Subject: Checklist to check Factory’s compliance

with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

The purpose of this indicative checklist is aid the audit team to check a factory’s compliance with the salient
section and requirements of The Bangladesh Labor Code 2006 (Act XLII of 2006).

Background:

Replacing previous 25 Acts and Ordinances related to workers and factories/establishment, this Act is for
consolidation and amending laws regarding employment of workers, relationship between workers and
employers, determination of minimum wages, payment of wages, compensation for injuries arising out of and in
the course of employment, formation of trade unions, raising and resolving industrial dispute, health, safety,
welfare and environment of employment of workers and apprentices and related issues. The Act contains 354
Sections including Schedules I-V. Non-compliance with certain requirements may be regarded as an offence by
the concerned party either be the employer or the employee, therefore, may result in penalties which are
described in sections 283-316.

The Act is applicable to organizations, establishment, and workers in Bangladesh.

CHAPTER 1: PRELIMINARY

Section 1- Short title, introduction and application:

This law is called Bangladesh Labour Code 2006 applicable in Bangladesh to the establishments and workers
EXCEPT to the following:

a) Government or any officer under the government;

b) Security printing press;

c) Arms Factory;

d) Charitable organizations;

e) Shop or stall in exhibition;

f) Shop or stall in open fair or market for religious or charitable purposes;

g) Educational, Training or Research Institute;

h) Hostel or mess run not for gain;

i) Any establishment owned and run by government;

j) With some exception to railway Department; BTTB; RHD; Public Works Department; Public Health
Engineering Department; Bangladesh Government Printing Press;

k) Teachers of university;

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© A Qasem & Co, Chartered Accountants (A Cooperating Firm of PricewaterhouseCoopers)
 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

l) Any navigator;

m) Any sea going vessel except Chapter 16;

n) Any agricultural farm with less than 10 workers;

o) House servant;

p) Owner-managed establishment.

Section 2- Definitions:

Retirement; production process; Karmakarta; working hour; working journalist; workshop; factory (such premises
or yard where generally atleast five workers work on any day of the year); adolescent; mine; gratuity; tea-
garden/tea-plantation; retrenchment; public utility service; tribunal; transmission machinery; trade union; trade
union federation; discharge; go slow; day (begins from 6 am); code of civil procedure; shop; strike; seaman;
executive committee of trade union; settlement; water transport service; marine vessel; administrative worker;
shift; establishment; group of establishments; regulation; maternity benefit; prime mover; adult; the code of
criminal procedure; closed; dismissal; plantation; commercial establishment; rules; illegal strikes; illegal lock out;
wages; arbitrator; chief inspector, deputy chief inspector, assistant chief inspector & inspector; director of labor;
employer; machinery; vehicle; collective bargaining agent; relay; registered medical practitioner; registered trade
union; award; lock out; lay off; power; industry; industrial establishment; industrial dispute; child; labour court;
worker1; week; total disablement; road transport service; newspaper; newspapers press worker; newspaper
establishment; newspaper worker; conciliation; conciliation proceedings; serious physical injury; decision;
scheme;.

Legend- S in the table stands for SECTION

Y/N/NA- means YES/NO/NOT APPLICABLE; and if the compliance is NA or Y or N with some exceptions,
please mention it in REMARKS column with sufficient details for easy understanding of the reviewer of this
working file.

Italic Note- denotes further elaboration and in some cases the instruction to the audit team to carry out additional
procedure.

1
Means any person employed for a position except for administrative or managerial functions

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

REQUIREMENTS
CHAPTER II: EMPLOYMENT AND CONDITIONS OF SERVICE....................................................................................4
CHAPTER III: EMPLOYMENT OF ADOLESCENT........................................................................................................5
CHAPTER IV: MATERNITY BENEFIT........................................................................................................................6
CHAPTER V: PROVISION OF MAINTAINING HEALTH...............................................................................................6
CHAPTER VI: SAFETY...........................................................................................................................................6
CHAPTER VII: SPECIAL PROVISIONS RELATING TO HEALTH, HYGIENE AND SAFETY.................................................7
CHAPTER VIII: WELFARE MEASURE........................................................................................................................8
CHAPTER IX: WORKING HOURS AND LEAVE..........................................................................................................8
CHAPTER X: WAGES AND PAYMENT....................................................................................................................9
CHAPTER XI: WAGE BOARD...............................................................................................................................10
CHAPTER XII: COMPENSATION FOR INJURY BY ACCIDENT.....................................................................................11
CHAPTER XIII: TRADE UNIONS AND INDUSTRIAL RELATIONS..................................................................................12
CHAPTER XIV: SETTLEMENT OF DISPUTES, LABOUR COURT, APPELLATE TRIBUNAL, LEGALPROCEEDINGS ETC.........13
CHAPTER XV: WORKERS’ PARTICIPATION IN COMPANIES’ PROFITS.......................................................................14
CHAPTER XVI: SAFETY AND CONTROL OF EMPLOYMENT OF DOCK WORKERS.......................................................15
CHAPTER XVII: PROVIDENT FUND.........................................................................................................................16
CHAPTER XVIII: APPRENTICESHIP..........................................................................................................................17
CHAPTER XIX: OFFENCES, PENALTIES AND PROCEDURES.....................................................................................17
CHAPTER XX: ADMINISTRATION, INSPECTION, ETC...............................................................................................19
CHAPTER XXI: MISCELLANEOUS...........................................................................................................................19

