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Labor Law of the Republic of Bangladesh
Bangladesh Labour Act, 2006
THE BANGLADESH LABOUR ACT, 2006
[ACT NO. XLII OF 2006]
[11 October, 2006]
An Act to amend and consolidate the laws relating to employment of
workers, relations between workers and employers, determination of minimum
rates of wages, payment of wages, compensation for injuries to workers
during working hours, formation of trade unions, raising and settlement of
industrial disputes, health, safety, welfare and working conditions and
environment of workers and apprenticeship and matters ancillary thereto.
WHEREAS it is expedient and necessary to amend and consolidate the laws
relating to employment of workers, relations between workers and employers,
determination of minimum rates of wages, payment of wages, compensation for
injuries to workers during working hours, formation of trade unions, raising and
settlement of industrial disputes, health, safety, welfare and working conditions and
environment of workers and apprenticeship and matters ancillary thereto;
It is hereby enacted as follows:-
CHAPTER I
PRELIMINARY
1. Short title, commencement and application.- (1) This Act may be called
the Bangladesh Labour Act, 2006.
(2) It shall come into force at once.
(3) Save as otherwise specified elsewhere in this Act, it extends to the whole
of Bangladesh.
(4) Notwithstanding anything contained in sub-section (3), this Act shall not
apply to the following establishments or workers, namely:
(a) Government or any office under the Government;
(b) security printing press;
(c) ordnance factory;
(d) any institution, run for treatment, care or service of the sick,
disabled, aged, destitute, handicapped, orphan, abandoned
woman or child or widow, but not run for profit or gain;
(e) shops or stalls in any public exhibition or show established for its
own requirement which deal only in retail trade;
(f) shops or stalls in any public fair or bazaar established for
religious or charitable purposes;
(g) any educational, training or research institution run not for any
profit or gain;
(h) any hostel, mess, hospital, clinic and diagnostic centre run not
for any profit or gain;
(i) in the case of application of Chapter II, any shop or industrial or
commercial establishment owned and directly operated by the
Government where the workers are governed by the conduct
rules applicable to the Government servants;
(j) any worker whose recruitment and terms and conditions of
service are governed by the Acts or rules made under article 62,
79, 113 or 133 of the Constitution, but in the case of application
of Chapters XII, XIII and XIV, the workers employed in the
following establishments shall not be subject to this prohibition,
namely:
(i) railway department;
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(ii) post, telegraph and telephone department;
(iii) roads and highways department;
(iv) public works department;
(v) public health engineering department;
(vi) Bangladesh Government printing press;
(k) workers employed in an establishment mentioned in clauses (b),
(c), (d), (e), (f), (g) and (h), but in the case of application of
Chapters XII, XIII and XIV, the workers other than teachers,
employed in any university shall not be subject to this
prohibition;
(l) seamen, in the cases other than the case of application of
Chapters XII, XIII and XIV;
(m) (Repealed);
(n) any agricultural farm where normally less than five workers
work;
(o) domestic servants; and
(p) any establishment run by its owner with the aid of members of
his family and where no worker is employed for wages.
2. Definitions.- In this Act, unless there is anything repugnant in the subject
or context,-
(1) “retirement” means the normal termination of employment of a worker
on attaining the particular age under section 28 of this Act, provided
that voluntary retirement by a worker from service on completion of 25
years of service in any establishment shall also be deemed to be
retirement;
(1A) “partial disablement” means, where the disablement is of a
temporary nature, such disablement which reduces the earning
capacity of a worker in any employment in which he was engaged at
the time of the accident resulting in the disablement and where the
disablement is of a permanent nature, such disablement which reduces
his earning capacity in every employment which he was capable of
undertaking at that time:
Provided that every injury specified in the First Schedule shall
be deemed to result in permanent partial disablement;
(2) “manufacturing process” means any of the following processes,
namely:-
(a) making, altering, repairing, ornamenting, painting, washing,
finishing or fining, packing or otherwise treating any articles or
substance for the purpose of its use, sale, transport, distribution,
display or disposal;
(b) process of pumping oil, gas, water, sewerage or any other liquid
sweepings;
(c) generating, transforming or transmitting power or gas;
(d) constructing, reconstructing, repairing, finishing or fining or
breaking up of ships or vessels; or
(e) printing by letterpress, lithography, photogravure, computer,
photocompose, offset or other similar process or book-binding
which is carried on by way of trade or for the purpose of gain or
incidental to another business so carried on;
(2A) “festival allowance” means festival allowance of the workers of
factories and establishments which is paid on the occasion of
respective religious festival as determined by the Rules.
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(3) “officer”, in the case of a trade union, means any member of the
executive committee thereof, but does not include an auditor or legal
adviser;
(4) “working hour” means the time during which the workers employed
are at the disposal of the employer excluding any interval allowed for
rest and meals;
(5) “working journalist” means a person who is a whole time journalist
and who is employed as such in, or in relation to, any newspaper
establishment and includes an editor, editorial writer, news editor, subeditor, feature writer, reporter, correspondent, copy tester, cartoonist,
news-photographer, calligraphist and proof reader;
(6) “workshop” means any precincts or premises where any industrial
process is carried on;
(7) “factory” means any precincts or premises where five or more
workers ordinarily work on any day of the year and in any part of which
a manufacturing process is carried on, but does not include a mine;
(8) “adolescent” means a person who has completed fourteenth year but
has not completed eighteenth year of age;
(8A) ‘‘agricultural worker’’ means a person who is employed in agricultural
work for wages on the basis of daily, monthly or yearly contract or on a
contract of doing any specific work;
(9) “mine” means any excavation where any operation is carried on for
the purpose of exploration and extraction of mineral resources and
includes all works, machinery, tram-ways and sidings relating thereto in
the mine or adjacent to it in the underground or on the surface:
Provided that no part of a premise or precinct where a
manufacturing process is carried on shall be included therein, unless
such process is for producing pulp of the concerned mineral substance
or for dressing the same;
(9A) “subsistence allowance” means half of the basic wages, dearness
allowance and adhoc or interim wages, if any;
(10) “gratuity” means the wages of at least 30 (thirty) days, at the rate of
the wages a worker received last, for every completed year of his
service or for a period of his service exceeding 06(six) months or, in
the case of his service of more than 10 (ten) years, the wages of 45
(forty five) days at the rate of the wages he received last, which is
payable to such worker on the termination of his employment;
(10A) “tea plantation” means any land used or intended to be used for
growing tea, and also includes a tea factory;
(11) “retrenchment” means the termination of services of workers by the
employer on the ground of redundancy;
(12) “public utility service” means-
(a) generation, production or supply of electricity, gas, oil or water
for the members of the public,
(b) sewerage or sanitation system for the members of the public,
(c) hospital and ambulance service,
(d) fire-fighting service,
(e) postal, telegraph and telephone service,
(f) railways, airways, road and water transport,
(g) ports,
(h) watch and ward staff and security service of any establishment,
(i) oxygen acetylene, and
(j) banking;
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(13) “Tribunal” means the Labour Appellate Tribunal established under
this Act;
(14) “transmission machinery” means any shaft, wheel, drum, pulley,
system of pulleys, couplings, clutch, driving belt or any other appliance
or device by which the motion of a prime mover is transmitted to or
received by any machinery or plant;
(15) “trade union” means the trade union of workers or employers formed
and registered under Chapter XIII and includes a federation of trade
unions;
(16) “trade union federation” means a federation of trade unions
registered under Chapter XIII;
(17) “discharge” means the termination of service of a worker by the
employer for reasons of physical or mental incapacity or continued ill
health;
(18) “go-slow” means an organized, deliberate and intentional slowing
down of normal output of work by a group of workers, and which is not
due to any mechanical defect, breakdown of machinery, failure or
defect in power supply or failure in the supply of ordinary materials and
spare parts of machinery;
(19) “day” means a period of 24 (twenty four) hours beginning at 6.00 am;
(20) “Code of Civil Procedure” means the Code of Civil Procedure, 1908
(Act No. V of 1908);
(21) “shop” means any premises or precincts used wholly or in part for the
whole-sale or retail sale of commodities or articles either for cash or
credit, or where any service is rendered to a customer, and includes an
office, storeroom, godown, or workplace, whether in the same
premises or elsewhere, mainly used in connection with such trade or
business, and includes such other premises or precincts as the
Government may, by notification in the official Gazette, declare to be a
shop for the purposes of this Act;
(22) “strike” means cessation of work or refusal to work jointly by a group
of workers employed in any establishment or refusal to accept work or
continue to work unanimously by a body of workers employed therein;
(23) “seaman” means seaman of any ocean going ship, but does not
include a master of a ship;
(24) “executive committee”, in the case of a trade union, means a body of
persons, by whatever name called, to which the management of the
affairs of a trade union is entrusted by its constitution:
(25) “settlement” means a settlement arrived at in the course of a
conciliation proceeding, and includes an agreement between an
employer and worker arrived at otherwise than conciliation
proceedings, where such agreement is in writing and signed by both
parties and a copy thereof is sent to the Director General and the
Conciliator;
(26) “water-transport service” means a service carrying passengers or
goods by vessels in water ways for hire or reward;
(27) “vessel” means any mechanically propelled vessel used or capable of
being used for the purpose of water transports and also includes a tug
or flat or barge;
(28) “administrative worker” means a person, except a working journalist
or a newspaper printing press worker, who is employed on a whole
time basis in, or in relation to, any newspaper establishment in any
capacity;
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(29) “shift” means where work of the same kind is carried out by two or
more sets of workers working during different periods of the day, each
of such periods;
(30) “dependant” in relation to a deceased worker, means any of the
following relatives, namely:-
(a) a widow, minor child, unmarried daughter or a widowed mother;
and
(b) if wholly or partly dependant on the earnings of the worker at the
time of his death, a widower, widowed mother or father,
daughter if unmarried or minor or widowed, minor brother,
unmarried or widowed sister, widowed daughter-in-law, minor
son of a deceased son, minor child of a deceased daughter
where his father is not alive or, where no parent of the deceased
worker is alive, the paternal grandparent, and illegitimate son
and illegitimate unmarried daughter;
(31) “establishment” means any shop, commercial establishment,
transport, industrial establishment or premises or precincts where
workers are employed for the purpose of carrying on any industry;
(32) “group of establishments” means more than one establishment in a
particular area under the same or different owners, carrying on the
same or identical industry;
(33) “regulation” means regulation made under this Act;
(34) “maternity benefit” means the sum of money payable under the
provisions of Chapter IV to a woman worker with leave other benefits
on the ground of her being a mother;
(35) “prime mover” means any engine, motor or other appliance which
generates or provides power;
(35A) “trained in first aid” means such a person who possesses a
certificate given by a registered practitioner concerning first aid;
(36) “adult” means a person who has completed eighteenth year of age;
(37) “Code of Criminal Procedure” means the Code of Criminal
Procedure, 1898 (Act No. V of 1898);
(38) “closed” means not open for providing service to any customer or to
conduct any business;
(39) “dismissal” means the termination of service of a worker by the
employer for misconduct;
(40) “plantation” means any area where the rubber, coffee or tea is grown
and/or preserved, and includes every agriculture farm, other than
experimental or research farm, employing 5 (five) or more workers;
(41) “commercial establishment” means an establishment in which the
business of advertising, commission or forwarding is carried on or
which is a commercial agency, and also includes the following
establishments, namely:-
(a) the clerical department of a factory or of any industrial or
commercial establishment;
(b) the office-establishment of a person who for the purpose of
implementing a contract with any commercial or industrial
establishment employs workers;
(c) a unit of a joint-stock company;
(d) any insurance company, banking company or bank;
(e) any office of broker;
(f) any stock exchange;
(g) any club, hotel, restaurant or eating house;
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(h) any cinema or theatre;
(i) any other establishment which the Government may, by
notification in the official Gazette, declare to be a commercial
establishment for the purpose of this Act;
(42) “rules” means rules made under this Act;
(42A) “expert” means a person who is not an employer or a worker of the
establishment concerned, but includes a person who is an employer or
a trade union leader of the concerned sector or who has specialized
knowledge or experience of the matters relating to labour, industry and
work place safety;
(43) “illegal strike” means a strike declared, commenced or continued in
contravention of the provisions of Chapter XIV;
(44) “illegal lock-out” means a lock-out declared, commenced or
continued in contravention of the provisions of Chapter XIV;
(45) “wages” means all remuneration, expressed in terms of money or
capable of being so expressed, which would, if the terms of
employment, expressed or implied, were fulfilled, be payable to a
worker in respect of his employment or of work done in such
employment, and includes any other additional remuneration of the
nature aforesaid which would be so payable, but does not include the
following money, namely:-
(a) the value of any house accommodation, light, water, medical
facilities or other amenity or the value of any service excluded
by general or special order by the Government;
(b) any subscription paid by the employer to any pension fund or
provident fund;
(c) any travelling allowance or the value of any travelling
concession;
(d) any sum paid to a worker to defray special expenses entitled to
him by the nature of his employment;
(46) “Arbitrator” means an Arbitrator appointed under Chapter XIV;
(47) “Inspector General”, “Additional Inspector General”, “Joint Inspector
General”, “Deputy Inspector General”, “Assistant Inspector General”
and “Labour Inspector” shall mean persons so appointed under
Chapter XX;
(48) “Director General”, “Additional Director General”, “Director”, “Deputy
Director”, “Assistant Director” and Labour Officer” shall mean persons
so appointed under Chapter XX;
(49) “employer”, in relation to an establishment, means any person who
employs workers therein, and also includes the following persons,
namely:-
(a) an heir, guardian, or successor in assignment or legal
representative of such person;
(b) manager or any person responsible for the management or
control of the establishment;
(c) in the case of an establishment run by or under the authority of
the Government, an authority appointed in this behalf or where
no such authority exists, the head of the Ministry or Division
concerned;
(d) in the case of an establishment run by or on behalf of a local
authority, an officer appointed in this behalf or where no such
officer exists, the Chief Executive Officer of that authority;
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(e) in the case of any other establishment, the owner of such
establishment and every Director, Manager, Secretary, agent or
any officer or person concerned with the management of the
affairs such establishment;
(f) in the case of an establishment under the possession of any
person other than the owner, the person in possession of that
establishment or the person who is in ultimate control over the
affairs of the establishment or the manager or any competent
officer who is connected with the management of such activities;
(50) “machinery” includes prime movers, transmission machinery and
other appliance whereby power is generated, transformed, transmitted
or applied;
(51) “vehicle” means any mechanically propelled vehicle, used or capable
of being used for traveling by land, water and air, and includes a trolley
vehicle and a trailer;
(52) “collective bargaining agent CBA” means a trade union or
federation of trade unions of an establishment or group of
establishments which is an agent of the workers CBA for collective
bargaining in such establishment or group of establishments under
Chapter XIII;
(53) “relay” means, where work of the same kinds is carried out by two or
more sets of workers working during different periods of the day, each
of such sets;
(54) “registered medical practitioner” means any person registered as
medical practitioner under the Medical and Dental Council Act, 1980
(Act No. XVI of 1980);
(55) “registered trade union” means a trade union registered under
Chapter XIII;
(56) “award” means the settlement of any industrial dispute or any matter
relating thereto by the Arbitrator, Labour Court or the Tribunal also, and
includes an interim award;
(57) “lock-out” means the closing of a place of work or a part of such
place, or the suspension of work therein, wholly or partly, by an
employer, or refusal, absolute or conditional, by an employer to
continue allow to work by any number of workers employed by him,
where such closing, suspension or refusal occurs in connection with
any industrial dispute or is intended for the purpose of compelling
workers to accept certain terms and conditions of employment;
(58) “lay-off” means the failure, refusal or inability of an employer to give
employment to a worker on account of shortage of coal, power or raw
material or the accumulation of stock or the break-down of machinery;
(59) “power” means the electrical energy and any other form of energy
which is mechanically transmitted and is not generated by human or
animal;
(60) “industry” means any business, trade, manufacture, calling,
occupation, service or employment;
(61) “industrial establishment” means any workshop, manufacturing
process or any other establishment where any article is produced,
adapted, processed or manufactured, or where the work of making,
altering, repairing, ornamenting, finishing or fining or packing or
otherwise treating any article or substance for the purpose of its use,
transport, sale, delivery or disposal, is carried on or such other
establishments as the Government may, by notification in the official
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Gazette, declare to be an industrial establishment for the purpose of
this Act, and includes the following establishments, namely:-
(a) road transport, or railway transport service,
(b) river transport service,
(c) air transport,
(d) dock, quay or jetty,
(e) mine, quarry, gas field or oil field,
(f) plantation,
(g) factory,
(h) newspaper establishment,
(i) establishment of a contractor or sub-contractor established for
the purpose of construction, reconstruction, repair, alteration or
demolition of any building, road, tunnel, drain, canal or bridge,
ship-building, ship-breaking or loading or unloading of cargo into
vessel or carrying thereof,
(j) ship building,
(k) Ship recycling,
(l) welding,
(m) any outsourcing company or any establishment of contractor or
sub-contractor for supplying security personnel,
(n) port; port shall mean all sea ports, river ports and land ports,
(o) mobile operator company, mobile network service provider
company and land phone operator company,
(p) private radio, TV channel and cable operator,
(q) real estate company, courier service and insurance company,
(r) fertilizer and cement manufacturing company,
(s) clinic or hospital run for profit or gain,
(t) rice mill or chatal,
(u) saw mill,
(v) fishing trawler,
(w) fish processing industry,
(x) sea going vessel;
(62) “industrial dispute” means any dispute or difference of opinion
between employers and employers, between employers and workers
or between workers and workers in respect of appointment or
conditions of service or conditions of work or environment of work of
any person;
(63) “child” means a person who has not completed 14th (fourteenth)
years of age;
(64) “Labour Court” means a Labour Court established under this Act;
(65) “worker” means any person including an apprentice employed in any
establishment or industry, either directly or through a contractor, by
whatever name he is called, to do any skilled, unskilled, manual,
technical, trade promotional or clerical work for hire or reward, whether
the terms of employment are expressed or implied, but does not
include a person employed mainly in a managerial, administrative or
supervisory capacity;
(66) “week” means a period of seven days beginning at 6.00 am on Friday
or such other day as may be fixed by the Government in relation to an
establishment in any area;
(67) “total disablement” means such disablement, whether of a temporary
or permanent nature, which incapacitates a worker for all work which
he was capable of performing at the time of the accident resulting in
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such disablement or such worker losses working capacity due to
reaction of chemical substances used in the course of work or ill health
caused by contamination connected with the work:
Provided that permanent total disablement shall be deemed to
result from the permanent total loss of the sight of both eyes or from
any combination of injuries specified in the First Schedule where the
aggregate percentage of the loss of earning capacity as specified in
that Schedule against those injuries, amounts to one hundred percent;
(68) “road transport service” means a service carrying passengers or
goods by road in vehicles for hire or reward;
(69) “newspaper” means any printed periodical publication containing
general news or comments on such news, and also includes such
other printed periodical publication as the Government may, by
notification in the official Gazette, declare to be a newspaper;
(70) “newspaper press worker” means a person who is employed on a
whole-time basis in any newspaper establishment for doing any
printing work;
(71) “newspaper establishment” means an establishment for printing,
production or publication of any newspaper or an establishment run by
any news agency or news or feature syndicate;
(72) “newspaper worker” means a working journalist, a worker working
administration or a newspaper press worker;
(73) “Conciliator” means a Conciliator appointed under Chapter XIV;
(74) “arbitration proceedings” means any proceedings before an
Arbitrator relating to arbitration;
(75) “serious bodily injury” means any injury which involves or likely to be
involved, in the permanent loss of the use of, or permanent injury to,
any limb, or the permanent loss of, or injury to the sight or hearing, or
the permanent fracture of any limb, or the enforced absence of the
injured person from work for a period exceeding 20 (twenty) days;
(76) “decision”, in relation to a Labour Court, means any decision or order
other than an award of that Court, finally disposing of a case;
(77) “scheme” means any scheme made under this Act.
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CHAPTER II
CONDITIONS OF EMPLOYMENT AND SERVICE
3. Conditions of service.- (1) In every establishment employment of workers
and other matters incidental thereto shall be regulated in accordance with the
provisions of this Chapter:
Provided that any establishment may have its own service rules regulating
employment of workers, but no such rules shall be less favourable to any worker
than the provisions of this Chapter:
Provided further that the establishments to which this Act does not apply shall
not make any policy, rule or house policy providing benefits less than the benefits
provided in this Act.
(2) The service rules mentioned in the proviso to sub-section (1) shall be
submitted to the Inspector General for approval by the employer of the establishment
and the Inspector General shall, within 90 (ninety) days of the receipt thereof, make
such order as he deems fit.
(3) No service rules mentioned in sub-section (2) shall be effective except with
the approval of the Inspector General.
(4) Any person aggrieved by the order of the Inspector General may, within 30
(thirty) days of the receipt of the order, prefer an appeal to the Government and the
Government shall dispose of such appeal within 45 (forty five) days of receipt thereof
and the order of the Government on such appeal shall be final.
(5) The provisions of sub-section (2) shall not apply to an establishment which
is owned by or under management or control of the Government.
3A. Registration of contracting agency.- (1) Notwithstanding anything
contained otherwise in any other law, no contracting agency, by whatever name
called, which, on contract, supplies workers to different organizations in different
posts shall do so, unless it is registered by the Government.
(2) All contracting agencies now exist in the country shall be required to get
registration from the Government within 06 (six) months of making rules for this
purpose under this Act.
(3) Workers supplied by a contracting agency shall be treated as the workers
of the contractor concerned and shall remain within jurisdiction of the Labour Act.
(4) The registration procedure under this section shall be prescribed by rules.
Explanation.- For carrying out the purposes of this section, “worker” shall
also include the security personnel, driver, etc.
4. Classification of workers and probation period.- (1) Workers employed
in any establishment may be classified in any of the following classes according to
the nature and condition of work, namely:
(a) apprentice;
(b) substitute;
(c) casual;
(d) temporary;
(e) probationer;
(f) permanent; and
(g) seasonal worker.
(2) A worker may be called an apprentice if he is employed in an
establishment as a trainee and paid allowances during the period of his training.
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(3) A worker may be called a substitute if he is employed in an establishment
in the post of a permanent worker or of a probationer for the period of his temporary
absence.
(4) A worker may be called a casual worker if he is employed on ad-hoc basis
in an establishment for work of a casual nature.
(5) A worker may be called a temporary worker if he is employed in an
establishment for a work which is essentially of temporary nature and is likely to be
finished within a limited period.
(6) A worker may be called a probationer if he is employed for the time being
in an establishment in a permanent post and the period of his probation is not ended.
(7) A worker may be called a permanent worker if he is employed in an
establishment on a permanent basis or if he has completed the period of his
probation satisfactorily in the establishment.
(8) The period of probation for a worker whose function is of clerical nature
shall be 6 (six) months and for other workers such period shall be 3 (three) months:
Provided that in the case of a skilled worker, the period of probation may be
extended for a further period of three months if, for any reason, the quality of his
work within first 3 (three) months of his probation is not possible to ascertain:
Provided further that a worker shall be deemed to be permanent in
accordance with the provision of sub-section (7) notwithstanding he has not been
issued any confirmation letter after completion of his probationary period or extended
period of 3 (three) months.
