This article will focus on the termination process of employment in Bangladesh under the Labour Act 2006. The article will also reflect the different ways of lawful termination i.e. discharge, lay-off, dismissal, retrenchment, termination by notice, termination by employee, and procedure of termination.  People frequently ask about the termination benefits and illegal termination by employers in light of labour law to the Labour or Employment Lawyer in Dhaka Bangladesh.

Different Ways of Termination Process of Employment

The employer or the worker can initiate the termination process of employment. The employer and the worker both have different procedures under the Labour Act 2006 for the termination process of employment.

The termination process of employment occurs in the following five different ways:

1. Dismissal
2. Retrenchment
3. Layoff
4. Discharge
5. Termination by notice

we will discuss each of these methods of termination process of employment by an employer in detail followed by the procedure of termination by workers.

Termination process of employment by Employer

Termination by Dismissal

If an employee gets to found to be either:

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

An employer can dismiss the employee without notice or without wages in lieu of notice. However, the employer also has the option of giving lesser punishment for much conduct instead of dismissal.

• Procedure for punishment

However, the employer cannot dismiss or punish for the misconduct of an employee unless:

1. the allegation is in writing;
2. the employee will get at least 7 (seven) days to explain;
3. the employee will get an opportunity of hearing;

Thereafter, a committee consisting of an equal number of representatives of the employer shall be formed for inquiry. The committee will conclude its inquiry within 60 (sixty) days. After having sufficient evidence, the order of dismissal will be approved.

If the charge against the worker is not proven upon inquiry, 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.

Termination by Retrenchment

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

• give him 1 (one) month’s 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.

Termination by Lay-off

An employer may, at any time, if necessary in the event of a fire, sudden catastrophe, breakdown of machinery, stoppage of power supply, epidemics, widespread 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 a situation, if the period of stoppage of work exceeds 3 (three) working days, the workers concerned shall be laid off.

• Laid-off Worker’s 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 a 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 a 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.

Lay off over 45 days

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 a 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.

Termination by Discharge   

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 employee 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’ notice in case of the monthly rated worker;
2. 60 (sixty) days, in the case of other workers.

An employee of a permanent worker can be terminated by notice upon paying the compensation. the rate of compensation by the employer will be at the rate of 30 (thirty) days’ wages for his every completed year of service or gratuity, if payable, whichever is higher. compensation will be in addition to any other benefit which is payable to such worker under this Act.

Temporary employee

The notice in writing for a period of:

1. 30 (thirty) days’ notice in case of the monthly rated worker;
2. 14 (fourteen) days, in the 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 for permanent and temporary employees.

Termination of employment by Employee

Employees can terminate their 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 notice, in writing, of:

• 30 (thirty) days’ notice in case of the monthly rated worker;
• 14 (fourteen) days, in the case of other workers.

• An employee resigning without notice

A worker can resign from his service without any notice. But in that worker has to pay the employer an amount equal to the wages for the period of notice.

Employee absent from work without notice

On the above 10 (ten) days absent from work without notice or permission, the employer shall serve a notice to the employee. The notice will request to explain the reason for his absence and join the service within 10 (ten) days. Upon failure of submitting any written explanation or joining the service within the stipulated time, the employer shall give him a 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. If you want to more about employment law, please click here.

LEGAL ADVICE ON EMPLOYMENT MATTERS AT CLP

 CLP  welcomes people who need legal assistance on employment matters.  For queries or legal assistance, please reach us at:

 E-mail:info@counselslaw.com
Phone:+8801700920980. +8801947470606. Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.