Working Paper - Labour Law 2006-1

Table of Contents
Page No.
PART 1: WORKING CONDITIONS.........................................................................................1
1.1
1.2
1.3
1.4
1.5
1.6
WAGES ...............................................................................................................................1
1.1.1 Definition .................................................................................................................1
1.1.2 Persons responsible for the payment of wages ........................................................2
1.1.3 Fixation of wage periods and time of payment of wages ........................................2
1.1.4 Deductions from the wages......................................................................................2
1.1.5 Grievance procedure in case of illegal deductions or delay in payment..................3
WORKING HOURS AND LEAVES ...............................................................................4
1.2.1 Daily hours...............................................................................................................4
1.2.2 Interval for rest and meal .........................................................................................4
1.2.3 Weekly hours ...........................................................................................................4
1.2.4 Weekly Holiday .......................................................................................................4
PAID ANNUAL LEAVE...................................................................................................5
1.3.1 Annual leave with wage...........................................................................................5
1.3.2 Festival holiday........................................................................................................5
1.3.3 Casual leave .............................................................................................................5
1.3.4 Sick leave .................................................................................................................5
EMPLOYMENT OF FEMALE .......................................................................................6
MATERNITY BENEFITS................................................................................................6
1.5.1 Maternity leave ........................................................................................................6
1.5.2 Procedure of payment of the maternity benefit........................................................6
1.5.3 Amount of the Maternity Benefits ...........................................................................7
1.5.4 Benefits in case of the death of mother....................................................................7
EMPLOYMENT OF ADOLESCENT.............................................................................8
1.6.1 Prohibition of employment of children and adolescent ...........................................8
1.6.2 Certificate of fitness.................................................................................................8
1.6.3 Working hours of adolescent ...................................................................................9
1.6.4 Restriction of appointment of adolescent in certain work .......................................9
PART 2: EMPLOYMENT..........................................................................................................10
2.1 Forced labour .......................................................................................................................10
2.2 Discrimination ......................................................................................................................10
2.3 Service rules..........................................................................................................................11
2.4 Appointment letter and ID card .........................................................................................11
2.5 Service book..........................................................................................................................11
2.6 Classification of workers .....................................................................................................12
2.7 Probationary period.............................................................................................................13
2.8 Calculation of continuous service .......................................................................................13
2.9 Payment of wages for unavailed leave ...............................................................................14
2.10 Death benefit.........................................................................................................................14
2.11 Stoppage of work..................................................................................................................14
2.12 Right of laid off workers .....................................................................................................15
2.13 Retrenchment .......................................................................................................................15
2.14 Discharge ..............................................................................................................................16
2.15 Dismissal ...............................................................................................................................16
2.16 Termination ..........................................................................................................................17
PART 3: OCCUPATIONAL HEALTH, SAFETY AND WELFARE....................................18

3.1
3.2
3.3
SAFETY............................................................................................................................18
3.1.1 Fire .........................................................................................................................18
3.1.2 Floors stairs and means of access ..........................................................................18
3.1.3 Excessive Weights .................................................................................................19
3.1.4 Safety of building and machineries........................................................................19
3.1.5 Fencing of machinery ............................................................................................19
3.1.6 Work on or near machinery on motion ..................................................................20
3.1.7 Explosive or inflammable dust or gas....................................................................20
3.1.8 Precautions against dangerous fumes ....................................................................21
3.1.9 Personal protective equipment...............................................................................21
3.1.10 Risk assessment and prevention.............................................................................22
WELFARE .......................................................................................................................22
3.2.1 First aid appliances ................................................................................................22
3.2.2 Washing facilities...................................................................................................23
3.2.3 Canteens.................................................................................................................23
3.2.4 Shelters/ rest rooms and lunch rooms ....................................................................24
3.2.5 Rooms for children ................................................................................................24
HEALTH AND HYGIENE.............................................................................................24
3.3.1 Cleanliness .............................................................................................................24
3.3.2 Drinking water ......................................................................................................25
3.3.3 Overcrowding .......................................................................................................25
3.3.4 Lighting..................................................................................................................26
3.3.5 Latrines and urinals................................................................................................26
3.3.6 Dust bins and spittoons ..........................................................................................27
PART 4: INDUSTRIAL RELATIONS......................................................................................28

4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
Unfair Labor Practices from the Part of the Employers..............................................28

Unfair Labor Practices from the Part of the Workmen...............................................29
Determination of the Collective Bargaining Agent (CBA)...........................................29
The Right of the Collective Bargaining Agent ..............................................................31
Participation Committee .................................................................................................31
Functions of the Participation Committee.....................................................................32
Meetings of the Participation Committee ......................................................................32
Implementation of the Recommendation of the Participation Committee.................33
Trade Unions ....................................................................................................................33
Application for Registration and Required Documents for Registration...................33
Industrial Dispute ............................................................................................................34
Raising of Industrial Dispute ..........................................................................................34
Settlement of Industrial Dispute.....................................................................................34
Strike and Lock Out ........................................................................................................35
ii
PART 1: WORKING CONDITIONS

1.1
WAGES
1.1.1
Definition
Provisions of the new labor law:

Chapter 10 of the new labor law deals with the provisions related to the wages of the labor.
Wages include the following as per section 120 of the new labor law:
Any bonus contracted as the condition of the employment;
Any payment payable during leave, holiday and overtime;
Any amount payable by the order of the court or the award of arbitrator;
Any amount payable to the worker arising out of the contract between the owner and the
worker after the employment is expired by dismissal, discharge, retrenchment,
termination;
Any amount payable due to lay off or temporary suspension.
The new law has also provided a negative list in section 2(45) of the new labor law in defining
the term wages. It excludes the following items from wages:
Expense of housing facilities like lighting facilities, water supply, medical or any other
facilities;
Owners contribution to the provident fund of the worker;
Traveling allowances or concession thereof;
Any other sum paid to worker to cover any special expenses entailed to him by the
nature of the employment.
But, from different decisions of the courts of Bangladesh, the following items are also treated as
part of the wages of a worker:
Any amount payable to the worker by the order of the court or the award of the arbitrator
shall be treated as the wages;
Overtime allowance shall be treated as wages;
Compensation on retrenchment (on ground of redundancy) shall be treated as wages;
Allowance during Lay off or temporary suspension shall be treated as wages;
Increment shall be treated as wages;
Compensation at the expiry of the employment by any means like dismissal, discharge or
otherwise shall be treated as wages;
Gratuity on discharge or any other gratuity shall be treated as wages;
House rent allowances shall be treated as wages;
Wages during leaves and holidays.
Changes in the present law:

1. Previous law excluded the gratuity on discharge from the wages of a worker but the new
law includes it as part of the wages.
2. The word gratuity was never defined anywhere in the previous labor law but the new law
defines it properly in section 2 (10) where it is defined as the amount of the wages of at
least 30 days payable to a worker who worked in a factory not less than 6 months at the
expiry of his employment.
3. Previous law provided only the exclusion list with the definition of the wages but the
present law provides both the inclusion and exclusion list to make a complete sense.
4. Provident fund is considered to be the wages and is payable within 30 days of the expiry
of the employment.
1.1.2
Persons responsible for the payment of wages

Under the new law the following persons shall be responsible for the payment of the wages of the
worker.
Owner of the factory;
Chief Executive Officer (CEO);
Manager/person assigned responsible by the company;
The Contractor, in case of worker appointed by the contractor.
Changes in present law:
In case of the failure of the contractor to pay the wages to the worker, the principal owner shall
pay the same and subsequently it can be adjusted with the accounts of the contractor.
1.1.3
Fixation of wage periods and time of payment of wages