SCHEDULE I: LIST OF INJURIES DEEMED TO RESULT IN PERMANENT PARTIAL DISABLEMENT U/S 2 (1)& 151............21
SCHEDULE II: LIST OF NOTIFIABLE DISEASES U/S 82 & 83.....................................................................................21
SCHEDULE III: LIST OF OCCUPATIONAL DISEASES U/S 150......................................................................................21
SCHEDULE IV: LIST OF PERSON WHO ARE INCLUDED IN THE DEFINITION OF WORKER U/S 150(8)..............................21
SCHEDULE V: COMPENSATION PAYABLE IN CERTAIN CASES U/S 151......................................................................21

MINIMUM WAGES RATE FOR GARMENTS WROKERS.....................................................................................................21

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)

CHAPTER II: EMPLOYMENT AND CONDITIONS OF SERVICE

3 Conditions of service: They are

following local
Is there any service rule of the company? If yes, is it approved by the Chief Inspector? law

4 Classification of workers and period of probation: apprentices; badlies; casual; They have
temporary; probationer; permanent. Probation period 6 months for clerical workers two types of
and 3 months for other workers worker
permanent &
casual their
probation
period is
6months to
12months.
5 Letter of appointment and identity card with photo
6 Service book for probationer or permanent workers N
7 Form of the service book: Photo of worker; name including parents’ and address; N They didn’t
DoB; ID mark; previous employer; service tenure; post; wages; leave enjoyed; maintain any
conduct of the worker. service book

8 Entries in the service book N

9 Register of workers and supply of tickets and cards
10 Procedure for leave; in writing mentioning leave-address; leave pass; Leave card
11 Payment of wages for unavailed leave in case of terminaton Recently
implemented
12 Stoppage of work by notice; less than one hour/day no payment for this time; more NA No cases
than 3 days it denotes lay off found
13 Closure of establishment in the event of illegal strike NA No cases
found
14 Calculation of one year, six months, and wages in certain cases year means 240
days work and six months is 120 days of work
15 Restrictions of application of section 12, 16, 17, and 18 if there is less than 5 workers NA No cases
in last 12 months found
16 Right of laid-off workers for compensation max 45 days wages NA No cases
found
17 Muster roll for laid off workers NA

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© A Qasem & Co, Chartered Accountants (A Cooperating Firm of PricewaterhouseCoopers)
 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
18 In certain cases laid-off workers shall not get compensation if the worker refuses to NA No cases
accept alternative employment within a distance of 8 KM; and he/she is absent at found
work despite employer’s notice
19 Death benefit eligible for workers served for more than 3 years and will the nominee NA No cases
gets 30 days wages if there is no insurance scheme found
20 Retrenchment LIFO method; one month’s notice; notification to Chief inspector and NA No cases
the common bargaining agent; one month’s gartuity found
21 Re-employment of retrenched workers retrenched workers will get preference for re- NA No cases
employment by the establishment found
22 Discharge from service in case of physical or mental incapacity but 1 month’s gratuity NA No cases
is to be paid found
23 Punishment for conviction and misconduct dismissal without notice if the worker is NA No cases
convicted for criminal offence; or is found guilty of misconduct found
24 Procedure for punishment: allegation in writing; 7 days time to explain; hearing; guilty Y
after inquiry; approved dismissal order; subsistence allowance if the matter is pending
before court
25 Special provisions relating to fine max one-tenth of the wages, and the fine should be NA No cases
spent for workers benefit. found
26 Termination of employment by employers otherwise than by dismissal, etc 120 day’s NA No cases
notice in case of monthly rated worker; and 60 day’s notice to others; 30/14 day’s found
notice to temp worker; 1 month’s gratuity is to be paid
27 Termination of employment by the permanent worker 60 day’s notice in writing; 30/14 NA No cases
day’s notice to temp worker; wages money paid back if notice is not given; employer found
to give half month’s gratuity to worker served 5years but less than 10 years, but 1
month’s if service period is 1 0 years or more
28 Retirement of worker @57 years of age NA No cases
found
29 Payment of provident fund
30 Period for the final payment of the worker in 30 days
31 Certificate of service worker’s right NA No cases
found
32 Eviction from the residential accommodation in 60 days of termination/laid off NA No cases
found
33 Grievance procedure labor court if not settled amicably (criminal prosecution) NA No cases
found

