Section 16

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Compensation Social protection

Under Section 16, regular workers who have completed one year of continuous service under the employer have a right to receive compensation from the employer in the event of being laid-off.

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Section 16. Right of laid-off workers for compensation:

(1) Whenever a worker, other than a badli or casual worker, whose name is borne on the muster-rolls of an establishment and who has completed not less than one year of continuous 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 such weekly holidays as may intervene.

(2) The amount of compensation as mentioned in sub-section (1) shall be equal to half of the total of the basic wages and dearness allowance, and ad-hoc or interim pay, if any, and the full amount of housing allowance, if any, that would have been payable to him had he not been so laid-off.

(3) A badli worker whose name is borne on the muster-rolls of an establishment shall cease to be regarded as ‘badli’ for the purpose of this section, if he has completed one year of continuous service in the establishment.

Law / 11 October 2006 / Bangladesh / Labour Act 2006

The Bangladesh Labour Act of 2006 combined and amended a number of laws relating to the employment of workers, minimum wages, compensation for work-related injuries, the formation of trade unions, health and safety, the welfare and working environment of employees, and other related issues. The Act also provides for compensation to workers for injuries sustained in the workplace. The Act applies to both permanent workers and workers employed through a contractor. Under the Act, a contractor who employs workers is treated as an employer and is liable for any violations of the provisions of the law.