(9) If any worker, whose service is terminated during his probationary period,
including the extended period, is reappointed by the same employer within a period
of 3 (three) years, he shall, unless appointed on a permanent basis, be deemed to
be a probationer and the period of his earlier probation shall be counted for
determining the total period of his probation.
(10) If a permanent worker is employed as a probationer in a new post, he
may, at any time during his probationary period, be reverted to his previous
permanent post.
(11) A worker may be called a seasonal worker if he is employed in an
establishment for seasonal works during any work season and remain in
employment upto the end of that season.
(12) In the case the employment of workers in any industry like sugar mills,
chatals, etc. and in seasonal workshops, the workers employed therein in the
previous year shall be given preference.
5. Appointment letter and identity card.- No employer shall employ any
worker without giving such worker an appointment letter and every such employed
worker shall be provided with an identity card with his photograph.
6. Service book.- (1) Every employer shall, at his own cost, provide a service
book for every worker employed by him.
(2) Every service book shall be kept in the custody of the employer.
(3) Before employing a worker, the employer shall require him to submit his
previous service book, if the worker claims that he has previously worked under any
other employer.
(4) If such worker has any service book, he shall hand over it to the new
employer and the new employer shall keep the service book in his own custody
giving him a receipt.
(5) If such worker has no service book, a service book shall be provided under
sub-section (1).
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(6) If the worker desires to keep and maintain a duplicate copy of his service
book, he may do so at his own cost.
(7) The employer shall hand over the service book to a worker on the
termination of the service of such worker.
(8) If any worker losses the service book which was handed over to him or the
copy thereof, the employer shall provide him with a copy of the service book at the
cost of such worker.
(9) Nothing in this section shall apply to an apprentice, substitute or casual
worker.
7. Form of service book.- (1) A service book shall be maintained of such
size and in such form as may be prescribed by rules and a photograph of the worker
shall be affixed thereto.
(2) A service book shall contain the following particulars, namely:
(a) name of the worker, names of the mother and father and
address of the worker (the name of the spouse shall also be
written, where applicable);
(b) date of birth;
(c) special particulars for identification;
(cc) designation;
(ccc) department or section;
(cccc) ticket or card;
(d) if previously employed under any employer, the name and
address of that employer;
(e) period of employment;
(f) occupation or designation;
(g) wages and allowance (if any);
(h) leave availed; and
(i) conduct of the worker.
8. Entries in the service book.- The employer shall at the commencement
and during continuance, of the employment of a worker, make such entries therein
relating to him from time to time as are required by this Chapter and the rules, and
both employer and worker shall put their signatures thereon.
9. Register of workers and supply of tickets and cards.- (1) The employer
shall maintain a register of workers of his establishment and make it available to the
Labour Inspector for inspection at all times during working hours.
(2) The following particulars shall be included in the register of workers,
namely:
(a) name and date of birth of every worker;
(aa) names of father and mother of the worker;
(b) date of appointment;
(c) nature of work;
(cc) designation;
(ccc) department of section;
(cccc) ticket or card;
(d) working hour fixed for him;
(e) interval for rest and meals to which he is entitled;
(f) day of rest to which he is entitled;
(g) group, if any, in which he is included;
(h) where his group works on shifts, the relay to which he is allotted;
and
Bangladesh Labour Act, 2006
13
(i) such other particulars as may be prescribed by rules.
(3) If the Labour Inspector is of opinion that the particulars mentioned in subsection (2) are also recorded in the muster-roll or register maintained routinely in an
establishment, he may, by order in writing, direct that such muster-roll or register
shall be treated as the register of workers and shall be maintained in lieu thereof.
(4) The Government may, by rules, prescribe the form of the register of
workers, the manner in which it shall be maintained and the period for which it shall
be preserved.
(5) The employer shall supply tickets or cards to every worker in the following
manner, namely:
(a) every permanent worker shall be provided with a permanent
departmental ticket mentioning his number;
(b) every substitute worker shall be provided with a substitute card
in which the days for which he has worked shall be entered and
it shall be surrendered if and when he gets permanent
employment;
(c) every temporary worker shall be provided with a temporary
ticket which shall be surrendered on his leaving the job or
getting a permanent employment;
(d) every casual worker shall be provided with a casual card in
which the days for which he has worked shall be entered; and
(e) every apprentice shall be provided with an apprentice card
which shall be surrendered on his leaving the training or getting
a permanent employment.
10. Procedure for leave.- (1) A worker who desires to obtain leave of
absence shall apply to his employer in writing and shall state therein his address
during leave.
(2) The employer or an officer authorized by him shall issue an order within 7
(seven) days of receipt of the application or 2 (two) days prior to the commencement
of leave applied for, whichever is earlier:
Provided that if due to any urgent reasons the leave applied for is to
commence on the date of application or within 3 (three) days thereof, such order
shall be given on the day of receipt of the application.
(3) If the leave asked for is granted, a leave pass shall be issued to the
worker.
(4) If the leave asked for is refused or suspended, the fact of such refusal or
postponement and the reasons thereof shall be communicated to the worker before
the date on which the leave would have expected to be commenced and it shall be
recorded in the register maintained for the purpose.
(5) If any worker, after he went on leave, desires an extension thereof, he
shall, if such leave is due to him, apply in writing by registered post before
reasonable time of the expiry of the leave to the employer who shall send a written
reply either of granting or of refusing the extension of leave to the worker to his
leave-address.
11. Payment of wages for unavailed leave.- If the service of a worker
terminates, due to retrenchment, discharge, removal, dismissal, retirement,
resignation or any other reason and any annual leave is due to him, the employer
shall pay him wages in lieu of the unavailed leave at the rate he is entitled to the
payment of wages during the period of leave in accordance with the provisions of
this Act.
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14
12. Stoppage of work.- (1) An employer may, at any time, if necessary in the
event of fire, sudden catastrophe, breakdown of machinery, stoppage of power
supply, epidemics, wide spread riots or any other cause beyond his control, stop any
section or sections of his establishment, wholly or partly, for such period as the
cause for such stoppage continues to exist.
(2) If such order of stoppage is given after the working hours has ended, the
employer shall notify the concerned workers relating thereto, by a notice posted or
hung the notice board in the section concerned or at a conspicuous place before the
next working hour begins.
(3) A notice under sub-section (2) shall contain direction as to when the work
shall be resumed and whether such workers are to remain at their place of work at
any time before the resumption of work.
(4) In the event of such stoppage occurs during working hours, the employer
shall, as soon as practicable, notify the workers concerned relating thereto by a
notice in the manner specified in sub-section (2) and such notice shall contain
direction as to when the work shall be resumed and whether such workers are to
remain at their place of work.
(5) Where workers are directed to stay at their place of work following such
stoppage, the staying workers may not get wages, if the period of their stay does not
exceed 1 (one) hour, and if it exceed 1 (one) hour they shall get wages for the whole
period of their stay.
(6) If the period of stoppage of work does not exceed 1 (one) working day, a
worker, unless entitled to wages under sub-section (5), may not get any wages.
(7) If the period of stoppage of work continues for more than 1 (one) working
day, every concerned worker, other than a casual or substitute worker, shall be paid
wages for all stopped working days exceeding 1 (one) day.
(8) If the period of stoppage of work exceeds 3 (three) working days, the
workers concerned shall be laid off in accordance with the provisions of section 16.
(9) The lay-off mentioned in sub-section (8) shall be effective from the first day
of stoppage of work, and any wage paid to a worker for the first 3 (three) days may
be adjusted against the compensation payable to such worker for the period of such
lay-off.
(10) If any piece-rate worker is affected due to stoppage of work, his average
daily earning in the previous month shall be taken to be the daily wage for the
purpose of sub-section (9).
13. Closure of establishment.- (1) An employer may, in the event of an
illegal strike in any section or department of any establishment, close down either
wholly or partly such section or establishment and in cases of such closure the
workers participated in the strike shall not be paid any wages.
(2) Where by reason of closing down of any section or department of any
establishment under sub-section (1) any other section or department is so affected
that it is not possible to keep that section or department open, that section or
department may also be closed down and the workers affected thereby shall be paid
wages equal to the amount of compensation payable in the case of lay-off upto a
period of 3 (three) days and for any period exceeding thereto may not get any
wages.
(3) The employer shall notify the fact of such closure, as soon as practicable,
by a notice posted or hung on the notice board in the section or department
concerned or at a conspicuous place in the establishment and the fact of resumption
of work shall likewise be notified.
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15
14. Calculation of “1 (one) year”, “6 (six) months” and “wages” in certain
cases.- (1) For the purposes of this Chapter, a worker who, during the preceding 12
(twelve) calendar months, has actually worked in an establishment for not less than
240 (two hundred and forty) days or 120 (one hundred and twenty) days, shall be
deemed to have completed “1 (one) year” or “6 (six) months” respectively of
continuous service in that establishment.
(2) For the purpose of calculation of the number of days a worker actually
worked in an establishment mentioned in sub-section (1), the following days shall
also be counted, namely:
(a) the days of his laid-off;
(b) the days of his leave with or without wages due to sickness or
accident;
(c) the days of out of work due to legal strike or illegal lock-out;
(d) in the case of female worker, maternity leave not exceeding 16
(sixteen) weeks.
(3) For the purposes of calculation of compensation under section 19, 20 or
23 or of wages under section 22, 23, 26 or 27, “wages” shall mean the average of
the basic wages and dearness allowance and ad-hoc or interim wages, if any, paid
to a worker during the period of 12 (twelve) months immediately preceding the date
of his retrenchment, dismissal, removal, discharge, retirement or termination of
employment, as the case may be.
15. Restrictions on application of sections 12, 16, 17 and 18.-
Notwithstanding anything contained elsewhere in this Chapter, the provisions of
sections 12, 16, 17 and 18 shall not apply to any establishment where at least 5
(five) workers are not employed or were not employed during the preceding 12
(twelve) months.
16. Right of laid-off workers for compensation.- (1) Whenever a worker,
other than a substitute or casual worker, whose name is on the muster-rolls of an
establishment and who has completed at least 1 (one) year of 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 weekly holidays.
(2) The amount of compensation 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
wages, if any, and equal to the full amount of housing allowance that would have
been payable to him if he had not been so laid-off.
(3) A substitute worker whose name is on the muster-rolls of an establishment
shall not be treated as substitute for the purpose of this section, if he has completed
one year of continuous service in that establishment.
(4) Unless there is an agreement to the contrary between the worker and the
employer, no worker shall be entitled to the payment of compensation under this
section for more than 45 (forty-five) days during any calendar year.
(5) Notwithstanding anything contained in sub-section (4), if during a calendar
year any worker is laid-off for more than 45 (forty-five) days, whether continuously or
intermittently, and after the expiry of such 45 (forty-five) days the period of lay-off is
extended for further 15 (fifteen) days or more, the worker shall, unless there is an
agreement to the contrary between the worker and the employer, be paid
compensation for every subsequent period of lay-off for 15 (fifteen) days or more.
(6) The amount of compensation mentioned in sub-section (5) shall be equal
to one-fourth of the total of the basic wages and dearness allowance and ad-hoc or
interim wages, if any, and equal to the full amount of housing allowance, if any.
Bangladesh Labour Act, 2006
16
(7) In any case, during a calendar year, if a worker is to be laid-off after the
first 45 (forty-five) days as aforesaid, for any continuous period of 15 (fifteen) days or
more, the employer may, instead of lying off such worker, retrench him under section
20.
17. Muster-roll for laid-off workers.- Notwithstanding that the workers
employed in an establishment are laid-off, the employer shall maintain a muster roll,
and cause to be recorded therein the names of those who may, from amongst the
laid-off workers, present themselves for work at the establishment during normal
working hours:
Provided that the muster-roll shall not be maintained in any other manner nor
any worker shall be employed on master roll.
18. Laid-off workers not entitled to compensation in certain cases.- (1)
Notwithstanding anything contained elsewhere in this Chapter, no compensation
shall be payable to a worker who has been laid-off, if he-
(a) refuses to accept on the same wages, any alternative
employment not requiring any skill or previous experience in the
same establishment or in any other establishment belonging to
the same employer and situated in the same town or village or
situated within 8 (eight) kilometres of the establishment;
(b) does not present himself for work at the establishment at the
appointed time during normal working hours at least once a day
if so required by the employer.
(2) For the purpose of sub-section (1) (b), a laid-off worker who presents
himself for work at the establishment at the appointed time during normal working
hours on any day and is not given employment within 2 (two) hours of his so
presenting himself, shall be deemed to have been laid-off for that day within the
meaning of this section.
(3) If a laid-off worker who presents himself for work as mentioned in subsection (2), is, instead of being given employment at the commencement of any shift
for any day, asked to present himself for the purpose during the second half of the
shift for that day, and accordingly presents himself for work, he shall be deemed to
have been laid-off only for one-half of that day, the other half being treated as on
duty, irrespective of the fact whether he is given work or not.
19. Compensation for death.- If a worker dies while in service for at least
more than 02 (two) years continuously under an employer, such employer shall pay
as compensation 30 (thirty) days wages or, in the case of his death while working in
the establishment or in the case of his death following an accident while working in
the establishment 45 (forty five) days wages for every competed year of his service
or any part thereof exceeding 6 (six) months or gratuity, whichever is higher, to the
nominee of the deceased worker or, in the absence of the nominee, to his dependent
and this money shall be in addition to the retirement benefit to which the deceased
worker would have been entitled had he retired from service.
20. Retrenchment.- (1) Any worker may be retrenched from service of any
establishment on the ground of redundancy.
(2) If any worker has been in continuous service under an employer for not
less than 1 (one) year, the employer, in the case of retrenchment of such worker,
shall
Bangladesh Labour Act, 2006
17
(a) give him 1 (one) month’s notice in writing mentioning the
reasons for his retrenchment or, in lieu of such notice pay him
wages for the period of notice;
(b) send a copy of the notice to the Inspector General or any other
officer specified by him, and another copy to the collective
bargaining agent of the establishment, if any; and
(c) pay him as compensation 30 (thirty) days’ wages for his every
year of service or gratuity, if any, whichever is higher.
(3) Notwithstanding anything contained in sub-section (2), in the case of
retrenchment under section 16(7), no notice mentioned in sub-section (2) (a) shall be
necessary; but the worker so retrenched shall be paid further 15 (fifteen) days’
wages, in addition to the compensation or gratuity, which may be payable to him
under sub-section (2) (c).
(4) Where a worker of any particular category is required to be retrenched, the
employer shall, in the absence of any agreement between him and the worker in this
behalf, retrench the worker who was the last person to be employed in that category.
21. Re-employment of retrenched workers.- Where any worker is
retrenched and the employer intends to employ again any worker within a period of
one year of such retrenchment, the employer shall send a notice to the last known
address of the retrenched worker asking him to apply for employment, and any
worker who applies for re-employment in response to such request shall be given
preference, and if more than one such retrenched workers apply, preference shall be
given on the basis of their seniority in their previous services.
22. Discharge from service.- (1) A worker may be discharged from service
for reasons of physical or mental incapacity or continued ill-health certified by a
registered medical practitioner.
(2) If a discharged worker completes not less than one year of continuous
service he shall be paid by the employer, as compensation, 30 (thirty) days’ wages
for his every year of service, or gratuity, if payable, whichever is higher.
23. Punishment for misconduct and conviction.- (1) Notwithstanding
anything contained as to lay-off, retrenchment, discharge and termination of service
elsewhere in this Act, a worker may be dismissed without a notice or without wages
in lieu of a notice if he is-
(a) convicted of any criminal offence; or
(b) found guilty of misconduct under section 24.
(2) A worker found guilty of misconduct may, instead of being dismissed
under sub-section (1), under any extenuating circumstances, be awarded any of the
following punishments, namely:
(a) removal;
(b) reduction to a lower post, grade or scale of pay for a period not
exceeding 1 (one) year;
(c) stoppage of promotion for a period not exceeding 1 (one) year;
(d) withholding of increment for a period not exceeding 1 (one) year;
(e) fine;
(f) suspension without wages or without subsistence allowance for
a period not exceeding 7 (seven) days;
(g) censure and warning.
(3) A worker who is dismissed under sub-section (2)(a) shall, if the period of
his continuous service is not less than 1 (one) year, be paid by the employer as
compensation 15 (fifteen) days wages for every completed year of his service:
Bangladesh Labour Act, 2006
18
Provided that no worker shall be entitled to any compensation if he is
dismissed for misconduct under sub-section (4)(b) and (g); but in such case, the
worker concerned shall get other lawful dues as usual.
(4) The following acts shall be treated as misconduct, namely:
(a) willful disobedience, whether alone or in combination with others
to any lawful or reasonable order of a superior;
(b) theft, misappropriation, fraud or dishonesty in connection with
business or property of the employer;
(c) taking or giving bribe in connection with his or any other worker’s
employment under the employer;
(d) habitual absence without leave or absence for more than 10
(ten) days at a time without obtaining leave;
(e) habitual late attendance;
(f) habitual breach of any law or rule or regulation applicable to the
establishment;
(g) disorderliness, riot, arson or breakage in the establishment;
(h) habitual negligence in work;
(i) habitual breach of any rule relating to employment, including
discipline or conduct, approved by the Inspector General;
(j) altering, forging, wrongfully changing, damaging or causing lose
to employer’s official records.
(5) If a worker dismissed under sub-section (1) (a), is acquitted on an appeal,
he shall be reinstated to his original post or shall be appointed to a suitable new
post; and if any of them is not possible, he shall be paid compensation at a rate
equal to the rate of compensation payable to a discharged worker, deducting the
amount of compensation already paid to him for his dismissal.
24. Procedure of punishment.- (1) No order of punishment under section 23
shall be made against a worker unless-
(a) the allegation against him is recorded in writing;
(b) he is given a copy of the allegation and a period of at least 7
(seven) days is given to explain;
(c) he is given an opportunity of being heard;
(d) he is found guilty after an enquiry made by the enquiry
committee consisting of equal number of representatives of the
employer and the worker:
Provided that such enquiry shall be concluded within 60
(sixty) days.
(e) the employer or the manager approves the order of dismissal.
(2) A worker charged for misconduct may be suspended pending enquiry into
the charge and, unless the matter is pending before any Court, the period of such
suspension shall not exceed 60 (sixty) days:
Provided that during the period of such suspension, a worker shall be paid by
his employer subsistence allowance and he shall get other allowances in full.
(3) An order of suspension shall be in writing and shall take effect immediately
on delivery to the worker.
(4) In an enquiry, the accused worker may be assisted by any person
employed in his establishment and nominated by him.
(5) If in an enquiry, any oral evidence is given by any party, the person
against whom such evidence is given may cross examine the witness.
(6) If, on enquiry, a worker is found guilty and is punished under section 23(1),
he shall not be entitled to his wages for the period of suspension, but he shall be
entitled to the subsistence allowance for such period.
Bangladesh Labour Act, 2006
19
(7) If, on enquiry the charge against the worker is not proved, he shall be
deemed to have been on duty in the period of suspension and shall be paid his
wages for such period with adjustment of the subsistence allowance already paid.
(8) In case of awarding punishment, a copy of the order of punishment shall
be supplied to the worker concerned.
(9) If a worker refuses to accept any notice, letter, statement of allegation,
order or any other papers sent to him by the employer, it shall be understood to have
been delivered to him, if a copy thereof is exhibited on the notice board and another
copy is sent by registered post to the address of the worker obtained from the
records of the employer.
(10) In awarding any punishment the employer shall take into account the
previous record of the worker concerned, the importance of the offence, credit and
contribution during service and existing any other special circumstances.
25. Special provisions relating to fine.- (1) No fine exceeding one-tenth of
the wages payable to a worker in a wage-period shall be imposed on any worker.
(2) No fine shall be imposed on a worker who is under the age of 15 (fifteen)
years.
(3) No fine imposed on any worker shall be recovered from him by
installments or after the expiry of 60 (sixty) days from the date on which it was
imposed.
(4) Every fine shall be deemed to have been imposed on the day of the
commission of the offence in respect of which it was imposed.
(5) All fines and all realizations thereof shall be recorded by the employer in a
register prescribed by rules and all fines realized shall be spent only for the welfare
of the workers employed in the establishment.
26. Termination of employment of worker by an employer otherwise than
by dismissal, etc.- (1) The employment of a permanent worker may be terminated
by an employer, otherwise than in the manner provided elsewhere in this Chapter, by
giving him a notice in writing, of
(a) 120 (one hundred and twenty) days, if he is a monthly rated
worker;
(b) 60 (sixty) days, in case of other workers.
(2) The employment of a temporary worker may be terminated by an
employer, otherwise than in the manner provided elsewhere in this Chapter, and if it
is not due to the completion, cessation, abolition or discontinuance of the temporary
work for which he was appointed, by giving him a notice in writing, of
(a) 30 (thirty) days, if he is a monthly rated worker;
(b) 14 (fourteen) days, in case of other worker.
(3) Where an employer intends to terminate the employment of a worker
without any notice, he may do so by paying the worker wages for the period of
notice, in lieu of the notice, under sub-section (1) or (2).
(4) Where the employment of a permanent worker is terminated under this
section, he shall be paid by the employer compensation at the rate of 30 (thirty) days
wages for his every completed year of service or gratuity, if payable, whichever is
higher, and this compensation shall be in addition to any other benefit which is
payable to such worker under this Act.
27. Termination of employment by workers.- (1) A permanent worker may
resign his service by giving the employer 60 (sixty) days notice in writing.
(2) A temporary worker may resign his service by giving the employer a
notice, in writing, of
Bangladesh Labour Act, 2006
20
(a) 30 (thirty) days, if he is a monthly rated worker;
(b) 14 (fourteen) days, in case of other workers.
(3) Where a worker intends to resign his service without any notice, he may
do so by paying the employer an amount equal to the wages for the period of notice,
in lieu of notice under sub-section (1) or (2).
(3A) Notwithstanding anything contained in sub-section (3), if a worker
remains absent from his work place for more than 10 (ten) days without notice or
permission, the employer shall serve him a notice to explain the reason of his absent
and join the service within 10 (ten) days and, in such case, if the worker does not
submit any written explanation or join the service within the stipulated time, the
employer shall give him further 7 (seven) days time to defend himself, and thereupon
if the worker does not join the service or defend himself, he shall be deemed to have
been resigned from service on and from the date of such absence.
(4) Where a permanent worker resigns his service under this section, he shall
be paid by the employer compensation,-
(a) at the rate of 14 (fourteen) days’ wages for his every completed
year of service, if he completes 5 (five) years of continuous
service or more but less than 10 (ten) years under the employer;
(b) at the rate of 30 (thirty) days’ wages for every completed year of
service if he completes 10 (ten) years of continuous service or
more under the employer; or gratuity, if payable, whichever is
higher, and this compensation shall be in addition to any other
benefit payable to such worker under this Act.
28. Retirement of worker.- (1) Notwithstanding anything contained
elsewhere in this Chapter, a worker employed in any establishment shall, ipso facto,
retire from employment on the completion of 60 (sixty) years of his age.