The person responsible for the payment of wages of the worker shall fix a period of wages and
accordingly pay it as per the time given in the law.
Section 122 guides the paymaster to fix a period not exceeding 30 days and section 123 provides
that payment shall be made within seven days of the expiry of a wage period.
No significant change has been brought about in this regard.
1.1.4
Deductions from the wages
Provisions of the new labor law: Section 125 of the labor law 2006 deals with the deductions
made from the wages of the workers. Following are the deductions valid under the present law:
1. Fines under section 25 (section 25 however states that no fine shall be allowed more than
one tenth of the total wages receivables by an worker in a particular wage periods and no
fine for the worker aged below 15);
2. Deductions for absence from duty;
3. Deduction for damage or loss of goods entrusted upon the worker in his custody;
4. Deduction for house accommodation supplied by the employer;
5. Deduction for such amenities or services supplied by the employer as the government has
authorized;
6. Deduction for recovery of advances or for adjustment of overpayments;
7. Deduction for Income tax payable by the worker;
8. Deduction for subscription to and for repayment of advances from the provident fund
9. Deduction for the payment to the co-operative societies approved by the government.
Upto these 9 points the new law remains exactly the same as section 7 of the previous Payment
of Wages Act 1936, but the new law added more deductions like the following:
Deductions for the subscription of CBA Union in check-off method;
Deduction for any welfare fund formed by the employer and authorized by the
government.
1.1.5 Grievance procedure in case of illegal deductions or delay in payment

Application by the worker himself or his successor in case of his death;
Application to the labor court only;
Application within 12 months from the date of such illegal deduction or the date of the
payment being due, but the court can take it even after the expiry of the said period;
Up to 25% as compensation on the wages due at that time may be ordered;
No court fees are payable by the aggrieved worker rather if the worker wins the case it is
the owner who shall pay the court fees payable;
Single application on behalf of all the workers so aggrieved.
Changes in present Law:

At present, the Chairman of the Labour Courts are only eligible to hear the cases;
Previously the limitation period was only six months, now it is twelve months.
1.2
WORKING HOURS AND LEAVES
1.2.1
Daily hours
Provisions of the new labor code:

Section 100 makes a provision of 8 working hours a day for an adult worker, but an adult worker
may work 10 hours a day provided all the conditions of section 108 have been fulfilled.
According to that section the employer is required to pay the worker, overtime, double the rate of
his/her usual wages. i.e. basic & dearness allowance, if any. The employer is also required to
maintain an overtime registrar as per the law.
One hour a day has been decreased for the calculation of daily hours.
1.2.2 Interval for rest and meal
Interval for rest is provided in the following manner:
1. One hour interval for rest or meal for six hours of work;
2. Half an hour interval for rest or meal for 5 hours of work.
Changes in present law: No change has been made.
1.2.3
Weekly hours

The new law makes a provision of total 48 (forty eight) working hours for a worker, but it can be
extended upto sixty hours, subject to the payment of overtime allowances as per section 108 of
the law. However, an average of 56 working hours per week in a year for a labor must not be
exceeded under any circumstances. But the new law makes a provision for exemption approved
by the government if it thinks so fit.
Exemption clause has been inserted by which the government is empowered to exempt any of the
factories to do away with this rule for a maximum period of six months at a time.
1.2.4 Weekly Holiday
Provisions of the new labor code: Section 103 of the new labor code makes the provision of
one day weekly holiday for all the workers employed in a factory.
Changes in new law: No change.
1.3
PAID ANNUAL LEAVE
1.3.1
Annual leave with wage

Section 117 of the new labour law deals with the annual leave with wages. The section provides
as follows:
1) Every worker who has completed one year of continuous service in a factory, shall be
allowed during the subsequent period of twelve months leave with wages for a number
of days calculated at the rate of
i) for adult workers, one day for every 18 (eighteen) days of work performed by him
during the previous period of twelve months;
ii) for adolescent worker, one day for every 15 (fifteen) days of work performed by him
during the previous period of twelve months.
2) An adult worker shall cease to earn any such leave when the leave due to him amounts to
40 (forty) days and an adolescent worker shall cease to earn the said leave when the leave
due to him amounts to 60 (sixty) days.
1.3.2
Festival holiday

1) Every worker shall be entitled to eleven days festival leaves in a calendar year. The
employer shall, at the beginning of the year, fix the day and date of such leaves.
2) The employer may require any worker to work on a festival holiday provided a
compensatory holiday under section 103 and an alternative holiday is given to him.
Festival holiday has been increased by a day in the new labor law 2006.
1.3.3
Casual leave

Section 115 of the new labor law deals with the casual leave of the worker. It makes a provision
for 10 days casual leave with full wages.
1.3.4
Sick leave

All workers employed in a factory shall be entitled to get 14 (fourteen) days sick leave with full
average wages. Provided, such a leave shall not be granted unless a registered physician
employed by the employer or any Registered Physician has certified his or her illness.

Previous law provided for the same period of leave with half average wages whereas the new law
makes the sick leave to be one with full average wages. The provision of the certification by a
registered physician does not exist in the previous law. However, it has been added to the new
law.
1.4
EMPLOYMENT OF FEMALE

There are a number of sections where the employment and protection of women have been
discussed. The sections are 45, 50, 79, 87, 94, 109, 332 and 345 of the new labor law, 2006.
Night work of female workers: Section 109 of the labor law, 2006 creates a bar on the night
works of the female workers. The section states as follows:
No female worker shall be engaged for work in any establishment without her consent between
10 pm and 6 am.
1.5
MATERNITY BENEFITS
1.5.1
Maternity leave

In section 46 of the new labor law 2006 provisions have been created for maternity leave of 16
weeks (8 weeks before and 8 weeks after the delivery). But the law also makes a provision that
no worker shall be entitled to get the benefit unless she has served under the owner for a
minimum period of six months prior to the notice of the probability of the delivery.
Provisions of the previous labor laws: Section 3 of the Maternity Benefits Act, 1939 provides
maternity leaves of 12 weeks (6 weeks before and 6 weeks after the delivery).
The new law increases the maternity leaves to sixteen weeks from twelve weeks and decreases
the duration of the qualifying service period, to avail the benefit, to six months from 9 months.
1.5.2
Procedure of payment of the maternity benefit
Provisions of the new labor code: Three options are open to the mothers as per section 47 of the
new labor law:
1. The owner shall pay the total benefit payable for the preceding 8 weeks within 3 days
from the submission of the certificate of the probability of delivery by a Registered
Physician and shall pay the remaining amount after three working days of the submission
of the proof of the delivery.
2. The owner shall pay the benefit payable for the preceding 8 weeks including the day of
the delivery within 3 days from the submission of the proof of delivery and pay the
remaining within the next eight weeks after the proof of delivery is submitted
3. The owner shall pay all the benefits payable within 3 days from the submission of the
proof of delivery to the owner.
Provisions of the previous labor laws: Previously the procedure was guided by the Maternity
Benefits Act. 1939. Section 5 of the aforesaid Act provided a bit stringent payment procedure as
there was the provision of payment within 48 hours after the certificate from any physician was
submitted, whether there remains any working days or not.
Changes have been made in favor of the management, as the management is required to pay the
benefit within three working days. As per the previous law it was binding upon the management
to pay the benefit within 48 hours only.
Again, the maternity leave and benefits are admissible to a woman worker upto her two living
birth only.
1.5.3
Amount of the Maternity Benefits