CHAPTER III: EMPLOYMENT OF ADOLESCENT

34 Prohibition of employment of children and adolescent Y

35 Prohibition of certain agreement in respect of children- no guardian can contract Y

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© A Qasem & Co, Chartered Accountants (A Cooperating Firm of PricewaterhouseCoopers)
 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
36 Dispute regarding age to be proved by a registered physician
37 Certificate of fitness
38 Power to issue order for medical examinations
39 Restriction of the employment of adolescent in certain work like: clean, lubricate, or Y
adjust the parts of any motioned machinery
40 Employment of adolescent on dangerous machine NA No cases
found
41 Working hours for adolescent in factory 5 hrs/day or 30 hrs/week 36hrs including
overtime; in other places 7 hrs/days or 42 hrs/week max 46 hrs including overtime
from 7am-7pm; max work place 1
42 Prohibition of employment of adolescent in underground and under-water work Y
43 Notice of periods of work for adolescent to be displayed
44 Exception in certain cases of employment of children of 12 yrs age at convenience

CHAPTER IV: MATERNITY BENEFIT

45 Employment of women worker is prohibited in certain cases specially immediately Y

after the day of delivery of her child
46 Right and liability for payment of maternity benefit NA No cases
found
47 Procedure regarding payment of maternity benefit NA No cases
found
48 Amount of maternity benefit in cash NA No cases
found
49 Payment of maternity benefit in the event of a woman’s death NA No cases
found
50 Hindrance to termination of employment of a woman in certain cases NA No cases
found

CHAPTER V: PROVISION OF MAINTAINING HEALTH

51 Neatness & cleanliness paint in every 3 years; outer surface in every 14 months Y
52 Ventilation & temperature
53 Dust and fume
54 Removal of waste and effluents
55 Artificial humidification

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
56 Overcrowding 9.5 cubic meter space/ worker in a room if height of room is <4.25 m NA No cases
found
57 Lighting arrangement
58 Drinking water water point; cooling
59 Latrines and urinals separate for male and females
60 Waste basket & spittoons

CHAPTER VI: SAFETY

61 Safety of building and machinery

62 Adopting precaution regarding fire at least one alternative staircase not locked;
signaling system; fire-extinguishing demonstration once in a year recorded in a book
63 Fencing of machinery
64 Work on or near machinery in motion
65 Striking gear and devices for cutting off power
66 Self-acting machines
67 Casing of new machinery
68 Cranes and other lifting machinery
69 Hoists and lifts NA They have no
lift
70 Revolving machinery
71 Pressure plant
72 Floors, stairs, and pathways clean; soundly constructed
73 Pits, sumps, tunnel, entrance etc
74 Excessive weight carrying prohibited Y
75 Protection of eyes eye goggles to be provided
76 Powers to require specifications of defective parts or tests of stability
77 Precautionary measurement against dangerous fumes
78 Explosive or inflammable dust, gas, etc

CHAPTER VII: SPECIAL PROVISIONS RELATING TO HEALTH, HYGIENE AND SAFETY

79 Dangerous operation
80 Giving notice regarding accidents notice to Chief Inspector NA No cases

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
found
81 Notice of certain dangerous occurrences NA No cases
found
82 Notice regarding certain diseases
83 Power to direct enquiry into the cases of accident or disease
84 Power to collect samples
85 Power of the inspector in certain cases of danger
86 Giving information about dangerous building and machinery- non-compliance by Y
employer in taking appropriate measure will lead to double compensation for the
injured worker
87 Restriction or prohibition of employment of women in certain work like cleaning Y
moving machines; dangerous machines; under-water work
88 Power to make rules supplementary to this chapter

CHAPTER VIII: WELFARE MEASURE

89 First-aid appliances- one box or almirah for every 150 workers; notice to all work
stations and badge on the store keeper; ambulance room and physician for factory
where 300 or more workers work
90 Maintenance of safety record books- compulsory
91 Washing facilities- neat and clean and separated for male and female
92 Canteen- must for where 100 or workers work
93 Rest-room etc- where 50 or more workers; separated if 25 or more female workers
94 Rooms for children- where 40 or more female; adequate ventilation; height360 sc and
floor no less than 600 sc; adequate cot/cradle; playground.

If not compliant, Exemption Certificate from the Chief Inspector should be collected.

95 Recreational and educational facilities in tea plantation NA

96 Housing facilities in tea plantation- to every worker NA
97 Facilities for daily necessities, etc. in tea plantation NA
98 Medical care for the newspaper workers NA
99 Introduction of compulsory group insurance- if 200 or more workers are employed; Y
govt may prescribe!

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© A Qasem & Co, Chartered Accountants (A Cooperating Firm of PricewaterhouseCoopers)
 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)