(2) For the purpose of counting age of a worker under this section, the date of
birth recoded in the service book of that worker shall be the conclusive proof.
(3) Every retiring worker shall be paid the dues receivable by him under the
provisions of section 26(4) or under the service rules of the establishment:
Provided that notwithstanding anything contained in the sub-section, in the
case of the workers of tea industry the existing retirement benefits including other
benefits shall be applicable
(4) Any authority may, if it thinks fit, employ later on a retiring worker under
contract.
28A. Employer-worker relations in disaster or damage beyond control.-
Notwithstanding anything contained in this Chapter, if, for sudden natural disaster or
any other disaster which is beyond human control or for urgent necessity, any
industry is shifted or production of any industrial establishment is permanently
closed, the Government may determine the employer and worker relations in such
manner as may be prescribed by rules.
29. Payment of Provident Fund.- If a worker is a member of any Provident
Fund and is entitled to any benefit from such Fund including the employer’s
contribution under the rules of the Fund, he shall not be deprived of such benefit due
to retrenchment, discharge, dismissal, retirement, removal, termination of service or
death.
30. Time for final payment of dues of worker.- Where the employment of a
worker ceases due to retirement, discharge, retrenchment, dismissal, termination or
any other reason, . all amounts due to him shall be paid by the appointing authority
Bangladesh Labour Act, 2006
21
within a maximum period of 30 (thirty) working days following the date of cessation of
his employment.
31. Certificate of service.- Every worker, other than a casual or substitute
worker, shall be entitled to get a certificate relating to service from his employer at
the time of his retrenchment, discharge, dismissal, removal, retirement or termination
of service.
32. Eviction from residential accommodation.- (1) A worker, whose service
has been ceased by whatever means, shall vacate the residential accommodation
allotted to him by the employer within the period of 60 (sixty) days from the date of
cessation of employment.
(2) If a worker does not vacate the residential accommodation within such
period, the employer may make a complaint against him to the Labour Court:
Provided that no worker shall be evicted from his residential accommodation
without paying him all his dues.
(3) On hearing both the parties, the Court shall summarily try the case and
may direct the said worker to vacate the residential accommodation within a
reasonable time.
(4) The Court may, if necessary, direct a police officer to evict such worker, by
force, in case he fails to quit residential accommodation within the time specified by
the Court.
(5) The police officer, who is directed by the Court under sub-section (4), shall
inform the occupants of the accommodation the summary of the order of the Court
and his intention to enter into such accommodation, and shall allow them at least 6
(six) hours time to vacate the accommodation, and shall give all possible facilities to
the children to come out before applying force for taking over possession of such
accommodation.
33. Procedure of making complaint.- (1) Any worker including a worker who
has been laid-off, retrenched, discharged, dismissed, removed, or otherwise
terminated from employment, who has any complaint in respect of anything under
this Chapter, and intends to get redress thereof under this section, shall 3 send his
complaint in writing to his employer, by registered post within 30 (thirty) days of
being informed of the cause of such complaint:
Provided that if the appointing authority accepts the complaint directly and
acknowledges the receipt thereof in writing, such complaint shall not be required to
be sent by registered post.
(2) The employer shall within 30 (thirty) days of receipt of the complaint, make
enquiry into the complaint and shall after giving the concerned worker an opportunity
of being heard, communicate him in writing his decision thereon.
(3) If the employer fails to give any decision under sub-section (2), or if the
concerned worker is dissatisfied with such decision, he may submit a complaint in
writing, to the Labour Court within 30 (thirty) days from the date of expiry of the
period mentioned in sub-section (2) or, as the case may be, within 30 (thirty) days
from the date of the decision of the employer.
(4) The Labour Court shall, on receipt of the complaint, give notice to both the
parties and hear their statement on the complaint, and considering the
circumstances of the case shall pass such order as it may deem just.
(5) The Labour Court, may, by an order passed under sub-section (4),
amongst other reliefs, direct for reinstatement of the complainant in service, with or
without arrear wages and convert the order of dismissal, removal or discharge to any
minor punishment specified in section 23(2).
Bangladesh Labour Act, 2006
22
(6) Any person aggrieved by an order of the Labour Court, may, within thirty
days of the order, prefer an appeal to the Tribunal, and the decision of the Tribunal
on such appeal shall be final.
(7) No Court-fee shall be payable for making any complaint or preferring an
appeal under this section.
(8) No complaint under this section shall amount to a criminal prosecution
under this Act.
(9) Notwithstanding anything contained in this section, no complaint shall lie
against an order of termination of employment under section 26, unless such order is
alleged to have been made for his trade union activities or passed with an ill motive
or unless the worker concerned has been deprived of the benefits specified in that
section.
Bangladesh Labour Act, 2006
23
CHAPTER III
EMPLOYMENT OF ADOLESCENT WORKER
34. Restrictions on employment of children and adolescents.- (1) No child
shall be employed or permitted to work in any occupation or establishment.
(2) No adolescent shall be employed or permitted to work in any occupation or
establishment, unless-
(a) a certificate of fitness in the form prescribed by rules, and
granted to him by a registered medical practitioner is in the
custody of the employer ; and
(b) he carries, while at work, a token containing a reference to such
certificate.
(3) Nothing of sub-section (2) shall apply to the employment of any adolescent
in any occupation or establishment either as an apprentice or for receiving vocational
training.
(4) The Government may, if it thinks that an emergency exists and it is
necessary in the public interest, by notification in the official Gazette, suspend the
application of sub-section (2) for such period as may be specified therein.
35. Restriction on certain agreements in respect of children.- Subject to
the provisions of this Chapter, no parent or guardian of a child shall make an
agreement with any one allowing the child to be appointed for any work.
Explanation.- In this section, ”guardian” shall include a legal custodian of a
child or any person having authority over a child.
36. Dispute as to the age.- If any question arises as to whether any person is
a child or an adolescent it shall be resolved on the basis of birth registration
certificate or school certificate or a certificate issued by a registered medical
practitioner certifying the age of the concerned person.
37. Certificate of fitness.- (1) A registered medical practitioner shall, on a
request made by any adolescent or his parent or guardian or by an employer for
examining whether the adolescent is fit to work in any occupation or establishment,
examine the adolescent and give decision as to his fitness:
Provided that when such application is made by any adolescent or his parent
or guardian, the application shall be accompanied by a letter signed by the employer
in whose establishment the adolescent is an applicant for employment stating that
such adolescent shall be employed if he is certified to be fit for work.
(2) A certificate of fitness granted under this section shall remain valid for a
period of 12 (twelve) months from the date on which it was issued.
(3) Any fee payable for such certificate shall be paid by the employer, and
shall not be recoverable from the concerned adolescent or his parents or guardian.
38. Power to order for medical examination.- Where a Labour Inspector is
of opinion that-
(a) any person working in an establishment is an adolescent, but he has
no certificate of fitness; or
(b) an adolescent working in an establishment with a certificate of fitness is
no longer fit to work stated in the certificate;
he may, by a notice, require the employer to get such adolescent to be examined by
a medical practitioner, and until the adolescent is certified to be fit after such
examination or is certified that the adolescent is no longer an adolescent, may direct
the employer not to give such adolescent any work.
Bangladesh Labour Act, 2006
24
39. Declaration of list of hazardous work and restrictions on employment
of adolescents in certain work.- (1) The Government shall, by notification in the
official Gazette, declare, from time to time, a list of hazardous work.
(2) No adolescent shall be employed in any work declared by the Government
as hazardous.
(3) No adolescent shall be allowed to clean, lubricate or adjust any machinery
of any establishment while it is in motion or to work between moving parts or
between the fixed and moving parts of such machinery.
40. Employment of adolescent in the work or hazardous work of
dangerous machines.- (1) No adolescent shall work at any machine, unless-
(a) he has been fully instructed as to the dangers arising in
connection with such machine and the precautions to be
observed in this respect; and
(b) he has received sufficient training to work at the machine, or is
under supervision of a person who has thorough knowledge and
experience of the machine.
(2) This provision shall apply to such machines as may be notified by the
Government to be of such a dangerous character that an adolescent should not work
at them unless the requirements of sub-section (1) are complied with.
41. Working hour for adolescent.- (1) No adolescent shall be allowed to
work in any factory or mine for more than 5 (five) hours in any day and 30 (thirty)
hours in any week.
(2) No adolescent shall be allowed to work in any other establishment for
more than 7 (seven) hours in any day and 42 (forty two) hours in a week.
(3) No adolescent shall be allowed to work in any establishment between 7.00
O’CLOCK in the evening and 7.00 O’CLOCK in the morning.
(4) If an adolescent works overtime, the total number of hours worked
including overtime shall not exceed-
(a) in any factory or mine, 36 (thirty six) hours in a week;
(b) in any other establishment, 48 (forty eight) hours in a week.
(5) The period of work of an adolescent employed in an establishment shall
be limited to 2 (two) shifts, and the period of any shift shall not exceed more than
seven and a half hours.
(6) An adolescent may be employed in one relay only and this shall not,
except with the previous permission, in writing, of the Labour Inspector, be changed
more than once in a period of 30 (thirty) days.
(7) The provisions relating to weekly holidays under this Act shall apply also to
the adolescent workers and the operation of this provision shall not be suspended in
respect of the adolescent workers.
(8) No adolescent shall be allowed to work in more than one establishment in
a day.
42. Prohibition of employment of adolescent in underground and under
water.- No adolescent shall be employed in any work in the underground or
underwater.
43. Notice of period of work for adolescent.- (1) In an establishment where
adolescents are employed, there shall be displayed in the manner prescribed by
rules, a notice relating to working hours of adolescents with reference to specific time
of their work.
Bangladesh Labour Act, 2006
25
(2) The time shown in the notice under sub-section (1) shall be fixed before
start of the work in the manner fixed for adult workers and shall be such that any
adolescent working at that time shall not have to work in contravention of this Act.
(3) The relevant provisions applicable to adult workers working in the
establishment shall also apply to the notice under sub-section (1).
(4) The Government may, by rules, prescribe the form of such notice and the
manner in which it shall be maintained.
44. Employment of handicapped worker in certain cases.- No
handicapped worker shall be employed in the work of a dangerous machine or
hazardous work.
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26
CHAPTER IV
MATERNITY BENEFIT
45. Prohibition of engagement of women worker in work in certain
cases.- (1) No employer shall knowingly engage a woman in his establishment
during the 8 (eight) weeks immediately following the day of her delivery.
(2) No woman shall work in any establishment during the 8 (eight) weeks
immediately following the day of her delivery.
(3) No employer shall employ any woman for doing any work which is of an
arduous nature or which involves long hours of standing or which is likely to
adversely affect her health, if-
(a) he has reason to believe or if the woman has informed him that
she is likely to deliver a child within 10 (ten) weeks;
(b) to the knowledge of the employer the woman has delivered a
child within the preceding 10 (ten) weeks:
Provided that in the case of tea plantation worker, a
woman worker may do work of a light nature if and for so long
as the medical practitioner of the concerned tea estate certifies
that she is physically fit to do so; and, for the days that she does
such work, she shall be paid for such work wages at the rate
prescribed under the existing law, and such wages shall be
payable in addition to the maternity benefit.
46. Right to maternity benefit and liability for its payment.- (1) Every
woman worker shall be entitled to maternity benefit from her employer for the period
of 8 (eight) weeks1 preceding the expected day of her delivery and 8 (eight) weeks
immediately following the day of her delivery, and her employer shall be bound to
give her this benefit:
Provided that a woman shall not be entitled to such benefit unless she has
worked under her employer for a period of not less than 6 (six) months immediately
preceding the day of her delivery.
(2) No such benefit shall be payable to a woman if at the time of her delivery
she has 2 (two) or more surviving children, but in that case she may enjoy any leave
which is due to her.
47. Procedure regarding payment of maternity benefit.- (1) If a pregnant
woman is entitled to maternity benefit under this Act, she shall, on any day, give
notice either orally or in writing to her employer that she expects to be confined
within 8 (eight) weeks next following and the name of the person who shall receive
the payment of the benefit in case of her death shall also be included in the notice.
(2) If a woman has not given any such notice, she shall inform her employer
about her giving birth to a child by giving such notice within 7 (seven) days of her
giving birth to child.
(3) After receipt of a notice under sub-section (1) or (2), the employer shall
permit the concerned woman to absent herself from work,-
(a) in the case of a notice under sub-section (1), from the day
following the date of notice;
(b) in the case of a notice under sub-section (2), from the day of
delivery until 8 (eight) weeks after the day of delivery.
(4) An employer shall pay maternity benefit to a woman in any of the following
ways as that woman may desire, namely:
(a) where a certificate from a registered medical practitioner is
produced stating that the woman is expected to be confined
Bangladesh Labour Act, 2006
27
within 8 (eight weeks the maternity benefit payable for 8 (eight)
weeks preceding delivery shall be paid within 3 (three) working
days following the production of the certificate, and such benefit
payable for the remaining period shall be paid within 3 (three)
working days of the production of proof that she has given birth
to a child; or
(b) maternity benefit payable for 8 (eight) weeks preceding and
including the date of delivery shall be paid within 3 (three)
working days following the production of proof to the employer
that she has given birth to a child, and such benefit payable for
the remaining period shall be paid within 8 (eight) weeks
following the production of such proof; or
(c) maternity benefit payable for the whole of such period shall be
paid within three working days following the production of proof
that she has given birth to a child; or
(d) Any female workers delivered a child before giving notice to
employer, within next 3 working days of the production of
evidence of delivery the employer shall allow her to remain
absent for 8 weeks after the delivery including the whole period
of maternity benefits:
Provided that a woman shall not be entitled to any
maternity benefit or any part thereof, the payment of which is
dependent upon the production of proof under this sub-section
that she has given birth to a child, unless such proof is produced
within 3 (three) months of the day of her delivery:
Provided further that if miscarriage caused to any female
worker before fixed date of availing maternity leave, she shall
not be entitled to maternity benefits, but she can avail leave for
health reason.
(5) The proof which is required to be produced under sub-section (4) shall be
either an attested extract from a birth register maintained under the Births and
Deaths Registration Act, 2004 (Act No. XXIX of 2004) or a certificate given by a
registered medical practitioner or such other proof as may be acceptable to the
employer.
48. Amount of maternity benefit.- (1) The maternity benefit which is payable
under this Chapter shall be paid at the rate of daily, weekly or monthly average
wages, as the case may be, calculated in the manner laid down in sub-section (2),
and such payment shall be made wholly in cash.
(2) For the purpose of sub-section (1), the daily, weekly or monthly average
wages shall be calculated by dividing the total wages earned by the concerned
woman during 3 (three) months immediately preceding the date on which she gives
notice under this Chapter by the number of days she actually worked during that
period.
49. Payment of maternity benefit in case of death of a woman.- (1) If a
woman entitled to maternity benefit under this Chapter dies at the time of her
delivery or during 8 (eight) weeks following thereof, the employer shall pay the
amount of maternity benefit, if the newly born child survives, to the person who takes
care of the child, and if the child does not survive to the person nominated by her
under this Chapter, or if there is no such nominee, to her legal representative.
(2) If a woman dies during the period for which she is entitled to maternity
benefit but before giving birth to a child, the employer shall be liable to pay such
Bangladesh Labour Act, 2006
28
benefit for the period preceding and including the day of her death, provided that if
any such benefit already paid to her exceeds the amount of such benefit now
payable shall not be recoverable, and if any amount in this regard is due to the
employer till the time of death of the woman, he shall pay it to the nominee of the
woman under this Chapter, or if there is no nominee, to her legal representative.
50. Restrictions on termination of employment of a woman in certain
cases.- If any notice or order of discharge, dismissal, removal or otherwise
termination of employment is given by the employer to a woman worker within a
period of 6 (six) months before and 8 (eight) weeks after her delivery and such notice
or order is given without sufficient cause, she shall not be deprived of any maternity
benefit to which she would be entitled under this Chapter if such notice or order has
not been given.
Bangladesh Labour Act, 2006
29
CHAPTER V
HEALTH AND HYGIENE
51. Cleanliness.- Every establishment shall be kept clean and free from
effluvia arising from any drain, privy or any other nuisance, and in particular-
(a) the dirt and refuge shall be removed daily by sweeping in a suitable
manner from the floors, work-rooms, staircases and passages of the
establishment;
(b) the floor of every work-room shall be washed at least once in every
week and, if necessary, disinfectant shall be used in washing;
(c) where any floor becomes wet in the course of any manufacturing
process to such an extent that drainage is required thereof, effective
means of drainage shall be provided and maintained;
(d) all inside walls, partitions, ceilings, staircases, passages shall-
(i) if they are painted or varnished, be repainted or re-varnished at
least once in every 3 (three) years,
(ii) if they are painted or varnished and have smooth imperious
surface, be cleaned at least once in every 14 (fourteen) months,
by such methods as may be prescribed by rules,
(iii) in other cases, be white-washed or colour-washed at least once
in every 14 (fourteen) months, ; and
(e) the dates of completing works mentioned in clause (d) shall be entered
in the register prescribed by rules.
52. Ventilation and temperature.- (1) Arrangements for adequate ventilation
shall be made for securing and maintaining circulation of fresh air in every workroom of every establishment.
(2) Suitable measures shall be taken to keep the temperature in every such
room in such a condition that may secure to workers therein reasonable conditions of
comfort, and prevent injury to health of the workers.
(3) For the purpose of sub-section (2), the wall and roof of a room shall be so
designed that such temperature does not rise, and remains low as far as possible.
(4) Where the nature of the work in an establishment is such that it likely to
produce excessive high temperature, the suitable measures, as far as possible shall
be taken to separate the source of producing such excessive temperature or the hot
part of it by insulating such source or part or by any other means from the workroom
of the workers.
(5) If it appears to the Government that excessively high temperature in any
establishment may be reduced by white-washing, spraying or insulating or screening
outside walls, roofs or windows, or by raising the level of the roof, or by other special
methods, it may direct to adopt any of the suitable measures mentioned above in
such establishment.
53. Dust and fume.- (1) If in any establishment, by reason of any
manufacturing process carried on, there is given off any dust or fume or other
impurity of such a nature and to such an extent as is likely to be injurious to the
health of, or offensive to, the workers employed therein, the effective measures shall
be taken to prevent its accumulation in any work-room and its inhalation by workers,
and if any exhaust appliance is necessary for this purpose, it shall be applied as near
as possible to the point of origin of the dust, fume or other impurity, and such point
shall be enclosed as far as possible.
(2) In any establishment no internal combustion engine shall be operated
unless the exhaust is conducted into open air, and no internal combustion engine
Bangladesh Labour Act, 2006
30
shall be operated in any work-room unless effective measures are taken to prevent
such accumulation of fumes therein as are likely to be injurious to the health of the
workers employed in the work-room.
54. Disposal of wastes and effluents.- Effective arrangements shall be
taken in every establishment for disposal of wastes and effluents due to
manufacturing process carried on therein.
55. Artificial humidification.- (1) If the humidity of air is artificially increased
in any establishment, the water used for the purpose shall be taken from a public
water supply system or other source of drinking water, or shall be effectively purified
before it is so used.
(2) If it appears to the Labour Inspector that the water used for such purpose
is not effectively purified as required under sub-section (1), he may serve on the
employer an order in writing to adopt measures specified therein in that order the
time specified therein.
56. Overcrowding.- (1) No work-room in any establishment shall be
overcrowded to an extent injurious to the health of the workers employed therein.
(2) Without prejudice to the generality of the above provisions at least 9.5
cubic metres of space shall be provided for every worker employed in a work-room.
Explanation.- For the purpose of this sub-section, if the height of any room is
more than 4.25 metres above the floor level it shall not be taken into account.
(3) If the Inspector General by order in writing requests any employer, a notice
shall be posted in each work-room of the establishment specifying the maximum
number of workers who may, in compliance with the provisions of this section, be
employed in that room.
(4) The Inspector General may, by order in writing, exempt any work-room
from the provision of this section if he is satisfied that compliance therewith in
respect of such room is not necessary for the purpose of health of the workers
employed therein.
57. Lighting.- (1) Sufficient and suitable lighting, natural or artificial, or both,
shall be provided in every part of an establishment where workers are working or
passing.
(2) In every establishment, all glass windows and skylights used for the
lighting of the work-room shall be kept clean on both surfaces, and free from
obstruction as far as possible.
(3) In every establishment, effective measures shall be taken for the
prevention of-
(a) glare either directly from any surface of light or by reflection from
any polished surface, or
(b) the formation of shadows to such an extent as to cause eye
strain or risk of accident to any worker.
58. Potable water.- (1) In every establishment, arrangements shall be made
at a suitable point to supply sufficient purified potable water for all workers employed
therein.
(2) All water supply points shall be legibly marked with “Potable water” in
Bangla.
(3) Where two hundred fifty or more workers are ordinarily employed in an
establishment, provision shall be made for cooling the potable water during the
summer.
Bangladesh Labour Act, 2006
31
(4) Where dehydration occurs in the body of workers due to work near
machineries creating excessive heat, oral re-hydration therapy shall be provided to
those workers.
59. Toilets and washrooms.- In every establishment,-
(a) sufficient number of sanitary toilets and washrooms of the type
prescribed by rules shall be provided at the suitable places so that the
workers employed therein at the time of work may use easily;
(b) such toilets and washrooms shall be provided separately for male and
female workers;
(c) toilets and washrooms shall be adequately lighted and ventilated and
water shall be provided at all times; and
(d) such toilets and washrooms shall be maintained in a clean
andnsanitary condition at all times with suitable detergents and
disinfectants at employer’s cost.
60. Dustbin and spittoon.- (1) Sufficient number of dustbins and spittoons
shall be provided in every establishment at convenient places and these shall be
maintained in a clean and hygienic condition.
(2) No person shall throw any dirt or spit within the premises of an
establishment except in such dustbins and spittoons.
(3) A notice containing this provision and the fact that contravention thereof is
a punishable offence shall be posted at different suitable places of every
establishment so that it may easily comes to the notice of all.
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32
CHAPTER VI
SAFETY
61. Safety of building and machinery.- (1) When it appears to a Labour
Inspector that any building, or any part thereof, or any road, machinery or plant or
internal electrical system of a building an establishment is in a condition which is
dangerous to human life or safety, he may, by an order in writing, direct the employer
to take such measures as, in his opinion, are required to be taken, within such time
as may be specified in the said order.
(2) When it appears to a Labour Inspector that the use of any building, or any
part thereof or any road, machinery or plant or internal electrical system of a building
an establishment is in imminent danger to human life or safety, he may, by an order
in writing, address to the employer, prohibit its use until it is properly repaired or
altered.
62. Precaution as to fire.- (1) Every establishment shall be provided with
such means of exit including at least one alternative staircase connecting with every
floor at the time of fire and requisite number of fire fighting equipments in every floor
as may be prescribed by rules.
(2) If it appears to a Labour Inspector that no means of exit has been provided
according to the rules mentioned in sub-section (1) or no requisite number of fire
fighting equipments have been placed according to the licence given by the Fire
Service Department, he may, by serving an order in writing upon the employer,
inform him of the measures which in his opinion are required to be taken within the
time specified in that order.