As per sections 48 of the new labor code there is a provision of the payment in terms of daily,
weekly or monthly, as and where applicable, average wages. The section also provides formulae
for the calculation of the aforesaid average wages, which is given below:
DAW or WAW or MAW= The total amount received by the worker during the immediate
preceding three months/ Total actual working days during that period.
Changes brought by the new law: No changes has been made.
1.5.4
Benefits in case of the death of mother

The person nominated by the mother who died, or in the case where no such person is nominated,
her legal representative, shall be entitled to receive the benefits as described above.
1.6
EMPLOYMENT OF ADOLESCENT
1.6.1
Prohibition of employment of children and adolescent

Section 34 of the new labor law creates a bar of the appointment of any children in any
establishment. The section states as follows:
No child who has not completed fourteen years of age shall be required or allowed to
work in any factory.
Non adult workers to carry token: An adolescent who has completed fourteen years of age
shall not required or allowed to work in a factory unless:
1. A certificate of fitness granted to him under section 68 is in the custody of the
manager of the factory;
2. Such adolescent carry a token giving a reference to such certificate while he is at
work;
3. Nothing in this section shall be applicable to an adolescent employed in any
occupation or in a factory as an apprentice for vocational training;
4. The Government if considers appropriate may waive up the enforcement of the pre
conditions of the employment of an adolescent for a particular period.
Children: In the present law children means persons who have not yet completed their fourteen
years of age.
Adolescent: Adolescent means a person who has completed his/her fourteen years but has not
completed his/her eighteen years.
In the previous law the term child was used to mean a person who had not completed 16 years
of age and the term Young Person was used to mean and include both the child and adolescent.
Under the previous law even a child could obtain a fitness certificate to get a job in a factory. But
in the new law child means a person who has completed his fourteen years of age and adolescent
means the person who has completed sixteen years and has not completed eighteen years of age.
The present law specifically prohibited the child employment and made a provision for a fitness
certificate for the adolescent only.
1.6.2 Certificate of fitness
Section 37 of the new labor law requires an adolescent to obtain a fitness certificate to be
employed in any occupation or in a factory.
A registered medical practitioner shall, on the application of an adolescent or his parent or

guardian accompanied by a document signed by the manager of a factory that such person
will be employed therein if certified to be fit for the work he or she has proposed to be
employed for, issue a certificate of fitness.
Such certificate shall be valid only for the subsequent 12 months.
1.6.3
The employer shall pay the fee for obtaining such certificate and the fees cannot be
realized from the parents or guardians of the worker.
Working hours of adolescent

Section 41 of the new labor law deals with provision relating to the working hours of the
adolescent
As per the section following points are important and relevant for the RMG industry.
1.6.4
No adolescent shall be allowed or required to work 5 hours a day and 30 hours a week
No adolescent shall be allowed or required to work between the hours from 7 PM to 7
AM
In every factory the work of an adolescent shall be limited upto two shift and no such
shift shall be more than 7 and a half hours
An adolescent can only be appointed in a single relay and such relay shall be changes
only with prior approval of the inspector for once in a month.
Restriction of appointment of adolescent in certain work

Section 39, 40 and 42 of the new labor law reports some activities for which the employment of
the adolescent is strictly restricted. As per the above mentioned sections, for following activities
the employment of the adolescent are strictly restricted:
Cleaning of the machinery while it is in motion.

Lubrication or for other adjustment operation of the machineries while it is in motion.
Any work in between the moving parts of a machine.
Any work in under ground or under water.
PART 2: EMPLOYMENT
2.1
Forced labour

Forced labor is strictly prohibited by the Constitution of the Peoples Republic of Bangladesh.
Therefore any Law approving forced labor is Void ab-initio as per the constitutional framework
of legislation in Bangladesh.
Article 34 of the Constitution of the Peoples Republic of Bangladesh stated as follows:
----All forms of Forced Labor are prohibited and any contravention of this provision shall be an
offence and shall be punishable in accordance with Law
Again, the two ILO fundamental rights Conventions (nos. 29 and 105) also addressed the
abolition of forced labour, and Bangladesh has ratified these two conventions long time ago.
But, this constitutional guideline is still ignored in the new Labor Law as the Law didnt defined
the word forced labor in it and didnt provide for the punishment and procedure thereof.
Therefore forcing the worker to work in a factory for days together continuously by the factory
owners against their intention should be strictly prohibited and law should address this issue as
per our Constitution and ratified ILO Conventions.
2.2
Discrimination

Any discriminatory behavior on the basis of sex, color and creed is totally prohibited in any law
in Bangladesh. Article 27 and 28 has provided a guideline to the legislator to make the
discrimination free environment at every walks of national life. Section 345 of the new labor law
is however noteworthy in this connection.
The section stated as follows: In determination of the wages for a worker or in fixation of the
minimum wages equality irrespective of the sex of the worker, shall be maintained. No
discrimination in this regard shall be tolerated by law.
Article: 27 of the Constitution stated as follows:
----All citizens are equal before Law and are entitled to equal protection of Law
Article: 28 of the Constitution stated as follows:
10
----The State shall not discriminate against any citizen on the grounds of religion, race, caste,
sex or place of birth.
Therefore, discrimination on the grounds of any of the above issues is prohibited in country.
2.3
Service rules

Section 3 of the new labor law allows an industrial establishment to make a service rule in
pursuant to the labor laws of the land.
Provisions of the previous labor laws: Section 3 of the Employment of Labor (Standing
Orders) Act, 1965 has the same provisions as above.
Comments: Framing of the service rules by an employer is not mandatory, but if made it must
comply with the relevant laws.
2.4
Appointment letter and ID card

Section 5 of the new labor law of 2006 provides that each and every worker should be given with
appointment letter and ID card by their employer free of charge.
Provisions of the previous labor laws: No such Law was there previously. Only the News
Paper Employees (Conditions of Services) Act, 1974 and The Road Transport Workers
Ordinance of 1983 made the provision of the appointment letter for their employees.
Comments: Rules are not yet made to provide with a form of the appointment letter or ID card
but from the previous two Laws the following should be there in the appointment letter: name,
fathers name, spouse name and address, date of appointment, type of employment and
conditions of the employment.
2.5
Service book
Provisions of the new labor code: The law provides a separate section i.e. Section 7 of the law
for the entries of the service book of a labor. As per the section following entries shall be there in
the service book of a labor:
Name, spouse name , mothers and fathers name and address

Date of birth
11
Mark of recognition
Previous owner and his address if applicable
Duration of the employment
Occupation or designation
Wages and allowances
Leaves availed
Conduct of the worker
Provisions of the previous labor laws: Employment of Labor (Standing Orders) Act 1965 did
not provide any provisions related to this. Only the provision of the maintenance of the service
book was available in the Employment (Record of Services) Act 1952 and Employment (Record
of Services) Rules 1957.
Changes brought by the new law:
No significant changes are there in the provision of the service book in the new law. But the new
law makes it mandatory for the service book to be signed by both the worker and the employer.
The law provides a list of information to be maintained in the service book of each labor
2.6
Classification of workers
Provision of the new labor code:

Section 4 of the new labor code of 2006 classifies the workers into following classes:
a)
b)
c)
d)
e)
f)
Apprentices
Badlies
Casuals
Temporary
Probationer and
Permanent
These terms of classification have been properly defined in the present legislation
Apprentice: A worker who is appointed in an establishment as a trainee and during the period of
training he is paid an allowance is called an apprentice.
Badlies: A worker who is employed for the period of absence of a permanent or probationer
worker.
Casual: A worker who is employed on casual basis.
Temporary: A worker who is employed purely for a temporary nature of work.
12
Probationer: A worker who is employed on probation for a fix time with a view to fill up a
permanent vacancy.
Permanent: A worker who is employed to fill up a permanent post or when a probationer
completes his probation period in an establishment.
2.7
Probationary period

