Revision of and amendment to Bank Employees service reules

Dated: May 22, 2004

Mr. A

Senior Executive Vice President

Bank 1

Head Office

Bldg. No. 98, Main Road

Dhaka Cantonment

Dhaka-1206

Dear Sir,

RE: REVISION OF AND AMENDMENT TO BANK 1 EMPLOYEES SERVICE RULES

We refer to your letter dated 17.04.2004 on the above subject.

We have perused Bank 1 Employees Service Rules (the ‘Rules’) referred to us. We suggest the following changes in the Rules to make the Rules consistent with the relevant laws:

Please note that the employees of the Bank includes, inter alia, Security Guard, Driver and peon and others who come under the purview of the definition of ‘worker’ as provided in the Employment of Labour (Standing Order) Act, 1965. Since the Rules apply to all employees of the Bank, the same cannot be in contradiction with the relevant laws applicable to workers.

Clause 7 (e) Probationary Period

According to section-4 (2) of the Employment of Labour (Standing Order) Act, 1965 states, “the period of probation for a worker whose function is of clerical nature, shall be six months and for other workers such period shall be three months, including breaks due to leave, illegal lock-out or strike (not being an illegal strike) in the shop or commercial or industrial establishment:

Provided that in the case of a skilled worker, the period of probation may be extended by an additional period of three months if for any circumstances, it has not being possible to determine the quality of his work within three months’ period of his probation.”

Since the staff of the Bank includes Security Guard, Driver and peon and others; the existing probationary period for employees other than probationary officer, shall be a period of three months. Hence, the existing Clause 7 (e) of the Rules shall be replaced with the following:

“A candidate selected for appointment as a probationary officer shall be on probation of one year, all other employees except a Staff mentioned in Rule 3(c) shall be on probation of six months and the Staff mentioned in Rule 3(c) shall be on probation of three months;

Provided that in the event of an employee other than a probationary officer or Staff mentioned in Rule 3(c) failing to show satisfactory progress during the probationary period, the competent authority may, at its discretion, extend his period of probation or offer him an appointment in a lower grade or dispense with his service.

Provided further that in the case of a Staff mentioned in Rule 3 C (2), i.e. drivers, the period of probation may be extended by an additional period of three months if for any circumstances, it has not being possible to determine the quality of his work within three months’ period of his probation”

10. Termination

Proviso of Section-19 (1) of the Employment of Order (S. O.) Act, 1965 states “Provided further that the worker whose employment is so terminated, shall be paid by the employer compensation at the rate of 30 days wages for every completed year of service for any part thereof in excess of six months, in addition to any other benefit to which he may be entitled under this Act or any other law for the time being in force.” This provision is required to be accommodated.

Please add a new sub-rule 10 (b) as follows and renumber accordingly:

“If the service of any Staff mentioned in Rule 3(c) is dispensed with or he/she is called upon to resign from the service of the Bank, that staff shall be paid by the Bank compensation at the rate of 30 days wages for every completed year of service for any part thereof in excess of six months, in addition to any other benefit to which he may be entitled.”

12. Resignation

The Employment of Order (S. O.) Act, 1965 provides for a notice period of one month and 14 days in case of resignation from Bank’s service by a permanent worker and other worker respectively. However in the Rules, the period of notice is 60 days and 30 days respectively.

Please add a new proviso in Rule 12 as follows:

“Provided that if any Staff mentioned in Rule 3(c) wants to resign from his post, a notice period of one month and 14 days by a permanent worker and other worker respectively shall be sufficient notice period.”

19.1.4

Please add a proviso after sub-rule 19.1.4 as follows:

“Provided that if the employee against whom disciplinary action is being taken is a Staff mentioned in Rule 3(c), the suspension order shall be in writing and suspension period shall not exceed sixty days unless the matter is pending before any Court.”

19.1.6

Please add the words “including the dearness allowance” after the words ‘substantive pay.’

20.1 (a) (i)

Please add the words ‘in writing’ after the word ‘charge’.

Chapter V, Leave and Joining time

According to section-14 of the Shops and Establishment Act, 1965, every worker shall be allowed at least ten days’ festival holidays with full wages in a year. No such provision is incorporated in the Rules which is required to be incorporated.

Please add a new sub-rule (g) as follows:

“The Staffs mentioned in Rule 3(c) shall be allowed at least ten days’ festival holidays with full wages in a year.”

23 (h)

The following new clause may be added:

“In case any employee who is eligible for payment of Gratuity, according to the Rules and who owes any money to the Bank, the Competent Authority shall be entitled without being bound to do so, to set off and appropriate the amount of Gratuity against such dues, if any, to the Bank or such portion hereof as may be sufficient to meet and satisfy the same. Nothing herein contained shall prejudice or affect any other rights or remedies which the Bank may have against the employee for or in respect of such dues or debts and the securities held by the Bank there against.”

23 (h) (iii)

Please note that the Staffs mentioned in Rule 3(c) of the Rules are entitled to compensation according to the Proviso of Section-19 (1) of the Employment of Order (S. O.) Act, 1965. The compensation is payable in addition to any other benefit to which he may be entitled under this Act or any other law for the time being in force. So, such employees are still be entitled to receive compensation even after they are given gratuity. Bank may exclude those employees from gratuity. In such case, Rule 23 (h) (iii) may be amended as follows:

“These rules will apply to all confirmed whole time employees of the Bank except the Staffs mentioned in Rule 3(c) of the Rules who are making contributions to the Bank’s Provident Fund.”

We have found two memorandums along with the Rules whereby some changes are proposed in the Rules. We provided our opinion assuming these proposals have been included in the Rules.

Any further amendment of the Service Rules, if required, shall be communicated to you.

Should you have any further query, do not hesitate to contact us.

Thanking you.

Yours faithfully,

(_____________________)

Barrister-at-Law

Drafted by:

The Lawyers & Jurists
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