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Bangladesh - Compensation & Benefit Legislation

CAPITAL

Dhaka

 

CLIMATE

Tropical. Cool, dry winters (October to March);hot, humid summers (March to June) and cool, rainy monsoons (June to October).

 

LANGUAGES

Bangla (official) and English.

 

LEGAL SYSTEM

Based on English Common Law.

 

CURRENCY

Bangladesh Taka (1 USD = 59.5460 BDT as of March 15, 2002)

 

BANGLADESH - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

BANGLADESH - EMBASSY/CONSULATE

U.S. Embassy at Dhaka

Madani Ave.

Baridhara Dhaka 1212

Bangladesh

G.P.O. 323

1000 Dhaka, Bangladesh

Telephone: [880] (2) 882-4700

Fax: [880] (2) 882-3744

E-mail: dhaka@pd.state.gov

http://www.usembassy-dhaka.org/

 

Embassy of the People's Republic of Bangladesh at Washington D.C.

3510 International Drive N.W.

Washington D.C. 20008

Telephone: (202) 342-8372

Fax: (202) 333-4971

E-mail: info@bangladoot.org

http://www.bangladoot.org

 

BANGLADESH - HOLIDAYS

 

BANGLADESH - MINIMUM AGE

There is no law that uniformly prohibits the employment of children, and child labor is a serious problem. Some laws prohibit labor by children in certain sectors.

 

The Factories Act bars children under the age of 14 from working in factories. This law also stipulates that children and adolescents are allowed to work only a maximum 5-hour day and only between the hours of 7 a.m. and 7 p.m. The Shops and Establishments Act prohibits the employment of children younger than the age of 12 in commercial workplaces. The Employment of Children Act prohibits the employment of children under the age of 15 in the railways or in goods' handling within ports.

 

(Section 6.d. Acceptable Conditions of Work, Bangladesh – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

BANGLADESH - MINIMUM REMUNERATION

There is no national minimum wage. Instead the Wage Commission, which convenes every several years, sets wages and benefits industry by industry, using a range based on skill level. In most cases, private sector employers ignore this wage structure.

 

(Section 6.e. Acceptable Conditions of Work, Bangladesh – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

BANGLADESH - REMUNERATION

ERI’s Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

BANGLADESH - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

The Constitution provides for the right to join unions and--with government approval--the right to form a union. The total work force is approximately 58 million persons, of whom 1.8 million belong to unions, most of which are affiliated with the various political parties. There are no reliable labor statistics for the large unreported informal sector, in which the vast majority of citizens work.

 

Thirty percent workplace participation in the union is required for a union to obtain and maintain its registration. Moreover, would-be unionists technically are forbidden to engage in many activities prior to registration, and legally are not protected from employer retaliation during this period. Labor activists have protested that this requirement severely restricts workers' freedom to organize, particularly in small enterprises and the private sector, and the ILO has requested the Government to amend the 30 percent provision on the same grounds. The ILO also has requested the Government to amend legislative provisions that bar registration of a union that is composed of workers from different workplaces owned by different employers. An estimated 15 percent of the approximately 5,450 labor unions are affiliated with 25 officially registered National Trade Union (NTU) centers. There also are several unregistered NTU's.

With the exception of workers in the railway, postal, telegraph, and telephone departments, civil servants, police, and military personnel are forbidden to join unions in large part because of the highly political nature of those unions. Many civil servants who are forbidden to join unions, such as teachers and nurses, have formed associations that perform functions similar to labor unions, that is, providing for members' welfare, offering legal services, and airing grievances. However, collective bargaining is prohibited. Some workers have formed unregistered unions, particularly university employees and workers in the construction and transport (both public and private) industries.

 

In 1999 the ILO Committee of Experts stated that the Government's rejections of several applications for registration by trade unions in the textile, metal, and garment sectors were unjustified. The Ministry of Labor contends that these cases lacked the necessary documentation.

