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Labour & Employment in Bangladesh

At Russel and Partners, we are experienced working with disputes regarding the relationship between employer and employee according to the Labour and employment acts and regulations. We are regularly drafting employment letters as well as termination letters to ensure the rights and benefits of both parties. We also draft employment contracts, severance contracts, agreements with the third party on behalf of the employee and rules and regulations of the company, Human Resources Manual. We also have expertise regarding making contracts with foreign investors. We also provide our consultations to the aggrieved party seeking legal advice under the provided laws and regulations. 

The economic growth of Bangladesh has been tremendous. Previously there were many labour related laws but now it has specific Labour laws in Bangladesh. The Labour Law Act and the Labour Law rules and regulations have brought new dimensions and diversity to the legal arena. The Act has been enacted to ensure the obligatory rights, restrictions, liabilities of both employers and employees. Furthermore, ensuring that employer lawyers in Bangladesh can work out their ways without prejudicial or unfavorable circumstances.

In Bangladesh, The Ministry of Labour and Employment is responsible for employment protecting and safeguarding the interest of workers and human resource development.

Legal framework Governing Labour and Employment:

The Bangladesh Labour Act 2006, the Bangladesh Labour (Amendment) Act 2013, the Labour Rules 2015 is relatively progressive and it has consolidated and replaced the 25 existing acts. The Acts and Rule provide provisions for conditions of service and employment, youth employment, maternity benefit, health hygiene, safety, welfare, working hours and leave, wages and payment, workers’ compensation for injury, trade unions and industrial relations, disputes, Labour court, workers’ participation in companies’ profits, regulation of employment and safety of dockworkers, provident funds, apprenticeship, penalty and procedure, administration, inspection, etc.

Some of the valuable sections of this act are, such –

  • Labor courts shall be the only courts to adjudicate all issues under labor law and all appeals shall lie to the labor appellate tribunal,
  • Time has been fixed for the adjudication of each and every stage of the cases in the labor court to accelerate the procedure,
  • Only the workers employed in an establishment, irrespective of their designation and wage scale are entitled to get the benefits of the participation fund and the welfare fund developed out of the profit of the company.
  • Arrangements for training on law were never provided for but now in this new law, training arrangement is made compulsory for the laborers etc.

Bangladesh Export Processing Zones Authority (BEPZA) is the official authorisation of the government that facilitates as well as promotes investments in the Export Processing Zones (EPZs). The EPZs were established to provide special areas for the potential investors to find a favourable environment for investment that is free from excess procedures. The Bangladesh Export Processing Zones Authority (BEPZA) issued directives on service matters regarding workers and officers employed in companies operating within the EPZ of Bangladesh in the exercise of the powers conferred by the Bangladesh Export Processing Zones Authority Act 1980

Bangladesh EPZ Labour Act 2019. The directives issued by BEPZA apply to workers, officers and apprentices of the companies inside the EPZs.

Further, there is also The Companies Act 1994 and the Contract Act 1872 that regulate the service and the relation between employer and employee in the managerial positions.Furthermore, there have been legal practices which are governed by Bangladesh Workers’ Welfare Foundation Act 2006, Bangladesh Workers’ Welfare Foundation Rules 2010.

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