Workshop On Amendments To Labour Act 2006

Workshop on Amendments to Labour
Act 2006

Date: October 2, 2013
Time: 1700-1900 Hrs
Venue: LM Ericsson Bangladesh, Grand Delvistaa (Level
3), Plot 1A, Road 113, Gulshan 2, Dhaka 1212.

Presented by: Tanjib-ul Alam, Barrister
Tanjib-ul Alam & Associates
E-mail: tanjib.alam@gmail.com
talam@tanjibalam.com
website: www.tanjibalam.com

CHAPTER I : DEFINITION
There has been a major change in the definition
of the word gratuity.
Under the old law, it was calculated at the rate of
30 days wages for every completed year of
service, regardless of the length of service.
Under the new law, the amount of gratuity varies
with the length of service.
For a period of up to 10 years, it is 30 days wages
for every completed year of service.
For a period of more than 10 years, it is 45 days
wages for every completed year of service.

CHAPTER II: CONDITIONS OF SERVICE AND EMPLOYMENT
Section 3: Conditions of employment:
Prevents establishments not covered by the Act
from formulating rules in derogation of the rights
and benefits guaranteed to workers under the
Act.
The Chief Inspector shall now approve the
service rules of any establishment within three
months of receiving it, instead of six.
Government to dispose off any appeal preferred
pursuant to being aggrieved by the order of the
Chief Inspector within 45 days of receiving it.

(continued)
New Section 3A: Contractor Organisation:
Contractor Organisations must now be
registered with the Government within 6 (six)
months of the coming into force of this Act.
All workers supplied by the Contractor
Organisations shall now be deemed to be the
workers of those Contractor Organisations.

(continued)
Section 4: Classification of workers and period probation
Seasonal worker:
The new law has introduced a new category of worker
known as seasonal worker.
seasonal worker is defined as someone employed by
any establishment during the season to perform
seasonal work and for the tenure of the season.
workers employed in the sugar mill, paddy field related
industry and seasonal industry during the previous
seasons shall get priority during appointment of new
workers for a new season.

(continued)
Section 4 (continued)
Temporary worker:
There has been a change in the definition of the term
temporary worker.
It is now defined as any person employed for a
temporary period to perform temporary work.
Probation:
At the end of the probation period or after the
extension of the probation period of a worker by a
further three months confirmation letter as to the
permanency of his job is not provided then that worker
shall be deemed to be a permanent worker.

(continued)
Section 19: Death Compensation
Old heading Death Benefit replaced by a new heading
Death Compensation.
Qualification period for this benefit is now two years of
continuous service, instead of three.
Normally thirty days wages for every completed year of
service or any part thereof in excess of six months.
Extends to 45 days wages in the event the worker dies
while working in the establishment or following a
workplace accident at the premises of the establishment.
This shall be in addition to any other benefit the deceased
worker would have been entitled had he retired from
service.
(continued)
Section 23: Punishment for conviction and misconduct
The old section 23(3) is replaced with a new provision.
Workers dismissed for criminal conviction or for being
guilty of misconduct under section 24 are no longer eligible
for compensation.
Only workers removed after being found guilty of
misconduct are eligible for compensation.
However, no compensation shall be payable if the
misconduct is either theft, fraud, dishonesty in connection
with the employers property or riotous, disorderly
behaviour, arson, vandalism in the establishment.
Compensation, where applicable, shall be paid at the rate
of 15 days wages for every completed year of service,
instead of 14 days under the previous law.
(continued)
Section 24: Procedure for punishment
A worker, in addition to fulfilment of other pre-conditions, has to be
found guilty in enquiry before he can be punished under section 23.
Under the old law, the enquiry was conducted solely by the
employer.
Under the new law, the enquiry has to be conducted by an enquiry
committee comprising of equal number of representatives of both
the worker and the employer.
The enquiry committee shall complete the enquiry within 60 (sixty)
days of its instigation.
A worker, if suspended pending the completion of enquiry, shall be
entitled to other allowances in full in addition to subsistence
allowance.
The employer shall in addition to other factors listed in subsection
(10) also take into account work related success and contribution of
the concerned worker before awarding punishment.