(3) In every establishment the door affording exit from any room shall not be
locked or fastened so that the person working in the room may easily and
immediately open it from inside and all such doors, unless they are of the sliding
type, shall be constructed to open outwards, or where the door is between two
rooms, in the direction of the nearest exit from the building and no such door shall be
locked or obstructed while work is being carried on in the room.
(3a) In every establishment, while work is going on, no exit of a room shall be
kept locked or fastened and no exit shall be hindered or no barrier shall be put on the
way.
(3b) All doors shall be made in such a way that they may be opened at once
from inside of a working room to outwards.
(3c) If there is any door between 2 (two) rooms, it shall be made in such a
way that it may be opened near to the nearest exist of the building and no such door
shall be kept locked or hindered while work is going on.
(4) In every establishment, except the exit for ordinary use, every window,
door or other exit affording means of escape in case of fire shall be distinctively
marked in Bangla letters by red colour or marked by other clearly understood sign.
(5) In every establishment, the clearly audible whistle shall be provided to
alarm every worker employed therein in case of fire or danger.
(6) A free passage-way giving access to each way of exit in case of fire shall
be provided for the use of the workers in every room of the establishment.
(7) In every establishment where 10 (ten) or more workers are ordinarily
employed in any place above the ground floor, or explosive or highly inflammable
materials are used, or stored, effective measures shall be taken to ensure that all
workers may be familiar with the means of escape in case of fire and are adequately
trained in the routine work to be followed in such cases.
(8) In factories and establishments wherein 50 (fifty) or more workers/
employees are employed, at least once in every 6 (six) months a mock firefighting
Bangladesh Labour Act, 2006
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shall be arranged and a book of records in this regards shall be maintained in the
prescribed manner by the employer.
63. Fencing of machinery.- (1) In every establishment the following
machinery, while in motion or in use, shall be securely fenced by the safeguards of
substantial construction, namely:-
(a) every moving part of a prime mover, and every fly wheel
connected therewith;
(b) both face of every water wheel and water turbine;
(c) every part of a stock-bar which projects beyond the head stock
of a lathe; and
(d) unless the following machinery are in such position or of such
construction as to be safe to every person employed in the
establishment as they would be if they were securely fenced-
(i) every part of an electric generator, a motor or rotary
converter,
(ii) every part of transmission machinery,
(iii) every dangerous part of any machinery:
Provided that for the purpose of determining
whether any part of machinery is safe as aforesaid, any
occasion of examination or operation made or carried out
in accordance with the provisions of section 64 shall not
be taken into account.
(2) Without prejudice to any other provision of this Act relating to the fencing
of machinery, every revolving shaft, spindle wheel or every set screw, bolt and key
on any pinion and all spur, worm and other toothed or friction gearing in motion with
which any worker generally comes into contact such appliances shall be securely
fenced to prevent such contact.
64. Work on or near machinery in motion.- (1) Where, in any
establishment, it becomes necessary to examine any part of machinery while in
motion under section 63, or as a result of such examination to carry out any
mounting or shipping of belts, lubrication or other adjusting operation while the
machinery is in motion, such examination or operation shall be carried out by a
specially trained male worker, and the tight-fitting cloths shall be worn by that worker,
and his name shall be recorded in the register prescribed in this behalf, and while
such worker is engaged in such works, he shall not handle a belt at a moving pulley,
unless the belt is less than 15 (fifteen) centimetres in a width and its joint is tightened
with flush and lace.
(2) The Government may, by notification in the official Gazette, prohibit
cleaning, lubricating, adjusting of any specified moving part of any machinery in any
specified establishment.
65. Striking gear and devices for cutting off power supply.- (1) In every
establishment-
(a) the suitable striking gear and other efficient mechanical
appliance which shall be used to move driving belts to and from
fast and loose pulleys of the transmission machinery shall be
maintained, and such gear or appliances shall be so
constructed, placed and maintained as to prevent the belt from
cropping back on the first pulleys;
(b) when any driving belt is not in use, it shall not be allowed to rest
upon any shaft in motion.
Bangladesh Labour Act, 2006
34
(2) Suitable devices for cutting off power in emergencies from running
machinery shall be provided in every work-room of every establishment.
66. Automatic machines.- Where any moving part of an automatic machine
and any material carried thereon in an establishment is in a space over which any
person is liable to pass either for the purpose of duty or for any other reason, it shall
not be allowed to move outward or in ward between 45 (forty-five) centimetres from
any fixed structure which is not a part of such machine:
Provided that the Inspector General may permit, on such conditions for
ensuring safety as he thinks fit, the continued use of a machine installed before the
commencement of this Act which does not comply with the requirements of this
section.
67. Casing of new machinery.- After the commencement of this Act, in every
power driven machinery installed in an establishment-
(a) every set screw, belt or key, or any revolving shaft, spindle wheel or
pinion shall be so sunk, encased or otherwise effectively guarded so as
to prevent danger;
(b) all spur, worm and other toothed gearing, which does not require
frequent adjustment while in motion, shall be completely encased,
unless it is so situated as to be safe if it were completely encased.
68. Cranes and other lifting machinery.- In an establishment, the following
provisions shall apply to all cranes and other lifting machinery, except hoist and lift
namely:-
(a) the fixed or movable working gear, ropes, chains and anchoring or
fixing appliances and every part thereof shall be-
(i) of good construction with sound material and adequate strength,
(ii) properly maintained,
(iii) thoroughly examined by a competent person at least once in
every 12 (twelve) months and a register shall be maintained
containing particulars prescribed by rules, of every such
examination;
(b) no such machinery shall be loaded beyond the working load marked
thereon;
(c) while any person is working on the wheel-tract of a traveling crane in
any place, where he is likely to be struck by the crane, effective
measures shall be taken to ensure that the crane does not approach
within 6 (six) metres of that place.
69. Hoists and lifts.- (1) Every hoist and lift in every establishment shall be-
(a) of good construction with sound material and adequate strength;
(b) properly maintained;
(c) thoroughly examined by a competent person at least once in
every 6 (six) months, and a register shall be maintained
containing such particulars, of every examination as may be
prescribed by the rules.
(2) Every hoist way and lift way shall be sufficiently protected by an enclosure
fitted with gates and the hoist or lift and every such enclosure shall be so constructed
as to prevent any person or thing from being trapped between any part of the hoist or
lift and any fixed structure or moving part.
Bangladesh Labour Act, 2006
35
(3) In every establishment, the capacity of safe working load shall be clearly
written down on every hoist or lift and no load beyond such load shall be carried
thereon.
(4) In every establishment, the cage of every hoist or lift used for carrying
persons shall be fitted with a gate on both sides for riding and landing. The highest
capacity of every hoist and lift shall be written legibly in Bangla.
(5) Every gate referred to in sub-sections (2) and (4) shall be fitted with
interlocking or other efficient device to secure that the gate shall not be opened until
the cage is landed, and that the cage shall not be moved until the gate is closed.
(6) The following additional requirements shall be applied to hoists and lifts
installed or reconstructed in an establishment after the commencement of this Act,
namely:-
(a) where the cage is dependent on rope or chain, there shall be at
least 2 (two) ropes or chains separately connected with the cage
and shall maintain its balance, and every rope and chain shall
be such that it may carry the cage together with its maximum
load;
(b) efficient devices shall be provided to support the cage together
with its maximum load in the event of breakage of the ropes and
chains;
(c) proper automatic devices shall be provided to control the
excessive speed of the cage.
(7) The Inspector General may, upon such conditions for ensuring safety as
he may think fit, permit to continue the use of a hoist or lift which was installed in an
establishment before the commencement of this Act without complying with the
provisions of sub-sections (1), (2), (3), (4) and (5).
70. Revolving machinery.- (1) In every room in an establishment in which
the process of grinding is carried on, there shall be permanently affixed to or placed
near, each machine in use a notice indicating the following matters, namely:-
(a) maximum safe working peripheral speed of every grind stone or
abrasive wheel;
(b) the speed of the shaft or spindle upon which the wheel is
mounted;
(c) the diameter of the pulley upon such shaft or spindle necessary
to secure such safe working peripheral speed.
(2) The speeds indicated in the notice shall not be exceeded.
(3) Effective measures shall be taken in respect of every revolving vessel,
cage, basket, fly-wheel, pulley disk or similar appliances driven by power so that
their prescribed speed may not be exceeded.
71. Pressure plant.- Where in any establishment any part of the plant or
machinery used in manufacturing process is operated at a pressure above the
atmospheric pressure, effective measures shall be taken to ensure that the safe
working pressure of such part is not exceeded.
72. Floors, stairs and passages.- In every establishment,-
(a) all floors, stairs, passages shall be of sound construction and properly
maintained and where necessary strong railing shall be provided to
ensure their safety, and the passages and stairs shall be kept opened
for easy movement during continuance of work.
Bangladesh Labour Act, 2006
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(b) there shall, in so far as reasonably practicable, be provided with safe
means of access to every place where any person is, at any time,
required to work;
(c) passages and stairways shall be clean, wide and clear of all
obstructions; and (d) an employer may, for overall safety of the factory
and workers, bring the passages of movements, stairs, gates, godowns
and common utility area of the place of work under close circuit
camera.
73. Pits, sumps, tunnel mouths, etc.- Where in an establishment any fixed
vessel, sump, tank, pit or tunnel in such that, by reason of its depth, situation,
construction or contents, it may be a source of danger, it shall be either securely
covered or fenced.
74. Excessive weights.- No worker shall be allowed in any establishment to
lift, carry or move any load so heavy as to be likely to cause his injury.
75. Protection of eyes.- The Government may, in respect of any
establishment where manufacturing process is carried on, by rules, require that
suitable goggles or eye screens shall be provided for the protection of eyes of the
persons employed therein, if any of the following risks involves in such process,
namely:-
(a) risk of injury to the eyes from particles or fragments thrown off in the
course of the process;
(b) risk to the eyes by reason of exposure to excessive light or heat.
76. Power to ascertain defective parts to test their stability.- If it appears
to a Labour Inspector that any building, or any part thereof, or any passage,
machinery or plant, of an establishment is in a condition which is dangerous to
human life or safety, he may, by order in writing, to be served on the employer of the
establishment, require him to do the following works within the time specified therein,
namely:-
(a) to supply necessary drawings and other information or particulars to
determine whether such building, passage, machinery or plant may be
used with safety;
(b) to carry out necessary tests to determine the strength or quality of any
specific part and to inform the Labour Inspector of the result thereof.
77. Precautionary measures against dangerous fumes.- (1) No person
shall enter or be permitted to enter any room, vessel, hole, pipe, flue or other
confined space of any establishment, where the dangerous fumes are likely to exist
to such extent as to involve risks to any person, unless it is provided with a manhole
of such size, as may be prescribed by rules or other effective means of exit.
(2) No portable electric light of a voltage of exceeding 24 (twenty-four) volts
shall be permitted to use inside any confined space referred to in sub-section (1) and
where fumes are likely to be flamed, no light other than the light made of flame
misstating metal shall be allowed to use in such place.
(3) No person shall enter or be permitted to enter any such confined space of
any establishment until all practicable means are taken to remove fumes from there
or prevent access thereto, and unless any of the following measures are taken-
(a) a certificate is given by a competent person after carrying out
test that the space is free from dangerous fumes and fit for
entering thereto; or
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(b) the concerned worker is wearing a suitable breathing apparatus
and a rope is securely attached to a belt the free end of which is
held by a person standing outside such space.
(4) In every establishment, the suitable breathing apparatus, reviving
apparatus, belts and ropes shall be kept ready for instant use beside any such space
and such apparatus shall be periodically examined by a competent person, and shall
be certified by him that it is fit for use, and a sufficient number of persons employed
in every establishment shall be trained and practiced in the use of all such apparatus
and the method of restoring respiration.
(5) In any establishment no person shall be permitted to enter into any boiler,
furnace, flue chamber, tank, pipe or other confined space for the purpose of working
or making any examination therein until it is sufficiently cooled by ventilation or
otherwise made it fir for human entry.
78. Explosive or inflammable gas, dust, etc.- (1) Where, in any
establishment gas, fume, dust or vapour produced due to any manufacturing process
is of such character or to such extent which is likely to be exploded or ignited, all
practicable measures shall be taken to prevent any such explosion by any of the
following ways, namely:-
(a) by effectively enclosing plant or machinery while it is in use;
(b) by removing or preventing accumulation of such dust, gas, fume
or vapour;
(c) by effectively enclosing all possible sources of ignition.
(2) Where in any establishment the plant or machinery used in a process is
not so constructed as to withstand the probable pressure which is produced in the
case of such explosion, all practicable measures shall be taken to restrict the spread
and effects of the explosion by the provision of chokes, baffles, vents or any other
effective apparatus in the plant or machinery.
(3) Where any part of the plant or machinery in an establishment contains any
explosive or inflammable gas or vapour under pressure greater than atmospheric
pressure, that part shall not be opened except in accordance with the following
provisions, namely:-
(a) before fastening of any joint of any pipe connected with the part
of the fastening of the cover of any opening into the part is
loosened, any flow of the gas or vapour into the part or any such
pipe shall be effectively stopped by a stop-valve or other means;
(b) all practicable measures shall be taken before removing any
such fastening or to reduce pressure of the gas or vapour to
atmospheric pressure;
(c) where any such fastening is loosened or removed, effective
measures shall be taken to prevent any explosive or
inflammable gas or vapour from entering the part or pipe until
the fastening is secured and securely replaced:
Provided that the provisions of this sub-section shall not
apply where any plant or machinery is installed in the open field.
(4) Where in any establishment any plant, tank or vessel contains or
contained at any time any explosive or inflammable substance, no welding or cutting
shall be carried out by using heat, unless adequate measures are first taken to
remove such substance or fumes or to render them un-flammable or un-explosive
and such substance shall not be allowed to enter such plant, tank or vessel after any
such works until the metal is cooled down sufficiently to prevent any risk of igniting
the substance.
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78A. Requirements to use personal safety equipments.- (1) No authority
shall engage any worker in work without providing him with personal safety
equipments and ensuring uses thereof and a record book shall be maintained in this
behalf by the employer in the prescribed manner.
(2) If any personal safety equipment is supplied but not used, the worker
concerned shall be liable.
(3) Every worker shall be made aware of the hazards of work through training
in order to ensure the protection and safety of his professional health in the place of
work.
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CHAPTER VII
SPECIAL PROVISIONS RELATING TO HEALTH,
HYGIENE AND SAFETY
79. Dangerous operation.- Where the Government is satisfied that any
operation carried on in an establishment exposes any person employed in it to a
serious risk of bodily injury, poisoning or disease, it may, by rules, make the following
provisions for such establishment, namely:-
(a) to declare which operations are hazardous;
(b) to prohibit the employment of women, adolescents or children in such
operation;
(c) to provide for regular medical examination of persons employed in
such operation and to prohibit the employment of persons not certified
to be fit for such employment;
(d) to provide for protection of all persons employed in the operation or in
the vicinity of such places and to use any specified materials or
processes in connection with the operation; and
(e) to give notice of any corrosive chemicals and of precautions to be
taken in their use.
80. Notice to be given of any accident.- (1) When any accident occurs in an
establishment causing loss of life or bodily injury, or an accidental explosion, ignition,
outbreak of fire or irruption of water or fumes occurs, the employer shall give notice
of the occurrence to the Labour Inspector within following 2 (two) working days:
Provided that the factory authority shall, immediately after the occurrence of
such incident, inform the matter to the Government, Fire Service, Department of
Inspection of Factories and Establishments, Police Station, and if required, the
nearby hospital or government-private medical service establishment, through
telephone, mobile phone, SMS or fax, in order to take immediate necessary action to
minimize potential damages or bring the situation under control.
(2) Where an accident mentioned in sub-section (1) causes bodily injury
resulting in the compulsory absence from work of the person injured for a period
exceeding 48 (forty-eight) hours, it shall be entered in a register prescribed by rules.
(3) The employer shall send to the Inspector General a copy of the entries in
the register referred to in sub-section (2) within 15 (fifteen) days following the 30th
day of June and the 31st day of December in each year.
81. Notice of certain dangerous occurrences.- Where in an establishment,
any dangerous occurrence of a nature prescribed by rules occurs, whether causing
any bodily injury or not, the employer shall inform the Labour Inspector by notice
within the following three working days.
82. Notice of certain diseases.- (1) Where in an establishment any worker
contacts any disease specified in the Second Schedule, the employer or the
concerned worker or any person specified by him in this behalf shall inform the
Labour Inspector by a notice in such form and within such time as may be prescribed
by rules.
(2) If any registered medical practitioner, while giving treatment to an existing
or previous worker of an establishment, finds that he is suffering or suspects to be
suffering from any disease specified in the Second Schedule, the said medical
practitioner shall forthwith inform by a report in writing, the Labour Inspector of the
following matters, namely:-
(a) the name and mailing address of the patient;
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(b) the name of the disease from which the patient is suffering or is
suspected to be suffering;
(c) the name and address of the establishment in which the patient
is or was last employed.
(2a) The employer determined by the Inspector General shall arrange for
treatment of the worker suffered, or incurred losses, from such professional disease.
(3) The Government may, by notification in the official Gazette, add to, or omit
from, the Second Schedule any disease.
83. Power to direct for enquiry into cases of accident or disease.- (1)
When any accidental explosion, ignition, outbreak of fire or irruption of water or any
other accident occurs in an establishment, or when any disease specified in the
Second Schedule breaks out or is suspected to be broken out, and if the
Government thinks that a formal enquiry into the causes of, and the circumstances
appearing in, the accident or disease is necessary, it may appoint a competent
person to hold such enquiry, and may appoint any person who has special
knowledge in law or concerned matter as an assessor during enquiry.
(2) The person holding enquiry shall have all the powers of a Civil Court under
the Code of Civil Procedure for the purpose of enforcing the attendance of witnesses
and compelling the production of documents and other things, and if any person is
required by him to furnish any information for the purpose of enquiry, he shall be
deemed to be legally bound to do so within the meaning of section 176 of the Penal
Code.
(3) The person holding enquiry may exercise any of the powers of a Labour
Inspector under this Act, as he may think necessary to exercise, for the purposes of
the enquiry.
(4) The person holding the enquiry shall submit a report to the Government
and shall record in that report the causes of the accident and the circumstances
relating thereto, and shall state any observation that he or the assessor, may have.
(5) The Government shall publish the report at such time and in such manner
as may be prescribed by it.
84. Power to take samples.- (1) A Labour Inspector may, at any time during
the normal working hours of an establishment, by giving information to the employer,
take in the manner hereinafter describing, a sample of any substance used or
brought for use in the establishment, if it appears to him that such substance is being
used in contravention of the provisions of this Act or the rules, or is likely to cause
bodily injury or harm to the workers of the establishment.
(2) Where any Labour Inspector takes such sample, he shall, in the presence
of the employer, unless he willfully absents himself, divide the sample into 3 (three)
portions and effectively seal and properly mark every portion of it, and shall also
permit the employer to add his own seal and mark thereon.
(3) The employer shall, if the Labour Inspector so requires, provide the
appliances for dividing and sealing and marking the sample.
(4) The Labour Inspector shall give one portion of the sample to the employer
forthwith, send the second portion to a Government analyst for analysis and to give
report thereon, and keep the third portion to himself for production to the Court, if any
criminal proceedings is instituted in respect of the substance of the sample.
(5) Any report, on any sample of a substance made by any government
analyst under this section, may be used as evidence in any proceedings instituted in
respect of such substance.
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41
85. Powers of Labour Inspector in case of certain dangers.- (1) If, in
respect of any matter for which no express provision is made in this Act, it appears to
a Labour Inspector that any establishment or any part thereof or any matter or
practice therein or connected therewith or controlled thereby is dangerous to human
life or safety, or is so defective as likely to cause bodily injury to the people, he may,
by a notice in writing, inform the employer relating thereto and order to remove those
things which are dangerous or injurious or defective, within such time and in such
manner as may be specified in the notice.
(2) Without prejudice to the provisions of sub-section (1), the Labour Inspector
may, by order in writing, direct the employer of any establishment not to extract or
reduce any pillar of his establishment or of any part thereof, if in his opinion, such
operation is likely to cause the crushing of any other pillar or the premature collapse
of any part of the establishment or endanger the establishment.
(3) If the Labour Inspector is of opinion that there is imminent danger to the
life or safety of any person employed in any establishment, he may, by an order in
writing to the employer concerned stating the grounds of his opinion, prohibit the
employment of any person in the establishment or any part thereof, until he is
satisfied that the danger is removed, but this order shall not apply to the person who
is employed to remove such danger.
(4) Any employer aggrieved by an order under sub-section (3) may prefer an
appeal against such order to the Inspector General within 10 (ten) days of the receipt
of the order, who may confirm, modify or cancel the order.
(5) The Labour Inspector shall, in respect of each order made under subsections (1) and (3), report forthwith to the Government, and shall inform the
employer concerned of the report so furnished.
(6) The Inspector General shall report forthwith to the Government any order,
except the order of cancellation made by him under sub-section (4), and shall also
inform the employer concerned of the report so furnished.
(7) Any employer who has any objection against any order made under subsection (1), (3) or (4) shall within 20 (twenty) days of receipt of such order, inform the
Government in writing, stating the objection and reasons therefore, and the
Government shall send it to a committee for decision.
(8) The employer shall comply with the order against which objection has
been made until the decision of the committee is received:
Provided that on an application of the employer, the committee may suspend
the order passed under sub-section (1) pending the decision of the committee.
86. Providing information about dangerous building and machinery.- (1)
Where any worker of an establishment finds that any building or machinery thereof,
which is ordinarily used by the workers, is in such a dangerous condition that it is
likely to cause bodily injury to any worker at any time, he shall immediately inform
the employer of it in writing.
(2) If, on the receipt of such information, the employer fails to take appropriate
measures on this matter within 3 (three) days and any worker is injured due to use of
such building or machinery, he shall be liable to pay compensation to the worker so
injured at the rate of double of the compensation payable for such injury under
Chapter VII.
87. Restriction of employment of women in certain work.- The provisions
of sections 39, 40 and 42 shall apply to a woman worker as they apply to an
adolescent worker.
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42
88. Power to make rules to supplement the Chapter.- The Government
may, by rules,-
(a) give direction to make further provisions and to take further measures
for securing the safety of the workers employed in any establishment;
(b) prohibit the running of any manufacturing process using power in any
building until a certificate of strength of such building by a person
having such qualification and in such form, as may be prescribed by
rules, is reached to the Inspector General.
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43
CHAPTER VIII
WELFARE MEASURES
89. First-aid appliances.- (1) In every establishment the first-aid box or
cupboard equipped with the contents prescribed by rules shall be provided to be
readily accessible during all working hours.
(2) The number of such box or cupboard shall not be less than one for every
150 (one hundred and fifty) workers ordinarily employed in the establishment.
(3) Every first-aid box or cupboard shall be kept in charge of such a
responsible person who is trained in first-aid treatment, and who shall be available
during all working hours of the establishment.
(4) A notice shall be affixed in every work-room stating the name of such
person and such person shall wear a badge so as to facilitate his identification.
