Labour Law & Industrial Relations-Bangladesh

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LABOUR LAW 2006 & INDUSTRIAL RELATIONS

UNDERSTANDING & APPLICATION IN MANUFACTURING AND SERVICE ORGANIZATIONS IN BANGLADESH

M. SHABBIR ALI

LEARNING OBJECTIVES (PART-I)
• • • • • • • • • • Background of Bangladesh Labour Act 2006 Salient features of this new law Workers classification Appointment Letter, ID Card, Service Book Wage & Payment/ Minimum Wage Modes of Separation Working Hour, Weekly Holiday, OT & Leave Maternity Benefit Safety, First Aid Appliance & Canteens Other Welfare Provisions

HISTORICAL BACKGROUND
Bangladesh Labour Law 2006  Prior to this new labour law, there were 26 Acts, 14 Ordinances and about 35 Rules and Regulations and most of these laws were quite old. Some of these laws were ambiguous. As a result, it was very difficult on the part the practicing HR Managers to comply with these laws.  To amend the labour laws the Government formed a labour law commission in 1992 with members from both employers, workers as well as Government representatives and legal experts. The commission was headed by Justice Abdul Quddus Chowdhury

HISTORICAL BACKGROUND
 The commission submitted its report to the PM on March 31, 2004  A draft law was prepared and was placed before the cabinet and got approved on 14 Nov, 2004  The proposal for amendment of new Labour Law was further reviewed and approved in the cabinet on 28 Aug, 2006.  The law was finally passed by the parliament and has been made effective from 11 Oct, 2006.

SALIENT FEATURES- BLC 2006
 The scope of this law has been widened Now all companies (both private and nationalized), NGO’s, Hospitals and other establishments have been included under this act.

 No worker can be engaged by any employer without any appointment letter and an identity Card.  New provision has been made in the name of Death Benefit.

 New provisions has been made for retirement on completion of 60 yrs. of age.  Scope of punishment has been widened and now employer can impose fine as a measure of punishment on any worker found guilty of misconduct.  Provision has been made for appeal against the decision the decision of the Labour Court.

SALIENT FEATURES- BLC 2006
 The overtime rate has been simplified for the time rated workers.  Female workers are now allowed to work from 10:00 pm to 6:00 am at night if they want so.  The leave facilities of the worker have been modified. Now annual leave accumulation allowed up to 40 days & any refused leave will be added to this 40 days), 11 days of festival holidays and 14 days sick leave with full pay.  Maternity benefit period has been extended from 12 weeks to 16 weeks and on completion of 6 months service a female worker can claim such benefit up to 02 surviving children.

SALIENT FEATURES- BLC 2006
 Payment of wages of a missing worker and wages of a dead employee having no claimant shall be deposited with the Labour Court.  Under the new law, a number of specified small companies can form a Trade Union. Now under certain circumstances a Federation can work as CBA of a company. A group of companies may have one union now.  The power of Labour Court has been strengthen. It can now work without members in case of critical cases. The Court has now the power to issue injunction, stay order etc. in certain cases.  The provision of Provident Fund has been made for the first time.

SALIENT FEATURES- BLC 2006
 Previously even Managers and Officers drawing monthly wages up to tk. 9000/= used to get money out of workers profit participation fund but now Managers exercising administrative and managerial functions areexcluded from this benefit.  Sexual harassment of female workers has been made a punishable offence under this new law.  Provision has been made for payment of equal wages for equal work for male and female workers

SOME KEY PROVISIONS OF BLL 2006
Employment standards
 An employee or “worker” or “labour” is defined as any person, including a trainee/probationer, whether the...
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