Period of probation:
Six month for the worker employed in clerical activities
Three months for other workers.
If the employment of a probationer expired during the probation and if the same person is
again employed under the same employer within next three years of such employment
shall be treated as a probationer and the previous period of probation shall be calculated
with in new period.
If a permanent worker started a new job as a probationer then during that period of
probation he can be shifted to his permanent post during the subsequent period of
probation.
In the classification of labor there comes no change. But in calculation of the period of probation
the previous law included all the leaves and strikes and lockouts during that period which the
new laws have ignored and remained silent in this regard.
2.8
Calculation of continuous service

Section 145 of the new labor law provides for the method of the calculation of the continuous
service period of a labor for the purpose of this law in the following manner:
If the actual number of the working days of a worker is 240 during the previous twelve
calendar months he or she shall be deemed to be worked for a continuous period of one
year.
If the actual number of the working days in the previous twelve calendar months is 120
days s/he shall be deemed to be employed there for a continuous period of six months.
For counting continuous service, the following issues will come under consideration:
The days the worker was laid off;

Days of leaves with or without wages due to accident or illness;
13
Non working days due to legal strike or illegal lock out;

Days on maternity leave for a female worker.

No significant change has been are noticed in this purpose except for the inclusion of the number
of days non-working due to legal strike or illegal lockout. And for calculation of six months of
continuous employment the numbers of real working days are 120 which were previously 140.
2.9
Payment of wages for unavailed leave

In case of the expiry of the employment of any worker by way of discharge, dismissal,
termination, retrenchment or retirement, if there remains any un availed leave of the aforesaid
worker, he or she shall be entitled to get the wages of those days so unavailed.
This is an addition to the new labor law as previously it was not in the law.
2.10
Death benefit

If any worker died after completing 3 (three) years continuous service with an employer, the
worker shall be entitled to get the benefit of 30 days wages for every completed year or service or
six months thereof or gratuity, whichever is higher. The worker shall get this benefit in addition
to his other entitlement of the retirement.
This is also a new addition to the labor law as previously no labor law has provided for the death
benefit except for the Wage Board award for the Newspaper worker.
2.11
Stoppage of work

Section 12 of the new labor law deals with the stoppage of work by the employer. As per the
above mentioned section following are the points to be noted:
a) In the event of fire, catastrophe, breakdown of machineries, epidemics or civil commotion
or any other circumstance beyond his control, the employer can stop the work of a section
or sections of his factory.
b) In the event of such stoppage occurring at any time beyond working hours the employer
shall by issuing a notice in the notice board of the factory inform the labors as when to
resume the work and whether the worker is to be present at their place at that time.
14
c) The notice also mentioned that those who are ordered to be so present, and if their
presence is required for an hour only, then they may not be entitled to get any benefit.
2.12
Right of laid off workers

Lay off: Failure, refusal or inability of an employer, on account of shortage of coal, power or raw
material or the accumulation of stock or break down of machinery or for any other reason, to
continue the employment to workers whose names are brought to the muster roll of the factory.
Any worker whose name is there in the muster roll of the factory and who has completed a
continuous period of one year service, if laid off, shall be entitled to get benefit of compensation
for all the days except for the weekly holidays. A badli worker whose name is brought in the
muster roll shall not be treated as badli for the purpose of the compensation under this chapter.
2.13
Compensation during lay off = (Total basic + dearness allowance +ad hoc wages)/2 +
the house rent he or she would get if not so laid off.
No worker shall get the compensation for more than 45 days in a calendar year of lay off
If any worker is laid off for 15 days or more after the first 45 days of lay off in a single
calendar year the employer can retrench the worker instead of lay him off.
But, if the lay off extends beyond that 45 days upto a period of another 15 days, then the
labor so laid off shall be entitled to get a benefit as per the following rate:
Compensation during lay off beyond 45 days = (Total basic + dearness allowance +ad
hoc wages)/4 + the house rent he or she would get if not so laid off.
Retrenchment

Retrenchment means the expiry of the employment of a worker on the ground of redundancy.
For the retrenchment an employer has to follow the following provision of the new labor law:
No worker, employed in any shop or commercial or industrial establishment, who has been in
continuous service for not less than one year under an employer shall be retrenched by the
employer unless(a) the worker has been given one months notice in writing, indicating the reasons for
retrenchment or the worker has been paid in lieu of such notice, wages for the period of
notice;
(b) a copy of the notice in respect of the retrenchment has is sent to the Chief Inspector or
any other officer authorized by him; and
15
(c) he has been paid, at the time of retrenchment , compensation which shall be equivalent to
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.
2.14
Discharge

Discharge means the expiry of the employment of a worker on the ground of inability or
incapacity because of ill health. Section 22 of the new labor code deals with the procedure of
discharge. As per the section an employer can discharge a worker on the basis of the report of a
registered physician.
Compensation in case of discharge: Every worker who has completed a continuous service for
one year shall be entitled to get a benefit of 30 days wages for every completed year of service or
the gratuity, whichever is higher.
2.15
Dismissal

Section 23 of the new labor law deals with the dismissal of the worker on the ground of
misconduct and conviction.
The section makes a room for the employer to dismiss a worker without serving him a notice or
the payment in lieu thereof for the following two grounds:
If the worker is convicted by any criminal court.

If his misconduct is proved under section 24 of the labor law 2006.
Misconduct as defined in that section:
Willful insubordination, alone or in combination with others, to any lawful or reasonable

order;
Theft, fraud or dishonesty;
Taking or giving bribes;
Habitual absence, without leave, for more than ten days;
Habitual late attendance;
Habitual breach of any rule or law applicable to the establishment;
Riotous or disorderly behavior;
Habitual negligence or neglect of work;
Frequent repetition of a work on which fine can be imposed;
Resorting to illegal strike or go slow or instigating others to do so;
Falsifying, tampering the official document of the employer.
16

The new law makes a provision of the lighter punishment in case of the misconduct. Sub section
2 of section 23 says:
Any worker, against whom misconduct has been proved, may be punished by any of the
following punishment other than dismissal from the job:
2.16
Termination;
Demotion to lower grade;
Held up promotion for at least one year;
Held up increment for an year;
Fine;
Temporary suspension without wages;
Rebuking and warning;
Termination

The employer can terminate a worker without assigning any reason whatsoever, not dismissing or
etc, in the following manner as described in Section 26 of the new labor law 2006.
For the permanent workers:
1. Serving 120 days notice to the workers employed on the monthly basis.
2. Serving 60 days notice to the other workers.
For the temporary workers:
1. Serving 30 days notice to the workers employed on the monthly basis.
2. Serving 14 days notice to the other employees.
Termination without any notice: The employer can even terminate the employment of a
particular worker without any notice as described in the foregoing paragraph, if the employer
pays the wages to the terminated worker for the aforesaid period of notice.
Compensation on termination of a permanent worker: When a permanent worker is
terminated she or he shall be entitled to get a benefit of 30 days wage for every completed year of
service in an establishment in addition to the other benefit payable to him.
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PART 3: OCCUPATIONAL HEALTH, SAFETY AND WELFARE