(5) In every establishment, where 300 (three hundred) or more workers are
ordinarily employed, a sick room with a dispensary of a size and containing
equipments or other facilities prescribed by rules shall be provided and such room
shall be in the charge of such medical practitioner and nursing staff as may be
prescribed by rules.
(6) In any establishment or establishments where 5000 (five thousand) or
more workers are employed, the employer or employers of that establishment or
those establishments, as the case may be, shall arrange for running a permanent
medical centre in such manner as may be prescribed by rules.
(7) The treatment of a worker or an employee suffered from professional
disease or work-time accident shall be continued by a competent or specialist
medical practitioner at the expense and responsibility of the employer until such
worker or employee is fully cured of such disease, hurt or sickness.
(8) In every establishment where 500 (five hundred) or more workers are
employed, the employer of such establishment shall appoint a welfare officer in the
manner proscribed by rules.
90. Maintenance of safety record book.- In every factory or establishment,
where more than 25 (twenty five) workers are employed, a compulsory safety record
book shall be maintained and a safety information board shall be exhibited in the
manner prescribed by rules.
90A. Constitution of Safety Committee.- In every factory where 50 (fifty) or
more workers are employed, there shall be a safety committee to be formed and
functioned in the manner prescribed by rules.
91. Washing facilities.- (1) In every establishment,-
(a) sufficient number of suitable bathrooms and washing facilities
with provisions of their maintenance shall be provided for the
use of the workers employed therein;
(b) such facilities shall be provided separately for male and female
workers, and they shall be properly screened;
(c) such facilities shall be kept clean at all times and easily
accessible.
(2) The Government may, by rules, prescribe the standard of such facilities in
respect of any establishment.
92. Canteen.- (1) In an establishment where more than 100 (one hundred)
workers are ordinarily employed, adequate number of canteens shall be provided for
their use.
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44
(2) The Government may, by rules,-
(a) prescribe the standard of construction, accommodation, furniture
and other equipment of the canteen;
(b) provide for constitution of a managing committee for the canteen
and for representation of the workers in its management.
(3) The said managing committee shall determine the food to be served in the
canteen and the charges therefor.
93. Dining Room, etc.- (1) In every establishment wherein more than 25
(twenty five) workers are ordinarily employed, adequate and required number of
dining rooms with provision for drinking water, where workers can eat meals brought
by them and take rest shall be provided and maintained:
Provided that any canteen maintained in accordance with the provisions of
section 92 shall be regarded as part of the requirements of this sub-section:
Provided further that where dining room exists, no workers shall eat any food
in the work room.
(2) The dining rooms provided under sub-section (1) shall be sufficiently
lighted and ventilated with comfortable temperature and shall be maintained in neat
and clean condition.
94. Rooms for children.- (1) In every establishment, where 40 (forty) or more
female workers are ordinarily employed, one or more suitable rooms shall be
provided and maintained for the use of their children who are under the age of 6 (six)
years.
(2) The said room shall be provided with adequate accommodation, light and
ventilation and shall be maintained in clean and sanitary condition, and shall be
under the charge of an experienced or trained woman for the care of children.
(3) The said rooms shall be easily accessible to the mothers of the children,
and, so far as is reasonably practicable, they shall not be situated adjacent to or near
any part of the establishment where obnoxious fumes, dust or odors are given off, or
where excessively noisy works are carried on.
(4) The said rooms shall be strongly constructed, and all walls and roofs
thereof shall be of suitable heat resisting materials, and shall be water-proof.
(5) The height of such rooms shall not be less than 360 (three hundred and
sixty) centimetres from the floor to the lowest part of the roof, and the floor area for
each child staying therein shall be not less than 600 (six hundred) square
centimetres.
(6) Suitable and effective provisions shall be made in every part of each such
rooms for sufficient light, air and ventilation of fresh air.
(7) The said rooms shall be adequately furnished and in particular, 1 (one) cot
or cradle with bed shall be kept therefore each child, and there shall be at least one
chair or any similar seat for the use of each mother while she is feeding or attending
to her child, and adequate and suitable toys shall be supplied for the comparatively
older children.
(8) A suitably fenced shady open air play-ground shall be provided for the
comparatively older children:
Provided that the Inspector General may, by order in writing, exempt any
establishment from the provisions of this sub-section, if he is satisfied that the
establishment has no sufficient space for such playground.
94A. Residential accommodation for handicapped workers.- In an
industrial establishment where there is arrangement for residential accommodation
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45
for workers, the handicapped workers shall be given preference in the allotment of
such accommodation.
95. Recreational and educational facilities in tea plantations.- The
Government may, in respect of tea plantations-
(a) make rules requiring every employer thereof to make provisions for
such recreational facilities for the workers employed therein and their
children as may be specified in such rules;
(b) where the number of children of any tea plantation workers between
the ages of 6 (six) and 12 (twelve) years exceeds 25 (twenty-five),
make rules requiring the employer thereof to provide educational
facilities for the children in such manner and of such standard as may
be specified in such rules;
(c) require the establishment of suitable medical centers in every tea
plantation for the workers and their children in such manner as may be
prescribed by rules.
96. Housing facilities in tea plantations.- The employer of every tea
plantation shall provide housing facilities for every worker and his family residing in
the tea plantation.
97. Facilities for obtaining daily necessities, etc. in tea plantations.- The
employer of every tea plantation shall provide facilities, within easy reach of his
workers, for obtaining their daily necessities.
98. Medical care for newspaper workers.- Every newspaper worker and his
dependents shall be entitled to medical care at the cost of the newspaper
establishment in such manner and to such extent as may be prescribed by rules.
Explanation.- For the purpose of this section, “dependents” means wife or
husband, widowed-mother, invalid parents and legitimate son and daughter of a
newspaper worker, residing with him and wholly dependent upon him.
99. Introduction of compulsory group insurance.- (1) In an establishment
where at least 100 (one hundred) permanent workers are employed, the employer
shall introduce group insurance under the existing insurance laws.
(2) The amount claimed as insurance shall be in addition to the other dues of
a worker under this Act:
Provided that the recovery of the insurance claim due to death of a worker
shall be the responsibility of the employer and he shall make arrangement for
payment of the amount so recovered from such insurance claim directly to the
dependents:
Provided further that notwithstanding anything contrary contained in any other
law, where any insurance claim is made under this section, it shall be settled by joint
initiatives of the insurance company and the employer within 120 (one hundred and
twenty) days from the date of raising such claim.
(3) Notwithstanding anything contained in sub-sections (1) and (2), if a central
fund is established by the Government in hundred percent export-oriented industrial
sector under sub-section (3) of section 232 or hundred percent foreign money
investors in export-oriented industrial sector, group insurance for the workers of such
industrial sector shall not be necessary and in such cases the workers shall be paid
from such fund equal to the money of group insurance:
Provided that fifty percent money from the central fund shall be used in lieu of
group insurance and rest fifty percent money be used for the welfare of the workers.
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CHAPTER IX
WORKING HOUR AND LEAVE
100. Daily working hour.- No adult worker shall ordinarily work or be
required to work in an establishment for more than 8 (eight) hours in a day:
Provided that subject to the provisions of section 108, any such worker may
work in an establishment upto 10 (ten) hours also in a day.
101. Interval for rest or meal.- In an establishment no worker shall be liable
to-
(a) work for more than 6 (six) hours in a day, unless he is given an interval
of 1 (one) hour for rest or meal during that day;
(b) work for more than 5 (five) hours in a day, unless he is given an
interval of half an hour for the said purpose during that day; or
(c) work for more than 8 (eight) hours in a day, unless he is given 1 (one)
interval under clause (a) or 2 (two) intervals under clause (b) for the
said purpose during that day;
(d) notwithstanding anything contained in this Act, the Government shall,
by rules, prescribe the working and rest hours for various factories
wherein the workers are engaged in physically hazardous and
laborious work including construction, re-rolling, steel-mills, ship
breaking and welding.
102. Weekly working hours.- (1) No adult worker shall ordinarily work or be
required to work in an establishment for more than 48 (forty-eight) hours in a week.
(2) Subject to the provisions of section 108, an adult worker may work for
more than 48 (forty-eight) hours also in a week:
Provided that the total working hours of such worker shall not exceed 60
(sixty) hours in a week, and on the average 56 (fifty-six) hours per week in a year:
Provided further that the total additional working hours of a worker employed
in a road transport establishment shall not exceed 150 (one hundred and fifty) hours
in a year:
Provided further that the Government may, in the cases of some particular
industries, under conditions imposed by order in writing, relax the provisions of this
section or exempt from the provisions of this section at a time for a period of not
exceeding 6 (six) months, if it is satisfied that in the public interest or in the interest of
economic development such relaxation or exemption is necessary.
103. Weekly holiday.- Every worker employed in an establishment-
(a) shall be entitled to one and a half day holiday in a week in the case of a
shop or commercial establishment or an industrial, establishment and
one day in a week in the case of a factory and establishment;
(b) shall be entitled to one day of twenty four consecutive hours holiday in
a week in the case of road transport establishment;
(c) no deduction shall be made from the wages of a worker for any holiday
under the aforesaid clauses (a) and (b).
104. Compensatory weekly holiday.- Where, as a result of the passing of an
order or making of a rule under the provisions of this Act exempting an establishment
or the workers employed therein from the provisions of section 103, a worker is
deprived of any of the weekly holidays provided for in that section, he shall be
allowed, as soon as circumstances permit, compensatory holidays of equal number
to the holidays so deprived of:
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Provided that the workers if desire, subject to consultation with the
representatives of the collective bargaining agent or participation committee can
work on the weekly holiday and such weekly holiday can be added to the festival
holiday and enjoy and in such cases there shall not be any overtime allowance for
the work on weekly holiday.
105. Spread over.- The period of work of an adult worker in an establishment
shall be so arranged that without his interval for rest or meal under section 101 shall
not spread over for more than ten hours, but on the basis of the permission given by
the Government either generally or any sector-wise or specially for any
establishment, and subject to such conditions as may be imposed by it, exception
may be made to the said provision.
106. Night shift.- Where the shift work of an adult worker in an establishment
extends beyond midnight-
(a) for the requirement of section 103, a holiday for a whole day for the
worker shall mean 24 (twenty-four) consecutive hours beginning from
the end of his shift; and
(b) the following day for him shall mean 24 (twenty-four) consecutive hours
beginning from the end of his shift, and the hours he has worked after
midnight shall be counted to the hours of his works of the previous day.
107. Restrictions on cumulative hours of work on a vehicle.- No worker
shall work or be allowed to work on 1 (one) or more than 1 (one) vehicles in excess
of the time permitted under this Act.
108. Extra-allowance for overtime.- (1) Where a worker works for more
hours than the hours fixed under this Act in an establishment on any day or in a
week he shall, for overtime work, be entitled to allowance at the rate of twice his
ordinary rate of basic wage and dearness allowance and ad-hoc or interim wage, if
any.
(2) Sub-section (1) shall not be applicable for the piece-rate worker
(3) For ensuring compliance with the provisions of this section, the
Government may, by rules, prescribe the register to be maintained by an
establishment.
109. Limited hours of work for woman workers.- No woman worker shall,
without her consent, be allowed to work in an establishment between 10 O’CLOCK
at night and 6 O’CLOCK in the morning.
110. Restrictions on double employment.- No adult worker shall be allowed
to work in more than 1 (one) establishment on the same day, without permission of
the Inspector General and on such conditions as may be imposed by him.
111. Notice of hours of work for adult workers and preparation thereof.-
(1) In every establishment a notice showing the time clearly in writing when the adult
workers employed therein are required to work shall be displayed in accordance with
the provisions of section 337 and correctly maintained in the establishment.
(2) The time shown in the notice shall be fixed beforehand in accordance with
the provisions of this section, and shall be such as the workers working during such
time is not be required to work in contravention of the provisions of sections 100,
101, 102, 103 and 105.
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48
(3) Where all the adult workers of an establishment are required to work
during the same hours, the employer shall fix those hours generally.
(4) Where all the adult workers of an establishment are not required to work
during the same hours, the employer shall divide the workers into groups according
to the nature of their work, and fix the number of workers in each group.
(5) For a group which is not required to work on a shift basis, the employer
shall fix the time during which that group is required to work.
(6) Where any group is required to work on a shift basis, and the relays are
not subject to undetermined periodical changes of shifts, the employer shall fix the
time when the relay of each such group is required to work.
(7) Where any group is required to work on a shift basis, and the relays are
subject to predetermined periodical changes of shifts, the employer shall draw up a
scheme of shifts where the relay of which group is required to work in which time of
which day is to be known.
(8) Two copies of the notice of the hours of work under this section shall be
sent for approval to the Labour Inspector before the work in an establishment begins.
(9) The Labour Inspector shall return a copy of the notice indicating any
modification, if necessary, to the employer within one week of its receipt, and the
employer shall immediately comply with the modifications, if any, and shall preserve
such approval in the records of the establishment.
(10) If any proposed change in the system of work in an establishment
necessitates a change in the notice, 2 (two) copies of the proposed charge shall be
sent to the Labour Inspector before such change is made, and no such change shall
be made without previous permission of the Labour Inspector.
(11) If a worker attends to work after half an hour of the time fixed for the work
of the day, the employer may refuse to employ the worker for the work of that day.
112. Special age limit for road transport worker.- (1) No person shall be
employed as a driver in a road transport establishment unless he has attained the
age of 21 (twenty one) years.
(2) No person shall be employed in such establishment in any other post
unless he has attained the age of 18 (eighteen) years.
113. Working hour is to correspond with notice and register.- No adult
worker shall work or required to work otherwise than in accordance with the notice
under section 111(1) and the entries made beforehand against his name in the
register maintained under section 9.
114. Closure of shops, etc.- (1) Every shop or commercial or industrial
establishment shall remain entirely closed for at least one and a half day in each
week.
(2) The Inspector General shall fix which one and a half day in which area
such establishments shall remain entirely closed:
Provided that the Inspector General may, from time to time, in the public
interest, re-fix such fixed day for any area.
(3) No shop shall remain open after 8.00 O’CLOCK at night on any day:
Provided that if any customer is in a shop for buying such customer may be
given an opportunity for buying till 30 (thirty) minutes following such closing hour.
(4) The Government may, in consideration of special circumstances, by
notifications in the official Gazette, alter the closing hours of shops in any area in any
season on such conditions as may be mentioned in the notice.
(5) The provisions of this section shall not apply to the following cases,
namely:-
Bangladesh Labour Act, 2006
49
(a) docks, jetty, stations or airports and terminal offices of transport
services;
(b) shops dealing mainly in vegetables, meat, fish, dairy products,
bread, pastries, sweetmeats and flowers;
(c) shops dealing mainly in medicines, surgical appliances,
bandages or other medical requisites;
(d) shops dealing in articles for funerals or cremation;
(e) shops dealing mainly in tobacco, cigars, cigarettes, bidi, pan,
ice, newspapers, periodicals and retail shops for selling light
tiffin to be eaten sitting in the shops;
(f) petrol pumps for the retail sale of the petrol and automobile
service stations not being repair workshops;
(g) shops of barbers and hair dressers;
(h) any system of public conservancy or sanitation;
(i) any industry, business or establishment which supplies power,
light or water to the public;
(j) clubs, hotels, restaurants, catering houses, cinemas or theatres:
Provided that where several trades or business are
carried on in the same shop or commercial establishment and
the majority of them, by their nature, are eligible to exemption
from this section, such exemption shall apply to the entire shop
or commercial establishment:
Provided further that the Inspector General may, by a
general or special order, published in the official Gazette, fix the
opening and closing hours for any aforesaid establishments or
class of establishment.
(6) If any shop or commercial establishment mentioned in sub-section (5)
exists in a market or shopping mall, the provisions of sub-section (1) shall apply to
such shop or establishment.
115. Casual leave.- Every worker shall be entitled to casual leave for 10 (ten)
days with full wages in a calendar year, and if such leave is not availed for any
reason, it shall not be accumulated and the leave of any year shall not be availed in
the succeeding year:
Provided that nothing in this section shall apply to a worker employed in a tea
plantation.
116. Sick leave.- (1) Except a newspaper worker, every worker shall be
entitled to sick leave with full wages for 14 (fourteen) days in a calendar year.
(2) Every newspaper worker shall be entitled to sick leave with half wages for
not less than one-eighteenth of the period of his service.
(3) No such leave shall be granted unless a registered medical practitioner
appointed by the employer or, in the absence of such medical practitioner, any other
registered medical practitioner, after examination, certifies that the worker is ill and
requires leave for treatment or cure for such period as is mentioned in the certificate.
(4) Such leave shall not be accumulated and carried forward to the
succeeding years.
117. Annual leave with wages.- (1) Every adult worker who has completed 1
(one) year of continuous service in an establishment shall be allowed during the
following period of 12 (twelve) months’ leave with wages for days calculated on the
basis of the works of the preceding 12 (twelve) months at the following rate, namely:-
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50
(a) 1 (one) day for every 18 (eighteen) days of work, in the case of
a shop or commercial or industrial establishment or factory or
road transport establishment;
(b) 1 (one) day for every 22 (twenty two) days of work, in the case
of tea plantation;
(c) 1 (one) day for every 11 (eleven) days of work, in the case of a
newspaper worker.
(2) Every adolescent worker who has completed 1 (one) year of continuous
service in an establishment shall be allowed during the subsequent period of 12
(twelve) months’ leave with wages for a number of days calculated for the works of
previous 12 (twelve) months at the following rate, namely:-
(a) 1 (one) day for every 15 (fifteen) days of work, in the case of a
factory;
(b) 1 (one) day for every 18 (eighteen) days of work, in the case of
a tea plantation;
(c) 1 (one) day for every 14 (fourteen) days of work, in the case of a
shop or commercial or industrial establishment.
(3) If any holiday occurs into the leave granted under this section shall be
included in such leave.
(4) If a worker does not, in any period of 12 (twelve) months, take the leave
either in whole or in part, to which he is entitled under sub-sections (1) or (2), such
leave shall be added to the leave which he is entitled to in the succeeding period of
12 (twelve) months.
(5) Notwithstanding anything contained in sub-section (4), an adult worker
shall cease to earn any leave under this section, when the earned leave due to him
amounts to-
(a) 40 (forty) days in the case of a factory or road transport
establishment;
(b) 60 (sixty) days in the case of a tea plantation or shop or
commercial or industrial establishment.
(6) Notwithstanding anything contained in sub-section (4), an adolescent
worker shall cease to earn any leave under this section when the earned leave due
to him amounts to-
(a) 60 (sixty) days in the case of a factory or tea plantation;
(b) 80 (eighty) days in the case of a shop or commercial or
industrial establishment.
(7) If a worker applies for earned leave and is refused by the employer for any
reason, such refused leave shall be added to the credit of such worker beyond the
limit mentioned in sub-section (5) or (6).
(8) For the purposes of this section, a worker shall be deemed to have
completed a period of continuous service in an establishment notwithstanding any
interruption in service during that period occurred due to-
(a) any holiday;
(b) any leave with wages;
(c) any leave with or without wages due to sickness or accident;
(d) any maternity leave not exceeding 16 (sixteen) weeks;
(e) any period of lay-off;
(f) any legal strike or any illegal lock-out.
118. Festival holidays.- (1) Every worker shall be allowed in a calendar year
11 (eleven) days of festival holiday with wages.
(2) The employer shall fix the day and dates of such leave in such manner as
may be prescribed by rules.
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51
(3) A worker may be required to work on any festival holiday, but one day
substitute holiday and two days’ compensatory wages shall be provided for him.
119. Calculation of wages and payment thereof during the period of
leave or holiday.- (1) For the leave or holidays allowed to a worker under this Act,
he shall be paid at the rate equal to the daily average of his full time wages,
dearness allowances, and ad-hoc or interim wage, if any, except any overtime
allowance and bonus for the days on which he worked during the month immediately
preceding his leave:
Provided that if a worker in any establishment is entitled to cash in lieu of any
advantage of supply of food grains, it shall be included in his wages.
(2) If an adult worker is allowed annual leave for a period of not less than 4
(four) days and an adolescent worker for period of not less than 5 (five) days, at a
time, he shall, in so far as it is practicable, be paid his wages for the period of the
leave so allowed, before his leave begins.
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52
CHAPTER X
WAGES AND PAYMENT THEREOF
120. 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:-
(a) any bonus or other additional remuneration payable under the
terms of employment;
(b) any remuneration payable for leave, holiday or overtime work;
(c) any remuneration payable under order of any Court or any
award or settlement between the parties;
(d) 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
(e) any sum payable due to lay-off or suspension.
121. 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.
122. 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.
(2) No wage period shall exceed 1 (one) month.
123. 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.
(2) Where the employment of a worker is terminated by retirement or by his
retrenchment, discharge, removal by the employer or by termination of employment
by the worker or otherwise, all wages payable to him shall be paid before the expiry
of the thirtieth working day following the day of termination of his employment.
(3) All wages shall be paid on the working day.
124. Wages to be paid in current coin or currency notes, etc.- (1) All
wages shall be paid in current coin or currency notes or bank cheque.
(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.
124A. Payment of wages and other dues through conciliation.- (1) An
application may be made to the Inspector General 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.
(2) On receipt of such an application, the Inspector General or the officer
authorized by him in this behalf shall take measures, within a period of not exceeding
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53
20 (twenty) days, to settle the claim raised, through discussion or conciliation
meetings with the employer or authority concerned.
(3) In settling the claim raised under this section, the Inspector General or the
officer authorized by him in this behalf shall act as a conciliator in taking initiative and
holding discussion or conciliation meeting.
(4) The unanimous decision of such discussion or conciliation meetings shall
be binding upon all the parties.
(5) 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.
(6) 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.
125. 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.
(2) Deductions from the 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:-
(a) fines imposed under section 25;
(b) deductions for unauthorized absence from duty;
(c) 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;
(d) deductions for house-accommodation provided by the employer;
(e) 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;
(f) deductions for recovery of advances or loans or adjustment of
overpayments of wages;
(g) deductions of income-tax payable by the worker;
(h) deductions by order of a Court or deduction by order of any
authority competent to make such order of deduction;
(i) 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;
(j) 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;
(k) 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
(l) deduction of subscription for the CBA Union through check-off
system.
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54
126. 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.
(2) 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.
127. 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.
(2) 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.
128. 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.
129. Deductions from wages for recovery of loans or advances.- All
deductions under section 125(2) (f) shall be subject to the following conditions,
namely:-
(a) 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;
(b) 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.
130. 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.
131. Payment of unpaid wages of the dead or missing workers.- (1)
Subject to other provisions of this Chapter, all sums payable to a worker as wages
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55
shall, if not possible to be paid due to his death or on account of his whereabouts not
being known,-
(a) be paid to the person nominated by the concerned worker or to
the legal heir or heirs of the worker in this behalf in accordance
with the rules;
(b) in absence of nominated person or heir or it could not be
possible to pay to the nominated person or heir for any reason
next within 12 months, be deposited to the “Workers Welfare
Foundation Fund” of Bangladesh Workers Welfare Foundation.
(2) When within ten years time from the date of deposit of this money in the
Workers’ Welfare Fund, the concerned nominated person or heir is not available the
deposited money shall be considered to be the money of Bangladesh Workers
Welfare Foundation of its own.
