity per completed year of service (whichever is
higher),
○ In addition to other benefits under the Act.
⚖️ Disciplinary Actions by Employers
🔸 Discharge (Section 2(17), 22)
● Definition: Termination due to physical/mental incapacity or ill-health,
certified by a registered medical practitioner.
● Compensation:
○ For workers with ≥1 year continuous service:
➤ 30 days' wages per year of service, or
➤ Gratuity, whichever is higher.
🔸 Dismissal (Section 2(39), 23-24)
● Definition: Termination for misconduct.
● No prior notice/pay required if:
○ (a) Worker is convicted of a criminal offence, or
○ (b) Found guilty of misconduct under Section 24.
● Examples of Misconduct (Section 24):
○ Willful insubordination, theft, fraud, habitual negligence, violence,
falsifying records, etc.
● Due process required:
○ Written charges, copy to worker, 7 days to explain, right to be heard,
inquiry, employer approval.
🤝 Industrial Dispute (Section 2(62))
● Definition: Dispute between:
○ Employers ↔ Employers
○ Employers ↔ Workers
○ Workers ↔ Workers
○ On matters related to:
➤ Employment
➤ Non-employment
➤ Terms or conditions of work
🏛️ Labour Courts & Tribunals
● Labour Courts: Exclusive jurisdiction for all labour law issues.
● Appeals: Go to Labour Appellate Tribunal.
● Speedy Justice:
○ Specific timeframes set for each stage of adjudication.
● Enforcement:
○ Stricter punishments for violations.
○ Imprisonment and fines provided (Sections 209–224).
📋 Grievance Procedure & Legal Remedies
🧾 Worker's Grievance Submission (Section 33)
● A worker aggrieved by lay-off, retrenchment, discharge, dismissal, or removal
must:
○ Submit written grievance to employer via registered post within 30 days
of notification.
🏛️ Legal Recourse
● If unresolved, the worker can appeal to:
○ Labour Court, and then
○ Labour Appellate Tribunal.
⚖️ Prosecution & Complaint Filing
🏢 Jurisdiction
● All offences under the Labour Act must now be tried in Labour Courts (not
Magistrates Courts) (Section 313(1)).
📜 Applicable Procedure
● Code of Criminal Procedure applies in court proceedings (Section 215(1)).
📬 Who Can File Complaints:
● Inspector (Section 319(5)),
● Aggrieved person or trade union (Section 313(2)).
🕒 Time Limit
● Complaints must be filed within 6 months of the offence (Section 314).
📚 Training on Labour Law (Section 348)
● Mandatory training arrangements for workers.
● Time spent in training is counted as official duty.
🛠️ Labour (Amendment) Act 2018 – Key Highlights
🔻 Trade Union Formation Threshold
● Reduced to 20% of workers (previously 30%).
● ILO Standard: Even 10 workers can form a union.
🚫 Stricter Penalties for Misconduct
● Imprisonment (1 year) or fine (10,000 BDT) or both for:
○ Misconduct by employers or workers.
○ Violation of the Labour Law.
○ Coercion, threats, physical assaults to force agreements.
○ Sabotaging utilities or enforcing unlawful shutdowns.
❌ Illegal Lock-Out / Strike Participation
● Jail term reduced from 1 year to 6 months.
● Support of 51% of workers now needed to enforce:
○ Work abstention
○ Lock-out
(Previously required two-thirds support)
⚠️ Note: Despite reduction in numerical thresholds, practical barriers
remain, such as:
● Written support requirements.
● Fear of retaliation impacting free union activity.
🧾 Proposed Amendments – Summary
📢 Strikes
● Workers must provide 21 days’ prior notice before organizing a strike.
● Process is bureaucratic, potentially obstructing legitimate strikes.
● ILO Expert Committee recommends:
○ Abolishing punitive measures for strike activities.
○ Resolving disputes via the criminal justice system if needed.
🤰 Maternity LeavE
● Expectant mothers:
○ Entitled to 8 weeks' leave and benefits within 3 days of submitting
documents.
○ Employer penalty for non-compliance: 25,000 BDT.
● Public Sector Context:
○ Since 2011, govt employees have received 6 months' maternity leave.
○ Disparity between public and private sectors is seen as unjustified.
🚫 Child Labour
● Existing law allows light work for children, if:
○ It doesn't harm health or hinder education.
● Draft amendment proposes:
○ Total ban on child labour in factories.
○ Prohibits risky jobs for both children and physically challenged
persons.
○ Fine: 5,000 BDT for employing a child under 14 years.
■ (Previously, age limit was 12 years for light work.)
● ⚠️ Note:
○ Eradication of child labour is unlikely without improving parental
income.