3.1
SAFETY
3.1.1
Fire
Present law with regards to fire:

Section 62 deals with the provisions of the measures to be taken by a factory to avoid dangers
and damage of fire. The section provided as follows:
1. At least one alternative exit with stair connecting all the floors of the factory building as
described by the rules for each and every factory.
2. No door affording exit can be locked or fastened during the working hours so that they
can be easily or immediately opened from inside.
3. The doors affording exit must be open outwards, unless it is sliding in nature, if the door
is between two rooms it must open in the direction of the nearest exit.
4. Marking in red letter with adequate size, in the language understood by majority of
workers, on such doors, windows or any alternative exit affording means of escape in
case of fire.
5. There shall be an effective and clearly audible means of warning of fire to every worker.
6. There shall be a free passage-way giving access to each means to escape.
7. Where more than ten workers are employed other than in the ground floor, there shall be
a training for all the workers about the means of escape in case fire.
8. There shall be a parade of fire extinction and escape at least once a year in a factory
where more than fifty workers are employed.
3.1.2
The new law makes a provision of an alterative stair affording means of escape
connecting all the floors
Fire extinguishing and escape parade shall be provided for at least once in a year
Floors stairs and means of access

Section 72 of the new labor law deals with the floors, stairs and means of access. The section
stated as follows:
1. All floors, stairs and passages shall be of sound construction and properly maintained
and, if it is necessary to ensure safety, hand-railings shall be provided with it.
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2. Reasonable safe passage way or access shall be maintained in a place where a person is
employed to work.
3. All the floors, passage ways and stairs shall be maintained very neat and clean, wide
enough and free from any blockade.
3.1.3 Excessive Weights

Section 74 of the new labor code states that, no person shall be employed in any factory to lift,
carry or move any load so heavy as to be likely to cause his injury.
3.1.4
Safety of building and machineries

Section 61 of the labor law 2006 provided for the measures to be taken as regards the safety
related to building and machineries. Actually the present law entrusts everything to be done in
this regard on the Inspectors. The section goes as follows:
1. If it appears to an Inspector that any building or part thereof or any passage way or
machine of the factory is in such a condition which is injurious for the life and health of
the workers working therein, the Inspector may issue an order to the owner of the factory
to take necessary steps immediately within the specified time therein.
2. If the Inspector is of the opinion that the building or any machine is seriously dangerous
for the life of the worker, he shall issue an order to repair or alter that immediately
otherwise not to run the factory unless and until the building is so repaired or replaced.
Previous law didnt empower the Inspector to stop the operation of a factory in a risky building
but the present law has given sufficient discretion on the Inspector to take necessary step to
ensure building security and like.
3.1.5
Fencing of machinery

1. Factories require to securely fencing the following parts of machinery in order to ensure
safeguard of the workers:
a. Every moving part of a prime mover and every fly wheel connected to a prime
mover.
b. The head-race and tail-race of every water wheel and water turbine.
c. Any part of a stock-bar which projects beyond the head stock of a lathe.
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d. Every part of an electric generator, transmission machinery and other dangerous

part of any machinery.
2. Fencing must also be done on any other parts (in motion) that contain screw, bolt and key
on any revolving shaft, spindle wheel or pinion and all spur, toothed friction gearing etc.
The fencing is required to prevent these items from harming the workers coming in close
contact to them.
3. The Government may exempt fencing of the aforesaid objects, if and only if certain other
measures are adopted that will ensure safety of the workers.
4. The Government may prescribe such further precautions to fence certain other parts of the
machineries which are not mentioned above for ensuring safeguard of the workers.
3.1.6
Work on or near machinery on motion

1. In case of examining, adjusting and lubricating part of machinery in motion, it is required
to employ a well trained adult male worker. The worker must wear tight-fitted clothes
while conducting such jobs and no other person will be allowed to work on behalf of him
during his absence.
2. Women and adolescent are not allowed to do the above mentioned jobs and they are not
also entitled to work in places between fixed and moving parts of any machinery in
motion.
3. The Government may prohibit the cleaning, lubricating and adjusting, of any machinery
in motion, by any person.
3.1.7
Explosive or inflammable dust or gas

1. The following practicable measures must be taken in factories to avoid explosions caused
from inflammable dust, gas or vapour produced in the manufacturing process:
a) Effective enclosure of the plant or machinery used in the process.
b) Removal or prevention of the accumulation of inflammable objects.
c) Proper enclosure of all possible sources of ignition.
2. In case of the impossibility of placing a strong enclosure for the above mentioned sources
of inflammable objects, provisions of chokes, baffles, vent or other effective appliances
have to be kept.
20
3. Enclosed parts of the plant that contain potentially explosive materials shall only be
opened if certain required precautionary measures are met.
a) Stop valves should be used to stop flow of gaseous objects in pipeline before
working on any joints of that pipeline.
b) Practicable measures should be taken to reduce pressure inside the pipeline before
working on joints of that pipeline.
c) Entrance of inflammable gases or vapours, into the pipeline through the joints that
are to be worked on, must be carefully prevented.
4. Operation that requires action of heat such as welding, brazing, soldering or cutting shall
not be conducted in a factory that contains or previously contained inflammable objects
without taking appropriate safety measures.
.
3.1.8
Precautions against dangerous fumes

1. No person shall be allowed to enter potentially hazardous chambers, containing
dangerous fumes, such as tank, vat, pit, pipe, flue or confined spaces if there is not any
manhole of adequate size.
2. No portable light of voltage exceeding 24 volts shall be permitted to use inside places
mentioned above.
3. No person shall be allowed to enter the places mentioned above until the following
measures are taken:
a. A certificate in writing has to be given by a competent person stating that the
space is free from dangerous fumes and is fit for persons to enter.
b. It has to be ensured that the worker wears a suitable breathing apparatus and a belt
securely attached to a rope before going into any confined space.
4. No person shall be allowed to enter the places mentioned above for the purpose of
working or making any examination before sufficiently cooling the places by ventilation.
5. Suitable breathing apparatus, reviving apparatus and belts and ropes shall be kept ready
beside the confined space for instant use. Other workers must also be trained and
practiced in the use of all such apparatus.
3.1.9
Personal protective equipment

There are several sections in new law where the personal protection of the worker has been
discussed.
Section 75 deals with the protection of eyes.
21
Effective screens or suitable goggles shall be provided for the protection of persons eye where
there is a risk
-
Of injury to eyes from particles or fragments thrown off in the course of the
process
To the eyes by reason of exposure to excessive light or heat.
Section 79 also makes a provision of personal protection, sub-section (d) and (e) stated as
follows:
(d) Providing for the protection of all persons employed in the operation or in the vicinity of
the places where it is carried on, and
(e) Providing notice about the hazardous chemical to the workers.
3.1.10 Risk assessment and prevention

There are several sections in the new labor code regarding the assessment of risk and prevention
thereof. Section 40 and 79 of the new labor law made provisions for the government to asses
certain occupation. The sections stated as follows:
(a) The government shall, by notification in the official gazette, provide a list of the
dangerous machines and risky operations for the adolescent workers (Section 40)
(b) The workers employed in such machines and or operations shall be sufficiently trained
and supervised
(c) The Government shall provide a list of the dangerous operations (section 79)
3.2
WELFARE
3.2.1
First aid appliances

Section 89 of the new labor law provided the following:
1. A well equipped first aid box or almirah for every 150 labor.
2. A person, who has to be always available in the factory, trained in first aid knowledge
assigned for every first aid box.
3. Notice regarding the availability of that person in every working rooms and a special
badge allocated for that person.
4. An ambulance and a well equipped dispensary for every 300 workers employed in a
factory
22

The facility of the ambulance and the dispensary has to be provided by the owners of the
factories in which there are at least 300 workers employed. Previously this facility was required
for factories with at least 500 workers.
3.2.2
Washing facilities