CHAPTER IX: WORKING HOURS AND LEAVE

100 Daily working hours- adult workers: 8/10 hrs Checked with
time card,
salary sheet
101 Recess for rest or meal- 1 hr
102 Weekly working hours- adult workers: 48/60 and yearly average 56 hrs. in road
transport establishment overtime should not be more than 150 hrs/worker; else
exemption certificate from the government
103 Weekly holiday- 1 day for factories; and 11/2 days for other establishment
104 Compensatory weekly holiday- essence the above stands
105 Spreading over of working time- discretionary but not more than 10 hrs a day
106 Night shift- one day ie 24 hrs holiday entitled
107 Restriction on cumulative hours of work on a vehicle- after 10 hrs no duty to another
travelling
108 Extra allowance for overtime- usually @ the rate of twice of normal wages
109 Limited working hours for the female workers- mainly for night shift without her
permission
110 Restriction on double employment- no work in two establishment in a day without
permission from the chief inspector
111 Notice of periods of work for adult workers and preparation thereof- work roster
required
112 Special age limit for road transport workers- driver’s age to be minimum 21 years; NA
other worker of 18 years old
113 Houses of work to correspond with the notice and the register- required work register Y
u/s 111 and workers’ register u/s 9
114 Closure of shops etc- 11/2 days/week; after 8 pm each day if not govt. decides NA
otherwise
115 Casual leave- for workers other than workers at tea plantation: 10 days and cannot be
carried forward if not enjoyed timely
116 Sick leave- 14 days on the basis of the certificate from the registered physician
117 Annual leave with wages- 1 day for every 18 days worked in last year; 1/20 for
worker at tea plantation; 1/11 for newspaper worker. For young worker: 1/15 at
factory; 1/18 at tea plant; 1/14 at shop. Unavailed leave can be carried forward to the
tune of 40/60 days;
118 Festival holidays- 11 days in a year; work on festival holiday @rate of double wages
119 Calculation of wages for the period of leave or holiday- regular rate

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© A Qasem & Co, Chartered Accountants (A Cooperating Firm of PricewaterhouseCoopers)
 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)

CHAPTER X: WAGES AND PAYMENT

120 Special definition of wages- includes any money received by the worker during his
employment
121 Responsibility for payment of wages- employer
122 Fixation of wage-periods- one month fixed by employer
123 Time of payment of wages- On a working day within 7 days from expiry of wage- Y Every month
period/ employment ( in some cases) 20th-25th
days
124 Wages to be paid in current coin or currency note Y Paid in BDT
125 Matters deductible from the wages- allowed: fine; damage; income tax; PF; group Y
insurance contribution, etc
126 Deduction for absence from duty- equal or less than normal wages
127 Deduction for damage or loss- if the worker is found guilty NA No cases
found
128 Deduction for services rendered- if the worker is provided house facilities and other NA No cases
amenities found
129 Deduction for recovery of loans and advances- but not for travelling exp advance
130 Other deductions from wages
131 Payment of undisbursed wages of a dead worker- to the nominee or to the labor NA No cases
court found
132 Claims arising out of deduction from wages or delay in payment of wages- application NA No cases
to labour court found
133 Court fees in case of petitions u/s 132- claimant does not pay; but the employer if the NA No cases
petitioner comes out successful found
134 Single application in respect of claims on behalf of the workers whose wages was not NA No cases
paid or was deducted- to the labor court found
135 Appeal- by the employer to the tribunal NA No cases
found
136 Conditional attachment of property of the employer or the person responsible for NA No cases
payment of wages- by the order of the labor court found
137 Recovery of money from the employer in certain cases- ultimately from the employer NA No cases
found

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)

CHAPTER XI: WAGE BOARD

138 Establishment of minimum wage-board- by the government

139 Recommendation of minimum rates of wages for certain workers- after every 5 years
140 Power to declare minimum rates of wages- notified in official gazette by the
government
141 Points to be considered for framing recommendation- consider cost of living;
standard of living; cost of production; production capacity; value of produced goods;
inflation; nature of work; risk and standard; business capacity; socio-economic
conditions, etc.
142 Periodical review of minimum rates of wages- but not within 1 year from latest revision
143 Constitution of wage-board for the newspaper workers NA
144 Fixation of wages of newspaper workers- consider cost of living; prevalent wages, NA
business and socio-economic conditions of the concerned area. Rate may be for time
work or piece work
145 Publication of the decision of the newspaper wage-board- notified in official gazette NA
146 Power of the newspaper wage-board to fix interim rates of wages NA
147 Application to the labour court- by aggrieved person on the wage-board’s decision NA
148 Minimum wages shall be binding on every employer
149 Payment of wages at a rate below the minimum rates of wages- not permitted but
higher allowed

CHAPTER XII: COMPENSATION FOR INJURY BY ACCIDENT

150 Employer’s responsibility for payment of compensation- for serious injury (including No cases
occupational disease) damaging worker’s capacity to work for 3 years but not for found
drunken/disobedient worker—etc
151 Amount of compensation- 1lac tk for death; 125,000Tk for permanent injury No cases
found
152 Method of calculating wages
153 Review
154 Payment of monthly compensation by the lump-sum money
155 Distribution of compensation- by labor court
156 Transfer, attachment or mortgage of any compensation is prohibited Y

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
157 Notice and claim- legal procedures to claim money back from court NA No cases
found
158 Power to call for statements from the employer regarding fatal accident- by the court NA No cases
found
159 Report about fatal accident- by the employer to the court NA No cases
found
160 Medical examination- By the employer upon notice from the employee NA No cases
found
161 Compensation in case of contract- by the employer but reimbursed by the contractor NA No cases
found
162 Insolvency of the employer NA No cases
found
163 Special provision regarding master and seamen NA
164 Return as to compensation NA
165 Contract about relinquishment or lessening of liability is a nullity NA No cases
found
166 Transmission of some questions to the labor court for disposal NA No cases
found
167 Venue of proceeding NA No cases
found
168 Condition of application- mutual settlement encouraged NA No cases
found
169 Power of the labor court to call for further deposit in cases of fatal accident NA No cases
found
170 Registration of agreement- mutual agreement as to compensation settlement NA No cases
found
171 Effect of failure to register agreement NA No cases
found
172 Appeal NA No cases
found
173 Withholding of certain payments pending decision of the appeal NA No cases
found
174 Rules for giving effect to arrangement with any other state for the transfer of money NA No cases
paid as compensation found

