Employment Law

employment and labor law

The employment and labor law services offered by The Justice Corner.

Overview of Legal Services

The Justice Corner provides comprehensive legal assistance to both employees and employers, tailoring their support to the unique challenges of each business. Their advice is grounded in the Bangladesh Labour Act of 2006 and its subsequent statutory regulations.

1. Advisory and Documentation

The firm assists clients in designing employment structures and ensuring compliance to mitigate future conflicts.

• Contract Drafting: They formulate legally sound employment contracts, non-disclosure agreements (NDAs), non-compete clauses, and executive compensation agreements.
• Policy Review: They cross-check business HR policies and employee handbooks to ensure they comply with relevant laws.
• Industrial Relations: The firm assists in formulating policies for industrial relations and resolving trade union disputes, including strikes and collective bargaining.
• Compensation & Benefits: They handle legal matters regarding bonus schemes, welfare funds, and minimum mandatory employment conditions.

2. Litigation and Dispute Resolution

The Justice Corner represents both sides of employment disputes in various courts, including the Labour Court, the Labour Appellate Tribunal, and the High Court Division of the Supreme Court of Bangladesh.

Common areas of litigation include:

• Termination: Unfair dismissals and wrongful termination claims.
• Discrimination: Workplace discrimination cases and denial of equal pay for equal work.
• Writ Petitions: Employment-related writ petitions, particularly those involving trade union and compliance issues.

Notable Experience and Clients

The firm has a track record of representing large national and international corporations. Specific representative matters include:

Client Commitment

The Justice Corner emphasizes specific values in their practice:

• Tailored Solutions: They devote themselves to learning each client's specific needs to support their rights through complex issues.
• Comprehensive Support: Their proficiency covers both contentious (litigation) and non-contentious (advisory) employment issues.
• Availability: Their lawyers based in Dhaka are prepared to provide counsel that protects businesses while ensuring regulatory compliance.

Absorption of temporary/casual  Worker.

The primary legal argument for a casual worker seeking permanent status is that they have been misclassified. Under the Bangladesh Labour Act, 2006, a worker's status is determined by the nature of their work, not just the label given by the employer.

• Casual Worker Definition: A worker is only "casual" if their work is explicitly of a "casual nature" (irregular, uncertain, or occasional).
• Permanent Worker Definition: A worker is "permanent" if they are engaged in work of a "permanent nature" or have completed a probationary period.
• The Remedy Argument: If a worker has been classified as "casual" but performs tasks that are continuous, essential, and permanent in nature (e.g., working 6 days a week for years in a core business role), they can legally claim they are effectively permanent workers who have been denied their statutory rights.

2. Legal Remedies Available

If a casual worker is performing permanent work but is denied permanent status, they may pursue the following legal remedies:

A. Filing a Case in the Labour Court

The most direct remedy is litigation. A worker can file a case in the Labour Court seeking a declaration that their employment is permanent.

• Objective: To obtain a court order declaring them a "permanent worker" effective from a specific date.
• Evidence Required: The worker must prove the work is not "casual" (irregular) but "permanent" (ongoing/perennial) and that they have served continuously.
• Relevant Service: The provided document confirms The Justice Corner represents clients in the Labour Court and Labour Appellate Tribunal and handles "comprehensive employment issues".

B. Claiming Statutory Benefits

Permanent workers are entitled to benefits that casual workers often are not, such as:

• Termination Benefits: Permanent workers are entitled to compensation, notice pay, and gratuity upon termination.
• Leave Entitlements: Permanent workers have distinct rights to earned leave and sick leave.
• Remedy: A casual worker can file a claim for "denial of minimum mandatory employment conditions", arguing they are owed these benefits because they should have been treated as permanent.

C. Writ Petitions (For Public/State Entities)

In cases involving government or semi-government bodies (like the City Bank Limited or Saad Musa Group examples in your file), remedies often involve Writ Petitions to the High Court Division.

• Grounds: Arguing that the failure to regularize long-standing casual workers violates constitutional rights or statutory duties.
• Relevant Service: The firm has experience advising on "employment-related writ petitions" in the High Court.