Section 91 provided for the washing facilities for worker in a factory. But the new law is exactly
the same as the previous Factories Act 1965. Rules regarding the washing facilities are yet to be
made.
The number of taps in the workplace was fixed in the previous law as per the following schedule:
1. One tap for every 15 worker who are coming into close contact of noxious substances
2. Workers who are not working with noxious substances shall be entitled to get the
following facilities:
Number of Workers
0-20
21-35
36-50
51-150
151-200
200-500
Number of Taps
1
2
3
4
5
5+ 1 for every additional 50 or
part thereof
More than 500
11+1 for every additional 100 or
part thereof
3. At least two gallons of water supply for each and every worker employed in a
factory.
3.2.3
Canteens

Section 91 of the new labor law provides a canteen for every 100 workers as opposed to the
previous Factories Act which provided a canteen for every 250 workers.
Changes brought by the new law:
Number of workers per canteen has been decreased to ensure better canteen facility. All other
provisions related to the management and quality of the services and food in the canteen remains
unchanged.
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3.2.4
Shelters/ rest rooms and lunch rooms

Section 93 of the new labor code makes a provision of a rest room for every 50 or more workers
and a separate rest room for the female workers numbering over 25. But if the number of female
workers is below 25 then the factory management shall manage a curtain in the same rest room to
create a separate resting space for the female workers.
Required minimum number of workers for a rest room has been decreased to 50 from 100 and a
separate rest room provision for female workers came into being in the new law.
3.2.5
Rooms for children

The new law made a provision of a children room for every 40 female workers with children
below 6 years of age. The room is required to be of such an area so that it can provide 600 square
centimeters (previously it was 20 sft) of space for every child and the minimum height of such
room shall not be less than 360 centimeters.
Required minimum number of the female workers, with children below 6 years of age, has been
decreased to 40 from 50, for a child room in a factory.
3.3
HEALTH AND HYGIENE
3.3.1
Cleanliness

Section 51 of the new labor law deals with the provisions of cleanliness. It is exactly the same as
section 12 of the previous Factories Act, 1965. The law provides for the following:
1. Every factory shall be kept clean and free from effluvia arising out of any drain, privy, or
any other nuisance in the following manner:
a) Accumulation of dirt and refuge shall be moved daily by sweeping from floors
and benches of workrooms, staircases and passages;
b) The floor of every work room shall be cleaned by washing at least once in a week
using disinfectant;
c) Effective drainage shall be provided and maintained where the floor is liable to
become wet in course of any manufacturing process to such extent as is capable of
drainage;
24
d) All inside walls and partitions, all ceilings or tops of the rooms and walls side and
tops of the passages and staircase shall be
repainted or revarnished at least once in every five years where they

painted or varnished
be cleaned at least once in every fourteen month where they are painted
and varnished and have smooth impervious surfaces.
be kept whitewashed or color washed at least once in every fourteen
months
2. A register shall be maintained in every factory for all the required activities as described
in the clause (d) above.
3.3.2
Drinking water

Section 58 of the new labour law provides for an effective arrangement of sufficient supply of
wholesome drinking water situated at suitable point for all workers. The section further provided
for the following
1. The word Drinking water shall be legibly marked on the place;
2. Cooling the drinking water in a factory during the hot weather where more than 250
workers are employed;
3. Oral Re-hydration Therapy for the workers, working close to the machine producing
excessive heat.
A number of changes are there in the new legislation in this regard:
The Factories Act 1965 made a provision that the drinking water cannot be located in any
place within 20 feet of distance of a latrine, urinal or washing places, but the new law
guided for a place convenient for all.
Oral re-hydration therapy has been introduced for the workers working close to the
machine producing excessive heat.
3.3.3
Overcrowding

Section 56 of the labour law 2006 makes a provision of the required space for a single worker
employed in a factory. Following are the points important in this regard.
1. 9.5 (Nine and half) cubic metre of space for every single worker in a factory;
2. For calculating the aforementioned space ignore the height beyond 4.25 metre;
25
3. The Factory shall post a notice in each work room specifying the maximum number of
workers can be employed therein as per the above calculation, if the Inspectors so
requires;
4. The Inspector can exempt any workroom of any factory from the compliance of this rule
if satisfied that for the health of the worker it is not necessary.
No noteworthy change is there except for the conversion of the measurement of space in the
metric system from the previous British system.
3.3.4
Lighting

Section 57 of the new labour law provides for the arrangement of sufficient and suitable lighting
of natural or artificial or both. The section further provides for the following:
1. Glazed windows or skylights shall be kept clean on both the pouter and inner surface
free from obstructions;
2. Provision shall be made to prevent glare either directly from any source of light or by
reflection from a smooth or polish surface;
3. Provision shall be made for the prevention of the formation of shadow to such extent
as to cause eye strain or risk of accident to any worker.
3.3.5
Latrines and urinals

Section 59 of the new labour law makes the provisions of the latrines and urinals for the workers
employed in a particular factory. The section provides for the following:
1. Sufficient number of latrines and urinals situated at a convenient place and accessible to
all the workers
2. Separate arrangement for male and female workers;
3. Properly lighted and ventilated and sufficient water supplied all the times;
4. Clean and sanitary condition be maintained by detergent or disinfectant or with both;
5. The number and kind of the latrines and urinal shall be prescribed by the rules.
26
3.3.6 Dust bins and spittoons

Section 60 of the present law deals with the provisions of dustbins and spittoons. The sections
provides as follows:
1. Every factory shall provide sufficient number of dustbins and spittoons at convenient
places in clean and hygienic condition;
2. No person shall spit or litter except in the spittoon or bins kept and maintained for this
purpose;
3. A notice shall be posted at every conspicuous places for the workers to the effect that
Spitting or littering in contravention of clause 2 is a punishable offence
Changes in the present law: Previously the provision was only for the spittoons now it is
paraphrased as Spittoons and Dustbins to include littering as well. Previous law made the
provision of 2 Taka fine for the violation of the spitting rules which is eliminated in the new law
and only a notice has been provided for to that effect.
27
PART 4: INDUSTRIAL RELATIONS

4.1
Unfair Labor Practices from the Part of the Employers

Section 195 of the new labor law, 2006 provides a list of conducts or activities which tantamount
to unfair labor practices from the part of the employer. Following are the actions in brief:
Imposing any condition in a contract of employment seeking to restrain the right of a

person to join a trade union or to continue his membership of a trade union.
Refuse to employ or refuse to continue to employ on the ground that a person is, or is not
a member or officer of a trade union.
Discrimination against any person in regard to any employment, promotion or condition
of employment on the ground that such person is or is not the member or officer of trade
union.
Discharge or dismiss any person on the ground that the person is or is not the member or
officer of a specific trade union.
Instigating or seeking a person to be the member of a particular trade union.
Induce a person to refrain from becoming, or to cease to be a member or officer of a
trades union.
Compel any officer of the CBA to sign a memorandum of settlement by intimidation or
by coercion
Interfere with or in any way influence the balloting provided for the election of the CBA.
Recruit any new workman during the currency of a legal strike.