CHAPTER XIII: TRADE UNIONS AND INDUSTRIAL RELATIONS

175 Special definition of worker- u/s 2(65), but excludes watchmen, security guard etc
176 Trade Union (TU) of the employers and workers
177 Application for registration- to the Registrar of Trade Unions ie director of labor of the

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
concerned area
178 Requisites for application- particular information; constitution, resolution etc
179 Requisites for registration- name and purpose of union etc
180 Disqualifications for becoming a member or an officer of a trade union- criminal
offence; unemployed
181 Registered trade union to maintain register- members’ register; receipt & payment
A/C; meeting minute book
182 Registration
183 Registration of trade unions in a group of establishments eg transports; tea industry NA
etc
184 Registration of trade unions in civil aviation establishments- one NA
185 Registration of sailors’ trade union - one NA
186 Conditions of service shall remain unchanged pending disposal of the application for NA
registration
187 President and certain officers not to be transferred- from one district to another NA No cases
without his consent found
188 Notice in case of certain changes in the constitution or executive committee- to
director of labor within 15 days of such change
189 Certificate of registration- from the director of labor
190 Cancellation of registration- upon certain conditions including falsification
191 Appeal against permission etc- to the labor appellate tribunal NA No cases
found
192 Carrying on the function of any trade union without registration is prohibited
193 Restriction on dual membership Y
194 Incorporation of registered trade union- TU to be treated as a body corporate and
registration under Societies Reg Act 1860, Co-operative societies ordinance 1985,
and the companies act 1994 shall be void.
195 Unfair labor practices on the part of the employers- employee has the right to join TU
196 Unfair labor practices on the part of the workers- employer’s consent required NA No cases
found
197 Limited application of the law of conspiracy- TU members can meet and discuss NA
198 Immunity from civil suit in certain civil cases NA
199 Enforceability of agreement NA No cases
found
200 Registration of federation of trade unions- 2 or more TU can form Federation of TU
by executing an instrument of federation
201 Returns- to the director of labor by the TU by the 30th April attaching audited receipts
& payments A/C, balance sheet , and other particulars including the name of the
federation. Penalty for non-compliance- cancellation of registration
202 Collective bargaining agent- TU is treated as agent for 2 years
203 Trade Union Federation shall act as collective bargaining agent in certain cases
204 Check-off- deduction from wages against TU subscription

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
205 Participation committee- of employers and employees where there is 50 workers
206 Functions of the participation committee- to promote mutual trust, ensure application
of labor law, enhance work ethics, harmony etc
207 Meetings of the participation committee- atleast 1 in every 2 months; minute of such
meeting to be sent to director of labor in 7 days after meeting day
208 Implementation of the participation committee’s recommendations

CHAPTER XIV: SETTLEMENT OF DISPUTES, LABOUR COURT, LABOUR APPELLATE TRIBUNAL, LEGAL
PROCEEDINGS ETC

209 Raising of industrial disputes

210 Settlement of industrial disputes- mutual settlement encouraged
211 Strike and lock-out- formalities under this section are to be maintained NA
212 Termination of industrial dispute- the issue to be raised in time within guidleines
213 Application to labor court NA No cases
found
214 Labour court NA No cases
found
215 Powers and procedure of labour court in trying offences- code of criminal procedures NA No cases
found
216 Powers and procedure of labour court in cases other than trial of offences- code of NA No cases
civil procedures found
217 Appeal against judgment etc. of labour court- within 60 days NA No cases
found
218 Labour appellate tribunal NA No cases
found
219 Form of application or appeal NA No cases
found
220 Appearance of parties in the case- by person or by rep NA No cases
found
221 Cost of the suit- as per discretion of the court NA No cases
found
222 Settlements etc on whom binding- all parties to the dispute NA No cases
found
223 Date of implementation of the settlement etc- usually agreed upon date NA No cases
found
224 Commencement and conclusion of proceedings NA No cases
found

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
225 Prohibition on serving notice of strike or lock-out while proceedings pending NA No cases
found
226 Power of labour court and tribunal to prohibit strike or lock-out NA No cases
found
227 Illegal strikes and lock-out- if no notice given, the dispute under sub judice NA No cases
found
228 Conditions of service to remain unchanged while proceedings pending NA No cases
found
229 Protection of the rights etc of certain persons- not willing to strike or lock out NA No cases
found
230 Representation of parties
231 Interpretation of settlement and awards- by tribunal NA No cases
found

CHAPTER XV: WORKERS’ PARTICIPATION IN COMPANIES’ PROFITS

232 Application of this chapter- to all such companies engaged in industrial undertakings Fixed asset
and satisfy any of the following: valu-
- 100 or more workers in the company in any shift at any time Tk.97,964,857
- Paid up capital Tk 1 crore (10 m)
- Value of fixed assets as per last audit report minimum Tk 2 crore

But, the government may bring any other company under this purview.

