Termination Process of Employees in Bangladesh in 2021 -Find how to protect yourself as an employee or employer

    The lawful ways for termination of employees under the Labour Laws of Bangladesh 

This article will explain the termination process of employees in Bangladesh under the Labour Act 2006. Therefore, the article will reflect the different ways in which an employee can be terminated lawfully, the procedure for each form of termination, termination benefits and illegal termination by employee. It is to be noted that these are the most commonly asked queries of clients to a Labour or Employment Lawyer. This article is intended to help the employees so that they are aware of their rights related to termination and can identify and fight against illegal terminations. In addition, the article will also be of great assistance for the employers in maintaining compliance with the labour law and taking proper actions against those employees who terminated their employment without following proper protocols under the Labour Act 2006. 

Different ways of termination under the Labour Act 2006

Termination of employment can be done by the employer or the worker. The employer and the worker both have different procedures under the Labour Act 2006 for termination of employment. 

The termination by the employer can be done in five different ways such as: 

  • Discharge
  • Retrenchment
  • Layoff
  • Discharge
  • Termination by notice 

Each of these methods of termination by employer will be discussed in detail followed by the procedure of termination by workers. 

  • Termination by Employer 
  • Dismissal 

If an employee is found to be either:

  • Convicted of any criminal offence; or 
  • Guilty of misconduct such as theft, giving and taking bribe, fraud, wilful disobedience etc. 

He may be dismissed without notice or without wages in lieu of a notice. However, the employer also has the option of giving lesser punishment for much conduct instead of dismissal. 

Procedure for punishment 

However, the employee cannot be dismissed or punished for the misconduct unless: 

  1. the allegation against him is recorded in writing; 
  2. he is given a copy of the allegation and a period of at least 7 (seven) days to explain; 
  3. he is given an opportunity of being heard;

Thereafter, an enquiry will be made by the enquiry committee consisting of the equal number of representatives of the employer. Such enquiry should be concluded within 60 (sixty) days. If the enquiry committee finds the employee guilty, the order of dismissal will be approved. 

If found not guilty of the charge 

If, the charge against the worker is not proven upon enquiry, he shall be deemed to have been on duty in the period of suspension and shall be paid his wages for such period with adjustment of the subsistence allowance already paid. 

Retrenchment 

Any worker may be retrenched from service of any establishment on the ground of redundancy. If any worker has been in continuous service under an employer for minimum 1 (one) year, the employer, in the case of retrenchment of such worker, shall: 

  • give him 1 (one) months’ notice in writing mentioning the reasons for his retrenchment or, in lieu of such notice pay him wages for the period of notice;
  • send a copy of the notice to the Chief Inspector or any other officer specified by him, and another copy to the collective bargaining agent of the establishment, if any; and 
  • pay him as compensation 30 (thirty) days’ wages for his every year of service or gratuity, if any, whichever is higher.

Lay-off 

An employer may, at any time, if necessary in the event of fire, sudden catastrophe, breakdown of machinery, stoppage of power supply, epidemics, wide spread riots or any other cause beyond his control, stop any section or sections of his establishment, wholly or partly, for such period as the cause for such stoppage continues to exist. In such situation if the period of stoppage of work exceeds 3 (three) working days, the workers concerned shall be laid off. 

Laid-off worker right to compensation 

 Whenever a worker, other than a substitute or casual worker, whose name is on the muster-rolls of an establishment and who has completed at least 1 (one) year of service under the employer is laid-off, he shall be paid compensation by the employer for all days during which he is so laid-off, except for weekly holidays.

Amount of compensation 

The amount of compensation for worker other than a substitute or casual worker shall be equal to half of the total of the basic wages and dearness allowance and ad-hoc or interim wages, if any, and equal to the full amount of housing allowance that would have been payable to him if he had not been so laid-off. 

However, if substitute worker whose name is on the muster-rolls of an establishment has completed one year of continuous service in the establishment, he will not be treated as a substitute worker in this case. 