(continued)
New Section 28A: Relation between employer and employee as a result
of disaster or damage caused by an event outside the control of the parties
Notwithstanding anything contained in this Chapter, the Government
can, according to the procedures set by rules, determine the
relationship between the employer and worker in cases where any
industry is shifted to a new place or the production activities are
permanently stopped due to a sudden natural calamity or disasters
beyond the control of human being or due to any urgent need.

Section 32: Eviction from residential accommodation
A worker cannot now be evicted from the residential accommodation
provided by the employer unless his dues have been cleared.

Section 33: Grievance procedure
In respect of a grievance application submitted to him, an employer
now has 30 days instead of 15 days to enquire into the matter, give the
worker an opportunity of being heard and communicate his decision,
in writing to him from the day of receipt of grievance.

CHAPTER III: EMPLOYMENT OF ADOLESCENT

Section 36: Disputes as to age
The option of referring any dispute as to age to a registered medical
practitioner has been withdrawn.
Replaced by examination of the concerned persons birth
certificate, school certificate or a certificate issued by the registered
medical practitioner regarding his age.

Section 44: Exception in certain cases of employment of children and
disabled worker
Section 44 provides that a child who has completed twelve years of
age, may be employed in such light work as not to endanger his
health and development or interfere with his education.
The new law has included disabled workers within the bounds of
this section.
Further protection is provided to disabled workers by banning
them from being employed to perform any hazardous works or
works involving dangerous machines.

CHAPTER VI: SAFETY

Section 62: Precaution in case of fire
Chief Inspector can issue an order under section 62 in the event an
establishment does not have the requisite number of fire extinguisher
as prescribed in the license granted by the Fire Extinguish Department.
Introduction of three new subsections 3A, 3B and 3C:
3A provides that in every establishment during the working hours the
doors affording exit from any room shall not be locked, fastened,
blocked or obstructed.
3B provides that the doors in any room shall be constructed in a way
so that they can be promptly opened both from inside and outside.
3C provides that if any door is between two rooms, it shall be
constructed in a way so that it can be opened nearest to the door
affording exit from the building and all such doors shall not be locked
or blocked during working hours.
Every establishment shall hold mock fire-fighting at least twice a year.

CHAPTER VI: SAFETY (continued)

Section 72: Floors, Stairs and means of access
A new obligation to keep the passages and stairways free from any hindrance
during working hours.
The employer now has the option of installing Close Circuit Camera in the
passages of the workplace, stairs, gate, warehouse and Common Utility Area
of the establishment.
New Section 78A: Obligation for using appliances for personal safety:
Obligation on the employer not to recruit workers without first ensuring their
safety through the provision of safety appliances.
Employer not liable if the workers do not use such appliances after they have
been provided.
Employer is further obligated to educate the workers of the risks associated
with their work through training.
Section 80: Notice to be given of accidents:
A new obligation on the employer to immediately inform the Government, fire
service, factory and establishment inspection division, police station, nearby
hospital if needed or government-private health care centre via phone, mobile
phone, sms or fax of the occurrence of any accident in the establishment.

CHAPTER VII: SPECIAL PROVISIONS RELATING TO HEALTH
HYGIENE AND SAFETY
Section 82: Notice of certain disease
The employer is obligated to provide for the
treatment of the worker who has contracted
disease as listed in the second schedule during
the course of work.

CHAPTER : VIII WELFARE

Section 89: First-aid appliances
Establishments employing 5000 or more workers shall create
and maintain a permanent health care centre.
Workers suffering from diseases contracted during the course of
work or from accidents related to work shall be treated by
specialist medical practitioners at the expense of the employer.
Establishments employing 500 or more workers shall employ a
welfare officer.
Section 90: Maintenance of safety record book
Establishments employing more than 25 workers shall maintain
a safety record book and shall exhibit a safety information board.
Establishments employing at least 50 workers shall create a new
safety committee.