233 Special definitions:

“participation fund”- workers’ participation fund under this chapter

“welfare fund”- workers’ welfare fund under this chapter
“company”- a company under CA 94; statutory body; any institution as declared
“fund”- participation fund and welfare fund
“board”- board of trustees
“profits”- net profits as defined in the CA 94
“industrial undertaking”- any such operation where electrical/mechanical energy is
used and transformed
“workers”- employee who is with the company for atleast 6 months; but does not
include managerial/administrative personnel
“paid up capital and Value of fixed assets”- also mean value of those items of a
branch of foreign company
234 Establishment of participation fund and welfare fund- every eligible company shall
establish such funds immediately and pay 5% of its net profit in the ratio of 80:20 no
later than 9 months of close of the year

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
235 Management of the funds- by a board of trustees consisting: N They have no
- 2 persons form the workers trustee board
- 2 persons from the management (1 from accounts dept)

They will select a chairman among themselves for 1 year.

236 Penalty- for non-compliance with section 234, the government may direct to comply
and if failed the company and its officers be penalized by Tk 10,000 and Tk 1,000 for
each day delay
237 Power to call for information- the government has the power
238 Settlement of dispute etc- any dispute to be reported to the government NA No cases
found
239 Delegation of power
240 Investment of participation fund- in the company’s business operation @ a rate 2.5% The Company
above bank interest rate or @75% of the weighted average rate of the company’s Did not invest
declared dividend. But the company may request the board to invest them in the any amount of
following: the fund
- Acquiring (cap- lower of 25% prior or 50% of converted capital) shares of the
company when it calls for additional capital (which does not include shares
offered to foreign investors)
- ICB MF, ICB Units, govt securities, share markets etc.
241 Eligibility for getting benefit from the fund- all workers completing 6 months of Y
services with the company
242 Utilization of the participation fund Y
- 2/3 to be distributed in equal proportion to all workers in cash
- 1/3 to be invested as mentioned above u/s 240
- Only dismissed worker does not have right to this fund
243 Utilization of the welfare fund- per board’s decision informing the government
244 Fiscal concession to the companies- such contribution is tax admissible expenses
245 Exemption of the income of the funds from income tax- exempted
246 All sums paid out of both the funds shall be exempted from income tax
247 Working and location of the board of trustees- at the factory premises/registered
office; all expenses of the board and record keeping shall be borne by the company
248 Audit of the accounts of the two funds- annually @ company’s cost
249 The benefits given by the two funds shall be in addition to other benefits
250 Special provisions for industries working seasonally- the government may decide NA
251 Companies engaged in more than one industrial undertakings- funds may be split up
252 Entrustment of management of the participation fund to ICB (Investment Corporation
of Bangladesh) or Sonali Bank- with approval from the government; management fees
to be paid by the company

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)

CHAPTER XVI: SAFETY AND CONTROL OF EMPLOYMENT OF DOCK WORKERS

253 Power to make schemes- government has the power NA

254 Dock workers management board- government decides NA
255 Composition of the board- 13 NA
256 Meetings of the board- 5 members form quorum NA
257 Functions of the board- for scheme for the Port NA
258 Advisory committee- government constitutes NA
259 Appointment of officers and employees- boards’ power NA
260 Fund- form grant form government, port authority, receipts from other sources NA
261 Statement of income and expenditure (budget)- board’s responsibility to submit to NA
govt
262 Delegation of power- by the board NA
263 Special provisions with regard to safety etc of dock workers- govt makes rules NA

CHAPTER XVII: PROVIDENT FUND

264 Provident fund of workers of non-government establishments- not compulsory, if

created then certain rules are mentioned in this section as to formation, management,
utilization of fund etc
265 Tea plantation workers’ provident fund- must NA
266 Trustee board of the tea plantation workers’ provident fund- govt constitutes from:
- 3 rep form employers
- 3 from the workers
- 2 independent persons
- Chairman and other members appointed by the govt
- Board of trustee is a body corporate with perpetuation
267 Cost of administration- mutually contributed per govt suggestion NA
268 Contribution- 7.5% of wages by both parties and money invested in securities as ruled
269 Recovery of damages- from employers by the board
270 Provident fund is not liable to be attached
271 Priority of payment of contribution over others- 1st priority in case of insolvency NA No cases
found
272 Employers not to reduce wages or other amenities- for that they contribute to PF Y

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
273 Provident fund for newspaper workers- must under a board of trustees; 2 years NA
service completion makes worker eligible to join PF, newspaper establishment is
deemed to be a public institution

CHAPTER XVIII: APPRENTICESHIP

274 Application of this chapter- applies to such establishments which are in operation for
more than 2 years with atleast 50 workers and 5 apprentices
275 Special definitions- apprentice means a person undergoing training before being fixed
276 Tripartite advisory committee- government constitutes
277 Obligation of the employer- to ensure compliance with this chapter and labor code,
get the programme registered with the competent authority etc
278 Relief from income tax etc- apprenticeship program costs are tax admissible
expenses
279 Advice and guidance to employers- by the competent authority
280 Obligations of apprentices- attentive, punctuality, due diligence, etc
281 Powers of entry, inspection etc- by the competent authority
282 Delegation of power- by the competent authority

CHAPTER XIX: OFFENCES, PENALTIES AND PROCEDURES

283 Penalty for non-compliance of court’s order u/s 30- 3 months imprisonment/fine Tk NA No cases
5,000/with both found
284 Penalty for employment of child and adolescent- fine Tk 5,000 NA No cases
found
285 Penalty for any contract with regard to children in violation of section 35- fine Tk 1,000 NA No cases
found
286 Penalty for violation by an employer of provisions of chapter IV MATERNITY BENEFIT - NA No cases
fine Tk 5,000 and same amount to the hurt woman found
287 Penalty for work for wages during approved leave under chapter IV- MATERNITY NA No cases
BENEFIT - fine Tk 1,000 to be paid by the female worker found
288 Penalty for violation of section 67- CASING OF NEW MACHINERY - 3 months NA No cases
imprisonment/fine Tk 1,000/with both found
289 Penalty for payment of wages which is below the minimum rate of wages under
chapter XI- WAGE BOARD: 1 year imprisonment/fine Tk 5,000/with both
290 Penalty for failure to give notice of accident- fine Tk 1,000 for serious injury but 6

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
months imprisonment/fine Tk 3,000/with both for death of worker
291 Penalty for unfair labor practice (ie not allowing TU etc) – 2 years imprisonment/fine NA No cases
Tk 10,000/with both found
292 Penalty for committing breach of settlement etc- 1 year imprisonment/fine Tk NA No cases
10,000/with both found
293 Penalty for willful failing to implement settlement etc- 2 years imprisonment/fine Tk NA No cases
10,000/with both found
294 Penalty for illegal strike or lock-out- 1 year imprisonment/fine Tk 5,000/with both NA No cases
found
295 Penalty for instigating illegal strike or lock-out- 1 year imprisonment/fine Tk 5,000/with NA No cases
both found
296 Penalty for talking part in or instigating go-slow- 1 year imprisonment/fine Tk NA No cases
5,000/with both found
297 Penalty for contravention of section 228(2) (no employee be dismissed while a dispute NA No cases
is pending or sub judice) - 1 year imprisonment/fine Tk 5,000/with both found
298 Penalty for embezzlement or misappropriation of PF or trade union fund- 3 years
imprisonment and fine, 1 year imprisonment and fine respectively
299 Penalty for activities of unregistered trade union – 6 months imprisonment/fine Tk
2,000/with both
300 Penalty for dual membership of trade unions- 6 months imprisonment/fine Tk
2,000/with both
301 Penalty for violation of section 210(7) “appearance of parties to the dispute before the NA
conciliator on time” - 6 months imprisonment/fine Tk 2,000/with both
302 Penalty for using false certificate of fitness- 3 months imprisonment/fine Tk 1,000/with
both
303 Penalty for false statement etc- 6 months imprisonment/fine Tk. 5,000/with both NA No cases
found
304 Penalty for wrongful disclosure of information (applicable to govt. officials)- 6 months
imprisonment/fine Tk. 2,000/with both
305 Penalty for general offences by workers- fine Tk. 500
306 Penalty for obstruction to govt. official exercising his power to enter, inspect etc- 6
years imprisonment/fine Tk. 2,000/with both
307 Penalty for other offences if no other penalty is imposed- 3 months imprisonment/fine
Tk. 1,000/with both
308 Enhanced penalty after previous convictions in last 2 years- double of usual NA No cases
punishment found
309 Penalty for violation of law of dangerous consequence: if results in NA No cases
- death of a person- 4 years imprisonment/fine Tk. 100,000/with both found
- grievous bodily harm- 2years imprisonment/fine Tk. 10,000/with both
- other harm to anyone- 6 months imprisonment/fine Tk. 2,000/with both
310 Power of the court to make some orders to remedy the matters which caused offence
311 Onus as to age- accused responsibility to prove his under/over age not suit for NA
punishment

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
312 Offences by a company, etc- top management to be deemed guilty
313 Cognizance of offence- taken by Labour Court upon complaint from the: NA No cases
- aggrieved person or trade union found
- director of labor u/s 298
- chairman of the trustee board or controller of PF
- competent authority u/chapter XVIII
- chief inspector or his authorize officer
314 Limitation of complaint- claim to be lodged before court within 6 months of occurrence NA No cases
found
315 Report of offence- any person can report of occurrence to director of labor, or NA No cases
authority found
316 Withdrawal of suits- by the claimant