It is to be noted that no worker shall be entitled to the payment of compensation in case of laid-off for more than 45 (forty-five) days during any calendar year. 

However, if during a calendar year any worker is laid-off for more than 45 (forty-five) days, whether continuously or intermittently and after the expiry of such 45 (forty-five) days, the period of lay-off is extended for further 15 (fifteen) days or more, the worker shall, be paid compensation for every subsequent period of lay-off for 15 (fifteen) days or more. The amount of compensation for 15days extension shall be equal to one-fourth of the total of the basic wages and dearness allowance and ad-hoc or interim wages, if any, and equal to the full amount of housing allowance, if any. 

Nevertheless, in any case, during a calendar year, if a worker is to be laid-off after the first 45 (forty-five) days as aforesaid, for any continuous period of 15 (fifteen) days or more, the employer may, instead of lying off such worker, retrench him.

  • Discharged   

A worker may be discharged from service for reasons of physical or mental incapacity or continued ill-health certified by a registered medical practitioner. 

If a discharged worker completes at least one year of continuous service he shall be paid by the employer, as compensation, 30 (thirty) days’ wages for his every year of service, or gratuity, if payable, whichever is higher.

  • Termination by Notice 

An employment can also be terminated by the employer by giving a notice. However, the time period for the notice defers based on whether the employee is permanent or temporary. 

  • Permanent employee: 

The notice in writing must be given of:

  1. 120 (one hundred and twenty) days, if he is a monthly rated worker; 
  2. 60 (sixty) days, in case of other workers.

Where the employment of a permanent worker is terminated by notice, he shall be paid compensation by the employer at the rate of 30 (thirty) days wages for his every completed year of service or gratuity, if payable, whichever is higher, and this compensation shall be in addition to any other benefit which is payable to such worker under this Act.

  • Temporary employee 

The notice in writing must be given of: 

  1. 30 (thirty) days, if he is a monthly rated worker; 
  2. 14 (fourteen) days, in case of other workers. 

On the other hand, an employee can be terminated without notice by paying the worker wages for the period of notice, in lieu of the notice as mentioned about for permanent and temporary employee. 

  • Termination by Employee 

Employees can terminate the employment by providing notice to the employer. However, the time period for the notice varies depending on whether the employee is a permanent or temporary employee. 

  • Permanent employee 

A permanent worker may resign his service by giving the employer 60 (sixty) days’ notice in writing. Where a permanent worker resigns his service by providing the notice, he shall be paid by the employer compensation. 

  • Temporary employee 

A temporary worker may resign his service by giving the employer a notice, in writing, of: 

  • 30 (thirty) days, if he is a monthly rated worker; 
  • 14 (fourteen) days, in case of other workers.
  • Employee resigning without notice 

Where a worker intends to resign his service without any notice, he may do so by paying the employer an amount equal to the wages for the period of notice, in lieu of notice as mention above for permanent and temporary employee. 

  • Employee absent from work without notice 

If a worker remains absent from his work place for more than 10 (ten) days without notice or permission, the employer shall serve him a notice to explain the reason of his absent and join the service within 10 (ten) days and, in such case, if the worker does not submit any written explanation or join the service within the stipulated time, the employer shall give him further 7 (seven) days’ time to defend himself. Thereupon if the worker does not join the service or defend himself, he shall be deemed to have been released from service on and from the date of such absence.

LEGAL ADVICE ON EMPLOYMENT MATTER AT CLP

The Barristers, Advocates, and lawyers at CLP in Gulshan, Dhaka, Bangladesh are highly experienced at dealing with employment matters. In addition to handling various issues related to domestic clients on a regular basis, it also has experience in consulting and assisting numerous international clients with utmost care and attention throughout their legal troubles.  For queries or legal assistance, please reach us at:

 E-mail: [email protected] 
Phone:++8801727983838 Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.

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