 

The right to strike is not recognized specifically in the law, but strikes are a common form of workers' protest. In addition political opposition parties use general strikes to pressure the Government to meet political demands (see Section 2.b.). Workers at Chittagong port, the country's major harbor, conducted several work stoppages to protest a proposed new private container port. Some employees organized in professional associations or unregistered unions also went on strike during the year. Wildcat strikes are illegal but frequently occur, with varying government responses. Wildcat strikes in the transportation sector are particularly common.

 

The Essential Services Ordinance permits the Government to bar strikes for 3 months in any sector that it declares essential. During the year, the Government applied this ban on strikes to the Power Development Board and the Dhaka Electric Supply Authority. In the past, the Government has applied this ban to national airline pilots, water supply workers, and shipping employees. The ban may be renewed for 3-month periods. The Government is empowered to prohibit a strike or lockout at any time before or after the strike or lockout begins and to refer the dispute to the Labor Court. Mechanisms for conciliation, arbitration, and labor court dispute resolution were established under the Industrial Relations Ordinance. Workers have the right to strike in the event of a failure to settle. If a strike lasts 30 days or longer, the Government may prohibit the strike and refer the dispute to the Labor Court for adjudication, although this has not happened in recent years. The ILO has criticized the provisions of the Industrial Relations Ordinance that require three-quarters of a worker's organization to consent to a strike and that grant the Government authority to prohibit a strike at any time if it is considered prejudicial to the national interest or if it involves a public utility service.

 

There are no legal restrictions on political activities by labor unions, although the calling of nationwide hartals or transportation blockades by unions is considered a criminal rather than a political act and thus is forbidden.

 

While unions are not part of the government structure, they are highly politicized, and are strongest in state-owned enterprises and in institutions like the government-run port in Chittagong. Virtually all the NTU centers are affiliated with political parties. Some unions engage in intimidation and vandalism. Illegal blockades of public transportation routes by strikers frequently occurred during the year. Pitched battles between members of rival labor unions are not uncommon. Fighting often is over the control of rackets or extortion payoffs and typically involves knives, guns, and homemade bombs.

 

Workers are eligible for membership on their union's executive staff, the size of which is set by law in proportion to the number of union members. The Registrar of Trade Unions may cancel registration of a union with the concurrence of the Labor Court, but no such actions were known to have been taken place during the year.

 

There are provisions in the Industrial Relations Ordinance for the immunity of registered unions or union officers from civil liability. Enforcement of these provisions is uneven. In past illegal work actions, such as transportation blockades, police officers have arrested union members under the SPA or regular criminal codes.

 

There are no restrictions on affiliation with international labor organizations, and unions and federations maintain a variety of such links. Trade unionists are required to obtain government clearance to travel to ILO meetings, but there were no reports that clearances were denied during the year.

 

b. The Right to Organize and Bargain Collectively

 

Under the Industrial Relations Ordinance, there is considerable leeway for discrimination against union members and organizers by employers. For example, the ordinance allows the arbitrary transfer of workers suspected of union activities or termination with payment of mandatory severance benefits (2 weeks' salary). In practice private sector employers usually discourage any union activity, sometimes working in collaboration with local police.

 

The Registrar of Trade Unions rules on discrimination complaints. In a number of cases, the Labor Court has ordered the reinstatement of workers fired for union activities. However, the Labor Court's overall effectiveness is hampered by a serious case backlog, and in the past there have been allegations that employers have corrupted some of its deliberations.

 

Collective bargaining by workers is legal on the condition that they be represented by unions legally registered as collective bargaining agents by the Registrar of Trade Unions. Labor unions are affiliated with the various political parties; therefore, each industry generally has more than one labor union (one or more for each political party). To engage in collective bargaining, each union must nominate representatives to a Collective Bargaining Authority (CBA) committee, which the Registrar of Trade Unions must approve after reviewing the selection process. Collective bargaining occurs on occasion in large private enterprises such as pharmaceuticals, jute, or textiles but, because of high unemployment, workers may forgo collective bargaining due to concerns over job security. Collective bargaining in small private enterprises generally does not occur. The International Confederation of Free Trade Unions (ICFTU) has criticized the country for what it views as legal impediments that hamper such bargaining.