132. 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 breaching
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.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
(6) 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) a bonafide error or bonafide dispute as to the amount of wages
payable to the worker;
(b) 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
(c) the failure of the worker to take wages or to apply therefor.
(7) 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
Bangladesh Labour Act, 2006
56
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.
133. 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.
(2) 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.
(3) 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.
134. 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).
(2) 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.
(3) 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.
135. Appeal.- (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.
(2) 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
exceed1000 (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.
(3) 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.
(4) 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.
(5) The provisions of section 5 of the Limitation Act, 1908 (Act No. IX of 1908)
shall also apply to the appeals under this section.
136. Conditional attachment of property of the employer or any other
person responsible for payment of wages.- (1) Where at any time-
(a) after submission of an application under section 132, the Labour
Court; or
(b) after preferring an appeal by a worker under section 135, the
Tribunal;
Bangladesh Labour Act, 2006
57
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).
137. 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.
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58
CHAPTER XI
THE WAGES BOARD
138. Establishment of the Minimum Wages Board.- (1) The Government
shall establish a Board to be called the Minimum Wages Board.
(2) The Minimum Wages Board, hereinafter referred to in this Chapter as the
Wage Board, shall consist of the following members, namely:-
(a) Chairman;
(b) 1 (one) independent member;
(c) 1 (one) member representing the employers; and
(d) 1 (one) member representing the workers.
(3) For the purpose of discharging the functions mentioned in section 139, the
following members shall also be included in the Wage Board, namely:-
(a) 1 (one) member representing the employers of the industry
concerned;
(b) 1 (one) member representing the workers employed in the
industry concerned.
(4) The Chairman and the other members of the Wage Board shall be
appointed by the Government.
(5) The Chairman and the independent member of the Wage Board shall be
appointed from among such persons who have adequate knowledge of industrial
labour and economic conditions of the country, and who are not connected with any
industry or associated with any trade union of workers or employers.
(6) The member representing the employers and the member representing
the workers under sub-section (2) or (3) shall be appointed after considering
nominations, if any, of such organizations as the Government considers to be
representative organizations of such employers and workers:
Provided that if no nomination is received from the representatives of the
employers or workers in spite of more than one effort, the Government may, in its
own opinion, appoint such persons whom it considers to be fit to be representative of
employers or workers.
139. Recommendation of minimum rates of wages for certain workers.-
(1) Where the Government is of the opinion that in view of the prevailing rates of
wages of workers employed in any industry, it is necessary and reasonable to fix the
minimum rates of wages for all or any class of workers employed in such industry,
the Government may direct the Wage Board to recommend, after necessary enquiry,
the minimum rates of wages for such workers or class of workers.
Explanation.- The Government may upon application made by the employer
or workers or both the parties, consider fixation of minimum rates of wages for the
workers employed in that industry.
(2) The Wage Board shall submit its recommendation to the Government
within 6 (six) months of the receipt of such direction:
Provided that the Government may, on the request of the Wage Board extend
the period.
(3) In accordance with the direction made under sub-section (1), the Wage
Board may recommend the minimum rates of wages for all workers in any grade,
and in such recommendation, may specify-
(a) the minimum rates of wage for time-work and piece-work; and
(b) the minimum time-rates for the workers employed on piecework.
(4) The time-rates recommended by the Wage Board may be on hourly, daily,
weekly or monthly basis.
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(5) In its recommendation the Wage Board shall indicate whether the
minimum rates of wage shall be adopted uniformly throughout the country or with
such local variations for such areas as are specified therein.
(6) The minimum rates of wages fixed for the workers employed in any
industry shall be re-fixed after every 5 (five) years on the direction by the
Government.
140. Power to declare minimum rate of wages.- (1) Upon receipt of the
recommendation of the Wages Board under section 139, the Government may, by
notification in the official Gazette, declare that the minimum rates of wages
recommended by the Wages Board for the various workers shall, subject to such
exception as may be specified in the notification, be the minimum rates of wages for
such workers.
(2) If the Government thinks that the said recommendation is not, in any
respect, equitable to the employers or the workers, it may, within 45 (forty five) days
of receipt of the recommendation, refer it back to the Wages Board for
reconsideration, and at the time of such referring back if the Government thinks fit, it
may make comments on it and give any information relating thereto.
(3) Where any recommendation is referred back to the Wages Board under
sub-section (2), the Wages Board shall review its recommendation, considering the
comments made and information given by the Government and, if necessary, shall
hold further enquiry and shall submit to the Government a revised recommendation,
or if the Board thinks that no amendment or change in the recommendation is
necessary, it shall make a report to that effect stating reasons therefore.
(4) Upon receipt of the recommendation under sub-section (3), the
Government may, by notification in the official Gazette, declare that the minimum
rates of wages for various workers recommended under that sub-section by the
Wages Board or modified by the Government or according to the revised
recommendation made by the Government shall, subject to such modifications and
exceptions as may be specified in the notification, be the minimum rates of wage for
such workers.
(5) Unless any date is specified in this behalf in the notification under subsection (4), the declaration thereunder shall take effect on the date of its publication.
(6) Where after publication of a notification under sub-section (1) or (4) or
after the minimum rates of wages declared thereunder have taken effect, it comes to
the notice of the Government that there is a mistake in the minimum rates of wages
so declared, it may refer the matter to the Wages Board and any such reference
shall be deemed to be a reference under sub-section (2).
(7) The minimum rates of wages declared under this section shall be final and
shall not, in any manner, be questioned, or no objection shall be raised in this behalf
in any Court or before any authority.
140A. Special power of the Government.- Notwithstanding anything
contained in sections 139, 140 and 142, the Government may, at any stage of
implementation of minimum wages declared for any industrial sector in response of
any special circumstances, further declare the minimum wages structure, subject to
reconstitution of the Minimum Wages Board for declaration of the minimum wages
structure afresh and compliance of the necessary formalities:
Provided that in such a case the Government may, if it deems necessary, by
notification in the official Gazette, instead of declaring the minimum rates of wages
afresh, give effect to any modification or alteration of existing rates of wages in
consultation with both the workers and employers.
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141. Factors to be considered in making recommendation.- In making any
recommendation, the Wages Board shall take into account the cost of living,
standard of living, cost of production, productivity, price of products, inflation, nature
of work, risk and standard, business capability, socio-economic conditions of the
country and the locality concerned and other relevant factors.
142. Periodical review of minimum rates of wages.- (1) If any change in
the factors specified in section 141 and other relevant factors so demand, the Wages
Board shall review its recommendations once again and recommend to the
Government any amendment or modification of the minimum rates of wages
declared under section 140:
Provided that unless any special circumstances of a case so require, no
recommendation shall be reviewed earlier than 1 (one) year or later than 3 (three)
years from the date on which it was made.
(2) Review and recommendation under this section shall be deemed to be an
enquiry and recommendation under section 139, and the provisions of this Chapter
shall, as far as may be, apply in this case also.
143. Establishment of Wages Board for newspaper workers.- (1) The
Government may, if it thinks fit, by notification in the official Gazette, establish a
separate Wage Board, to be called the Newspaper Workers Wage Board, for fixing
rates of wages for newspaper workers.
(2) The said Board, hereinafter referred to in this Chapter as the Newspaper
Wage Board, shall consist of a Chairman and equal number of members
representing the employers of the newspaper establishments and newspaper
workers, appointed by the Government.
144. Fixation of wages for newspaper workers.- (1) In fixing the rates of
wages for newspaper workers, the Newspaper Wages Board shall take into account
the cost of living, the prevailing rates of wages of equal employment in Government,
corporation and private sectors, the conditions of the newspaper industry in different
regions of the country, and any other factors which the Newspaper Wages Board
may think relevant.
(2) The Newspaper Wages Board may fix rates of wage for time-work and for
piece-work.
(3) After fixing the rates of wages, the Newspaper Wages Board shall send its
decision, as soon a practicable, to the Government.
145. Publication of decision of Newspaper Wage Board.- (1) The
Government shall examine the decision of the Newspaper Wages Board and shall,
within a period of 3 (three) months from the date of its receipt, publish it, by
notification in the official Gazette with such modifications as it may deem necessary.
(2) The decision of the Newspaper Wage Board, with modifications as
aforesaid, published under sub-section (1), shall come into force with effect from
such date as may be specified in the notification, and if no date is so specified, it
shall come into force on the date of its publication.
146. Power of the Newspaper Wages Board to fix interim rates of wages.-
(1) If the Newspaper Wages Board is of the opinion that it is necessary so to do, it
may, by notification in the official Gazette, fix interim rates of wages.
(2) Any interim rates of wages, so fixed, shall be binding on all employers of
the newspaper establishments and every newspaper worker shall be entitled to
wages at the rate not less than such interim rates of wages.
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(3) Any such interim rates of wages shall remain in force until the decision of
the Newspaper Wages Board comes into effect under section 145(2).
147. Application to the Labour Court.- If any dispute arises as to
classification or re-classification of a newspaper or a newspaper establishment due
to the decision of the Newspaper Wage Board, with modifications, published under
section 145(2), any person aggrieved by such decision may apply to the Labour
Court for adjudication of the dispute.
148. Minimum wages to be binding on all employers.- The minimum rates
of wage declared under section 140 or published under section 145 shall be binding
on all employers concerned and every worker shall be entitled to be paid wages at
the rate not less than the rates of wages so declared or published.
149. Prohibition to pay wages at a rate lower than the minimum rates of
wages.- (1) No employer shall be entitled to pay any worker wages at a rate lower
than the rates declared or published under this Chapter to be the minimum rates of
wages.
(2) Nothing in sub-section (1) shall prejudice, in any way, the right of a worker
to continue to receive wages at a rate higher than the minimum rates declared or
published under this Chapter or other facilities, if under any agreement or award or
for any other reason, he is entitled to receive wages at such higher rate or to enjoy
such facilities under any customs.
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CHAPTER XII
COMPENSATION FOR INJURY CAUSED BY ACCIDENT
150. Liability of the employer to pay compensation.- (1) If a worker is
bodily injured by an accident arising out of the course of his employment, his
employer shall be liable to pay him compensation in accordance with the provisions
of this Chapter.
(2) An employer shall not be liable to pay such compensation, if-
(a) a worker does not lose the ability to work, in whole or in part, for
a period exceeding three days due to injury;
(b) the cause of injury to a worker, not resulting in death, by the
accident directly attributed to
(i) the worker having been at that time under the influence of
drink or drugs;
(ii) the willful disobedience by the worker of a clear order or
to rules made for the purpose of securing the safety of
workers; ,
(iii) the willful removal or disregard by the worker of any
safety guard or other device which he knew to have been
provided for the purpose of securing the safety of
workers.
(3) If-
(a) any worker, employed in any employment specified in “Part-A”
of the Third Schedule, is attacked with any disease specified
therein as an occupational disease peculiar to that of
employment; or
(b) a worker, while in the service of an employer for a continuous
period of not less than 6 (six) months in any employment
specified in Part-B of the Third Schedule, is attacked by any
disease specified therein as an occupational disease peculiar to
that employment, being attacked of such disease shall be
deemed to be an injury by accident within the meaning of this
section, and, unless the employer proves the contrary, such
accident shall be deemed to have arisen out of the course of his
employment.
Explanation.- For the purposes of this sub-section, a period of service shall
be deemed to be continuous if the service of the same kind under any other
employer is not joined therewith.
(4) The Government may, by notification in the official Gazette, add any
description of employment to the employments specified in the Third Schedule, and
in that case, shall specifically mention what shall be the occupational disease
peculiar to that employment, and there after the provisions of sub-section (3) shall be
so applied as if such disease were declared as occupational disease peculiar to that
employment under this Chapter.
(5) Save as provided by sub-sections (3) and (4), no compensation shall be
payable to a worker in respect of any disease unless the disease is directly
attributable to an injury by accident arising out of the course of his employment.
(6) Nothing herein contained shall be deemed to confer any right to
compensation on a worker in respect of any injury if he has instituted a suit for
damages for such injury in a civil Court against the employer or any other person.
(7) No suit for damages, in respect of any injury, shall be instituted by a
worker in any Court, if-
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(a) he submits an application claiming compensation in respect of
such injury before a Labour Court; or
(b) there is an agreement between him and his employer providing
for the payment of compensation in respect of such injury in
accordance with the provisions of this Chapter.
(8) For the purposes of this Chapter, “worker” means any person employed by
the employer directly or through contractors, who is-
(a) a railway servant as defined in section 3 of the Railways Act,
1890 (Act No. IX of 1890) (who is not employed in any
permanent post of any administrative, district or upazilla office of
the railway, and also not employed in any post specified in the
Fourth Schedule); or
(b) employed in any post specified in the Fourth Schedule; whether
the contract of his employment is oral or in writing, expressed or
implied, and any reference to a injured worker shall, if he dies,
include his dependents or any of them.
Explanation.- For the purposes of this Chapter, the exercise of power or
performance of duty by a local authority or by any department acting on behalf of the
Government shall, unless a contrary intention appears, be deemed to be the trade or
business of such authority or department.
151. Amount of compensation.- (1) Subject to the provisions of this
Chapter, the amount of compensation shall be as follows, namely:-
(a) where death results from the injury, the sum mentioned in the
second column of the Fifth Schedule:
Provided that this amount of compensation shall be in
addition to the compensation relating to his normal retrenchment
of, dismissal from, termination of, or resignation from, service;
(b) where permanent total disablement results from the injury, the
sum mentioned in the third column of the Fifth Schedule;
(c) where permanent partial disablement results from the injury,-
(i) in the case of injury specified in the First Schedule, such
percentage of the compensation which would have been
payable in the case of permanent total disablement which
is equal to the ratio specified therein as being the
percentage of the loss of earning capacity caused by that
injury;
(ii) in the case of an injury not specified in the First Schedule,
such percentage of the compensation payable in the case
of permanent total disablement as is proportionate to the
loss of earning capacity permanently caused by the
injury; and
(d) where temporary disablement, whether total or partial, results
from the injury, a monthly compensation shall be payable on the
first day of the month following the month in which it is due after
the expiry of a waiting period of 4 (four) days from the date of
disablement and thereafter shall be payable for the period of
disablement or for a period as specified in the last column of the
Fifth Schedule, whichever is shorter.
(2) Where more than 1 (one) injury is caused by the same accident, the
amount of compensation payable under sub-section (1)(c) shall be aggregated, but
not in such a way as to exceed the amount which would have been payable if
permanent total disablement would resulted from the injuries.
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(3) If the disablement ceases before the date on which any monthly
compensation is payable, a sum proportionate to the duration of the disablement in
that month shall be payable in respect of that month.
152. Method of calculating wages.(1) For the purposes of this Chapter
“monthly wages” means the amount of wages deemed to be payable for work of 1
(one) month, whether the wages is payable by month or by other period or at piece
rates.
(2) Such wages shall be calculated as follows, namely:
(a) where the worker was in the service of the employer who is
liable to pay compensation for a continuous period of not less
than 12 (twelve) months immediately preceding the accident, the
monthly wages of the worker shall be one-twelfth of the total
wage to be paid to him by the employer for the preceding 12
(twelve) months;
(b) where the worker was in the service of the employer who is
liable to pay the compensation for a continuous period of less
than 1(one) month immediately preceding the accident, the
monthly wage of the worker shall be the sum equal to the
monthly average of income which, during the 12 (twelve) months
immediately preceding the accident, was being earned by a
worker employed on the same work by the same employer, or, if
there was no worker so employed, by any other worker
employed on similar work in the same locality;
(c) in other cases, the monthly wages shall be the sum arrived at on
the basis of the following calculation:
30 (thirty) times of the total wages earned from the employer
who is liable to pay compensation for a continuous period of
service immediately preceding the accident divided by the
number of days comprising such period.
Explanation.- For the purposes of this section, any period of service shall be
deemed to be continuous which is not interrupted by a period of absence from work
for exceeding 14 (fourteen) days.
153. Review.- (1) Any monthly compensation payable under this Chapter,
whether under an agreement between the parties or under an order of the Labour
Court, may be reviewed by the Labour Court, if-
(a) an application is made either by the employer or by the worker
accompanied by a certificate of a registered medical practitioner
stating that the condition of the worker has been changed; or
(b) besides such certificate, an application is made either by the
employer or by the worker on the ground that the compensation
was fixed by fraud or undue influence or other improper means
or from the record it is clearly seen that such fixation was wrong.
(2) Subject to the provisions of this Chapter, any monthly compensation may,
on review under this section, be continued, increased, decreased or stopped, or if it
is found that permanent disablement results from the accident, the monthly
compensation payable may be converted to the lump sum to which the worker is
entitled, but the sum already received as monthly compensation shall be deducted
from it.
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154. Payment of monthly compensation by lump-sum.- (1) The employer
may pay monthly compensation payable to a worker by paying a lump-sum amount
on the basis of the agreement between the parties.
(2) If there is no such agreement and the payment of compensation continues
for not less than 6 (six) months the monthly compensation may be redeemed, on the
application of either party, by the payment of such lump sum amount as may be
determined by the Labour Court.
155. Distribution of compensation.- (1) No compensation payable in
respect of a worker died from injury and no lump sum amount payable as
compensation to a person under a legal disability, shall be paid otherwise than by
making deposit with the Labour Court.
(2) If any compensation mentioned in sub-section (1) is paid directly by an
employer, it shall not be deemed to be a payment of compensation, unless the
concerned worker, during the period of his employment, has nominated in the
manner prescribed by rules any of his heirs to receive the compensation in the event
of an injury resulting in his death and the compensation is paid to that nominated
heir.
(3) Notwithstanding anything contained in sub-section (1), in the case of a
deceased worker, the employer may make advance payment as compensation to
any of his dependents, and the Labour Court shall, deducting such advance from the
compensation payable to such dependent, refund it to the employer:
Provided that where, in the case of a deceased worker, any amount is paid for
his burial or treatment or carrying of dead body, it shall not be deducted from any
amount paid in advance by the employer or from the compensation payable to the
dependents through the Labour Court.
(4) Any other sum payable as compensation may be deposited with the
Labour Court on behalf of the person entitled thereto.
(5) A receipt given by the Labour Court shall be a sufficient discharge in
respect of any compensation deposited with it.
(6) On the deposit of any money as compensation in respect of a deceased
worker under sub-section (1), the Labour Court may, if necessary, by a notice
published, or served on each dependent, in such manner as it thinks fit, call upon the
dependents to appear before it on such date as it may fix for determining the
distribution of the compensation.
(7) If the Labour Court is satisfied after any enquiry, which it may deem
necessary, that there exists no dependent, the Court shall, after not less than 2 (two)
years following the date of deposit, transfer the undistributed money deposited with it
for the welfare of workers to such fund which the Government may, by notification in
the official Gazette, specify or establish.
(8) The Labour Court shall, on an application by the employer, furnish him a
statement showing in detail all disbursements made by it.
(9) Any compensation deposited in respect of a deceased worker shall,
subject to any deduction made under the provisions of sub-section (3), be
apportioned among the dependents of the deceased worker or among any of them in
such proportion as the Labour Court thinks fit, or the Labour Court may, in its
discretion, allot it to any one dependent.
(10) Where any compensation deposited with the Labour Court is payable to
any person, the Labour Court shall, if the person to whom the compensation is
payable is not under any legal disability, pay to him, and in other cases, may pay to
the person entitled thereto.
(11) Where any lump sum deposited with the Labour Court is payable to a
person who is under a legal disability, such sum may be invested or applied for the
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benefit of such person during his disability in such manner as the Labour Court may
direct.
(12) Where a half monthly compensation is payable to any person who is
under a legal disability, the Labour Court may, on its own or on an application, give
order to pay such compensation during his disability to any dependent of the
concerned worker or to any other person whom the Labour Court thinks fit to provide
for the welfare of such worker.
(13) Where on an application or otherwise the Labour Court is satisfied that
due to negligence of a parent to heir her children, or due to changes of the
circumstances of any dependent, or for any other sufficient reason, any order of the
Labour Court as to the distribution of any sum paid as compensation or any order of
such Court as to the investment or application of any compensation payable to any
such dependent is to be varied, the Labour Court may make such order for the
variation of its former order as it thinks fit in the circumstances of the case:
Provided that if such order is prejudicial to any person, such order shall not be
made, unless such person has been given an opportunity of showing cause against
such order, or in any case in which it is necessary to make repayment by the
dependent of any sum already paid to him as compensation.
(14) Where the Labour Court varies any order under sub-section (13) on the
ground that the payment of compensation to any person has been obtained by fraud,
impersonation or any other improper means, any compensation so paid may be
recovered from him under the provisions of section 329.
156. Prohibition to assign, attach or charge compensation.- Save as
provided in this Chapter, any lump sum or monthly compensation payable under this
Chapter shall not be assigned, attached or charged, or shall not be transferred to
any person other than the worker by operation of any law, or shall not be set off any
claim against the same.
157. Notice and claim.- No claim for compensation shall be considered by
the Labour Court, unless a notice of the accident is given in the manner hereinafter
provided as soon as practicable after the occurrence thereof and unless the claim is
preferred within 2 (two) years of the occurrence of the accident or in case of death
within 2 (two) years of the date of death.
(2) Where the accident is the contracting of a disease in respect of which the
provisions of section 150 (3) is applicable, the accident shall be deemed to have
occurred on the first day of the continuous absence of the worker in consequence of
the disablement caused by the said disease.
(3) Any defect or irregularity in or want of a notice shall not be a bar to the
consideration of a claim-
(a) if the claim is preferred in respect of the death of a worker
resulting from an accident which occurs-
(i) on the house or premises of the employer; or
(ii) at the place where the worker was working under the
control of the employer or of any person employed by
him; and the worker died on such house or premises or
place, or died before having left the vicinity of the house
or premises or place; or
(b) if the employer or any person responsible to the employer for
the management of the trade or business in which the injured
worker was employed had knowledge of the accident from any
other source at or about the time when it was occurred.
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67
(4) The Labour Court may consider and decide any claim to compensation in
any case notwithstanding that the notice is not given, or the claim is not preferred, in
due time, as provided in the aforesaid sub-section, if it is satisfied that there was
sufficient reason for the failure to give such notice or prefer such claim.
(5) In every such notice the name and address of the person injured shall be
mentioned and the cause of the injury and the date of the accident shall be stated in
easy language, and shall be served on the employer or upon any person responsible
to the employer for the management of the trade or business in which the injured
worker was employed.
(6) A notice under this section shall be served by delivering it at, or sending it
by registered post addressed to, the residence or office, or place of business of the
person on whom it is to be served, or where a notice-book is maintained, by making
an entry in the notice-book.
158. Power to require from employer statement regarding fatal accident.-
(1) Where a Labour Court receives information from any source that a worker has
died as a result of an accident arising out of, and in the course of, his employment, it
shall send, by registered post, a notice to the worker’s employer requiring him to
submit, within 30 (thirty) days of the service of the notice, a statement, in the form
prescribed by rules, giving the reasons and circumstances attending the death of the
worker, and indicating whether, in the opinion of the employer, he is or is not liable to
deposit compensation on account of the death,
(2) If the employer is of the opinion that he is liable to deposit compensation,
he shall make the deposit within 30 (thirty) days of the service of the notice.