3. Strategic "Next Steps" for Employers

If you are an employer concerned about the risks of casual workers claiming permanent status, legal counsel typically advises:

• Audit of Worker Classifications: Reviewing if "casual" staff are actually doing permanent work to avoid "wrongful termination claims" later.
• Drafting Clear Contracts: Ensuring "casual" contracts explicitly define the irregular nature of the work to prevent ambiguity.

Remedies against the termination of workers.

1. Procedural Remedy: The Grievance Process (Section 33)

Before going to court, a worker must legally exhaust the internal grievance procedure. This is a mandatory "pre-trial" remedy.

• Step 1: Written Complaint: The worker must submit a formal grievance petition to the employer within 30 days of receiving the termination letter.
• Step 2: Employer Hearing: The employer is legally required to inquire into the matter and give the worker a chance to be heard. They must communicate their decision within 15 days (standard practice) to 30 days of receiving the complaint.
• Step 3: Filing in Labour Court: If the employer fails to give a decision or the worker is dissatisfied with the decision, the worker can file a case in the Labour Court within 30 days from the date of the decision (or expiry of the decision deadline).

2. Substantive Legal Remedies (What the Court Can Grant)

If the Labour Court finds the termination was illegal (e.g., no proper notice, no fair hearing, or false allegations), it can grant the following:

A. Reinstatement (Job Restoration)

• The court can declare the termination order "void ab initio" (invalid from the start) and order the employer to reinstate the worker to their original post.
• Back Wages: Along with reinstatement, the court typically orders the payment of full back wages (arrear salaries) for the period the worker was forced out of employment.

B. Compensation in Lieu of Reinstatement

If reinstatement is not possible (e.g., strained relations or the post no longer exists), the court may instead order:

• Termination Benefits: Ensuring all due notice pay, gratuity, and earned leave encashment are paid.
• Additional Compensation: The court may award damages for wrongful dismissal. For example, if a worker is "removed" rather than "dismissed" for misconduct, they may be entitled to compensation (e.g., 15 days' wages for every year of service).

C. Severance Pay (For Legal Termination)

Even if the termination is legal (e.g., Retrenchment or Termination Simpliciter), the worker has a remedy to claim specific financial benefits if they were not paid:

• Notice Pay: 120 days’ notice (or pay in lieu) for monthly rated permanent workers; 60 days for others.
• Compensation: 30 days' wages for every completed year of service.
• Gratuity: If applicable, wages for 30 days per year of service (often higher for 10+ years of service).

3. Constitutional Remedy (Writ Jurisdiction)

As noted in your document, for clients like The City Bank Limited or other statutory bodies, remedies may also exist in the High Court Division:

• Writ Petition: If the employer is a state body or the termination violates fundamental constitutional rights, a Writ Petition can be filed to challenge the termination directly in the High Court .

Summary of Timelines

Legal provisions regarding service benefits.

Your provided document confirms that The Justice Corner advises on these matters, specifically mentioning "bonus schemes," "welfare funds," and "corporate obligations respecting benefits".

1. Separation Benefits (End of Service)

When a worker leaves (due to resignation, termination, retrenchment, or retirement), they are legally entitled to specific financial benefits.

A. Gratuity

Gratuity is a "reward for long service" payable at the end of employment.

• Eligibility: Generally requires completion of at least 1 year of continuous service.
• Calculation:
  • Standard:30 days’ wages for every completed year of service (or for any part of a year exceeding 6 months).
  • Long Service: If service exceeds 10 years, the rate increases to 45 days’ wages for every completed year.
• Legal Note: If a company does not have a formal Gratuity Fund, they are still liable to pay "Compensation" at similar rates under the Labour Act.

B. Provident Fund (PF)

While not automatically mandatory for every single company, it becomes a statutory obligation under specific conditions.

• Requirement: It is mandatory if at least three-fourths of the total employees demand it in writing.
• Structure: Both employer and employee contribute an equal percentage of the basic wage (typically 7% to 8%) into a separate Trust Fund.
• Tax: Recognized PF contributions are tax-exempt up to certain limits.