The new law makes the list of the activities of unfair labor practices longer. In the previous law
there were eight different activities which had been termed as unfair labor practices. In the new
law, however, there are 12 different activities of the employer that are termed as unfair labor
practices.
Following are the additional four activities of the employer that can be termed as the unfair labor
practices from now on.
1. Willful failure in implementing the recommendation of the participation committee.
2. Failure to respond to any communication made by the CBA as regards to any industrial
dispute.
3. Transfer of the President, General Secretary, Organizing Secretary and Treasurer of a
trade union
4. Imposing an illegal lock out and continuance thereof and persuading a person to
participate in that.
28
4.2
Unfair Labor Practices from the Part of the Workmen

Section 196 of the new labor law deals with the provisions of unfair labor practices from the part
of the labor. Following activities of the labor constitute the unfair labor practice from the part of
the labor:
Persuade a workman to join or refrain from joining a trade union during the working
hours.
Intimidate any person to become or refrain from becoming a member or officer of a trade
union.
Induce any person to become or refrain from becoming a member or officer of a trade
union.
Compel or attempt to compel an employer to sign a memorandum of settlement by using
intimidation.
Compel or attempt to compel any workmen to pay or refrain from paying any
subscription towards the fund of the trade union

In the previous law there were six activities of the labor that were considered to be unfair labor
practices. But the present law extended the purview of unfair labor practices. Following are the
addition to the list of unfair labor practices from the part of the workmen:
1. Imposing illegal strike or go slow or persuading thereto.
2. Gherao or blokcade on the highway or destruction of the property including transport and
vehicles.
4.3
Determination of the Collective Bargaining Agent (CBA)

Section 202 of the new labor code deals with the provisions relating to the determination of
Collective Bargaining Agent. The Law provides the following procedure
1. Where there is only one trade union, that trade union shall be treated to be the Collective
Bargaining Agent in that establishment.
2. Where there are more than one trade union in an establishment , the Registrar shall take
necessary steps to elect the Collective Bargaining Agent, upon the application of any of
the trade union having members of more than one third of the total workers employed in
the establishment
3. Upon the receipt of the application as above the Registrar shall by notice in writing,
communicate all the trade unions as to whether they want to contest for the secret ballot
for determination of CBA or not giving a time limit of fifteen days.
4. If a trade union fails to indicate within the time specified in the notice, its desire to be a
contestant in the secret ballot, it shall be presumed that it shall not be a contestant in such
ballot.
5. Every employer shall-
29
(a) On being so required by the Registrar, submit to the Registrar a list of all workers
employed in the establishment, excluding those whose period of employment in
the establishment is less than three months or who are casual or badly workers.
(b) Provide such facilities for verification of the list submitted by him as the Registrar
may require.
6. On receipt of the list of workers from the employer, the Registrar shall send a copy of the
list to each of the contesting trade unions and shall also affix a copy thereof in a
conspicuous place of his office and another copy of the list in a conspicuous place of the
establishment.
7. The objection if any, received by the Registrar within the specified time shall be disposed
of by him after such enquiry as he deems necessary.
8. The Registrar shall make such amendments, alterations or modifications in the list of
workers submitted by the employer as may be required by any decision given by him on
objections received under previous sub-section.
9. After amendments, alterations or modifications, if any, made under above sub section or
where no objections are received by the Registrar within the specified time, the Registrar
shall prepare a list of workers employed in the establishment concerned and send copies
thereof to the employer and the contesting trade unions at least four days prior to the date
fixed for the poll.
10. The list prepared under the aforesaid sub section shall be deemed to be the list of voters
and every person whose name appears in the list shall be entitled to vote to elect the
Collective Bargaining Agent.
11. Every employer shall provide such facilities as are required by the Registrar to conduct
the poll.
12. No person shall canvas for vote within a radius of fifty yards of the polling station.
13. For the purpose of the holding secret ballot to determine the CBA the Registrar shall do
the following:
a. Fix a date and intimate the same to the contesting trade unions and the employer;
b. Set the sealed ballot boxes, which are sealed in presence of the representative of
each of the contesting trade unions if any one present;
c. Conduct the poll in the polling stations where the representative of the contesting
trade unions shall have the right to enter;
d. Count the votes in presence of the representative of the contesting trade unions if
anybody is present;
e. Declare the result and the name of the elected Collective Bargaining Agent.
14. Where a registered trade union is declared as the Collective Bargaining Agent as per the
above rules, no such application for the determination of the CBA shall be entertained
within next two years.
30
4.4
The Right of the Collective Bargaining Agent

The Collective Bargaining Agent in relation to an establishment or group of establishments shall
be entitled toi. Undertake collective bargaining with the employer or the employers on
matters connected with the employment, non employment or terms of
employment.
ii. Represent all or any of the workmen in any proceedings.
iii. Give notice of and declare a strike in accordance with provisions of the
law.
iv. Nominate representatives of workmen on any committee, fund constituted
as per the provisions of law or agreements.
Changes in the present Law:
1. The previous law required a trade union for being a CBA to be consists of at least one
third of workers as its member, even if it is the only trade union in the establishment but
the new law has made a direct provision that if there remains a single trade union that
shall be treated as the Collective Bargaining Agent.
2. The registration of the trade union which acquires less than 10% of vote in a poll for
determination of CBA shall stand cancelled forthwith.
3. The new law provides for a right to the Collective Bargaining Agent (CBA), in addition
to the right of representation of the workers in a proceedings, the right of litigation for
and on behalf of the one or all of the workers under this Act
4.5
Participation Committee

Section 205 of the new labor code deals with the provisions of the Participation Committee as
follows:
1. The owner of a factory, where more than fifty permanent workers are employed, shall
form a Participation Committee as per the rules made by the law in this behalf.
2. That Committee shall be formed in combination of both the workers and employers.
3. The representation of the workers shall not be less than that of the employer
4. Workers in the committee shall be selected on the basis of the selection of the trade
unions.
5. All other trade Unions, except for the CBA, shall select their representatives equally; the
number of representative of the CBA shall be one member more than the total numbers of
representative selected by the other trade unions.
6. The workers representative shall be selected as per the rules where there is no trade union
in the organization.
31
7. Where there is a separate unit in an organization with at least 50 workers employed

therein, as per the recommendation of the Participation Committee of the establishment, a
unit Participation Committee can be formed there, as per the rules in this behalf.
8. The unit Participation Committee shall be formed with the participation of the workers
employed in that unit and the representative of the employers there.
4.6
Functions of the Participation Committee

The functions of the Participation Committee shall be to inculcate and develop a sense of
belongingness and workers commitment and in particular:
To endeavor to promote mutual trust, understanding and co operation between the
employer and the workmen;
To ensure application of labor laws;
To foster a sense of discipline and to improve and maintain safety, occupational health
and working condition;
To encourage vocational training, workers education, and family welfare training;
To adopt measures for improvement of welfare services for the workers and their
families;
To fulfill production target, reduce production cost, and wastes and raise quality of
products.
Changes in the present Law:
1. Sub section (5) of the section 205 clearly determines the relation between the number of
the representatives from the Collective Bargaining Agent and the other trade unions in
the Participation Committee, as per the above sub sections:
The number of the representative of the Collective Bargaining Agent = Number of
the representative of all the trade unions +1
Previous law didnt mention any such relation between the representatives of the groups.
2. As regards the function of the participation committee there comes no change in the new
law.
4.7
Meetings of the Participation Committee

Section 207 deals with procedure of the meetings of the Participation Committee to realize all or
any of the functions of the participation committee. As per the section
The Participation Committee shall meet at least once in every two months to discuss and
exchange views and recommend measures for the performance of the functions under
section 206.
The proceeding of each such meeting shall be forwarded to the Director of Labor and the
Conciliator within seven days of meeting.
32
4.8
Implementation of the Recommendation of the Participation Committee

The employer and the trade union shall take necessary steps to implement the specific
recommendation of the Participation Committee within the time specified therein
If the employer or the trade union failed to implement the measures suggested by the
Participation Committee it shall forthwith communicate the mater to the respective
committee and take every possible steps to implement it as early as possible.
Changes in the new law:
Although the meeting procedure is exactly the same as the previous law, it makes a provision of
the implementation of the recommendation of the committee within the time period provided by
the committee itself. Otherwise, willful negligence will be treated as unfair labour practices.
4.9
Trade Unions