 

Public sector workers' pay levels and other benefits are set by the National Pay and Wages Commission, whose recommendations are binding and may not be disputed except on the issue of implementation.

 

In June 1999, the ILO received a complaint from the Bangladesh Agricultural Farm Labor Federation that the Government had not introduced legislation that would extend the protections of the Industrial Relations Ordinance to a greater number of agricultural workers. In July the ILO sponsored a seminar to raise awareness about agricultural laborers. Officials from various ministries, including the Ministry of Labor, attended. Farm laborers, such as those employed in the aquaculture sector (shrimp hatchery, harvesting and processing) are covered by the labor law and can form trade unions. However, most agricultural laborers are migrant workers, and thus are not employed by any particular individual or group. The Government had not taken steps to extend labor laws to cover these migrant workers.

 

The country's five EPZ's, of which three are operational, are exempt from the application of the Employment of Labor (Standing Orders) Act, the Industrial Relations Ordinance, and the Factories Act. Among other provisions, these laws establish the freedom of association and the right to bargain collectively, and set forth wage and hour and occupational safety and health standards. While substitutes for some of the provisions of these laws have been implemented through EPZ regulations, which the Bangladesh EPZ Authority is charged with enforcing, professional and industry-based unions are prohibited in the zones. A small number of workers in the EPZs skirted prohibitions on forming unions by setting up associations. The Bangladesh Export Processing Zone Authority (BEPZA) reported that workers have selected representatives for workers' welfare committees and dispute resolution tribunals EPZ's that are designed to give workers and managers more experience in resolving workplace disputes. The Government pledged in 2000 to apply all sections of the labor law to the EPZ's by January 1, 2004. However, the Government made a similar pledge in 1992 (under which the labor laws were to apply to the EPZ's by 2000), which it did not honor. Approximately 93,000 persons are employed in EPZ's, primarily in the textile and apparel, electronics component, and leather industries. During the year, the EPZ's experienced several strikes, some of which turned violent.

 

c. Prohibition of Forced or Compulsory Labor

 

The Constitution prohibits forced or compulsory labor, including that performed by children; however, the Government does not enforce this prohibition effectively. The Factories Act and Shops and Establishments Act establish inspection mechanisms to enforce laws against forced labor; however, these laws are not enforced rigorously, partly because resources for enforcement are scarce. There is no large-scale bonded or forced labor; however, numerous domestic servants, including many children, work in conditions that resemble servitude and many suffer physical abuse, sometimes resulting in death. Between January and August, newspapers reported the "unnatural deaths" of 12 domestic servants, including one who was only 11 years old. Newspapers also reported 5 separate cases of children being tortured by their domestic employers; in one case a 10-year-old girl allegedly was beaten until she lost consciousness. In the past, the Government has brought criminal charges against employers who abuse domestic servants; however, many impoverished families settle for financial compensation. There is extensive trafficking in both women and children, mainly for purposes of prostitution, although in some instances for labor servitude outside of the country (see Section 6.f.).

 

In 2000 the ILO noted that certain provisions of the Penal Code, the Special Powers Act, the Industrial Relations Ordinance, the Control of Employment Ordinance, among other laws, allow for the imposition of forced labor as punishment for expressing political views or views opposed to the established political system; as a punishment for various breaches of labor discipline; and as punishment for participating in strikes in a wide range of circumstances. For example, sentences of up to 14 years of forced labor can be imposed for offenses such as "obstruction of transport," a commonly used tactic in strikes. In addition, under the Bangladesh Merchant Shipping Ordinance, seafarers may be forcibly conveyed on board ship to perform their duties. However, in practice these provisions are not known to be used.

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

There is no law that uniformly prohibits the employment of children, and child labor is a serious problem. Some laws prohibit labor by children in certain sectors. The Factories Act bars children under the age of 14 from working in factories. This law also stipulates that children and adolescents are allowed to work only a maximum 5-hour day and only between the hours of 7 a.m. and 7 p.m. The Shops and Establishments Act prohibits the employment of children younger than the age of 12 in commercial workplaces. The Employment of Children Act prohibits the employment of children under the age of 15 in the railways or in goods' handling within ports.