CHAPTER : VIII WELFARE (continued)

Section 99: Compulsory Group Insurance
Burden now lies on the employer employing at least 100
permanent workers to introduce a group insurance scheme for its
workers.
Previously, it was at the option of the Government to introduce
such a scheme on establishments employing at least 200
permanent workers.
The amount of insurance premium shall be in addition to any other
benefits that the workers are entitled to under the labour Act.
On death of the worker, it shall be the responsibility of the
employer to claim that workers portion of the Insurance premium
and forward the proceeds directly to that workers dependants.
If any insurance claim is initiated by any worker under this
provision, then such claim shall be jointly resolved by both the
Insurance company and the employer within 120 days of its
initiation.

CHAPTER IX: WORKING HOUR AND LEAVE

Section 101: Interval for rest or meal
Workers involved in physically hazardous and laborious works
including construction, re-rolling, steel mills, ship-breaking and
welding shall have their interval period determined by the
Government through rules.
Section 103: Weekly holiday
Prohibits the deduction of wages for any week leave obtained
pursuant to section 103.
Section 114: Closure of shops
Section 114(1) provides that, 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.
However, under the new law, if such shop or commercial
establishment is situated inside a market or shopping mall or
biponi bitan, then subsection (1) shall not be applicable to it.

CHAPTER IX: WORKING HOUR AND LEAVE (continued)
Section 123: Time of payment of wages
Wages payable to a worker upon termination of his
employment shall now be paid within 30 working days
instead of 7 working days under the old law.
Section 124: Wages to be paid in current coin or currency
notes
Employers now has the option of paying wages in the
concerned workers bank account via electronic
transfer or any other digital means on demand by the
worker.
Any wage related dispute and any other dues can now
be resolved via settlement.

Procedure for the settlement of wage related disputes section 124A:
The concerned worker shall apply to the Chief Inspector or any one
empowered by the Chief Inspector in this regard.
Within 20 days of receiving such application the Chief Inspector or anyone
empowered by the Chief Inspector shall by discussion with the employer or
settlement resolve the claim.
In order to resolve the claim, the Chief Inspector or any one empowered by
the Chief Inspector in this behalf shall take necessary steps and conduct
discussions or play the role of a mediator in settlement meeting.
The decision taken in settlement meetings or in discussions shall be binding on
the parties.
The mediator shall provide his decision taken in any settlement meetings or
discussions conducted under this provision in written form to both parties.
Either the worker or employer or both if unwilling to comply with the decision
of the mediator taken in settlement meetings, the relevant party or both
parties can file a suit in the in the labour court and the labour court shall take
into account the decision of the mediator in resolving the dispute.

Section 140: Power to declare minimum rates of
wages
The Government has now been empowered
to make any changes it deems necessary to
the recommendations suggested by the
Wages Board before declaring them to be the
minimum wage.
The Government has also been given a special
power to alter any prevailing minimum wage
at any stage of its implementation.

CHAPTER XII: WORKMENS COMPENSATION FOR INJURY BY
ACCIDENT

Section 151: Amount of compensation
Under the new law, the amount of compensation to be paid on death of a
worker shall be in addition to any other compensation that he is entitled due
to normal retrenchment, dismissal, termination or resignation.
Section 155: Distribution of compensation
Section 155(3) provides that if the employer makes to any dependant of a
dead worker advance payment of compensation that such worker is entitled
then such advances shall be deducted by the labour court from the
compensation payable to that dependent and repaid to the employer.
However, the employer shall not be entitled to any refund if the advance
payment is spent towards the cost of burial formalities or treatment or
transportation of the dead body of a dead worker.
Employers who employ at least 10 workers has the option of starting an
accident insurance scheme under the joint Insurance programme and the
money received from such schemes shall be spent towards the treatment of
workers.

