Section 161

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Compensation Group or joint liability

This provision establishes the liability of the principal employer for the payment to employees employed through a contractor, of any compensation that would have been due, had the employees been employed directly by the principal.

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Section 161. Compensation on contracting [sic]: (1) Where any person, here in after in this section referred to as the principal, in the course of or for the purposes of his trade or business contracts with any other person, hereinafter in this section referred to as the contractor agency, for the execution by or under the contractor agency of the whole or any part of any work which is ordinarily part of the trade or business of the principal, the principal shall be liable to pay to any worker employed in the execution of the work any compensation which he would have been liable to pay if that worker had been immediately employed y him; and where compensation is claimed from the principal, this chapter shall apply as if reference to the principal were substitute for references to the employer expect that the amount of compensation shall be calculated with reference to the wages of the worker under the employer b y whom he is immediately employed.
(2) Where sub-section (1) is applicable, then the principal or main employer shall pay the full compensation.
(3) Where the principal or main employer is of the opinion that the occurrence of death of the concernerned worker was, due to acually or specially ocurred, due to violation of any conduct rules, in that case he after depositing the amount to the Labour Court, (where the worker is dead) or after payment of the specified amount (in case the worker sustained injury), he may make an application to the Chief Inspector to determine which portion of the amount shall be payable to the principal or main employer by the contractor. The Chief Inspector shall resolve the application as per rule within 45 days from the date of its receipt.

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.