 

Because of widespread poverty, many children begin to work at a very young age. The Government estimates that approximately 6.6 million children between the ages of 5 and 14 years work. Working children were found engaged in 200 different types of activities, of which 49 were regarded as harmful to children's physical and mental wellbeing. Sometimes children are seriously injured or killed in workplaces. For example, according to press reports an 11-year-old domestic servant was the victim of an "unnatural death," and one 10-year-old domestic servant was reportedly beaten by her employer until she lost consciousness. A November 2000 garment factory fire resulted in the death of 10 child workers. Children often work alongside other family members in small-scale and subsistence agriculture. Hours usually are long, the pay usually is low, and the conditions sometimes are hazardous. Children drive rickshaws, break bricks at construction sites, carry fruit, vegetables, and dry goods for shoppers at markets, work at tea stalls, and work as beachcombers in the shrimp industry. Many children work in the beedi (hand-rolled cigarette) industry, and children under 18 years old sometimes work in hazardous circumstances in the leather industry. Children routinely perform domestic work. In the past, the Government has brought criminal charges against employers who abuse domestic servants. Some children are trafficked domestically or overseas, often for prostitution, and child prostitution is a serious problem (see Sections 5 and 6.f.). Under the law, every child must attend school through the fifth grade, or the age of 10 years. However, there is no effective mechanism to enforce this provision.

 

There is virtually no child labor law enforcement outside of the export garment sector. Penalties issued by the Ministry of Labor for child labor violations are nominal fines ranging from $4 to $10 (228 to 570 taka). The Ministry of Labor has fewer than 110 inspectors to monitor 180,000 registered factories and establishments. These inspectors are charged with enforcing labor laws pertaining to more than 1.5 million workers. Most child workers are employed in agriculture and other informal sectors, where no government oversight occurs.

 

The Bangladesh Garment Manufacturers' and Exporters Association (BGMEA) inspects member factories to eliminate child labor in the garment sector. Among 3,300 garment factories inspected, the team found 531 member factories employing a total of 1,278 children. The BGMEA fined each factory $100 (5,700 taka). Former child employees are also offered a small monthly stipend to help replace their lost income while attending UNICEF-sponsored schools.

 

In cooperation with the Non-Formal Education Directorate of the Government and some NGO partners, UNICEF is implementing a "hard-to-reach" program to provide education to 350,000 (primarily working) children in urban slum areas around the country. Working with the Government, NGO's, and some trade unions, ILO/IPEC (International Program for the Elimination of Child Labor) has 20 action programs, targeting approximately 6,000 children working in hazardous conditions, designed to ensure that children receive an education, rather than removing children from work. The largest ILO project focuses on children working in hazardous occupations, ranging from exposure to chemicals and other harmful substances to long tedious working hours. The first phase of the project, which involves a 2-month survey to identify children, their employers, and their families, began on August 22. Aiming to remove approximately 30,000 children from hazardous occupations and to prevent another 15,000 younger siblings from taking their position in the labor market, the project focuses on the beedi industry, the construction sector, leather tanneries, match factories, and the domestic work sector.

 

In March the Government ratified ILO Convention 182 on the elimination of the worst forms of child labor. The Government did not grant the Ministry of Labor additional resources to enforce its commitment as a member of the South Asian Association for Regional Cooperation to eliminate hazardous child labor by 2000, and to eliminate all child labor by 2010; the existing small corps of labor inspectors continues to be ineffective against all labor problems because of inefficiency and corruption.

 

The Constitution prohibits forced or compulsory labor, including that performed by children; however, the Government does not enforce this prohibition effectively, and some children work as domestic servants in conditions that resemble labor servitude or are trafficked for the purpose of prostitution (see Sections 6.c. and 6.f.). There were credible reports that police facilitated or were involved in trafficking of women and children.

