Vetting of the “Overtime Policy” of the Company

Dated: July 25, 2007

Mr. A

Advisor and Company Secretary

Company 1

House No. 55

Road No. 4/A

Dhanmondi R/A


Dear Sir,


We refer to your letter no. 0707/02 dated July 18, 2007 on the above subject.

We have perused the draft copy of the “Overtime Policy” of the Integrated Services Limited (Company 1).

Our comments on the draft overtime policy” are as follows:

Serial No. Section Comments
1 Heading of the policy “Option 1 and Option 2” Please delete the words “options -I & II”. Option means alternative. The contents under those heading does not mean any alternative policy. As such, please write Clause/ Article instead of Option. Therefore, you may write either Article 1 & Article 2 or Clause 1 & Clause 2.
2 Option-I (a) Section 108 (1) of the Labour Law of Bangladesh, 2006 (“the Act”) provides that in any establishment if any worker, in any day or week, works extra time in addition to the period of time specified under the Act, he shall be paid double to his basic pay for such overtime.According to Section 100 of the Act, no adult worker shall work or be made to work for more than 8 hour daily in any establishment. Provided that subject to Section 108 of the Act, a worker may work up to 10 hours in an establishment.According to Section 101 of the Act, no worker shall be compellable to work more than 8 hour daily unless he has been given one 1 hour break or two half an hour breaks.

According to Section 103 of the Act, a worker working in a commercial/industrial establishment is entitled to one and a half days weekly holiday.

Therefore, overtime policy should comply with the above stated provisions. As such please delete option-1 (a) and replace it as follows:

Clause I (a), “The overtime work and payment thereof shall be allowed to non-officer employees provided one of following conditions are satisfied:

a) if the non-officer employees have worked 8 (eight) hours on any weekday (i.e. Sunday to Wednesday and Saturday), then any work done after the said 8 (eight) hours shall be calculated as overtime; or

b) if the non-officer employees have worked after 2.00 pm on any Thursday, then any work done after 2.00 pm on that day shall be calculated as overtime

c)  if the non-officer employees have worked on the weekly holiday, then any work done on that day shall be calculated as overtime.”

3 Option-I (b) The overtime policy under Section 108(1) the Labour Law of Bangladesh, 2006, does not exclude the worker who is on shift duty to be paid the extra-allowance. Therefore, such overtime allowance is also to be paid to shift workers. As such please delete Option-I (b).
4 Option-I(c) Please write this clause is as follows:Clause I (b), “The computation of extra-allowance for overtime shall be calculated @ hourly basic pay x 2 x numbers of hours worked.”
5 Option-II (a) As per Section 105 of the Act, the working hour of a worker can be extended up to 11 hours including his meal and leisure break. As such please delete this Clause and write as follows: Clause-II (a), “Non-officer employees shall not work overtime provided total working hour shall not exceed 11 hours including the breaks for his meal and rest in that day and the total working hours in a week shall not exceed 60 hours.”
6 Option-II (b) As per Section 108 (1) of the Act any extra hour in addition to the 8 hour (specified by the Act) of a worker is considered as overtime. As such the Clause stated by you should be deleted.
7 Option-II (C ) As per Section 104 of the Act if any worker works in his/her weekly holiday (s), he/she shall be entitled to the compensatory weekly holiday for the same number of days he worked. Such worker shall also be entitled to the extra-allowance for such overtime. As such please delete the clause you stated and replace it as follows:Clause II (C), “The overtime in the weekly holiday of any worker shall be compensated by the compensatory weekly holiday and the said worker shall be paid the overtime allowance for the time he/she worked.”

Subject to the above observations, the contents of the Overtime Policy are otherwise in order.

The papers/documents referred to us are returned herewith.

Thanking you.

Yours faithfully,


Drafted by:

 The Lawyers & Jurists
M.L.Hotel Tower Ltd, 208, Shahid Syed Nazrul Islam Sarani,
Bijoy Nagar, Dhaka-1000.