C. Earned Leave Encashment

• Entitlement: Workers earn 1 day of paid leave for every 18 days of work (in shops/commercial/industrial establishments).
• Encashment: Any unused earned leave at the time of separation must be paid out in cash at the worker's full daily wage rate.

2. Ongoing Service Benefits (During Employment)

These are mandatory benefits provided during the course of employment.

A. Festival Bonus

• Mandate: Under Labour Rule 111(5), workers who have completed 1 year of service are entitled to two festival bonuses per year.
• Amount: Each bonus is typically equal to one month's basic wage.
• Pro-Rata: Workers with less than 1 year of service are often paid a pro-rated amount (e.g., divided by 365 days x days worked), though this often depends on company policy or specific industrial rules.

B. Workers' Profit Participation Fund (WPPF)

Your document specifically notes that The Justice Corner advised Grameenphone Limited on "funds for workers’ participation".

• Applicability: Mandatory for companies with paid-up capital exceeding Tk. 1 crore or permanent assets exceeding Tk. 2 crore.
• Contribution:5% of the net profit must be allocated to the fund, distributed among workers in an 80:10:10 ratio (Participation Fund: Welfare Fund: Welfare Foundation).

C. Group Insurance

• Requirement: Mandatory for establishments employing a certain number of workers (typically 100+).
• Benefit: Provides a lump sum payment to the worker’s nominees in the event of death or permanent disability.

D. Maternity Benefit

• Duration: Female workers are entitled to 16 weeks (approx. 120 days) of paid maternity leave (8 weeks before and 8 weeks after delivery).
• Payment: Paid at the rate of average daily wages calculated over the preceding 3 months.

Summary Table for Compliance

Forced Resignation (Constructive Dismissal)

"Forced resignation" occurs when an employer coerces a worker into resigning to avoid paying the higher compensation associated with termination. Under the law, if a resignation is obtained through coercion, threat, or fraud, it is invalid and treated as Illegal Termination.

• The Trap: Employers often force resignation because Resignation Benefits (Section 27) typically require 5 years of service to be eligible for compensation. In contrast, Termination Benefits (Section 26) are payable after just 1 year of service.
• The Remedy:
  • Refuse to Sign: Legally, a worker should not sign a resignation letter if they wish to stay.
  • Challenge in Court: If already forced to sign, the worker can file a case in the Labour Court claiming the resignation letter was obtained under duress. The court can declare the resignation void and treat it as an illegal dismissal.

2. Illegal Termination

Termination is "illegal" if it violates statutory procedures, such as firing without notice (Section 26), dismissing without a proper inquiry (Section 23), or terminating due to trade union activity.

A. The Mandatory Legal Process (Section 33)

You cannot go directly to court; you must follow this strict timeline:

1. Grievance Petition (Step 1):
   • The worker must send a written complaint (Grievance Petition) to the employer by registered post within 30 days of the termination letter (or forced resignation date).
2. Employer's Hearing (Step 2):
   • The employer must hold an inquiry and give a decision within 30 days of receiving the complaint.
3. Filing a Case (Step 3):
   • If the employer rejects the complaint or fails to reply, the worker can file a case in the Labour Court within 30 days from the date of the decision (or expiry of the 30-day decision period).

B. Remedies the Court Can Grant

If the Labour Court finds the termination (or forced resignation) was illegal, it can order:

• Reinstatement: Ordering the employer to take the worker back into their original job.
• Back Wages: Payment of full salaries for the period the worker was unemployed during the case.
• Compensation in Lieu: If reinstatement is not possible, the court may order compensation (typically 30 days' wages for every year of service) plus damages.

3. Constitutional Remedy (Writ Petition)

As mentioned in your document, The Justice Corner handles writ petitions in the High Court .

• When to use: This is available if the employer is a government or statutory body (like The City Bank Limited or Saad Musa Group mentioned in your file).
• Remedy: The High Court can declare the termination "without lawful authority" if it violated fundamental rights or service rules, bypassing the Labour Court process in some instances.

