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Human Resources and Employment :

Bangladesh offers an abundant supply of disciplined, easyly trainable and low-cost work force suitable for any labor-intensive industry. Of late, there is an increasing supply of professionals, technologists and other middle and low level skilled workers. They receive technical training from universities, college, technical training centers, polytechnic institutions etc. The expenditure incurred by an employer to train his employee is exempted from income tax.

a. Employment Conditions:

The minimum age for workers in Bangladesh is 16 years in factories and establishments. Contracts are made in the form of a letter of offer. Workers may also be engaged on verbal agreements. In government organizations and in some private organizations as well, a probation period exists for skilled or semi-skilled workers varying between three moth's to one year and during this period either party may serve one month's notice for termination from or giving up to the job. In the private sector, the dignity of labor is ensured in accordance with the principles enunciated in the ILO convention and recommendations.

b. Labor Laws:

In Bangladesh 47 labor laws are now in operation. These relate to (a) wages and employment, (b) trade union & industrial disputes, (c) working environment and (d) labor administration and related matters. The main labor laws are:

  • Workmen's Compensation Act, 1923,
  • Payment of Wages Act, 1936
  • Maternity Benefit Act, 1936
  • Employment of Labor (Standing Orders) Act, 1965
  • Shops & Establishments Act, 1965
  • Factories Act, 1965
  • Industrial Relations Ordinance, 1969

c. Settlement of Labor Disputes:

Contract or agreement is usually made between the management and the Collective Bargaining Agent (CBA) on settlement of industrial disputes as per provisions of Industrial Relations Ordinance, 1969. In case a bipartite negotiation fails, conciliation machinery of the government is requested by the aggrieved party to intervene and the conciliation process is undertaken. If succeeds agreement is signed between the parties and the Conciliation Officer becomes a witness. If it fails, the party raising the dispute, may go for strike or lockout as the case may be. The government may, however, prohibit the same after one month in the interest of the public. In the essential services like, (a) electricity, gas, oil & water supply etc. (b) hospital & ambulance service, (c) fire brigade, (d) railway & Bangladesh Biman and (e) ports etc., strike is prohibited.

d. Wages and Fringe Benefits:

In the public sector, wages and fringe benefits of the workers are determined by the government on the recommendation of the National Wages Commission established from time to time. Such commissions were appointed in 1973,1977,1984, 1989 & 1992. Wages & fringe benefits declared by the government in 1977 having 20 grades of wages.The public sector employees are, however, covered by the Pay Commission declared by the government from time to time.

In the private sector, the wages & fringes benefits of the workers and employees are determined through collective bargaining process. Sometimes private industries follow the public sector wages & salary structure for their workers and employees respectively.

e. Leave & Holidays:

Leave & holidays of the workers & employees are regulated by the Factories Act, 1965 and shops Establishment Act, 1965.

f. Social Security:

Workmen Compensation, Maternity Benefit (Tea Estate) Act, 1950, Maternity Benefit Act, 1939, Employment of Labor (standing orders) Act, 1965 etc. deal with provident fund and gratuity.

g. Labor Union:

Industrial Relations Ordinance, 1969 deals with trade union in Bangladesh. In any industrial and commercial establishment, a trade union may be formed with 30% of the total number of workers employed. If there is more than one union in any establishment, Collective Bargaining Agent is determined by the Registrar of Trade Union through sector ballot for a term of two years. Only the Collective Bargaining Agent is authorized to raise industrial disputes and negotiate with the management. The Director of Labor of the government acts as the Registrar of Trade Union in Bangladesh. Till December 1996; 4955 trade unions (worker's union - 4104 & employers association- 851) exits in Bangladesh having 17, 30, 927 members.

Industrial Relations Ordinance, 1969 provides that any worker or employer/ has the right to form a union/association without previous authorization. But such a union/association can not function as a trade union without being registered under the law.

h. Working Hours:

Workers in the public or private sector remain at their job for eight and a half hours daily (including half an hour for meal or rest) with Friday as weekly holiday marking 48 working hours a week. Work in excess of these , is paid as overtime. The rate of overtime is 2 hours pay for 1-hour job.

 
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