 

e. Acceptable Conditions of Work

 

There is no national minimum wage. Instead the Wage Commission, which convenes every several years, sets wages and benefits industry by industry, using a range based on skill level. In most cases, private sector employers ignore this wage structure. For example, in the garment industry, many factories do not pay legal minimum wages, and it is common for workers of smaller factories to experience delays in receiving their pay, or to receive "trainee" wages well past the maximum 3 months. Wages in the EPZ's are generally higher than outside the zones. The declared minimum monthly wage for a skilled industrial worker is approximately $63 (3,400 taka) for a worker in an EPZ and approximately $49 (2,650 taka) for a worker outside an EPZ, and is sufficient to provide an individual with a minimal standard of living, but is not sufficient to provide a decent standard of living for a worker and family.

 

The law sets a standard 48-hour workweek with 1 day off mandated. A 60-hour workweek, inclusive of a maximum 12 hours of overtime, is allowed. The law is enforced poorly in industries such as hosiery and ready-made garments.

 

The Factories Act nominally sets occupational health and safety standards. The law is comprehensive but largely is ignored by employers. For example, there are many fire safety violations in the garment industry. Many factories are located in structures that were not designed adequately for industrial use, nor for the easy evacuation of large work forces. In November 2000, 48 garment workers, including 10 children, were killed and more than 100 persons were injured when they were unable to escape from a factory fire due to locked exits. On August 8, 18 garment workers were trampled to death because an exit gate jammed as they were fleeing a factory after a fire alarm. In addition numerous factories have insufficient toilet facilities (for example, 1 toilet for 300 employees). Workers may resort to legal action for enforcement of the law's provisions, but few cases actually are prosecuted. Enforcement by the Labor Ministry's industrial inspectors is weak, due both to the low number of labor inspectors, and to endemic corruption and inefficiency among inspectors. Due to a high unemployment rate and inadequate enforcement of the laws, workers demanding correction of dangerous working conditions or refusing to participate in perceived dangerous activities risk losing their jobs.

 

f. Trafficking in Persons

 

The law prohibits trafficking in persons and trafficking is a serious problem. There is extensive trafficking in both women and children, primarily to India, Pakistan, and destinations within the country, mainly for the purpose of prostitution, although in some instances for labor servitude. Some children also are trafficked to the Middle East to be used as camel jockeys.

 

The exact number of women and children trafficked for purposes of prostitution is unknown; however, human rights monitors estimate that more than 20,000 women and children are trafficked from the country for such purposes annually. Most trafficked persons are lured by promises of good jobs or marriage, and some are forced into involuntary servitude outside of the country. Seeing no alternative for breaking the cycle of poverty, parents sometimes willingly send their children away. Unwed mothers, orphans, and others outside of the normal family support system also are susceptible. Traffickers living abroad often arrive in a village and "marry" a woman, only to dispose of her upon arrival in the destination country, where women are sold by their new "friends" or "husbands" into bonded labor, menial jobs, or prostitution. Criminal gangs conduct some of the trafficking in persons. The border with India is loosely controlled, especially around Jessore and Benapole, making illegal border crossings easy.

 

The number of child prostitutes is difficult to determine. Prostitution is legal, but only for those persons over 18 years of age with government certification; however, this minimum age requirement commonly is ignored by authorities, and is circumvented easily by false statements of age. Procurers of minors rarely are prosecuted, and large numbers of child prostitutes work in brothels.

 

Children, usually young boys, also are trafficked into the Middle East and the Persian Gulf States to work as camel jockeys. It is estimated that there are anywhere from 100 to more than 1,000 underage South Asian camel jockeys working in the United Arab Emirates alone; while many come from India and Pakistan, a growing number come from Bangladesh.

 

 

BANGLADESH - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

BANGLADESH - STANDARD WORKWEEK

The law sets a standard 48-hour workweek with 1 day off mandated. A 60-hour workweek, inclusive of a maximum 12 hours of overtime, is allowed.

 

(Section 6.e. Acceptable Conditions of Work, Bangladesh – Report of Human Rights Practices, 2001, U.S. Department of State.)