Summary of Actions

Compliance which need to be complied with by an Employer under  the Bangladesh Labour Act, 2006 and Labour Rules, 2015.

The comprehensive compliance checklist for employers:

1. Administrative & Documentation Compliance

• Appointment Letters & ID Cards: Every worker must be issued a formal appointment letter and an ID card with their photograph at the time of hiring [Sec 5].
• Service Books: A Service Book must be maintained for every worker (except casual/apprentice) recording their service history, wages, and leave [Sec 6].
• Statutory Registers: You must maintain specific registers, typically available as standard forms (e.g., Form-8, Form-9):
  • Register of Workers: Details of all employees.
  • Wages Register: Records of salary payments.
  • Leave Register: Tracks annual, sick, and casual leave usage.
  • Attendance Register: Daily sign-in/sign-out records.

2. Working Hours & Overtime

• Standard Hours: 8 hours per day / 48 hours per week.
• Overtime Limit: Work beyond standard hours is overtime (paid at 2x the ordinary basic wage).
  • Max Limit: Total hours (including overtime) generally cannot exceed 60 hours in a week or an average of 56 hours per week over a year.
• Mandatory Breaks:
  • Shift > 6 hours: Must have a 1-hour break.
  • Shift > 5 hours: Must have a 30-minute break.
• Weekly Holiday: At least 1.5 days (for shops/commercial establishments) or 1 day (for factories) of paid holiday per week (usually Friday/Saturday).

3. Leave Entitlements

Employers must grant the following paid leaves:

• Casual Leave: 10 days per year.
• Sick Leave: 14 days per year (medical certificate required).
• Annual (Earned) Leave: 1 day for every 18 workdays (Factory/Commercial).
• Festival Leave: At least 11 days per year for public holidays.
• Maternity Leave: 16 weeks (8 weeks pre-delivery + 8 weeks post-delivery) fully paid.

4. Financial Obligations

• Minimum Wage: Wages must not be below the government-gazetted minimum for your specific industry sector.
• Payment Deadline: Wages must be paid within 7 working days after the wage period ends.
• Festival Bonus: 2 bonuses per year (mandatory for workers with 1+ year service).
• Gratuity: Payable at separation (30 days' wages per year of service) if the company doesn't have a separate provident fund/pension scheme.
• Group Insurance: Mandatory if you employ a certain number of workers (typically 100+).
• WPPF (Profit Participation): If paid-up capital > Tk. 1 crore or assets > Tk. 2 crore, 5% of net profit must be distributed to the Workers' Profit Participation Fund.

5. Health, Safety & Welfare

• Safety Committee: Mandatory for factories with 50+ workers.
• Facilities:
  • Potable drinking water and sufficient toilets (separate for men/women).
  • First Aid boxes equipped with prescribed contents (1 box per 150 workers).
  • Fire extinguishers and valid Fire License.
• Cleanliness: Daily sweeping and regular disposal of waste.
• Notice of Accidents: Fatal or serious accidents must be reported to the Inspector within 2 working days.

6. Reporting to Government (DIFE)

• Factory/Establishment License: Must be obtained from the Department of Inspection for Factories and Establishments (DIFE) and renewed annually.
• Half-Yearly & Annual Returns: Employers must submit returns (Form 80/81) summarizing employment data to the Inspector by January 31st and July 31st each year.
• Layout Plan Approval: Before building or expanding a factory, the layout plan must be approved by the Chief Inspector.

Compliance Audit Checklist

Company Name: __________________________

Date of Audit: __________________________

Auditor: __________________________

1. HR Administration & Documentation

2. Registers & Statutory Forms

3. Working Hours, Leave & Holidays

4. Wages & Financial Benefits

5. Health, Safety & Environment (HSE)

6. Government Reporting (DIFE)

Auditor's Summary

• Total Non-Compliances Found: ________
• Critical Risks (Priority High):

• Recommended Immediate Actions: