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Leading Law Firm in Dhaka

Service Rules in Bangladesh

Employment Service Rules in Bangladesh

Leading Law Firm in Dhaka, Bangladesh 

The need for Employment Service Rules in Bangladesh is due to the economic transition of Bangladesh, which is driven by the transformation from agricultural sectors to industrial and service sectors. The businesses in Bangladesh are required to have service rules attached to the units/establishment for all of its employees as such is mandatory in Bangladesh.

Employment Service Rules in Service Sectors of Bangladesh

Service sectors alone comprises of more than 50% of GDP of Bangladesh.  Over the past decade the service sectors have been growing over 6% per annum. The presence of employment service rules in Bangladesh, specially in the service sector attracts significant employment as more than 35% of the employment of Bangladesh is from service sector.

In the past, there was no formal legislation on service rules but after the gazette on Labour Rules 2015, there is now a concrete legal guideline to govern the service conditions of the employee recruited by the employer. These service rules also comprise of the followings:

1. Standards on employment of workers.

2. Relations between workers and employers.

3. Determination of minimum rates of wages.

4. Payment of wages.

5. Compensation for injuries to workers during working hours.

6. Formation of trade unions

7. Raising and settlement of industrial disputes.

8. Health.

9. Safety.

10. Welfare working conditions and environment of workers; and

11. Apprenticeship and matters adjuvant thereto.

How to Approve Employment Service Rule in Bangladesh

Any organization that wants to establish its own service rules/employment policy must get approval from Chief Inspector of Labour after having it drafted by an employment lawyer. The Chief Inspector will approve the organogram of the organization and validate the Service Rule.

The Service Rule must be compatible with the Labour act or else it will not get the approval.  It is also mandatory for the employer to issue appointment letters under the Labour Act. The Labour Rules makes it mandatory that the appointment letter must contain certain information such as salary, other financial benefits, applicable rules etc. The Rules makes it mandatory that a Labour, who continuously works for a year, must receive two festival bonuses in every year. The Rules provide detailed guidelines regarding provident fund. New additions include provisions related to selection of nominee, management of the fund, activities of the trust for managing provident fund. The Rules detailed the provisions related to holidays. It also clarifies the provisions related to compensatory weekly holiday.

There are potential loopholes in the labour service rules that provides employer the opportunity to cheat the employees with minimum bar, which is unreasonable. For instance, the bonus shall not be more than a basic salary but it does not explicitly state any minimum proportion.  This can be overcome by making the service rule more specific and appropriate by stating explicitly the standard parameters.

However, there are quite a few gaps in the labour laws but at least we are moving towards right track. Moreover, new amendment of labour laws made the provisions more flexible and feasible.


FM Associate’s services in regards to Framing of Service Rules

FM Associate (FMA) has a dynamic team of specialists Barristers and lawyers who focuses on drafting service rules, provide support in obtaining the service rule, review the service rules and supports in registration. Besides, the team of FMA are passionate problem solvers to provide dedicated service on any complexities that may arise in obtaining the approval of service rule. FMA has experience working with renowned corporate brands across different sectors in providing legal support for service rules. It helps with any kind of queries regarding labour law issues.

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