CHAPTER XII: WORKMENS COMPENSATION FOR INJURY BY
ACCIDENT (continued)
Section 161: Compensation on contracting
Section 161(1) provides that where any person (the Principal)
in the course of or for the purposes of his trade or business
contracts with any other person (the Contractor), he shall be
liable to pay compensation to any worker employed by the
Contractor as if that worker has been employed by him.
The new law gives some recourse to the Principal if he thinks
that the death or injury to the worker is a result of breach by the
contractor of the terms of the contract.
The Principal shall apply to the Chief Inspector by depositing the
full amount of compensation to the labour court in the event of
workers death or pay the worker with a pre-determined sum in
the event of injury suffered by the worker.
The Chief Inspector shall determine the matter within 45 days of
receiving it.

CHAPTER XIII TRADE UNIONS AND INDUSTRIAL RELATIONS

Section 176: Trade unions of workers and employers
Female representation of at least 10% in the union executive committee
where the establishment contains 20% female workers.
Section 177: Application for registration
The registrar of trade union shall be the labour director or anyone empowered
by him in this behalf
Section 179: Requirements for registration
The new law addresses the issue of the term of office of officers employed in a
federation of trade unions and trade unions shall not exceed three years and
two years respectively.
Further, if election is not held in trade unions and federation of trade unions
within two years and three years of registration respectively, then the
executive committee of those unions shall be declared to be illegal.
Section 180: Disqualification for being an officer or a member of a trade union
State owned industrial sector can now have members who are not employed
in the establishment in the executive committee of its trade union.
Such appointment shall not exceed 10% of the total members in the executive
committee.

(continued)
Section 183: Registration of trade unions in a group of establishment
The new law has introduced further industries which shall be
deemed to be a group of establishments, namely:
(i) Ship-building
(ii) Ship recycling
(iii) Construction worker
(iv)Rice mill worker
(v) Agriculture firm.

Section 187: President and certain officers cannot be transferred
Previously, only the president, the General Secretary, Organizing
Secretary and Treasurer of any trade union could not be transferred
from one district to another without their consent.
Under the new law, the aforesaid restriction on transfer is
applicable to all oficers of the trade union.
(continued)
Section 202: Collective Bargaining Agent
The new law in addition to preserving the recourse of
applying to the labour director for the holding of a collective
bargaining agent election has also empowered the concerned
trade unions to elect from amongst themselves an election
commissioner for holding of such election.
Every employer is now obligated to provide office space to the
elected collective bargaining agent.
Option of appointing experts should the collective bargaining
agent or the employer think necessary for the effective
performance of the collective bargaining agents functions.
Any dispute as to the appointment of an expert shall be
referred to and resolved by the labour director.

(continued)
Section 205: Participation Committee
Additional obligation on the employer to consult directly
with the workers before constituting a participation
committee.
In an establishment where there is no trade union, the
representatives of workers in the participation committee
have been empowered to carry out activities in the
interests of workers within that establishment.
No elected or nominated representatives of workers in the
participation committee shall be transferred by the
employer without his consent.
No action can be brought by the employer against the
representative of the worker for anything done by the
representative in good faith.

(continued)
Section 211: Strike and lock-out
The requirement of consent before a notice of strike or
lock-out can be served has been reduced from three-
fourths of the members of the trade union to two-
thirds.

Section 213: Application to the labour court
Any collective bargaining agent or any employer or
worker can now also apply to the labour court for
enforcement of any rights that they are entitled under
the prevailing custom, circular, order, notification or by
any other recognised rights.

CHAPTER XIV WORKERS PARTICIPATION IN COMPANIES
PROFITS

Section 232: Application of the chapter
Under the previous law, the obligation to set up a workers profit
participation fund only applied to industrial undertakings.
The term industrial undertakings has been replaced by
Company.
The Company now only has to fulfil any one two conditions rather
than three under the old law.
The Company either needs to have a paid up capital of more than
10 million taka or fixed assets the value of which exceeds twenty
million taka.
This chapter shall not apply to 100 percent export oriented
companies and 100 percent foreign investment industries.
Government to frame rules for the constitution of sectorwise fund
comprising of buyers and owners.