Special definition of worker for the purpose of industrial relation:
For the purpose of the industrial relations the word worker means and includes every worker as
defined under section 2(65), and any labor who is laid off, retrenched , discharged or dismissed
or otherwise terminated for which an industrial dispute has been arisen. But it doesnt include
any security staff like guards and fire fighter or any confidential assistant etc.
Trade union and freedom of associations:
Section 176 of the new labor code deals with the provisions related to trade union and freedom of
association:
basically to control the relation between workmen and employer and Workmen and
workmen, workers, without distinction whatsoever shall have the right to establish and
join the union of their choice subject to the constitution of the respective trade union;
basically to control the relation between workmen and employer and employer and
employers , employers, without distinction whatsoever shall have the right to establish
and join the union of their choice subject to the constitution of the respective association;
employers and the Workmen shall have the right to form a federation of their trade Union
and they can also affiliate that federation with any international federation or
confederation of trade unions;
The trade unions and the associations of the employers shall have the freedom to adopt
constitution as per their choice.
4.10
Application for Registration and Required Documents for Registration

Section 177 and 178 deals with the procedure for the registration of the trade unions
Section 176 states that any trade union can apply for its registration to the registrar of the trade
unions of the respective zone under the signature of the President and Secretary of the respective
trade unions.
33
Section 178 of the new labor code provides a list of documents, required, for the registration of
the trade unions:
4.11
The Name and Head Office of the trade unions;
The date of formation of the trade union;
The Names, Age, Occupation and designation of the executive committee members of
the union
Description of the all subscribed members
The Name of the Establishment to which it is related and the total number of workers
in that establishment
In case of a federation of a trade Union the names of the member Union and address
Three copies of the constitution of the Union and the resolution of the meeting in
which the constitution is proposed and accepted
A resolution of the meeting empowering the Secretary and President of the ------ for
the registration of the Union
In case of federation the acceptance letter of the member union to become the member
of the proposed federation.
Industrial Dispute

Section 2(62) of the new labor code defines the term Industrial Dispute. As per the section, any
distance and different between workers and workers, Workers and employers or employers and
employers as regards the employment, non employment or terms of employment of a workers
has been termed as an industrial dispute.
Then Chapter 14 of the Labor law 2006 deals elaborately with the procedure of raising industrial
dispute and settlement thereof. Following are the provisions relating to industrial dispute in the
present Law:
4.12
Raising of Industrial Dispute

No industrial dispute shall be treated to be existent unless it is validly raised by the employers or
the Collective Bargaining Agent as per the provisions of the law.
4.13
Settlement of Industrial Dispute

Section 210 of the present law deals the procedure as the following:
1.
If at any time any employer or the Collective Bargaining Agent finds any dispute is
likely to arise, shall communicate the other party in writing.
34
2.
The recipient of the above mentioned communication shall take initiative to arrange a
negotiation within fifteen days of the receipt of the communication.
Negotiation
The proceedings under the above arrangement between two parties shall be treated as
negotiation and if there produce a positive solution to the disputing issues, a settlement
deed shall be executed and be sealed and signed by both the parties. And a copy of the
settlement deed shall be forwarded to the Government and the Conciliator
Conciliation
If the above mentioned negotiation fails, then it shall be forwarded to the Conciliator for
the process of conciliation.
1. If the dispute is settled through conciliation the Conciliator shall report it to the
government along with the settlement deed.
2. The conciliation shall be treated to be failed, if it cannot reach any conclusion
even after 30 days of the initiation. Provided it can be extended beyond the period
if both the parties agree in writing.
3. If it fails the conciliator shall try to manage the parties in dispute to refer the
matter to an arbitrator.
4. If the parties disagree about the Arbitration the conciliator shall issue a certificate
that the conciliation has failed.
Arbitration
When both the parties agree to refer the dispute to an Arbitrator then the matter shall be
forwarded by the conciliator to the concerned Arbitrator (chosen by both the parties.
1. An arbitrator shall be a person from the list made and maintain by the government
in this regard or any person mutually agreed upon by the parties.
2. Arbitrator shall make an award within thirty days or within any Period, mutually
agreed upon after the matter is received.
3. The Arbitrator shall provide a copy of the award to the parties and to the
government as well.
4. No appeal shall lie against the award of the Arbitrator.
5. The award shall be valid for a term not more than two years
4.14
Strike and Lock Out

Section 211 of the new labor code deals with the provisions of the strike and lock out in an
industry and other establishment.
1. The party raising the industrial dispute, within a period of fifteen days of the receipt of
the certificate of failure from the conciliator shall serve a written notice of Strike or lock
out whatever is applicable, and the party also mention the date of commencement of the
aforesaid strike or lock out within 7 to 14 days of serving such notice or the party
raising the dispute may file a case to the labor court, on the matter.
35
2. No such notice of strike shall be issued by the CBA unless a secret ballot is held in this
behalf under the supervision of the Conciliator and three fourth of the members of the
CBA opted for the strike.
3. When the strike or Lock out already commence, then any party can go to the labor court
for the settlement of dispute
4. The Government can stop any strike or lock out if it continues up to a period of 30 days.
Provided the government can stop it before the expiry of the above period, if it thinks
expedient for public interest.
In previous law there was a provision of joint application to the labor court by both parties at any
stage of the commencement or before the commencement of the strike or lock out, but in present
law this provision has been eliminated.
36

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Table of Contents

PART 3: OCCUPATIONAL HEALTH, SAFETY AND WELFARE....................................18

PART 4: INDUSTRIAL RELATIONS......................................................................................28

Unfair Labor Practices from the Part of the Employers..............................................28

PART 1: WORKING CONDITIONS

Provisions of the new labor law:

Changes in the present law:

Persons responsible for the payment of wages

Provisions of the new labor law:

Fixation of wage periods and time of payment of wages

Provisions of the new labor law:

Deductions from the wages

Deductions for the subscription of CBA Union in check-off method;

1.1.5 Grievance procedure in case of illegal deductions or delay in payment

Application to the labor court only;

Up to 25% as compensation on the wages due at that time may be ordered;

Single application on behalf of all the workers so aggrieved.

Changes in present Law:

WORKING HOURS AND LEAVES

Provisions of the new labor code:

Provisions of the new labor code:

PAID ANNUAL LEAVE

Annual leave with wage

Provisions of the new labor law:

Provisions of the new labor law:

Provisions of the new labor law:

Provisions of the new labor law:

Changes in present law:

Provisions of the new labor law:

Provisions of the new labor code:

Procedure of payment of the maternity benefit

Amount of the Maternity Benefits

Provisions of the new labor code:

Benefits in case of the death of mother

Provisions of the new labor code:

Prohibition of employment of children and adolescent

Provisions of the new labor law:

A registered medical practitioner shall, on the application of an adolescent or his parent or

Such certificate shall be valid only for the subsequent 12 months.

Provisions of the new labor law:

Provisions of the new labor law:

Cleaning of the machinery while it is in motion.

Provisions of the new labor law:

Provisions of the new labor law:

Provisions of the new labor code:

Appointment letter and ID card

Provisions of the new labor code:

Name, spouse name , mothers and fathers name and address

Provision of the new labor code:

Provisions of the new labor law:

Calculation of continuous service

Provisions of the new labor law:

The days the worker was laid off;

Non working days due to legal strike or illegal lock out;

Changes in the present law:

Payment of wages for unavailed leave

Provisions of the new labor law:

Provisions of the new labor law:

Provisions of the new labor law:

Right of laid off workers

Provisions of the new labor law:

Provisions of the new labor law:

Provisions of the new labor law:

Provisions of the new labor law: