THE BANGLADESH LABOUR ACT, 2006, CHAPTER X

CHAPTER X

WAGES AND PAYMENT THEREOF

  1. Special definition of wages.- Unless there is anything repugnant in the subject or context, in this Chapter, “wages” means the wages as defined in section 2 (45), and also includes the following dues, namely:—
  • any bonus or other additional remuneration payable under the terms of employment;
  • any remuneration payable for leave, holiday or overtime work;
  • any remuneration payable under order of any Court or any award or settlement between the parties;
  • any sum payable under any agreement or this Act for the reason of termination of employment, whether by way of retrenchment, discharge, removal, resignation, retirement, dismissal or by whatever means; and
  • any sum payable due to lay-off or suspension.
  1. Responsibility for payment of wages.—Every employer shall be liable to pay to workers employed by him all wages required to be paid under this Act:

Provided that in the case of all other workers, except any worker employed by a contractor, the Chief Executive Officer, the manager or any other person responsible to the employer for the supervision and control of an establishment shall also be liable for such payment:

Provided further that if the wages of a worker employed by the contractor is not paid by the contractor, the wages of such worker shall be paid by the employer of the establishment, and the same shall be adjusted from the contractor.

  1. Fixation of wage-periods.—(1) Every person liable for the payment of wages under section 121 shall fix wage periods in respect of such payment.
  • No wage period shall exceed 1 (one) month.
  1. Time of payment of wages.—(1) The wages of a worker shall be paid before the expiry of the seventh working day following the last day of the wage period in respect of which the wages is payable.
  • Where the employment of a worker is terminated by retirement or by his retrenchment, discharge, removal by the employer 1[or by termination of employment by the worker] or otherwise, all wages payable to him shall be paid before the expiry of the 2[thirtieth] working day following the day of termination of his employment.
  • All wages shall be paid on the working day.
  1. Wages to be paid in current coin or currency notes, etc.—3[(1)] All wages shall be paid in current coin or currency notes or bank cheque.

4[(2) Besides the manner mentioned in sub-section (1), where applicable, as per demand of a worker the wages may be paid directly through electronic transfer or any other digital manner to the bank account of such worker.] xThe words “or by termination of employment by the worker” was substituted for the words “dismissed or” by section 37 of the Bangladesh Labour (Amendment) Act, 2013 (Act No. XXX of 2013).

2The word “thirtieth” was substituted for the word “seventh” by section 37 of the Bangladesh Labour (Amendment) Act, 2013 (Act No. XXX of 2013).

3The brackets and figure “(1)” was inserted by section 38 of the Bangladesh Labour (Amendment) Act, 2013 (Act No. XXX of 2013). 4Sub-section (2) was added by section 38 of the Bangladesh Labour (Amendment) Act, 2013 (Act No. XXX of 2013).

![124A. Payment of wages and other dues through conciliation.—(1) An application may be made to the Chief Inspector or an officer authorized by him in this behalf for getting the wages and other legal dues of a worker or workers through conciliation at any stage of his or their employment including at the time of employment or under retirement or on termination or dismissal of employment, etc.

  • On receipt of such an application, the Chief Inspector or the officer authorized by him in this behalf shall take measures, within a period of not exceeding 20 (twenty) days, to settle the claim raised, through discussion or conciliation meetings with the employer or authority concerned.
  • In settling the claim raised under this section, the Chief Inspector or the officer authorized by him in this behalf shall act as a conciliator in taking initiative and holding discussion or conciliation meeting.
  • The unanimous decision of such discussion or conciliation meetings shall be binding upon all the parties.
  • The decision of the conciliator taken in the discussion or conciliation meetings held under this section shall be given in writing to both the parties.
  • After completion of the conciliatory measures by the conciliator under this section, if both or either parties of the worker and employer do not agree to comply with his decision, the party concerned or both the parties may file a suit in the Labour Court for settlement of the issue and the Labour Court shall, while trying the suit, take into consideration the decision of the conciliator.]
  1. Deductions which may be made from wages.—(1) Except the cases for deduction authorized by this Act, no deduction shall be made from the wages of a worker.
  • Deductions from the [1] [2][basic wages of a worker] may be made only in accordance with the provisions of this Act, and such deduction shall be of the following kinds only, namely:—
  • fines imposed under section 25;
  • deductions for unauthorized absence from duty;
  • deductions for damage to or loss of any goods given under the custody of a worker or for loss of money for which he is liable to account, where such damage or loss is directly attributable to his neglect or default;
  • deductions for house-accommodation provided by the employer;
  • deductions for facilities and service approved by the Government and provided by the employer, other than the raw materials and equipments used for the requirement of employment;
  • deductions for recovery of advances or loans or adjustment of overpayments of wages;
  • deductions of income-tax payable by the worker;
  • deductions by order of a Court or deduction by order of any authority competent to make such order of deduction;
  • deductions for subscriptions to and for payment of advances from any provident fund to which the Provident Funds Act, 1925 (Act No. XIX of 1925) applies or any recognized provident fund as defined in the Income-tax Ordinance, 1984 (Ordinance No. XXXVI of 1984) or any other provident fund approved by the Government;
  • deductions for payment to any co-operative society approved by the Government or to an insurance scheme maintained by the Bangladesh Postal Department or any Government Insurance Company;
  • deductions made with the written consent of the workers for the contribution to any fund or scheme constituted or framed by the employer with the approval of the Government for the welfare of the workers or the members of their families; and
  • deduction of subscription for the CBA Union through check-off system.
  1. Deductions from wages for absence from duty.—(1) Deductions from wages of a worker for absence from the place of worker under section 125(2) (b)may be made only, when he, by the terms of his employment, is required to work, but he is absent for the whole or any part thereof.
  • The amount of such deduction shall, in no case, be more than the amount of wages payable to him for the period of absence:

Provided that, subject to any rules made in this behalf by the Government, if ten or more workers in a body absent themselves from work without notice and reasonable cause, wages of not exceeding eight days may also be added to the deduction from wages from every such worker which is payable to the employer in lieu of notice by the terms of his employment.

Explanation.—For the purposes of this section, a worker shall be deemed to be absent from the place of work if he, being present in such place, refuses to work in pursuance of a stay-in-strike or for any other unreasonable cause. It shall also be applicable to an officer of the trade union.

  1. Deductions from wages for damage or loss.—(1) Any deduction under section 125(2) (c) shall not exceed the amount of the damage or loss caused to the employer by neglect or default of the concerned worker, and such deduction shall not be made until the worker is found guilty through proper enquiry in compliance with the principles of natural justice.
  • All such deductions and all realizations relating thereto shall be recorded in such register as may be prescribed by rules by the person responsible for the payment of wages.
  1. Deductions from wages for services rendered.—No deduction shall be made from the wages of a worker under section 125(2)(d) and (e) unless the house- accommodation, facilities or services provided are accepted by the concerned worker according to the terms of employment or otherwise, and such deduction shall not, in no circumstances, exceed the value of the house accommodation, facilities or service provided, and in the case of deduction under clause (e) it shall be subject to such conditions as the Government may impose.
  2. Deductions from wages for recovery of loans or advances.- All deductions under section 125(2) (f) shall be subject to the following conditions, namely:—
  • recovery of loan or advance given before employment shall be made from the first payment of wages for a complete wage period, but no such deduction shall be made from loan or advance given for traveling expenses;
  • in what amount any loan or advance for the wages yet not earned may be given and in how many installments it may be recovered shall be determined subject to such rules as may be made by the Government in this behalf.
  1. Other deductions from wages.—All deductions from wages under section 125 (2) (j), (k) and (l) shall be subject to such conditions as the Government may impose.
  2. Payment of unpaid wages of the dead workers.—(1) Subject to other provisions of this Chapter, all sums payable to a worker as wages shall, if not possible to be paid due to his death or on account of his whereabouts not being known,—
  • be paid to the person nominated by the concerned worker in this behalf in accordance with the rules;
  • if there is no such nominee or if, for any reason, not possible to be paid to the nominee, be deposited with the Labour Court, and the Court shall take measures in this behalf in accordance with the rules.

(2) Where, under the provisions of sub-section (1), all sums payable to a worker as wages have been paid by the employer to the person nominated by the concerned worker or have been deposited with the Labour Court, the employer shall be discharged of his liability in respect of payment of such wages.

  1. Claims arising out of deductions from wages or delay in payment of wages.—(1) Where any deduction is made from the wages of a worker in contrary to the provisions of this Act or the wages of a worker is not paid or payment of his wages or gratuity payable under any rule or dues from the provident fund is delayed, he or, in the case of his death, any of his heirs or any legal representative may apply to the Labour Court for recovery of wages or arrear or delayed wages or other dues.
  • Such application shall be submitted to the Labour Court within which jurisdiction the place where the concerned worker was working or where the wages would have been paid to him situates within 12 (twelve) months from the date of deduction of wages or, as the case may be, from the date when the wages became due:

Provided that any such application may be presented after the expiry of the said period also, if the applicant may satisfy the Labour Court that he had sufficient cause for not making the application within such period.

