EMPLOYEE COMPENSATION BENEFITS

Prof. Dr. F. A. Sobhani

Director, MBA & MIHRM Programs, UIU &
Vice-President, FBHRO, Dhaka
Email: [email protected]

Questions & Answers

In accordance with the
BANGLADESH LABOUR ACT- 2006

CHAPTER 1: PRELIMINARY

Q1) Who is a worker as Bangladesh Labor Act 2006?

(Lxv) ‘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;

CHAPTER II: CONDITIONS OF SERVICE AND EMPLOYMENT

Q2) What are different types of workers?

4. Classification of workers and period probation:

(1) workers employed in any establishment shall be classified in any of the following classes
according to the nature and condition of work; namely:
(i) apprentice
(ii) badly/substitute
(iii) casual
(iv) temporary
(v) seasonal
(vi) probationer, and
(vii) permanent.

Q3) What are two important documents to be issued to an employee by an employer as a

proof of employment?

5. Letter of Appointment and Identity Card:

No employer shall employ any worker without giving such worker a letter of appointment
and every such employed worker shall be provided with an identity card with photograph.
Q4) Will the workers be compensated during laid off period?

16. Right of laid-off workers for compensation: (1) Whenever a worker, other than a badly
or casual worker, whose name is borne on the muster-rolls of an establishment and who has
completed not less than one year of continuous service under the employer is laid-off, he
shall be paid compensation by the employer for all days during which he is so laid-off,
except for such weekly holidays as may intervene.

Q5) What compensation a worker will get while dies in service?

19. Death benefit: If a worker dies while in service after a continuous service of not less than
three years, his nominee or in the absence of a nominee, his dependent shall be paid by the
employer a compensation at the rate of thirty days wages for every completed year of
service, or for any part thereof in excess of six months or gratuity, if any, whichever is
higher, in addition to any other benefit to which the deceased worker would have been
entitled had he retired from service:

Q6) When a worker may be dismissed without any notice or pay?

23. Punishment for conviction and misconduct:

(1) Notwithstanding anything regarding lay-off, retrenchment, discharge and termination of
service as provided elsewhere in this Act, a worker may be dismissed without prior notice or
pay in lieu thereof if he is- (a) convicted for any criminal offence; or (b) he is found guilty of
misconduct under section 24.

Q7) What types of punishment be awarded if found guilty of misconduct?

(2) Any worker found guilty of misconduct may, instead of being dismissed under sub-
section (1) in consideration of any extenuating circumstances, be awarded any of the
following punishments, namely:
(a) Removal;
(b) Reduction to a lower post, grade or scale of pay for a period not exceeding one year;
(c) Stoppage of promotion for a period not exceeding one year;
(d) Withholding of increment for a period not exceeding one year;
(e) fine;
(f) suspension without wages and subsistence allowance for a period not exceeding seven
days;
(g) censure or warning.

Q8) What type of acts and omissions shall be treated as misconduct?

(4) The following acts and omissions shall be treated as misconduct -

a) willful insubordination or disobedience, whether alone or in combination with others
to any lawful or reasonable order of a superior;
b) theft, fraud or dishonesty in connection with the employer’s business or property;

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 c) taking or giving bribe in connection with his or any other worker’s employment
under the employer;
d) habitual late attendance;
e) habitual breach of any law or rule or regulation applicable to the establishment;
f) riotous or disorderly behavior in the establishment, or any act subversive of
discipline;
g) habitual negligence work;
h) habitual breach of any rule of employment, including conduct or discipline,
approved by the chief Inspector;
i) falsifying, tampering with, damaging or causing loss of employers official
records.

Q9) What is the procedure for punishment of a worker?

24. Procedure for punishment. (1) No order of punishment under section 23 shall be made
against a worker unless-
a) the allegations against him are recorded in writing;
(b) he is given a copy thereof and not less than seven days’ time to explain;
(c) he is given an opportunity of being heard;
(d) he is found guilty, after enquiry;
(e) the employer or the manager approves of such order.

Q10) How to terminate a permanent staff?

26. Termination of employment by employers otherwise than by dismissal, etc.:

(i) The employment of a permanent worker may be terminated by the employer, otherwise,
than in the manner provided else-where in this chapter, by giving to him in writing-
(a) one hundred and twenty days’ notice, if he is a monthly rated worker;
(b) sixty days’ notice, in case of other worker

Q11) How to terminate employment by workers?

27. Termination of employment by workers:

(1) A permanent worker may resign from his service by giving to the employer in writing 60
(sixty) days’ notice.

(2) A temporary worker may resign from his service by giving to the employer in writing- (a)
thirty days’ notice, if he is a monthly rated worker; (b) fourteen days’ notice in case of other
worker

Q12) Will a terminated employee get PF?