CHAPTER XX: ADMINISTRATION, INSPECTION, ETC

317 Director of labour etc- appointed by the government

318 Chief inspector etc- appointed by the government
319 Powers and functions of the chief inspector etc
320 Controller of provident fund of tea plantation workers- appointed by the government NA
321 Accounts and audit- prescribed by the government and audited by the Comptroller
and Auditor General (CAG)
322 Report etc- to govt. by the CAG
323 National, industrial, health and safety council- constituted by the government from
secretaries of various ministries

CHAPTER XXI: MISCELLANEOUS

324 Power of exemption- rests with the government

325 Notice to chief inspector before commencement of work- by the owner of
establishment or manufacturing process 15 or 30 days before commencing business
or production respectively
326 Approval of plans and fees for licensing and registration- may be required
327 Appeal against some decisions of the inspector- to the appellate tribunal by the No cases
employer within 30 days of such decision found
328 Seasonal factory- operative for less than 180 days in a year/intermittent NA
329 Recovery of money due under this code- as public demand No cases

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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
found
330 No charge for facilities and convenience- to be collected by the employer from
workers except for canteen food prices
331 Responsibility of workers- prudent use of stuff, keep things safe, due care and work Y
332 Behavior towards woman- no indecent behavior allowed Y
333 Service of notices and returns- government frames rules as to content and frequency
334 Some persons to be public servants- government related or nominated persons NA
335 Protection of work done in good faith- no suit if work done in good faith
336 Protection of existing conditions of service in some cases- this code does not affect
some salient conditions existed earlier like award, agreement etc
337 Display of the abstracts of the code, rules and regulations- by the employer at main
gate or somewhere in legible condition
338 Liability of owner of premises in certain circumstances- owner’s onus to maintain Y
common facilities where different establishments are in business
339 Power to collect information- labor related govt board or officer has the power NA
340 Presumption as to employment- visible person is deemed to be a worker when work is NA No cases
going on found
341 Restriction of disclosure of some information- employee keeps confidentiality Y
342 Maintenance of secrecy about certain matters- principle of confidentiality expected Y
343 Protection of the proceedings of the board No cases
found
344 General provision of terms, powers, proceedings etc of the board Y
345 Equal payment for equal work Y
346 Court fees in normal circumstances- government fixes Y
347 Restriction on certain questions etc- coercion as to information collect prohibited Y
348 Training on this code- government takes necessary initiatives to impart this code NA No cases
found
349 Prohibition of some activities of trade union- acts as per constitution
350 Prohibition on jurisdictions of some courts- only Labour Court undertakes cases NA No cases
found
351 Power to make rule- government makes Y
352 Provision for penalty in any rule, regulation or scheme- 3 months imprisonment/fine Y
Tk. 1,000/with both
353 Repeal and savings- the following Acts are repealed:
i. The Workmen’s Compensation Act 1923
ii. The Children (Pledging of Labour) Act 1933
iii. The Workmen’s Protection Act 1934
iv. The Dock Labourers Act 1934
v. The Payment of Wages Act 1936
vi. The Employer’s Liability Act 1938
vii. The Employment of Children Act 1938
viii. The Maternity Benefit Act 1939

Page 21 of 22
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 Subject: Checklist to check Factory’s compliance
with The Bangladesh Labor Code 2006

Client: AMERICAN & EFIRD (BD) LTD. Year: March 31, 2010
Prepared by & date: Syed Amiruzzaman Reviewed by & date:

S. Complied
Title and Requirements Remarks
No (Y/N/NA)
ix. The Mines Maternity Benefit Act 1941
x. The Motor Vehicle (Drivers) Ordinance 1942
xi. The Maternity Benefit (Tea Estate) Act 1950
xii. The Employment (Records of Services) Act 1951
xiii. The Bangladesh Plantation Employees Provident Fund Ordinance
1959
xiv. The Coal Mines (Fixation of Rates and Wages) Ordinance 1960
xv. The Road Transport Workers Ordinance 1961
xvi. The Minimum Wages Ordinance 1961
xvii. The plantation Labour Ordinance 1962
xviii. The Apprenticeship Ordinance 1962
xix. The Factories Act 1965
xx. The Shops and Establishment Act 1965
xxi. The Employment of Labour (Standing Orders) Act 1965
xxii. The Companies Profits (Workers’ Participation) Act 1968
xxiii. The Industrial Relations Ordinance 1969
xxiv. The Newspaper Employees (Conditions of Service) Act 1974
xxv. The Dock Workers (Regualtion of Employment) Act 1980
354 Main text and English Text- main text in Bangla and it prevails in cases where any
conflict arises between it and the English version.

SCHEDULE I: LIST OF INJURIES DEEMED TO RESULT IN PERMANENT PARTIAL DISABLEMENT U/S 2 (1) & 151

SCHEDULE II: LIST OF NOTIFIABLE DISEASES U/S 82 & 83

SCHEDULE III: LIST OF OCCUPATIONAL DISEASES U/S 150

SCHEDULE IV: LIST OF PERSON WHO ARE INCLUDED IN THE DEFINITION OF WORKER U/S 150(8)

SCHEDULE V: COMPENSATION PAYABLE IN CERTAIN CASES U/S 151

MINIMUM WAGES RATE FOR GARMENTS WORKERS

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