(3) If the employer is of the opinion that he is not liable to deposit
compensation, he shall, in his statement, state the grounds of it.
(4) Where the employer disclaims his liability as mentioned above, the Labour
Court may, after such enquiry as it may think fit, inform any of the dependents of the
deceased worker that it is open to the dependents to prefer a claim for
compensation, and may provide them such other information, as the Court thinks fit.
159. Report of fatal accident.- Where, by any law for the time being in force,
any notice is required to be given to any authority, as to the death resulting from an
accident occurring in the house or premises of an employer, the employer or any
other person on behalf of him shall, within 7 (seven) days of such death, send a
report to the Labour Court giving the cause and surrounding circumstances of the
death.
160. Medical examination.- (1) Where a worker gives notice of an accident,
the employer shall, within 3 (three) days of service of such notice, cause the worker
to be examined at the expense of the employer by a registered medical practitioner
and the worker shall submit himself for such examination:
Provided that if the accident or illness of the worker is of grave nature, the
employer shall cause him to be examined at the place where the worker is staying.
(2) If any worker continues to receive monthly compensation under this
Chapter, he shall, if so required, submit himself for such examination from time to
time.
(3) Where a worker is not examined as aforesaid, he may get himself
examined by a registered medical practitioner and the employer shall be liable to pay
him the expenses for such examination.
(4) No worker shall be ordered to present himself for medical examination
under sub-section (1) or (2) otherwise than in accordance with rules made under this
Chapter or on any day other than the day prescribed by rules.
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68
(5) If a worker being ordered by the employer under sub-section (1) or (2) or
by the Labour Court at any time, refuses to present himself to the registered medical
practitioner for medical examination or in any other way obstructs the same, his right
to compensation shall remain suspended during the continuance of such refusal or
obstruction, unless, in the case of refusal, he was prevented by sufficient cause from
so presenting himself.
(6) If a worker, before the expiry of the period within which he is supposed to
present himself for medical examination under sub-section (1) or (2), voluntarily
leaves, without having been so examined, the vicinity of his place of employment, his
right to compensation shall remain suspended until he returns or offers himself for
such examination.
(7) If a worker, whose right to compensation is suspended under sub-sections
(5) and (6) dies without having present himself for medical examination as required
under any of the foregoing sub-sections, the Labour Court may, if it thinks fit, direct
for the payment of compensation to the dependents of the deceased worker.
(8) Where under sub-section (5) or (6) the right to any compensation is
suspended, no compensation shall be payable in respect of the period of suspension
and if the period of suspension commences before the expiry of the waiting period
referred to in section 151(1)(b), the waiting period shall be increased by the duration
of suspension.
(9) Where an injured worker, being offered by the employer of medical
treatment by a medical practitioner free of charge, refuses to accept it, or having
accepted such offer deliberately disregards the instructions of such medical
practitioner, and if it is proved that the worker has not thereafter been regularly
attended by a registered medical practitioner or having been so attended has
deliberately failed to follow medical practitioner’s instructions and such refusal,
disregard or failure was unreasonable in the circumstances of the case and the injury
is aggravated thereby, the injury and the disablement evident from it shall be
deemed to be of the same nature and duration as they might have reasonably been
expected to be if the worker had been regularly attended by a registered medical
practitioner and had followed his instructions, and the compensation, if any, shall be
payable accordingly.
(10) Where any employer or the injured worker is not satisfied with the report
of the medical examination by a registered medical practitioner, he may refer the
case for re-examination by a medical specialist of at least the rank of an Associate
Professor of a Medical College, and the expenses incurred for such examination
shall be borne by the employer or the worker, as the case may be.
(11) Where in any establishment at least 10 (ten) workers are working, the
employer of such establishment may introduce and implement an insurance scheme
against accident under group insurance programme for the workers, and the benefits
or money received from such accident insurance scheme shall be spent for the
treatment of the workers.
161. Compensation in the case of a contract.- (1) Where any employer in
the course of his trade or business or for the purposes of it contracts with any other
person, hereinafter in this section referred to as the contracting agency, for the
execution of the whole or any part of any work which is ordinarily the part of his trade
or business, the said employer shall be liable to pay to any worker employed by the
contractor for the execution of the work any compensation which he would have
been liable to pay if the worker had been directly employed by him and where
compensation is claimed from the employer the wages received from the contractor
shall be taken into cognizance for fixing the compensation.
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(2) Where sub-section (1) applies, all compensation shall be paid by the
principal or original employer.
(3) Where the principal or original employer is of the opinion that the
occurrence of death or injury of the concerned worker has been specially and in fact
occurred as a result of violation of any rules of conduct on behalf of the contractor,
he may, after depositing the full amount of compensation in the Labour Court (in the
case of the death of the worker) or after payment of the prescribed amount of money
to the worker concerned (in the case of the injury of the worker), apply to the
Inspector General to determine the share of the said amount which should be paid
by the contractor to the principal or original employer, and the Inspector General
shall, within 45 (forty five) days of receipt of the application, dispose of it according to
rules.
162. Insolvency of the employer.- (1) Where any employer is entered into a
contract with any insurer in respect of any liability of the workers under this Chapter,
in the event of the employer becoming insolvent or making a scheme of arrangement
with his creditors, or if the employer is a company and it commences to be wound
up, the right of the employer against the insurer in respect of such liability shall,
notwithstanding anything contained in any other law for the time being in force
relating to insolvency or the winding up of a company, be transferred to and vest in
the worker, and upon any such transfer the insurer shall have the same rights and
remedies and be subject to the same liabilities, as if he were the employer, provided
that the insurer shall not be under any greater liability to the workers than the
employer would have been to the workers.
(2) If the liability of the insurer to the worker is less than that of the employer,
the worker may prove it in the insolvency or liquidation proceedings.
(3) Where in any such case as is referred to in sub-section (1), the contract of
the employer with the insurer is void or voidable by reason of non-compliance on the
part of the employer with any terms and conditions of the contract, other than the
payment of the premium, the provisions of the said sub-section shall apply as if the
contract were not void or voidable, and the insurer shall be entitled to prove in the
insolvency or liquidation proceedings the amount paid to the worker:
Provided that the provisions of this sub-section shall not apply in a case
where the worker fails to give notice to the insurer of the accident and of any
resultant disablement after as soon as practicable, the initiation of the insolvency or
liquidation proceedings became known to him.
(4) Any compensation, the liability for payment of which arose before the date
of the order of adjudication of an insolvent or, as the case may be, before the date of
the commencement of the winding up proceedings of a company, shall be deemed
to have been included among the debts which are repayable in priority over all other
debts under section 49 of the Insolvency (Dacca) Act, 1909 (Act No. III of 1909), or
under section 61 of the Insolvency Act, 1920 ( Act No. V of 1920) and under section
230 of the Companies Act, 1994 (Act No. XVIII of 1994), in the case of distribution of
the property of the insolvent or in the case of distribution of the assets of the
company being wound up and the said Acts shall have effect accordingly.
(5) Where the compensation is a monthly payment, the amount due in respect
thereof shall, for the purposes of this section, be taken to be the amount of the lump
sum for which the monthly payment could, if redeemable, be redeemed if application
were made for that purpose under section 154, and a certificate of the Labour Court
as to the amount of such lump sum shall be conclusive proof thereof.
(6) The provisions of sub-section (4) shall apply in the case of any amount for
which an insurer is entitled to prove under sub-section (3), but such provision shall
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otherwise not apply where the insolvent or the company being wound up has entered
into such a contract with insurer as is referred to in sub-section (1).
(7) The provisions of this section shall not apply where a company is wound
up voluntarily for the purposes of reconstitution or of amalgamation with another
company.
163. Special provision for the master and seamen.- (1) This Chapter shall,
subject to the provisions of this section, apply to the master or seaman of a ship.
(2) The notice of any accident and the claim for compensation shall, except
where the person injured is the master of the ship, be served on the master of the
ship as if he were the employer, but where the accident occurred and the
disablement commenced on board the ship, it shall not be necessary for any seaman
to give any notice of the accident.
(3) In the case of death of a master or a seaman, the claim for compensation
shall be made within 6 (six) months after the news of the death is received by the
claimant or, where the ship is or is deemed to have been lost with all, within 18
(eighteen) months of such lose or so deemed to have been lost.
(4) Where the injured master or seaman is discharged or left behind in a
foreign country, any deposition taken by any Judge or Magistrate of that country or
by any Consular Officer in that country and transmitted to the Government by him
shall be admissible in evidence in proceedings for enforcing any claim, if-
(a) the deposition is authenticated by the signature of the said
Judge, Magistrate or Consular Officer;
(b) the defendant or the person accused had an opportunity to
crossexamine the witnesses; and
(c) where the deposition was taken in the course of a criminal
proceeding, it is proved that the deposition was taken in the
presence of the person accused; and it shall not be necessary in
any case to prove the signature or rank of the person appearing
to have signed any such deposition and a certificate by such
person that the defendant or the person accused had an
opportunity to cross-examine the witness and that the
deposition, if taken in a criminal proceeding, was taken in the
presence of the person accused shall, unless the contrary is
proved, be sufficient evidence that he had got the opportunity
and that it was so made.
(5) No monthly payment as compensation shall be payable in respect of the
period during which the owner of the ship is, under any law for the time being in force
in Bangladesh relating to merchant shipping, liable to defray the expenses of
maintenance of the injured master and seaman.
(6) No compensation shall be payable under this Chapter in respect of any
injury in respect of which provision is made for payment of a gratuity, allowance or
pension under the War Pension and Detention Allowances (Mercantile-Marine, etc.)
Scheme, 1939 or the War Pensions and Detention Allowances (Indian seamen, etc.)
Scheme, 1941, made under the Pensions (Navy, Army, Air Force and MercantileMarine) Act, 1939, or under the War Pensions and Detention Allowances (Indian
seamen) scheme, 1942 made by the Government.
(7) Failure to give a notice or making a claim or commence proceeding within
the time specified under this Chapter shall not be a bar to the commencement of
proceedings under this Chapter in respect of any personal injury, if-
(a) any application is made for payment in respect of that injury
under any of the schemes referred to in sub-section (6); and
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(b) the Government certifies that the said application was made in
the reasonable belief that the injury was one in respect of which
the application was made under a scheme in which, there was
provision for payment of money and that the application was
rejected or the payment in pursuance of the application were
discontinued on the ground that the injury was not such an
injury; and
(c) the proceedings under this Chapter are commenced within 1
(one) month from the date on which the said certificate of the
Government was given.
164. Return as to compensation.- The Government may, by notification in
the official Gazette, direct that every person employing workers or any class of such
persons, shall send, at such time and in such form and to such authority, as may be
specified in the notification, a correct return specifying the number of injuries in
respect of which compensation was paid by the employer during the previous year
and the amount of such compensation, together with such other particulars as to the
compensation as the Government may direct.
165. Agreement as to indemnity or reduction of liability be void.- Any
agreement, made before or after the commencement of this Act, whereby a worker
relinquishes any right of compensation from the employer for personal injury arising
out of or during the course of the employment, shall, to such extent as to remove or
reduce the liability of any person to pay compensation under this Chapter, be void.
166. Certain questions shall be sent to Labour Court for settlement.- (1)
If any question arises in any proceedings under this Chapter as to the liability of any
person to pay compensation or whether the injured person is or is not a worker, or
the amount or duration of compensation, or any question as to the nature or extent of
disablement, the question shall, in the absence of an agreement, be settled by the
Labour Court.
(2) No civil Court shall have jurisdiction to settle any question which is by or
under this Chapter required to be settled by the Labour Court or to enforce any
liability incurred under this Chapter.
167. Venue of proceedings.- Where any matter under this Chapter is to be
done by or before a Labour Court, the same shall, subject to the provisions of this
Chapter and any rule, be done by or before that Labour Court having jurisdiction in
the area in which the accident took place resulting the injury:
Provided that where the worker is the master of a ship or a seaman, any such
matter shall be done by or before a Labour Court having jurisdiction in the area in
which the owner or agent of the ship resides or carries on business.
168. Condition of application.- No application, other than the application by
the worker who himself suffers losses or by a dependent for compensation, for the
settlement of any matter by a Labour Court under this Chapter, shall be made,
unless the both parties have failed to settle the question raised as to such matter by
agreement.
169. Power of the Labour Court to require more deposit in cases of fatal
accident.- (1) Where any sum is deposited by the employer as compensation
payable in respect of a worker whose injury has resulted in death, and in the opinion
of the Labour Court such sum is insufficient, the Court may, by notice in writing
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stating its reasons, call upon the employer to show cause as to why he should not
make a further deposit within such time as my be specified in the notice.
(2) If the employer fails to show cause to the satisfaction of the Labour Court,
the Court may make an award determining the total amount payable as
compensation and require the employer to deposit the deficiency.
170. Registration of agreements.- (1) Where the amount of any lump sum
payable as compensation is fixed by an agreement, either by way of redemption of a
monthly payment or otherwise or where such fixed compensation is payable to a
person under a legal disability, a memorandum thereof shall be sent by the employer
to the Labour Court, and the Court shall, on being satisfied as to its genuineness,
record it in a register in the manner prescribed by rules:
Provided that-
(a) no such memorandum shall be recorded before the expiry of 7
(seven) days of communication thereof to the parties by the
Labour Court;
(b) the Court may at any time rectify the register;
(c) if it appears to the Labour Court that an agreement as to the
payment of a lump sum, whether by way of redemption of a
monthly payment or otherwise, or an agreement as to the
amount of compensation payable to a person under a legal
disability, should not be registered by reason of the inadequacy
of the sum or amount or by reason of having been obtained by
fraud or undue influence or other improper means; the Court
may make such order as to any sum already paid under the
agreement, as it thinks just in the circumstances.
(2) Notwithstanding anything contained in any other law, an agreement for the
payment of compensation registered under sub-section (1) shall be enforceable
under this Act.
171. Effects of failure to register agreement.- Where a memorandum of
any agreement required to be registered under section 170 is not sent to the Labour
Court under that section, the employer shall be liable to pay the full amount of
compensation which is payable by him under this Chapter, and he shall not, unless
the Labour Court otherwise directs, be entitled to deduct more than half of any
amount paid to the worker by way of compensation, whether under an agreement or
otherwise.
172. Appeals.- (1) An appeal shall lie to the Tribunal against the following
orders of a Labour Court under this Chapter, namely:-
(a) an order awarding as compensation a lump sum whether by way
of redemption of a monthly payment or otherwise, or disallowing
a claim in full or in part for a lump sum;
(b) an order refusing an application to allow redemption of a
monthly payment by payment of money;
(c) an order providing for the distribution of compensation among
the dependents of a deceased worker, or an order disallowing
any claim of a person alleging himself to be such dependant;
(d) an order allowing or disallowing any claim for any amount of
compensation under the provisions of section 161(2);
(e) an order refusing to register a memorandum of agreement or
registering the same or providing for registration thereof ,
subject to conditions; or
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(f) an order under section 155(7).
(2) No appeal shall lie in any case in which the parties have agreed to abide
by the decision of the Labour Court or in which the order of the Labour Court gives
effect to an agreement entered into by the parties.
(3) No appeal by an employer under sub-section (1) (a) shall lie, unless the
memorandum of appeal is accompanied by a certificate by the Labour Court to the
effect that the appellant has deposited with it the amount payable under the order
concerned.
(4) No appeal shall lie against any order unless a substantial question of law
is involved in the appeal, and no appeal shall lie against an order, other than the
order as is referred to in sub-section (1)(b), unless the amount in dispute in the
appeal is not less than 1,000 (one thousand) taka.
(5) The period of limitation for an appeal under this section shall be 60 (sixty)
days.
(6) The provisions of section 5 of the Limitation Act, 1908 (Act No. IX of 1908)
shall apply to an appeal under this section.
173. Withholding of certain payments subject to decision of appeal.-
Where the employer prefers an appeal under section 172(1)(a), the Labour Court
may, subject to the decision of the appeal, withhold payment of any sum deposited
with it, and if the Tribunal so directs, it shall surely be withheld.
174. Rules to give effect to arrangement with other countries for the
transfer of money paid as compensation.- (1) The Government may, by
notification in the official Gazette, make rules-
(a) for the transfer of money deposited with a Labour Court under
this Chapter to any other country which is payable to, or is due
by, any person, who is residing or about to reside in that
country; and
(b) for the receipt, distribution and administration in Bangladesh of
any money deposited under the law relating to worker’
compensation in any other country, which is payable to, or is
due by, any person residing or about to reside in Bangladesh:
Provided that no sum deposited under this Chapter in
respect of any fatal accident shall be so transferred without the
consent of the employer concerned, until the Labour Court
receiving the sum has passed orders determining its distribution
and apportionment under the provisions of section 155(4) and
(5).
(2) Where money deposited with a Labour Court is so transferred in
accordance with the rules made under this section, the provisions elsewhere
contained in this Chapter regarding distribution by the Labour Court of compensation
deposited with it shall cease to apply in respect of any such money.
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74
CHAPTER XIII
TRADE UNIONS AND INDUSTRIAL RELATIONS
175. Special definition of worker.- In this Chapter, unless there is anything
repugnant in the subject or context, ‘worker’ means a worker as defined in section
2(65), and includes, for the purpose of any proceedings under this Chapter in
relation to an industrial dispute,a worker who has been laid off, retrenched,
discharged, dismissed or otherwise removed from employment in connection with or
as a consequence of such dispute or whose lay-off, retrenchment, discharge,
dismissal, or removal has led to that dispute; but does not include a member of the
watch and ward or security staff, fire-fighting staff and confidential assistant of any
establishment.
176. Trade union of workers and employers.- Subject to the provisions of
this Chapter,-
(a) all workers shall, without distinction whatsoever, have the right to form
trade union primarily for the purpose of regulating the relations
between workers and employers, or between workers and workers
and, subject to the constitution of the union concerned, to join trade
union of their own choice;
(b) all employers shall, without distinction whatsoever, have the right to
form trade union primarily for the purpose of regulating the relations
between employers and workers, or between employers and
employers and, subject to the constitution of the union concerned, to
join trade union of their own choice;
(c) the trade unions of workers and those of employers shall have the right
to form and join federations and any such union or federation shall
have the right to affiliate with any international organisation or
confederation of organizations of workers or employers; and
(d) the trade unions and the employers’ associations shall have the right to
make their own constitution and rules, to elect their own
representatives with full independence, to organize their administration
and activities and to formulate their programmes;
(e) in an establishment where a trade union shall be formed, if 20%
(twenty percent) of the total working force or members are women, the
union executive committee shall have at least 10% (ten percent)
women members:
Provided that the union registered under this Act shall be
controlled by this Act.
177. Application for registration.- (1) Any trade union may, under the
signatures of its Chairman and Secretary, apply for registration to the Registrar of
the Trade Union of the concerned area under this Chapter.
(2) The Registrar of Trade Unions mentioned in sub-section (1) shall mean
the Director General or any representative authorized by him in this behalf.
178. Requirements for application.- (1) An application for registration of a
trade union shall be made to the Director General or to the officer authorized in this
behalf.
(2) The application shall be accompanied by the following particulars,
namely:-
(a) a statement providing the following information, namely:-
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(i) the name of the trade union and the address of its head
office,
(ii) the date of formation of the trade union,
(iii) the names, father’s and mother’s names, ages,
addresses, occupations and the posts in the union of the
officers of the trade union and in the case of workers in
the informal sector identity card with photographs from
the establishment or national identity card or birth
registration certificates,
(iv) a statement of all members paying subscriptions,
(v) the name of the establishment to which the trade union
relates and the total number of workers employed or
working therein;
(vi) in case of a federation of trade unions, the names,
addresses and registration numbers of its memberunions;
(b) three copies of the constitution of the trade union together with a
copy of the resolution by the members of the trade union
adopting such constitution bearing the signature of the
Chairman of the meeting;
(c) a copy of the resolution by the members of the trade union
authorizing its Chairman and Secretary to apply for its
registration; and
(d) in case of a federation of trade unions, a copy of the resolution
by each of the constituent unions agreeing to become a member
of the federation.
(3) The Director General or the officer authorized in this behalf shall, on
receipt of the registration of a trade union for a group of establishments under subsection (1), issue a public notice containing a copy thereof and a list of the officebearers of the union at the expenses of the applicant.
179. Requirements for registration.- (1) A trade union shall not be entitled
to registration under this Chapter, unless its constitution provides for the following
matters, namely:-
(a) the name and address of the trade union;
(b) the purpose of the formation of the trade union;
(c) the procedure of becoming member of a workers’ trade union
and declaration of obtaining membership as per prescribed
Form;
(d) the sources of the fund of the trade union and description of the
purposes for which such fund shall be utilized:
Provided that the Government shall be informed of the
collection of money from any other sources from the country or
foreign country except the subscription of the Union;
(e) the conditions under which a member shall be entitled to any
benefit assured by the constitution of the trade union and under
which any fine or forfeiture may be imposed on any member;
(f) the maintenance of the list of the members of the trade union
and adequate facilities for inspection thereof by its officers and
members;
(g) the manner in which the constitution may be amended, varied or
rescinded;
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76
(h) the safe maintenance of the funds of trade union, its annual
audit, the manner of audit, and adequate facilities for inspection
of the books of account by the officers and members of the trade
union;
(i) the manner of dissolution of the trade union;
(j) the manner of election of officers of the trade union by its
general members and the term of the officers which shall not, in
any way, be more than 2 (two) years and, in the case of group of
establishments, the term of office of the officers shall not be
more than 3 (three) years:
Provided that if no election is held within 2 (two) years in
the case of trade union or within 3 (three) years in the case of
group of establishments for state emergency, force majeure or
similar other reasons, the committee constituted as above shall
not be declared illegal;
(k) the number of the officers which shall not be less than 5 (five)
and not more than 35 (thirty-five) as may be prescribed by rules;
(l) the manner of expressing no confidence against the officers of
the trade union; and
(m) the meetings of the executive committee and of the general
members of the trade union which shall be, in the case of the
executive committees, at least once in every 3 (three) months,
and, in the case of the general members, at least once every
year.
(2) A trade union of workers shall not be entitled to registration under this
Chapter, unless it has a minimum membership of 20% (twenty percent) of the total
number of workers employed in the establishment in which it is formed:
Provided that where more than one establishments under the same employer
are allied to and connected with one another for the purpose of carrying out the
same industry, they shall irrespective of their place of situation, be deemed to be one
establishment for the purpose of this sub-section.
(2a) The Director General or the officer authorized in this behalf shall verify
the correctness of the particulars mentioned in sub-clause (v) of clause (a) of subsection (2) of section 178 and in this section by visiting the establishment concerned
or by collecting the list from the establishment authority.
(3) Where any doubt or dispute arises as to whether two or more
establishments are under the same employer, or whether they are allied to and
connected with one another for the purpose of carrying out the same industry, the
matter may be referred to the Director General for settlement.
(4) Any person aggrieved by the decision of the Director General under subsection (3), may, within 30 (thirty) days of the date of decision, prefer an appeal to
the Labour Court, and the decision of the Labour Court in this matter shall be final.
