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Social Standards
December 2007
PROGRESS (promotion of social, environmental and production standards in the ready-made garment sector) is a joint program of the Bangladesh
Ministry of Commerce and the German Federal Ministry of Economic Cooperation and Development (BMZ), implemented by GTZ.
Address: House 10 C, Road 90, Gulshan 2, Dhaka 1212, Bangladesh. Tel: +880 2 9887567, Fax: + 88028823099, E-mail: progress@gtz.de,1 Website: www.gtz.de
1 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Topics Covered
Working hours
Wages & Benefits
Maternity Benefit
2 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Working Hours
3 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Working Hours
Daily Weekly
General Hours 08 48
Overtime 02 12
Hours
Total Hours 10 60
4 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Working Hours
Weekly holiday
5 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Working Hours
6 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Working Hours
7 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Working Hours
8 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
9 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
10 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
d) Any sum payable under this Act or any agreement due to termination of
employment, whether by retrenchment, discharge, removal, resignation,
retirement, dismissal or otherwise, and
11 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
12 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Prohibition to pay wages at a rate below the minimum rate of wages: As per
section 149 of the Bangladesh Labour Law 2006, the employer shall pay at least
the minimum wage to the workers as per the minimum wage declared by the
Minimum Wage Board.
13 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Trainee/Apprentice: They will get Taka 1200.00 per month as training allowance and their training period will be for three months. After completion of the training period
they wilfall under grade -7
14 PROGRESS -Compliance,
PROGRESS Component on Social and Environmental Social & Environmental Standards
implemented by Component
GFA Consulting Group
Bangladesh German Development Cooperation
15 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
16 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Deduction for absence from duty: As per section 126 of the Bangladesh Labour
Law 2006, deduction of wages can be made against the unauthorized absent
time / day.
No such deduction can be made against the period of time while s/he was at
work / duty.
No such deduction can be made against the period of time / day while s/he
was not required to work.
17 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
18 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Deductions for services rendered: As per section 128 of the Bangladesh Labour Law
2006, deduction from wages for house accommodation or for such amenities and
services supplied by the employer cannot be made unless:
19 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Fines
1. The total amount of fine shall not exceed 10% of the wages payable to the
worker in respect of the wage period;
2 No fine shall be imposed to the worker under the age of fifteen years;
4. Every fine shall be deemed to have been imposed on the day the misconduct
happened;
5. All fines and all realizations shall be recorded in a register and spent for the
welfare of the persons employed.
20 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Death benefits
Death benefit: As per section19 of the Bangladesh Labor Law 2006, after a
continuous service of three years or more if a worker dies while in service, his / her
nominee or in the absence of nominee, his / her dependant shall be paid by the
employer:
a) A compensation for 30 days wage (basic wage) for every completed year of
service, or for any part thereof in excess of six months, or gratuity, if any,
whichever is higher; plus
b) A compensation for 30 days wage (basic wage) for every completed year of
service or gratuity whichever is higher. (This compensation can be regarded as
retirement benefit because the deceased worker would have been entitled to it,
had s/he been alive).
But if such worker is covered by any compulsory insurance scheme of the
establishment, or, if any compensation is payable for such death by accident
(under Chapter XII), then whichever is higher is payable to the worker (means
higher than the compensations paid under a. and b. mentioned).
21 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
22 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Annual leave
As per section 117 of the Bangladesh Labour Law
2006, a worker who has completed one year of
continuous service shall be allowed during the
subsequent period of 12 months, to take leave
with wages at the rate of:
Section 117 (3): any leave which falls in between annual leave shall be counted as
annual leave.
Section 117 (4) & (5): un-availed annual leave shall be accumulated. The
accumulation of annual leave shall be up to 40 days in case of adult workers and 60
days in case of adolescent workers.
23 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Annual leave
Section 117 (7): any annual leave applied by a worker but refused by
the employer for any reason, shall be added to the accumulated
annual leave.
Section 117 (8): when counting a period of continuous service of 12
months for the purpose of annual leave calculation, the following days
are also considered as work days:
a) Any holiday;
b) Any leave with wages;
c) Any leave with or without wages due to sickness or accident;
d) Any maternity leave not exceeding sixteen weeks;
e) Any period of lay off;
f) Legal strike or illegal lock out.
24 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Annual leave
Festival holidays: As per section 118 of the Bangladesh Labour Law 2006,
every worker shall be allowed 11 days of paid festival holidays in a calendar
year.
25 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Annual leave
- The date of birth recorded in the service book of the concerned worker
shall be the conclusive proof for counting the age.
- The employer shall pay compensation at the rate of 30 days wages (basic)
for every completed year of service or gratuity, if any, whichever is higher,
in addition to any other benefit to which s/he may be entitled under this
Act.
26 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Provident fund
Provident Fund: As per section 264 (10) of the Bangladesh Labour Law 2006,
if three fourths of the total work force of the establishment ask the
management in written to set up a provident fund, it is legally mandatory for
the employer to do so.
Section 264 (9): If such provision exists, every permanent worker, after
completion of one year of service, shall contribute not less than seven
percent and not more than eight per cent of his/her basic wage to the
provident fund, and the employer shall contribute to it an equal amount.
27 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
28 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Section 23 (3): If a worker is dismissed for any of the above reasons, and if his /
her continuous service is not less than one year, s/he shall be paid compensation
at the rate of 14 days wages for every completed year of service, or gratuity, if
any, whichever is higher.
No compensation shall be paid to the worker who is dismissed for the following
misconducts: theft, fraud, or dishonesty in connection with the employers
business or property.
30 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
As per section 23 (2) of the Bangladesh Labour Law 2006, any worker found guilty
of misconduct may be awarded any of the following punishments, instead of
dismissal in consideration of any extenuating circumstances:
a) Removal;
b) Demotion to a lower post, grade or scale of pay for a period not
exceeding one year;
c) Stoppage of promotion for a period not exceeding one year;
d) Withholding of increment for a period not exceeding one year;
e) Fine;
f) Suspension without wages and subsistence allowance for a period not
exceeding seven days;
g) Censure or warning.
31 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
As per section 23 (4) of the Bangladesh Labour Law 2006, the following acts
and omissions shall be treated as misconduct:
32 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
33 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
34 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Maternity Benefit
Employment of women
35 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Maternity Benefit
Entitlement of maternity benefit
Right to, and liability for, payment of
maternity benefit: As per section 46 of the
Bangladesh Labour Law 2006, every woman
employed in the establishment shall be
entitled to maternity benefit of 8 weeks
preceding the expected day of her delivery
and 8 weeks immediately following the day
of her delivery.
36 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Maternity Benefit
Payment of maternity benefit (I)
37 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Maternity Benefit
Payment of maternity benefit (II)
Section 48 (2): For the purpose of sub-section (1) the daily, weekly or monthly
average wages, as the case may be, shall be calculated by dividing the total
wages earned by the woman during the three months immediately preceding
the date on which she gives notice under this Act by the number of days she
actually worked during the period.
38 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Maternity Benefit
Calculation of maternity benefit (I)
75 8091
39 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group
Bangladesh German Development Cooperation
Maternity Benefit
Calculation of maternity benefit (I)
Tk8091 75 = Tk107.88
40 PROGRESS -Compliance,
PROGRESS Component on Social and Environmental Social & Environmental Standards
implemented by Component
GFA Consulting Group
Bangladesh German Development Cooperation
Thank You
41 PROGRESS Component on Social and Environmental Compliance, implemented by GFA Consulting Group