Labour Law
Labour Law regulates labour employment, remunerations, conditions of work, trade unions, and labour management relations. They also include social laws regulating such aspects as compensation for an accident caused to a worker at work, fixation of minimum wages, maternity benefits, sharing of the company's profit by the workers, etc. Most of these legal instruments regulate the rights and responsibilities of the working people. With the growth and expansion of factories and industries in the subcontinent beginning in the mid-nineteenth century, new avenues for employment were created, resulting in a gradual migration of the labour force from rural areas to mills and factories located primarily in urban areas. At that time, in the absence of any state control or organisation of the workers, the employers were less concerned about the needs of their employees; the work hours were too long, wages much below the subsistence level, and the workers' employment conditions were unsatisfactory. The situation led to the enactment of several legislations beginning from the year 1881. These include, among other things, the Factories Act, 1881, Workmen's Compensation Act, 1923, Trade Unions Act, 1926, Trade Disputes Act, 1929, Payment of Wages Act, 1936, Maternity Benefit Act, 1939, and the Employment of Children Act, 1938.
After 1947, the Government in Pakistan decided to keep in force most of the pre-partition laws with some modifications and amendments thereof, in the form of administrative rules, to meet the changing needs. Almost the same governmental decision to allow most of these laws to remain in force was taken in liberated Bangladesh in pursuance of the Adaptation of Bangladesh Laws Order (President's Order No. 48) issued in early 1972. In 2006, the then Government codified most of these laws into one statute: the Bangladesh Labour Act, 2006 (BLA, 2006). Following is a brief description of the labour and industrial laws and rules in Bangladesh.
Establishments and Working Hours As per the BLA, 2006, “establishment” means any shop, commercial establishment, transport, industrial establishment or premises or precincts where workers are employed to carry on any industry. It also gives a list of establishments and workers on which the BLA, 2006 does not apply. The BLA, 2006 makes provision for safety, health and hygiene of the workers and special provision for women and adolescent workers. It also prohibits child labour. It limits the work of a child in factories, including the seasonal ones. For extra work by a worker beyond regular hours, payment must be made double the ordinary wage. The periods of adult workers shall be so fixed that either no worker shall work for more than six hours continuously before he has had an interval (for rest) of at least one hour or for more than five hours without a rest interval of at least half an hour or for more. The periods of work along with rest intervals may be spread over to ten hours. Every worker employed in an establishment will be entitled to 1.5 (one and a half) day holiday in a week in a shop or commercial establishment or an industrial establishment and 1 (one) day in a week in the case of a factory and establishment. Also, they will be entitled to one day of twenty-four consecutive hours holiday in a week in the case of road transport establishment, and no deduction will be made from his wages on account of such holidays. The Act also provides for leaves and holidays.
Where a worker works for more hours than the hours fixed under this Act in an establishment on any day or in a week, he will, for 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 wage, if any.
No adult worker shall ordinarily work or be required to work in an establishment for more than 48 (forty-eight) hours in a week. However, an adult worker may work for more than 48 (forty-eight) hours also in a week: provided that the total working hours of such worker shall not exceed 60 (sixty) hours in a week, and on the average 56 (fifty-six) hours per week in a year; provided further that the total additional working hours of a worker employed in a road transport establishment shall not exceed 150 (one hundred and fifty) hours in a year. The Government may, in the cases of some particular industries, under conditions imposed by order in writing, relax this provision or exempt from this provision at a time for a period of not exceeding 6 (six) months, if it is satisfied that in the public interest or the interest of economic development such relaxation or exemption is necessary.
In addition to the BLA, 2006, some other laws also have provisions relating to a working hour. Under the Mines Act, 1923, which applies to workers employed in mines, work hours for persons employed on the surface are limited to ten per day and fifty-four per week. The periods of work, including rest intervals, shall not spread over more than 12 hours on any day. For workers employed underground, the daily limit is nine hours per day. The Act does not contain provisions as to overtime work. No worker is to work in a mine for more than six days a week. The Act does not provide for wages for the weekly rest day.