29. Payment of provident Fund:

No worker, who is a member of any provident Fund, shall be deprived due to
retrenchment, dismissal, removal, discharge or termination of service of the benefit of the

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provident Fund including the employer’s contribution thereto, if he is entitled to it under
the rules of that Fund.

Q13) What is the Time limit of final payment of workers?

30. Time limit of final payment of worker:

Where the employment of a worker has been ceased due to a retirement, discharge,
retrenchment, dismissal and termination etc. all amounts due to him shall be paid within
maximum thirty working days by the employer.

Q14) Can a terminated staff claim for certificate of service?

31. Certificate of service:

Every worker other than a casual or badly worker shall be entitled to a certificate of service
from his employer at the time of his retrenchment, discharge dismissal, removal,
retirement or termination of service.

CHAPTER: III EMPLOYMENT OF ADOLESCENT

Q15) Can any organization deploy children or adolescent in workplace?

34. Prohibition of employment of children and adolescent:

(1) No child shall be employed or permitted to work in any occupation or establishment.

(2) No adolescent shall be employed or permitted to work in any occupation or establishment

unless-
(a) a certificate of fitness in the prescribed form and granted to him by a registered medical
practitioner is in the custody of the employer; and
(b) he carries, while at work, a token giving a reference to such certificate.

Q16) How to resolve disputes in age?

36. Disputes as to age:

(1) If any question arises as to whether any person is a child or an adolescent, the question
shall, in the absence of a certificate as to the age fo inspector for decision to a registered
medical practitioner.

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 CHAPTER: IV MATERNITY BENEFIT

Q17) When a women worker is prohibited to employ?

45. Employment of women worker prohibited during certain period:

(1) No employer shall knowingly employ a woman in his establishment during the eight
weeks immediately following the day of her delivery.

(2) No woman shall work in any establishment during the eight weeks immediately
following the day of her delivery.

(3) No employer shall employ any woman for doing any work which is of an arduous nature
or which involves long hours of standing or which is likely to adversely affect her health;

Q18) What are the maternity benefits of a woman worker?

46. Right to, and liability for, payment of maternity benefit:

(1) every woman employed in an establishment shall be entitled to and her employer shall be
liable for, the payment of maternity benefit in respect of the period of eight weeks preceding
the expected day of her delivery and eight weeks immediately following the day of her
delivery:
Provided that a woman shall not be entitled to such maternity benefit unless she has worked
under the employer, for a period of not less than six months immediately preceding the day
of her delivery.

(2) No maternity benefit shall be payable to any woman if at the time of her confinement she
has two or more surviving children, but in that case she shall be entitled to the leave to
which she would otherwise be entitled.

Q19) Will a women worker get maternity benefit in case of death?

49. Payment of maternity benefit in case of a woman’s death: (1) If a woman entitled to
maternity benefit under this act dies at the time of her delivery or during the next period of 8
months, the employer shall pay the amount of maternity benefit due, if the newly born
child survives her, to the person who undertakes the care of the child, and if the child does not
survive her; to the person nominated by her under this chapter, or if she has made no such
nomination, to her legal representative.

CHAPTER V: HEALTH AND HYGIENE

Q20) Is it obligatory to provide drinking water at workplace?

58. Drinking water:

(1) In every establishment effective arrangement shall be made to provide and maintain at a
suitable point conveniently situated for all workers employed therein, a sufficient supply of
wholesome drinking water.

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(2) All such points where water is supplied shall be legibly marked ‘Drinking water’ in
Bangla.

(3) In every establishment wherein two hundred fifty or more workers are ordinarily
employed, provision shall be made for cooling the drinking water during the hot weather by
effective means and for distribution thereof.

(4) Where dehydration occurs in the body of workers due to work near machineries creation
excessive heat, there workers shall be provided with oral re-hydration therapy.

CHAPTER VIII: WELFARE

Q20) Is it obligatory to provide rooms for children?

94. Rooms for children: (1) In every establishment, wherein forty or more workers are
ordinarily employed, there shall be provided and maintained a suitable room or rooms for
the use of children under the age of six years of such women.

Q21) When Group Insurance is mandatory?

99. Compulsory Group Insurance: Government may, in the manner provided by rules,
introduce group insurance, in the establishments wherein minimum 200 permanent workers
are employed.

CHAPTER IX: WORKING HOUR AND LEAVE

Q22) What is total working hours for an employee including overtime?

100. Daily hours: No adult worker shall ordinarily be required or allowed to work in an
establishment for more than eight hours in any day:

Provided that, subject to the provisions of section 108, any such worker may work in an
establishment not exceeding ten hours in any day.

Q23) What is the rate of payment for overtime work?

108. Extra-allowance for overtime: (1) Where a worker works in an establishment on any
day or week for more than the hours fixed under this Act, he shall, in respect of overtime
work, be entitled to allowance at the rate of twice his ordinary rate of basic wage and
dearness allowance and ad-hoc or interim pay, if any.

Q24) At what time women workers are not allowed to stay for work in an organization?

109. Limitation of hours of work for women: No women shall, without her consent, be
allowed to work in an establishment between the hours of 10.00 pm and 6.00 am.

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Q25) Can we ask any staff to work on any day in more than one establishment?

110. Restriction on double employment: No adult worker shall be employed or allowed to

be employed for work in more than one establishment on any day, except on permission in
writing from the chief Inspector on such terms and conditions as he may impose.

Q26) What about the weekly holiday(s) for the workers?

114. Closure of shops, etc.: (1) Every establishment which is shop or commercial or
industrial establishment shall remain entirely closed for at least one and a half day in each
week.

Q27) How many days an employee can get casual leave in a year?

115. Casual leave: Every worker shall be entitled to casual leave the full wages for 10 (ten)
days in a calendar year, and such leave shall not be accumulated and carried forward to the
succeeding year:

Q28) How many days an employee can get Sick Leave in a year?

116. Sick leave:

(1) Every worker other than a newspaper worker, shall be entitled to sick leave with full
wages for 14 (fourteen) days in a calendar year.

(2) Every newspaper worker shall be entitled to sick leave with half wages for not less than
one eighteenth of the period of services

Q29) How many days an employee can get Festival Leave in a year?

118. Festival holidays: (1) Every worker shall be allowed in a calendar year 11 (eleven) days
of paid festival holiday

Q30) How much an employee will get if s/he is employed during leave/holidays?

119. Calculation of wages and payment during leave or holiday period: (1) For the leave
or holidays allowed to a worker under the provisions of this Act, he shall be paid at the rate
equal to the daily average of his full time wages including dearness allowances, and ad-hoc
or interim pay, if any, for the days on which he worked during the month immediately
preceding this leave but excluding any overtime allowance and bonus:

CHAPTER X: WAGES AND PAYMENT

Q31) Can we extend wage period more than a month?

122 (2) No wage period shall exceed one month

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Q32) When to pay monthly wage to the employees?

123. Time of payment of wages: (1) The wages of every worker shall be paid before the
expiry of the 7th day after the last day of the wage period in respect of which the wages are
payable.

Q33) What is the Minimum Wage for a worker in Bangladesh?

149. Prohibition to pay wages at a rate below the minimum rate of wages.
Monthly minimum wage in Bangladesh is 8,000 taka (USD 95) introduced for 4.5 million
workers serving in RMG sector of the country.

Q34) Can an organization deduct any amount from the wages of an employee?

125. Deductions which may be made from wages: (1) No deduction shall be made from the
wages of a worker except those authorized by or under this Act.

Q35) What is the maximum deduction for any damage or loss due to negligence of a
worker?

127. Deductions for damage or loss: (1) A deduction under section 125(2) (c) shall not
exceed the amount of the damage or loss caused to the employer by neglect or default of the
worker and shall not be made until the worker has been given an opportunity of showing
cause and found guilty of the charge in compliance with the principles of natural justice.

CHAPTER: XI WAGES BOARDS

Q36) Who will decide concerning minimum wage?

138. Establishment of Minimum wages Board:

(1) The Government shall establish a board to be called the minimum wages board.

(2) the minimum wages board, hereinafter referred to in this chapter as the wages board, shall
consist of- (a) a chairman; (b) one independent member; (c) one member to represent the
employers, and (d) one member to represent the workers.

Q37) What factors are to be considered to fix the minimum wages for the workers?

141. Factors to be considered in making its recommendation: In making its

recommendation the wages board shall take into consideration:
i) cost of living,
ii) standard of living,
iii) cost of production,

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iv) productivity,
v) price of products,
vi) business capability,
vii) economic and social conditions of the country
viii) locality concerned and
ix) other relevant factors.

CHAPTER XII: WORKMEN’S COMPENSATION FOR INJURY BY ACCIDENT

Q38) Will any worker be compensated for any accidental injury out of his employment?

150. Employer’s Liability for compensation: (1) If personal injury is caused to a worker by
accident arising out of and in the course of his employment, his employer shall be liable to
pay compensation in accordance with the provisions of this chapter.

Q39) When a worker will not be compensated for any injury arising in the course of his
employment?