PROFITS (continued)
Section 233: Special Definitions
The definition of the term Profits have been
changed to mean such of the net profits as
defined in section 119 of the Companies Act,
1994 as are attributable to its business, trade,
undertakings or other operations in Bangladesh.
The term worker for the purposes of the
Workers Profit Participation Fund provision has
been replaced with beneficiary meaning any
person including apprentice employed for at least
9 months regardless of their designation.

PROFITS (continued)

Section 233: Special Definitions (continued)
The definition of the term Industrial Undertaking in the old section 233(g) has
been replaced with any organisation, business organisation, industry, Bank,
financial investment organisation, Insurance company run with the motive of
making profits or which falls within any one of the following heads:
(a) the subjection of goods or materials to any manufacturing, assembly, finishing
or other artificial, natural process, which changes their original condition or adds
to their value;
(b) ship-building and recycling;
(c) the transformation, generation, conversion, transmission, or distribution of
electrical energy including hydraulic power;
(d) the working of a mine, oil, well or any other source of mineral deposit,
including blending, refining and purification of oils and gases;
(e) the marketing and distribution of gas or oil;
(f) the carriage of men or goods by sea or air.
(g) service providers such as mobile operator companies, building organisation and
(h) includes any other operation which the Government may, by notification in the
official gazette, declare to be an undertaking for the purposes of this Chapter.

PROFITS (continued)

Section 234: Establishment of Participation Fund
and welfare fund
5% of the Profits shall be distributed among the
Participation Fund, Welfare Fund and Bangladesh
Workers Welfare Foundation Fund in the ratio of
80:10:10 respectively.
If any Owner deposited 1% of its profits in the
Welfare Fund, then the Trustee Board shall be
liable to distribute 50% of such amount to the
Bangladesh Workers Welfare Foundation Fund.

PROFITS (continued)
Section 235: Management of Funds
If the Government pursuant to its powers under section 235(5)(a) cancels any
trustee board or removes its Chairman or any members of the Board, then the
members of such board or its chairman or related members shall not be
eligible for re-election in the Trustee Board.
Section 236: Penalty
Section 236 deals with the amount of penalty to be paid by any company for
failure to comply with the provisions of section 234.
The amount of penalty in subsection (2) of section 236 has been increased
from a maximum of ten thousand taka to a maximum one lac taka.
The amount payable by way of penalty for continuous failure also increasing
from a maximum of taka one thousand per day to a maximum of taka five
thousand per day.
Further breach of this provision shall be penalised with a fine twice the
amount mentioned in this provision.
Anyone aggrieved by any order of penalty may apply for review of the order
within 30 days of the making of the order.
The Government is obligated to make a decision within 45 days of receiving it.

CHAPTER XIV WORKERS PARTICIPATION IN COMPANIES PROFITS
(continued)
Section 240: Investment of Participation Fund
Under subsection (2) of section 240, the
Company has the power to request the Board
to utilise the amount in the Participation Fund
for investment.
Under the new law, the money from the
participation fund can only be invested in a
government owned investment worthy sector.

CHAPTER : XVIII APPRENTICESHIP

Establishments no longer need to have more than
five workers in order to fall within the purview of
this chapter.
So long as the establishment has more than fifty
workers and has been doing business for more
than two years, it shall fall within the purview of
this Chapter.
Employers shall give priority to disabled workers
at the time of nominating workers for training as
apprentice.

CHAPTER : XIX PENALTY AND PROCEDURE

Section 286: Penalty for contravention of the
provisions of chapter IV by an employer
The penalty for contravening the provisions of
chapter IV, Maternity Benefit, has been
increased from 5000Tk. to 25000Tk.
Female workers can now claim specific relief
of the right they have been deprived in
addition to monetary compensation for
breach of any of the provisions of chapter IV.

Thank you.

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