Under the Motor Vehicles Ordinance of 1983, the hours of work of motor vehicle drivers are limited to forty-eight hours a week and eight hours a day. Exceptions may be granted in some instances. A rest interval of at least half an hour is prescribed for five hours of work. It contains provisions for the age limit of workers, hours of work and rest, leave and other service conditions. Under this Ordinance, no person other than a driver can be employed in any road transport service unless he has attained the age of eighteen years, and in the case of a driver’s minimum age has been fixed at twenty-one years. The Merchant Shipping Ordinance, 1983 and Inland Water Transport (Control of Employment) Act, 1992 contain provisions for service conditions of the workers engaged in water transport services.
Under chapter VIA of the Railways Act of 1890, the railway workers are classified into two categories, continuous and essentially intermittent. The workers of the former category may be employed for up to sixty hours a week on average in any month. And are granted with pay each week rest of not less than twenty-four consecutive hours. Government can make an exception to this provision for a specific classification of workers by making rules. The railway servant whose employment is essentially intermittent shall not be employed for more than eighty-four hours in any week. Payment of overtime is not less than one and a quarter times his ordinary rate of pay. For air transport workers, there are no special laws. Instead, their services are guided following service rules framed there under.
Young Workers As per the BLA, 2006, children who are of 14 to 18 years of age are termed adolescent workers. A child who has completed 12 (twelve) years of age may be employed in such light work which is not dangerous to his health and development or shall not interfere with his education. No adolescent will be allowed to work in any factory or mine for more than 5 (five) hours in any day and 30 (thirty) hours in any week. No adolescent will be allowed to work in any other establishment for more than 7 (seven) hours in any day and 42 (forty-two) hours in a week. No adolescent will be allowed to work in any establishment between 7.00 pm and 7.00 am. If an adolescent works overtime, the total number of hours worked, including overtime, shall not exceed in any factory or mine, 36 (thirty-six) hours in a week; and in any other establishment, 48 (forty-eight) hours in a week. No woman worker shall, without her consent, be allowed to work in an establishment between 10 pm and 6 am
Women Workers Women workers have the same working hours as male workers. Except they are not to be forced to work from 10 p.m. to 7 a.m. without consent. Women workers are entitled to maternity benefits with pay 8 weeks before and after their delivery. The maternity benefit is allowed up to two living children. It must be provided to the worker’s nominee if she dies or to the child's legal guardian. Suppose any notice or order of discharge, dismissal, removal, or otherwise, termination of employment is given by the employer to a woman working within a period of 6 (six) months before, and 8 (eight) weeks after her delivery and such notice or order is given without sufficient cause. In that case, she shall not be deprived of any maternity benefit to which she would be entitled if such notice or order has not been given.
Holidays Every worker shall be entitled to casual leave for 10 (ten) days with full wages in a calendar year. If such leave is not availed for any reason, it shall not be accumulated. The leave of any year shall not be availed in the succeeding year: provided that nothing in this section shall apply to a worker employed in a tea plantation. Except for a newspaper worker, every worker shall be entitled to sick leave with full wages for 14 (fourteen) days in a calendar year. Every newspaper worker shall be entitled to sick leave with half wages for not less than one-eighteenth of the period of his service. It will not be accumulated and carried forward to the following year.
Every adult worker who has completed 1 (one) year of continuous service in an establishment shall be allowed during the following period of 12 (twelve) months’ leave with wages for days calculated based on the works of the preceding 12 (twelve) months at the following rate, namely: 1 (one) day for every 18 (eighteen) days of work, in the case of a shop or commercial or industrial establishment or factory or road transport establishment; 1 (one) day for every 22 (twenty-two) days of work, in the case of tea plantation; 1 (one) day for every 11 (eleven) days of work, in the case of a newspaper worker. In addition, every adolescent worker who has completed 1 (one) year of continuous service in an establishment shall be allowed during the subsequent period of 12 (twelve) months’ leave with wages for many days calculated for the works of the previous 12 (twelve) months at the following rate, namely: 1 (one) day for every 15 (fifteen) days of work, in the case of a factory; 1 (one) day for every 18 (eighteen) days of work, in the case of a tea plantation; 1 (one) day for every 14 (fourteen) days of work, in the case of a shop or commercial or industrial establishment. Every worker shall be allowed 11 (eleven) days of festival holiday with wages in a calendar year.
Industrial Relations and Resolution of Dispute the BLA, 2006 provides for the formation of trade unions and regulation of relations between employers and workers. Since public interest is involved in settling the industrial dispute, adjudication through labour courts bears much importance. Moreover, the labour courts play an essential role in maintaining industrial peace by settling issues on labour management problems. Hence, they enjoy the confidence of both the employers and the workers. Also, the Collective Bargaining Agent plays a significant role to settle industrial disputes outside the Courts.
