Introduction
Maternity benefit
Health, cleanliness and safety measures
Working hours and leave
Wages and payment
Compensation for injury caused by accident
Dispute resolution
Subsisting challenges
Limits imposed on freedom of association and collective bargaining
Inadequate protection against acts of anti-union discrimination
Inadequate legislative safeguard against acts of interference
Comment
The Export Processing Zones (EPZ) Labour Act 2019 (the Act) is a specialised piece of legislation that governs labour relations and determines the rights of employees in all export processing zones in Bangladesh. The Act applies to both workers and owners. It was issued by Statutory Regulatory Order No. 257/2021 and passed on 27 July 2021, repealing the EPZ Workers Welfare Association and Industrial Relation Act (EWWAIRA).
The EWWAIRA allegedly served as a tool to violate the fundamental rights of employees in the EPZ, including the right to freedom of association. According to International Labour Organization (ILO) experts, it was in contravention of many ILO conventions. Moreover, concerns were raised regarding the necessity of a separate law for EPZs.
Although the Bangladesh Labour Act (BLA) 2006 is regarded as a modern law, as it complies with ILO standards and safeguards, and it repealed many existing laws concerning labour matters, there are still 25 laws that have not been repealed or consolidated.
The Act includes many features that mostly comply with ILO standards, some of which may seem similar to the BLA 2006. This article outlines several of the Act's main provisions.
Chapter 3 of the Act deals with maternity benefits. Accordingly, female employees are not required to work for eight weeks from the date of giving birth. Further, all female employees are entitled to maternity benefits from employers during the eight-week period preceding the expected day of delivery and eight weeks immediately following the day of delivery.
Health, cleanliness and safety measures
Chapter 4 deals with occupational health, cleanliness and safety measures. The Act contains adequate health, cleanliness and safety measures that are aligned with ILO standards.
Chapter 5 of the Act deals with the working hours and leave of employees. It limits the daily working hour of employees to eight hours, and 10 hours for enterprises. The weekly work limit is 48 hours. The Act also provides for holidays and specific grounds for leave.
Chapter 6 of the Act discusses wages and payment of wages. Accordingly, all wages payable to the worker must be paid within fifteen working days from the day that the employment relationship ends as a result of:
- retirement;
- retrenchment;
- discharge;
- dismissal; or
- termination,
Wage deductions can apply only in cases of subscription for the provident fund or for subscription for the Workers' Welfare Association through the "check-off" system or unauthorised absence from duty.
Any claims arising out of deductions from wages or delay in payment of wages must be settled before the EPZ Labour Court, with reference to section 60 of the Act. An appeal that arises out of a claim based on section 60 may be sent to the EPZ Labour Appellate Tribunal within 30 days of the order passing.
Compensation for injury caused by accident
According to Chapter 8 of the Act, if an employee is injured in the workplace, the employer is liable to pay compensation in accordance with the provisions of the Act or other relevant rules or regulations. This chapter details specific circumstances where compensation can be applied, as well as grounds for rejection.
Chapter 10 of the act determines conciliation and arbitration as methods of dispute resolution in case any dispute is likely to arise. This chapter discusses different situations in terms of industrial disputes with regards to the application of dispute resolution mechanisms, such as conciliation before and after serving the notice of strike, and arbitration in case of the failure of conciliation.
Chapter 11 determines the jurisdiction of the specialised forums, such as the EPZ Labour Court and EPZ Labour Appellate Tribunal, for effective dispute resolution.
There are some apparent discrepancies between the Act and the ILO standards that the ILO committee has pointed out, even before enacting the legislation. Some of these suggestions have been taken and some have been avoided, regardless of the discrepancies. The major issues that need addressing are discussed below.
Limits imposed on freedom of association and collective bargaining
Convention No. 87 of the Freedom of Association and Protection of the Right to Organise 1948 and Convention No. 98 of the Right to Organise and Collective Bargaining 1949 are mostly concerned with the employee's right to freedom of association and collective bargaining in the workplace. Bangladesh has ratified both of these conventions and any interference with these rights will be deemed illegal.
Section 180 of the Act determines the powers and function of the executive chairman. According to section 180(c), the executive chairman can determine the question as to the legitimacy of any Workers' Welfare Association and its capacity to act as collective bargaining agent.
According to the ILO standards, the power of determination of bargaining agent should be carried out by a body that can offer every independence and objectivity; vesting this power entirely to the executive chairman restricts the power to collective bargaining.
Inadequate protection against acts of anti-union discrimination
The ILO committee has observed that there is no adequate protection against acts of anti-union discrimination against employees, which is in contravention of the ILO standards enshrined in Convention No. 87. There should be adequate safeguards to ensure that employees are safe from any type of discrimination, including:
- anti-union discrimination;
- recourse to a non-bias authority;
- adequate remedies; and
- sufficiently dissuasive sanctions.
Inadequate legislative safeguard against acts of interference
The Act does not expressly prohibit acts of interference in the internal affairs of employees and employers, which creates an apparent discrepancy with ILO standards enumerated in Convention No. 98 regarding the right to organise and collective bargaining. Even though section 115(1)(f) and section 116(3) contain some specific situations regarding protection against acts of interference, they do not address all forms of interference that are mentioned in article 2 of Convention No. 98. According to article 2:
In particular, acts which are designed to promote the establishment of workers' organizations under the domination of employers or employers' organizations, or to support workers' organizations by financial or other means, with the object of placing such organizations under the control of employers or employers' organizations, shall be deemed to constitute acts of interference within the meaning of this Article.
The Act applies to all owners and employees in all EPZs. This legislation has been formulated to comprehensively address the EPZ relations and protect the fundamental rights of the workers. It has been shaped to be largely in accordance with ILO standards. Amendments are needed to improve the scope of the Act's core purpose.
For further information on this topic please contact Rafi Ibn Masud at AS & Associates by telephone (+880 182 222 2272) or email ([email protected]). The AS & Associates website can be accessed at www.as-associates.net.