Bangldesh: Draft rules of amended Labour Act 2013 approved

Industry news

Bangldesh: Draft rules of amended Labour Act 2013 approved

The Ministry of Labour and Employment has approved the draft rules of amended Labour Act 2013, keeping a provision of depositing 0.03% of export value to the workers’ welfare fund. Sate Minister for Labour and Employment Mujibul Haque Chunnu made the announcement after the Tripartite Consultative Committee (TCC) meeting with representatives from the government, industry and labour recently.

The approved draft would be sent to the Law Ministry for vetting to publish as gazette, said Mujibul. The rules would be implemented after the publication of gazette, he said. As per the draft rules, the owners of export-oriented industry including the apparel sector will contribute 0.03% of export value to the workers’ welfare fund, of which 50% will be kept for export-oriented sick industry and 50% will be used for the well-being of workers, said the state minister.

As per the current export value of US$ 24.5 billion, the owners’ contribution to the welfare fund would be Tk 72 crore, which would amount to Tk 150 crore in 2021 when the export value is expected to be US$ 50 billion. The estimated contribution will be deducted from the export value and deposited into the welfare account, said Mujibul. The fund will be operated by representatives of government, factory owners and labour, he added.

Mujibul further informed that the safety committee to be formed soon will have representatives from Trade Unions and Workers’ Participating Committee. In absence of Trade Unions and Workers’ Participating Committee in the factory, Directorate of Labour or Department of Inspection for Factories and Establishments (DIFE) will take initiative to elect workers’ representative to the committee.

According to the draft rules, if the factory owners shift their factory within 25 kilometres and the workers are unwilling to relocate and resign, they will get benefit as per the labour law, the minister added. The amended law was passed on July 15, 2013 in the National Parliament through an amendment to the Labour Act 2006.