The settlement of industrial disputes goes through both outside and inside the Court processes. No industrial dispute shall be deemed to exist unless it is raised by an employer or by a collective bargaining agent.
By notification in the Official Gazette, the Government may establish as many Labour Courts as it considers necessary. A Labour Court shall consist of a Chairman and 2 (two) members to advise him. Still, in case of the trial of any offence or disposal of any matter related to the payment of wages and compensation for injury for an accident, it shall consist of the Chairman only. The Government shall appoint the Chairman of a Labour Court from amongst the District Judges or Additional District Judges in service. The terms and conditions of appointment of the Chairman and members of a Labour Court shall be determined by the Government. One of the two members of the Labour Court shall be the representative of the employers, and the other shall be the representative of the workers. A Labour Court shall, while trying an offence, follow, as far as possible, the summary procedure as prescribed under the Code of Criminal Procedure. A Labour Court shall, to try an offence under this Act, have the same powers as are vested in the Court of a Judicial Magistrate of the First Class or Metropolitan Magistrate under the Code of Criminal Procedure. To impose a penalty, a Labour Court shall have the same power vested in a Court of Sessions under that Code. Any party aggrieved by the judgment, decision, award or sentence passed or given by a Labour Court may prefer an appeal to the Tribunal within 60 (sixty) days of the delivery thereof, and the Tribunal's decision in such appeal shall be final.
Conditions of Service Legislation concerning the long-term policy to foster economic stability and growth is relatively a new concept in labour law. There was almost no legislative regulation on employment terms and conditions employed in the shop, industrial or commercial establishments. The Industrial Employment (Standing Orders) Act, 1946 came into operation for the first time requiring employers in industrial establishments employing 100 or more workers to define the terms of employment of workers in the form of standing orders which should be in general conformity with the model standing orders incorporated in the Act. The Merchant Shipping Act, 1923 provided an agreement between a seaman and the master of the ship regarding terms of service. The Merchant Shipping Ordinance, 1983 replaced the Act. In 1960, the Industrial and Commercial Employment (Standing Orders) Ordinance 1960 replaced the Industrial Employment (Standing Orders) Act, 1946. This law was replaced in 1965 by the Employment of Labour (Standing Orders) Act, 1965, which provides for defining and determining conditions of service of workers, workers' and employees' rights vis-a-vis the employer's rights. At present, the BLA, 2006 provides rules relating to the misconduct of workers is defined, and the employer has a right to lay off, dismiss, discharge, retrench or terminate the services of workers. Employers can close down the establishment in certain contingencies. The workers' remedy against illegal dismissal or cessation of employment and grievance procedure against any employer's action is provided for in the Act.
Wages The Government shall establish a Board to be called the Minimum Wages Board. The Wage Board shall consist of the following members, namely: - Chairman; 1 (one) independent member; 1 (one) member representing the employers; and 1 (one) member representing the workers. In addition, the following members shall also be included in the Wage Board, namely: 1 (one) member representing the employers of the industry concerned; 1 (one) member representing the workers employed in the industry concerned. The Government shall appoint the Chairman and the other members of the Wage Board. Where the Government is of the opinion that in view of the prevailing rates of wages of workers employed in any industry, it is necessary and reasonable to fix the minimum rates of wages for all or any class of workers employed in such industry, the Government may direct the Wage Board to recommend, after necessary enquiry, the minimum rates of wages for such workers or class of workers.
Social Security If a worker is bodily injured by accident arising out of the course of his employment, his employer shall be liable to pay him compensation. Furthermore, if a worker is injured or died, they shall be compensated according to the BLA schedule, 2006.
The workers' entitlement in the company's profit at a specific rate is compulsory under the BLA, 2006. Those companies which have the amount of its paid-up capital on the last day of an accounting year is not less than taka 1 (one) crore; or; the value of its permanent assets on the last day of an accounting year is not less than taka 2 (two) crore will establish a Workers Participation Fund.
Export Processing Zones (EPZ) Many workers employed in the EPZ enterprises are not within the jurisdiction of labour laws. The Export Processing Zones Authority Act of 1980 empowers the Government to bar the application of some laws in these zones. [Nirmalendu Dhar]