(2) The employer shall not be liable to pay compensation-

(a) in respect of any injury which does not result in the total or partial disablement of the
worker for a period exceeding three days;

(b) in respect of any injury, not resulting in death, caused by an accident which indirectly
attributable to-
i) the worker having been at the time thereof under the influence of drink or drugs, or
ii) the willful disobedience of the worker to an order expressly given, or to a rule
expressly framed, for the purpose of securing the safety of worker, or
iii) the willful removal or disregard by the worker of any safety guard or other
device which he knew to have been provided for the purpose of securing the safety or
worker. :

CHAPTER XIV
SETTLEMENT OF DIPUTES, LABOUR COURT, LABOUR APPELLATE
TRIBUNAL, LEGAL PROCEEDINGS, ETC.

Q40) How to settle any dispute or conflict of interests?

214. Labour courts: (1) For the purposes of this Act, the Government shall, by notification in
the official Gazette, establish as many labour courts as it considers necessary

217. Appeal from judgments etc. of labour courts: Subject to this act, any party aggrieved
by an award, decision, sentence or judgment given or passed by a labour court may prefer an

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appeal to the labour Appellate tribunal within sixty days of the delivery there of and the
decision of the Tribunal in such appeal shall be final.

CHAPTER XV: WORKERS’ PARTICIPATION IN COMPANIES PROFITS

Q40) Can the workers get any share of company profit?

232. Application of the chapter: (1) This chapter shall apply to all establishments which are
companies engaged in industrial undertakings which satisfy any one of the following
conditions, namely:

a) the number of workers employed by the company in any shift at any time during a year is
one hundred or more;
b) the paid-up capital of the company as on the last day of its accounting year is one crore
taka or more;
c) the value of the fixed assets of the company at cost as on the last day of the accounting
year is not less than two crore taka or more.

234. Establishment of Participation Fund and Welfare Fund:

(1) Every Company to which this chapter applies shall-

a) establish a workers’ Participation Fund and a workers’ Welfare Fund in accordance

with this chapter within one month of the date of which the chapter becomes
applicable to it; and
b) pay every to the participation fund, and the welfare fund, not later than 9 (nine)
months from the close of that year, five percent of its net profits during such year,
the proportion of the payment to the Participation Fund and the Welfare Fund
being 80:20.

CHAPTER XVII PROVIDENT FUNDS

Q41) Is it obligatory in private sector to generate Provided Fund for workers?

264. Provident funds for workers in private sector establishments:

(1) An establishment in the private sector may constitute for the benefits of its worker a
provident fund.

(3) Notwithstanding anything contained in sub-section 920, the Government may make rules
for constitution of provident funds for workers employed in establishments in private sector,
and where such rules are made each establishment to which the rules apply, shall comply with
the requirements of such rules.

(4) Such provident fund shall be held and administered by a Board of Trustees.

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(5) Such board of trustees shall consist of an equal number of representatives of the
employer and workers employed in the establishment, and a person nominated by the
government shall be its Chairman.

CHAPTER XIX: PENALTY AND PROCEDURE

Q42) What is the penalty for non-compliance of any Labor Court’s Oder?

283. Penalty for non-compliance of labour court’s order under section -33: Whoever
refuses or fails to comply, with an order passed by the labour court under section-33 shall be
punishable with simple imprisonment for a term which may extend to three months, or with
fine which may extend to five thousand taka, or with both.

Q43) What is the penalty for employment of child and adolescent?

284. Penalty for employment of child and adolescent: whoever employs any child or
adolescent or permits any child or adolescent to work in contravention of any provision of this
act; shall be punishable with fine which may extend to five thousand taka.

Q44) What is the penalty for payment at a rate below the minimum rate of wages?

289. Penalty for payment or wages at a rate below the minimum rate of wages: (1) Any
employer who pays any worker wages at a rate lower than the rate declared under chapter XI
to be the minimum rate of wages shall be punishable with imprisonment for a term which
may extend to one year, or with fine which may extend to five thousand taka, or with both.

Q45) What is the penalty for using false certificates?

302. Penalty for using false certificates of fitness: Whoever knowingly uses or attempts or
use as a certificate of fitness granted to himself under any provision or whoever, having
procured such a certificate, knowingly allows it to be used or allows another person to attempt
such a use shall be punishable with imprisonment for a term which may extend to three
months, or with fine which may extend to one thousand taka, or with both.

Q46) What is the penalty for general offences by workers?

305. Penalty for general offences by workers: Subject to other provisions of this act, if any
worker employed in an establishment contravenes any provision of this act or any rules
regulations or schemes, or any orders, imposing any duty or liability on workers, he shall be
punishable with fine which may extend to five hundred taka.

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