Delwar Hossain receives two festival bonuses every Eid. Together, the allowances are higher than his monthly salary. He also receives a Bangla New Year – Pohela Boishakh – allowance.
But the model service regulations being prepared to protect private-sector employees could limit such benefits in the future.
The preliminary draft says employees can receive a maximum of two festival allowances a year, and the combined amount cannot exceed their monthly salary.
The move comes after the government announced a 142 per cent pay increase for public servants, while pledging measures to protect private-sector workers. BNP’s election manifesto also included a commitment to introduce service rules for private-sector employees.
The proposed rules seek to establish a common framework for employees of private companies, businesses, partnerships, firms, non-government organisations, trusts, IT support firms, logistics companies, training centres, travel agencies, hotels, restaurants, trade bodies, cooperatives, service providers and other private institutions.
However, employee rights advocates and experts fear some provisions could reduce existing benefits instead of expanding protections.
A member of civil society involved in drafting the BNP manifesto told TIMES, “I was the one who suggested including a commitment for private-sector employees. But I am disappointed now.”
Bangladesh has minimum wage structures for only a limited number of sectors, including the garment industry. Most private-sector employees do not have any nationally fixed salary structure.
“If the government really wants to help employees like us, it should introduce a salary structure comparable to that of government employees. Without such an initiative, nothing will change,” Delwar said.
The draft leaves salary decisions to individual employers but says companies must consider government-set minimum wages for relevant sectors as a basis.
The draft also allows employees to work up to 60 hours a week, without requiring separate payment for the additional hours.
Normal working hours will remain 48 hours a week, but employers can extend this by 12 hours if required. The annual average, however, cannot exceed 56 hours, allowing extended working hours for up to 26 weeks a year.
The provision follows the Bangladesh Labour Act 2006.
Economic Growth Consultant Mohammad Subail Bin Alam told TIMES, “The difficult provisions from different laws have been included here. In my view, these regulations will make employees’ lives harder.”
He said some employers already avoid providing benefits by arguing that certain facilities are not covered by labour laws.
“I was the country director of a multinational company in Bangladesh. When I discussed employee benefits, including overtime, they used to tell me, ‘This is not in your labour law,’” he said.
A senior official of a large business group said the proposed working hours could create additional pressure.
“My office is in Gulshan and I live in Mohammadpur. The commute alone takes three hours a day. If I have to work 10 hours, 13 hours of my day will be spent on office-related activities. How is this sustainable?” he asked.
The draft guarantees at least one weekly holiday, 13 festival holidays, 10 days of casual leave annually, at least 14 days of sick leave and earned leave at the rate of one day for every 18 working days after completing one year of service.
Employees working during festival holidays will receive an alternative holiday and two days’ basic salary.
Earned leave can accumulate up to 60 days for offices and 40 days for factories and can be converted into cash based on the employee’s daily average salary.
Female employees will receive up to four weeks’ leave after miscarriage and 120 days of maternity leave before and after childbirth, provided they have completed at least six months of service.
Companies with 40 or more female employees will have to arrange childcare facilities for children below six years.
The draft requires companies with at least 100 permanent employees to establish provident funds.
Subail questioned the threshold, saying employers could avoid the requirement by keeping their workforce below 100.
The proposed government pension scheme for private-sector employees has also been made conditional. If at least two-thirds of employees submit written applications, employers can introduce the institutional “Progoti” pension scheme and avoid establishing a provident fund.
A corporate employee questioned whether workers would be able to organise collectively without fear of pressure from employers.
The draft sets compensation rules for resignation, termination, retrenchment and retirement.
Permanent employees resigning after three years of continuous service will receive seven days’ basic salary for each year worked. Those with three to less than 10 years of service will receive 15 days’ basic salary for each year.
Employees with more than 10 years of service will receive either 30 days’ basic salary for each year or gratuity, whichever is higher.
Employers may terminate permanent employees with 120 days’ written notice and temporary employees with 60 days’ notice. Without notice, they must pay salaries for the notice period.
Employees terminated, retrenched or discharged due to incapacity will receive compensation equivalent to 30 days’ basic salary for each completed year of service or gratuity, whichever is higher.
Employees will retire at 60 and receive the same compensation.
The Ministry of Public Administration is preparing the regulations with support from the Department of Labour, Bangladesh Institute of Management and Dhaka Chamber of Industries.
Additional Secretary Md Mostafa Zaman told TIMES, “Our main objective is to ensure the rights of private-sector employees.”
Asked about concerns over the draft, he said, “It has not been finalised yet. There is a group, especially the owners’ side, who will want the issue addressed according to their interests. But we will try to ensure employees’ rights.”
Subail Bin Alam said the draft appears tilted towards employers. “So far, this initiative can be described as one-sided and favourable to employers. Employee representatives, human resource professionals, civil society members and academics should be included. Otherwise, this will become a one-sided regulation,” he said.
The draft requires employers to provide written appointment letters and sets a six-month probation period.
It prohibits blacklisting employees after termination and requires salaries to be paid within seven working days after the end of each month.
Employees completing one year of continuous service will receive annual increments, while employers must determine a reasonable rate if none is specified.
The draft also prohibits discrimination based on gender, disability, religion, race, political opinion or pregnancy.
It defines misconduct that can lead to termination, including absence without notice for 10 days.
However, lawful activities by employees to recover dues, without disrupting production, daily operations or damaging property, will not be considered misconduct.
Employees accused of misconduct may be suspended after an investigation for up to 60 days.