  • After the receipt of an application under sub-section (1), the Labour Court shall give the applicant and the employer or any other person responsible for the payment of wages under this Chapter an opportunity of being heard, and shall take necessary evidence, and may direct the employer or the person responsible for payment of wages to pay the wages which was deducted or was not paid or being delayed in the payment thereof to the applicant.
  • Any order given under sub-section (3) shall not prejudice any punitive measure which may be taken against such employer or the person responsible for payment of wages under this Act.
  • The Labour Court passing an order under sub-section (3) may also direct the employer or the person responsible for payment of wages to pay 25% (twenty- five per cent) of the wages as compensation to the applicant.
  • No direction for the payment of compensation under sub-section (5) shall be made in the case of delay in the payment of wages, if the Labour Court is satisfied that the delay was due to—
  • a bonafide error or bonafide dispute as to the amount of wages payable to the worker;
  • the inability of the person responsible for the payment of wages to make payment thereof in due time, in spite of his reasonable efforts, for an emergent situation or the existence of an exceptional circumstances; or
  • the failure of the worker to take wages or to apply therefor.
  • If the Labour Court, while hearing any application under this section, is satisfied that such application is malicious or vexatious, the Court may impose a fine on the applicant of an amount not exceeding taka 200 (two hundred) and direct to pay the same to the employer or the person responsible for the payment of wages.
  1. Court fees for application under section 132.—(1) For any application under section 132, the applicant shall not be liable to pay any court fees other than the fees payable for service of summons.
  • If the applicant succeeds in the case, the Labour Court shall calculate the amount of court fees payable for this case which would have been payable if the application were a plaint in a civil suit for recovery of money, and direct the employer or the person responsible for payment of wages under section 121 to pay such money.
  • If the money payable under sub-section (2) is not recovered within the time specified by the Labour Court, it shall be recoverable as a public demand.
  1. Single application for realization of claims on behalf of the workers who are not paid wages or whose wages is deducted.—(1) A single application only may be presented under section 132 on behalf of all or more than one worker who were not paid wages or whose wages were deducted, and in such a case compensation shall be payable under section 132(5).
  • The Labour Court may treat, all the separate applications submitted by more than 1 (one) worker under section 132 belonging to the group of workers who are not paid wages as a single application, and may accordingly dispose of them as a single application and the provisions of sub-section (1) shall apply in such case.
  • For the purpose of this section, “the group of workers who are not paid wages” shall include only the workers who are employed in the same establishment, and whose unpaid wages or delayed wages are for the same wage-period.
  1. —(1) An appeal against an order passed by the Labour Court under section 132 may be preferred within 30 (thirty) days of the date on which the order was passed before the Tribunal.
  • Notwithstanding anything contained in sub-section (1), no appeal by the employer or the person responsible for the payment of wages shall be preferred, if the total sum directed to be paid by way of wages or compensation does not exceed 1000 (one thousand) taka, and no appeal by any worker or, if he has died, by any of his heirs, or by his legal representative shall be preferred, if the total amount of wages claimed does not exceed 500 (five hundred) taka.
  • No appeal shall be preferred by the employer or any person who is responsible to pay wages, unless the memorandum of appeal is accompanied by a certificate of the Labour Court to the effect that the appellant has deposited the money with the Labour Court against the order of payment of which the appeal is preferred.
  • Save as provided in the case of appeal under this section, all other orders passed by the Labour Court under section 132 shall be final.
  • The provisions of section 5 of the Limitation Act, 1908 (Act No. IX of 1908) shall also apply to the appeals under this section.
  1. Conditional attachment of property of the employer or any other person responsible for payment of wages.—(1) Where at any time—
  • after submission of an application under section 132, the Labour Court; or
  • after preferring an appeal by a worker under section 135, the Tribunal;

is satisfied that the employer or any other person responsible for the payment of wages under section 121 is likely to evade the payment of money directed to be paid under section 132 or 135, such Court or, as the case may be, the Tribunal, after giving the employer or the person an opportunity of being heard, may attach his property for the payment of money so directed to be paid:

Provided that if there is possibility of defeating the purpose for the cause of delay, the said Court or Tribunal, before giving the opportunity of being heard, may pass such order of attachment:

Provided further that such amount of property may be attached, which, in the opinion of the Labour Court or the Tribunal, is sufficient to satisfy the amount directed to be paid.

(2) The provisions of the Code of Civil Procedure, 1908 (Act No. V of 1908), regarding attachment of property before trail, shall apply to the attachment under sub-section (1).

  1. Recovery of money from the employer in certain cases.—Where the Labour Court or the Tribunal is unable to recover any money, ordered to be paid, from any other person responsible for the payment of wages under section 121, the Court may recover the money from the employer.

Section 124A was inserted by section 39 of the Bangladesh Labour (Amendment) Act, 2013 (Act No. XXX of 2013).

[2]The words “basic was of a worker” were substituted for the words “wages of a worker” by section 40 of the Bangladesh Labour (Amendment) Act, 2013 (Act No. XXX of 2013).

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