(5) No registration shall be provided to more than 3 (three) trade unions at any
time in an establishment or group of establishments.
180. Disqualification for being an officer or a member of a trade union.-
(1) Notwithstanding anything contained in the constitution of a trade union, a person
shall be disqualified for election as, or for being, an officer or a member of a trade
union who-
(a) has been convicted of a criminal offence involving moral
turpitude or of an offence under section 196(2)(d) or section 298
and unless a period of 2 (two) years has elapsed since his
release;
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77
(b) is not employed or working in the establishment in which the
trade union is formed:
Provided that in the case of the nationalized industrial
sector, the members of a union may, if they desire, elect 10%
(ten percent) of the total officials of the executive committee of
that union from amongst the persons who are not working in the
concerned establishment.
(2) Nothing is sub-section (1)(b) shall apply to any federation of trade unions.
181. Registered trade unions to maintain register, etc.- Every registered
trade union shall maintain the following registers or books in such form as may be
prescribed by rules, namely:-
(a) a register of members, which shall contain the particulars of
subscriptions paid by each member;
(b) an accounts book, in which the receipts and expenditure shall be
shown; and
(c) a minute book, in which all kinds of minutes shall be recorded.
182. Registration.- (1) The Director General shall, on being satisfied that a
trade union has complied with all the requirements of this Chapter, register that trade
union in the register prescribed by rules and shall issue a registration certificate in
the form prescribed by rules, within a period of 55 (fifty five) days from the date of
receipt of the application for registration.
(2) If the Director General finds the application to be deficient in any material
respect, he shall communicate in writing his objection regarding thereto to the trade
union within a period of 12 (twelve) days of the receipt of the application, and the
trade union shall reply thereto within a period of 15 (fifteen) days of the receipt of
objection, but the reply from the concerned party is not received within the appointed
time, the application shall be settled by filing.
(3) When the objection raised by the Director General is satisfactorily met, he
shall register the trade union as provided in sub-section (1); and if the objection is
not satisfactorily met, he shall reject the application.
(4) Where the Director General rejects any application or after meeting the
objection does not dispose of an application within a period of 55 (fifty five) days as
referred to in sub-section (1), the trade union concerned may, within a period of 30
(thirty) days from the date of such rejection or the date of expiry of such period,
whichever is earlier, prefer an appeal to the Labour Court.
(5) Where, after hearing the appeal, the Labour Court thinks proper, it may,
for reasons to be stated in its judgment, pass an order directing the Director General
to register the trade union and to issue a certificate of registration within a period of 7
(seven) days from the date of registration or may dismiss the appeal.
(6) Any party aggrieved by the judgment of the Labour Court under subsection (5) may prefer an appeal to the Labour Appellate Tribunal within 30 (thirty)
days from the date of receipt of the order of the Labour Court.
(7) In order to settle the application for registration, the Government shall
frame a Standard Operating Procedure in keeping with the provision of this section.
183. Registration of trade unions in a group of establishments.- (1)
Notwithstanding anything contained in this Chapter, for the purpose of formation of a
trade union any group of establishments shall be treated as one establishment, and
no separate trade union shall be formed in any establishment included in such group
of establishments.
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78
(2) For the purposes of this section “a group of establishments” shall mean all
the establishments in a specified area carrying on the same specified industry where
more than 20 (twenty) workers are employed.
(3) Notwithstanding anything contained in sub-section (2), all the
establishments, irrespective of the number of workers employed therein, in a
specified area carrying on any of the following industries shall be deemed to be a
group of establishments for that area, namely:-
(a) bus, minibus, truck, covered van, etc. private motorized road
transport;
(aa) rickshaw, rickshaw-van, hand-cart, etc. private non-motorized
road transport;
(b) private inland river transport;
(c) tailoring and garments manufacturing industry wherein not more
than 100 (one hundred) workers are employed;
(d) tea industry;
(e) jute bailing;
(f) tannery industry;
(g) bidi;
(h) handloom;
(i) hosiery;
(j) printing press;
(k) hotels or motels where number of guest rooms does not exceed
25 (twenty five);
(l) restaurant not forming part of a hotel;
(m) small-scale metal industry;
(n) book-binding;
(o) cinema and theatre;
(p) ship building;
(q) ship recycling;
(r) construction worker;
(s) chatal or rice mill worker;
(t) agricultural farm:
Provided that the Government may, if it deems fit in the
national interest, by notification in the official Gazette, add any
industry to the above list of industries.
(4) The specified area as mentioned in sub-section (2) or (3) shall mean such
area as may be specified by the Government, by notification in the official Gazette,
for any specified industries; and such area may be specified at national, regional or
local level; and different areas may be specified for different industries.
(5) The specified industries as mentioned in sub-section (2), shall mean such
industries as the Government may, by notification in the official Gazette, specify for
the purpose.
(6) A trade union formed in a group of establishments may be registered, if it
has members not less than thirty percent of the total number of workers employed in
all establishments included in such group of establishments.
(7) Notwithstanding anything contained in this Chapter, if the constitution of
any trade union formed in a group of establishments provides that a person who is
not employed in an establishment included in the said group of establishments shall
be entitled to be, or to be elected, an officer of that trade union, any such person
may be elected, or continue to be, an officer of that union:
Provided that the number of such persons shall not in any case be more than
one fourth of the total number of its officers.
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(8) Subject to the provisions of this section, all other sections of this Chapter
shall apply to a trade union formed in a group of establishments as they apply to a
trade union formed in an independent establishment.
184. Registration of trade union in Civil Aviation establishment in the
case of specialized trade for establishing relation with international
organization.- Notwithstanding anything contained in this Chapter, persons
engaged in the profession of pilot, engineer or cabin crew in the field of Civil Aviation
can form trade union for establishing affiliation with any respective recognized
international organization.
185. Registration of trade union of seamen.- (1) Notwithstanding anything
contained in this Chapter, Bangladeshi seamen ordinarily serving in oceangoing
ships may form trade union of their own.
(2) No seaman shall be a member of such trade union unless he has a
continuous discharge certificate or an appointment letter showing his employment as
a seaman in any establishment of merchant shipping business.
(3) Only 1 (one) trade union of seamen shall be formed under this Chapter.
185A. Registration of trade union in Chittagong Port Authority and
Monlga Port Authority, etc.- (1) Notwithstanding anything contained in this
Chapter, the employees in the service of the Chittagong Port Authority and the
Mongla Port Authority may form their own trade union.
(2) The employees employed in the Chittagong Port Authority and the Mongla
Port Authority may form only one trade union in their respective authority.
(3) Subject to the provisions of sub-section (5), the workers and employees
employed in the work with appointment letter given by the users of the Chittagong
Port and the Mongla Port, berth-operators, ship handling operators and other
establishments related to the ports may collectively form only one trade union in their
respective port.
(4) The employers of workers in the Chittagong Port Authority and the Monlga
Port Authority may collectively form only one trade union in their respective Authority.
(5) No worker or employee shall be a member of a trade union under subsection (3), unless-
(a) he has been employed for a continuous period of more than 1
(one) year in any port user, berth operator, ship handling
operator and other establishments related to the port; and
(b) he has a letter of appointment as a worker or employee.
(6) The trade union shall be formed pursuant to this section within 6 (six)
months of the commencement of the Bangladesh Labour (Amendment) Act, 2009.
(7) All existing trade unions formed for the employers of workers, and for the
appointed employees in the Chittagong Port Authority and the Mongla Port Authority
and for other employers, workers and employees related with the port activities shall
stand dissolved upon the formation of trade union under this section or with the
expiry of 6 (six) months as mentioned in sub-section (6).
(8) Notwithstanding anything contained in any other section of this Act, the
Government may, in the public interest,-
(a) subject to the other provisions of this Act, control in any manner
the activities of the trade union formed under this section; and
(b) take measures to cancel the registration of any trade union
under section 190.
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186. Conditions of service shall remain unchanged while application for
registration is pending.- (1) No employer shall, while an application for registration
of a trade union formed in his establishment is pending, alter the terms and
conditions of service of any officer of that union, without prior permission of the
Director General, to the disadvantage of such officer.
(2) Notwithstanding anything contained in section 26, no employer shall, while
an application for registration of a trade union is pending, terminate the employment
of any worker under that section who is a member of such trade union.
187. Chairman and certain officers not to be transferred.- The Chairman
and any officer including, General Secretary or any other officer of any trade union
shall not be transferred from one district to another without their consent.
188. Notice in the cases of certain changes in the constitution and
executive committee.- (I) Every amendment made in the constitution of a trade
union, every change among its officers, and change in its name and address shall be
communicated to the Director General by a notice sent by registered post or
delivered by hand, within 15 (fifteen) days of such amendment or change, and the
Director General shall after receipt of such notice forthwith send a copy thereof to the
employer concerned for his information.
(2) The Director General may refuse to register any such amendment or
change if it is made in contravention of any provision of this Chapter.
(3) Every inclusion or exclusion of any constituent unit of a federation of trade
unions shall be communicated to the Director General by a notice sent to him by
registered post, within 60 (sixty) days of such inclusion or exclusion.
(4) If there is any dispute in relation to the change of officers of a trade union,
or any trade union is aggrieved by the order of refusal of the Director General under
sub-section (2), any officer or member of such trade union may prefer an appeal to
the Labour Court.
(5) The Labour Court may, after hearing the appeal within 7 (seven) days of
receipt thereof under sub-section (4), if it thinks proper, pass an order, for reasons to
be recorded in writing, directing the Director General to register the amendment or
change in the constitution or among the officers of the trade union or to hold fresh
election of the union under his supervision.
189. Certificate of registration.- The Director General, on registering a trade
union under section 182, shall issue a certificate of registration in the form prescribed
by rules and such certificate shall be conclusive evidence that the concerned trade
union has been duly registered under this Chapter.
190. Cancellation of registration.- (1) Subject to other provisions of this
section, the Director General may cancel the registration of a trade union, if-
(a) the trade union applies for cancellation of registration on the
basis of the decision of the general meeting of the union;
(b) it ceased to exist;
(c) it obtained registration by fraud or by misrepresentation of facts;
(d) (Repealed);
(e) it committed any unfair labour practice;
(f) its membership has fallen short of the number of membership
required under this Chapter; or
(g) it contravened any provision of this Chapter or the rules.
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81
(2) Where the Director General is satisfied on enquiry that the registration of a
trade union should be cancelled, he shall submit an application to the Labour Court
praying for permission to cancel such registration.
(3) The Director General shall cancel the registration of a trade union within
30 (thirty) days from the date of receipt of the permission from the Labour Court.
(4) The registration of a trade union shall not be cancelled on the ground
mentioned in sub-section (1) (e), unless an application is submitted to the Labour
Court within 3 (three) months of the occurrence of unfair labour practice by such
trade union mentioned in the allegation.
191. Appeal against permission, etc.- (1) Any person aggrieved by the
order of the Labour Court granting the permission to cancel registration of a trade
union or rejecting such prayer for permission under section 190 or by the order of
cancellation of the registration of a trade union by the Director General under that
section may, within 30 (thirty) days from the date of the order, prefer an appeal to the
Tribunal and the decision of the Tribunal thereon shall be final.
(2) Where an appeal is preferred under sub-section (1), the trade union
concerned shall be permitted to function till the disposal of appeal.
192. No trade union to function without registration.- (1) If a trade union is
not registered or its registration is cancelled, it shall not, subject to the provisions of
section 191(2), function as a trade union.
(2) No person shall collect any subscription, other than enrollment fee for
membership, for the fund of a trade union mentioned in sub-section (1).
193. Restriction on dual membership.- No worker or employer shall be
entitled to enroll himself as, or continue to be, a member of more than one trade
union at a time at the same establishment.
194. Incorporation of registered trade union.- (1) Every registered trade
union shall be a body corporate by the name under which it is registered, and it shall
have perpetual succession and a common seal, and shall have power to enter into
contract and to acquire, hold and dispose of property, both movable and immovable,
and shall by the said name sue or be sued.
(2) The Societies Registration Act, 1860 (Act No. XXI of 1860), the Cooperative Societies Ordinance, 1985 (Ordinance No. I of 1985) and the Companies
Act, 1994 (Act No. XVIII of 1994) shall not apply to any registered trade union, and
the registration of any trade union under any of these Acts shall be void.
195. Unfair Labour practices on the part of the employers.- (1) No
employer or the trade union of employers or any person acting on their behalf shall-
(a) impose any condition in a contract of employment restraining the
right of the worker concerned to join a trade union or continue
his membership of a trade union ;
(b) refuse to employ or refuse to keep in employment any worker on
the ground that such worker is, or is not, a member or officer of
a trade union;
(c) discriminate against any worker in regard to any employment,
promotion, conditions of employment or working conditions on
the ground that such worker is, or is not, a member or officer of
a trade union;
(d) dismiss, discharge or remove any worker from employment or
threaten to do so, or threaten to do any harm to his employment
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82
by reason that he is, or proposes to become, or persuades any
other person to become, a member or officer of a trade union, or
that he participates in the formation, activities and expansion of
a trade union;
(e) induce any worker or any other person to refrain from becoming
a member or officer of a trade union or to quit such post, by
conferring or offering to confer any advantage or by procuring or
offering to procure any advantage for him;
(f) compel or attempt to compel any officer of the collective
bargaining agent to arrive at a settlement or to sign a
memorandum of settlement by intimidation, coercion, pressure,
threat, confinement to a place, physical injury, disconnection of
water, power and telephone facilities or by any other means;
(g) interfere with or in any way influence the election held under
section 202;
(h) recruit any new worker during the continuance of strike under
section 211 or during the continuance of strike which is not
illegal, except where the Arbitrator is satisfied that the complete
cessation of work is likely to cause serious damage to the
machinery or any other installation, he may permit temporary
employment or a limited number of workers, in the department
or section of the establishment where the damage is likely to
occur;
(i) deliberately fail to take measures recommended by the
participation committee;
(j) fail to give reply to any communications made by the collective
bargaining agent in respect of any industrial dispute;
(k) transfer the Chairman, general secretary, organizing secretary
or treasurer of any trade union in contravention of the provisions
of section 187; or
(l) commence or continue or instigate others to take part in any
illegal lock-out.
(2) In order to enquire into unfair labour practice, the Government shall frame
Standard Operating Procedure in keeping with the provision of this section.
196. Unfair Labour practices on the part of workers.- (1) No worker shall
engage himself in any trade union activities during his working hour without the
permission of his employer:
Provided that nothing in this sub-section shall apply to the trade union
activities of the Chairman or the General Secretary of the collective bargaining agent
of an establishment, if such activities relate to any committee, negotiation,
arbitration, mediation or any other proceeding under this Act, and the employer has
been duly informed thereof.
(2) No worker or a trade union of workers or any person acting on behalf of
such trade union shall-
(a) intimidate any worker to become or not to become a member or
officer of a trade union or to continue in or to refrain from such
post;
(b) induce any worker or any other person to refrain from becoming
a member or officer of a trade union or to quit such post by
conferring or offering to confer any advantage or by procuring or
offering to procure any advantage for him;
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83
(c) compel or attempt to compel any worker to pay or refrain from
paying any subscription to the fund of any trade union by
intimidation, coercion, pressure, threat, confinement to a place,
physical injury, disconnection of telephone, water or power
facilities or by any other means;
(d) compel or attempt to compel the employer to sign a
memorandum of settlement or to accept or agree to any demand
by intimidation, coercion, pressure, threat, confinement to or
eviction from a place, dispossession, assault, physical injury,
disconnection of water, electricity, gas or telephone facilities or
by any other means;
(e) commence or continue an illegal participation in strike or a goslow; or instigate others to take part in it; or
(f) resort to gherao, obstruction to transport or communication
system or destruction of any property in furtherance of any
demand or object of a trade union.
(3) It shall be an unfair practice for a trade union to interfere in the election
held under section 202 by the exercise of undue influence, intimidation,
impersonation or bribery through the officer of that trade union or any other person
acting on its behalf.
(4) In order to enquire into unfair labour practice, the Government shall frame
Standard Operating Procedure in keeping with the provision of this section.
196A. Anti-trade union discrimination.- (1) During the process of trade
union by the workers or during pendency of the application for registration or
violation of service conditions by the employer after registration and any retaliation
work is adopted at the workplace, it shall be anti-trade union discrimination on the
part of employers.
(2) In order to enquire into anti-trade union discrimination, the Government
shall frame Standard Operating Procedure in keeping with the provisions of this
section
197. Limited application of law of conspiracy.- No officer or member of a
trade union or a collective bargaining agent shall be liable to punishment under
section 120B(2) of the Penal Code, 1860 (XLV of 1860) in respect of any agreement
made between the members thereof for the purpose of furthering any such object of
the trade union as is specified in its constitution referred to in section 179, unless the
agreement is an agreement to commit an offence, or otherwise it violets any law or
provision other than the provisions of this Chapter.
198. Immunity from civil suit in certain cases.- (1) No suit or other legal
proceedings shall lie against any trade union or collective bargaining agent or its any
officer or member in respect of any act done or action taken in contemplation or
furtherance of an industrial dispute to which the trade union is a party on any of the
following grounds only, namely:-
(a) such act or action induces any person to break a contact of
employment;
(b) such act or action interferes with the trade, business or
employment of some other person; or
(c) such act or action fails the right of any person to apply his
capital or labour at his discretion.
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84
(2) A trade union shall not be liable in any suit or other legal proceedings in
any civil Court in respect of any tortuous act done in contemplation or furtherance of
an industrial dispute by an agent of the trade union, if it is proved that such agent
acted without the knowledge of or contrary to the clear instructions of the executive
committee of the trade union.
199. Enforceability of agreement.- Notwithstanding anything contained in
any other law, an agreement between the members of a trade union shall not be void
or violable by reason only that any of its objects is a restraint for any trade and
commerce:
Provided that nothing in this section shall enable any civil Court to entertain
any legal proceedings instituted for the purpose of enforcing, or recovering damages
for the breach of, any agreement concerning the conditions on which any member of
a trade union shall sell or shall not sell his goods, transact or not transact business,
or do or not do any work, or render or not render any service.
200. Registration of federation of trade unions.- (1) Five or more trade
unions formed in the establishments engaged in or carrying on the same or identical
industry and the trade union organizations of more than one administrative division
may, if in their general meetings so resolved, constitute a federation by executing a
deed of federation and apply for its registration:
Provided that a trade union of workers shall not join in a federation of trade
union of employers and a trade union of employers shall not join in a federation of
trade union of workers.
(2) The deed of federation referred to in sub-section (1) shall, among other
things, provide for the procedure to be followed by the federated trade unions and
rights and responsibilities of the federation and the federated trade unions.
(3) An application for the registration of a federation of trade unions shall be
signed by the Chairman and General Secretary of all the trade unions constituting
the federation and shall be accompanied by three copies of the deed of federation
referred to in sub-section (1).
(4) Subject to the provisions of this section, the provisions of this Chapter
shall apply to a federation of trade union as they apply to a trade union.
(5) Notwithstanding anything contained in the foregoing sub-sections of this
section, at least twenty trade unions registered in the case of more than one industry
and the trade union organizations of more than one administrative division may
jointly or by joining themselves constitute a federation of trade unions on national
level.
(6) At least ten national based trade union federations constituted under the
provisions of sub-section (5) may, by joining themselves together, constitute a
national based confederation.
201. Returns.- (1) After the end of a Gregorian calendar year, by the 30th
April of the following year, a general statement, prepared and audited in the manner
prescribed by rules, of all receipts and expenditure and of the assets and liabilities of
a trade union during the preceding calendar year shall be sent to the Director
General.
(2) A statement showing all changes of officers in the trade union during the
year to which the general statement refers and a copy of the constitution of the trade
union corrected up to the date shall with the said general statement, be sent to the
Director General.
(3) If a registered trade union fails to send the said general statement within
the period specified in sub-section (1), the Director General shall, by a notice, inform
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85
it thereof, and if the trade union fails to submit the general statement within 30 (thirty)
days of the receipt of such notice, its registration may be cancelled.
(4) If any trade union is a member of a federation, the name of that federation
shall be given in the said general statement.
202. Collective bargaining agent.- (1) Where there is only one trade union in
an establishment, the trade union shall be deemed to be the collective bargaining
agent for such establishment.
(2) Where there are more than one trade unions in an establishment the
unions shall, by nominating an election commissioner from amongst themselves,
take steps for election of a collective bargaining agent (CBA) or the Director General
shall, upon an application made in this behalf by any such trade union or by the
employer, hold a secret ballot, within a period of 120 (one hundred and twenty) days
from the date of receipt of such application, to determine as to which trade union
shall be the collective bargaining agent for the establishment.
(3) Upon receipt of an application under sub-section (2), the Director General
shall, by a notice in writing, call upon all trade unions of the establishment to let him
know, within such time, not exceeding 15 (fifteen) days, as may be specified in the
notice, whether or not they shall contest in a secret ballot.
(4) If a trade union fails to inform the Director General within the time specified
in the notice given under sub-section (3), of anything as to its contest in the secret
ballot, it shall be presumed that it shall not contest in such ballot.
(5) If no trade union inform the Director General within the time specified in
the notice of anything as to its contest in the secret ballot, the trade union which has
made the application under sub-section (2), shall be declared to be the collective
bargaining agent for that establishment, if not less than one-third of the total number
of workers employed in the establishment are members of that trade union.
(6) Every employer shall, on being so required by the Director General, submit
to him a list of all the workers, except substitute and casual workers, employed in his
establishment for not less than a period of 3 (three) months, and the list shall contain
the following particulars, namely:-
(i) the name of every worker;
(ii) the names of his father and mother and age (the name of
spouse, if applicable, shall also be given);
(iii) the name of his branch or department;
(iv) the name of his work place;
(v) the number of his ticket and date of employment.
(7) On being so required by the Director General, every employer shall supply
requisite number of additional copies of the list mentioned in sub-section (6) and
shall provide necessary facilities for verification of the list so submitted.
(8) On receipt of the list of workers from the employer, the Director General
shall send a copy of the list to each contesting trade union and shall affix a copy
thereof in a conspicuous place of his office and another copy in a conspicuous place
of the establishment concerned together with a notice inviting objections to the list, if
any, to be submitted to him within such time as may be specified therein.
(9) If the Director General receives any objection within the specified time, he
shall dispose of it after holding necessary enquiry.
(10) The Director General shall make such necessary amendment or
alteration in the list of workers submitted by the employer as may be required by any
decision given by him under sub-section (9).
(11) After any amendment or alteration made under sub-section (10), or
where no objection is received by the Director General within the specified time, after
expiry of such time, he shall prepare a final list of workers employed in the
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establishment concerned and duly certify it and send copies thereof to the employer
concerned and every contesting trade union at least 7 (seven) days prior to the date
fixed for poll.
(12) The list of workers prepared and certified under sub-section (11) shall be
deemed to be the list of voters, and the worker whose name appears in that list shall
be entitled to vote in the poll to determine the collective bargaining agent.
(13) Every employer shall provide all such facilities in his establishment as
may be required by the Director General for the conduct of the poll, but shall not
interfere with, or in any way influence the voting.
(14) No person shall canvas for vote within 45 (forty five) metres of the polling
stations.
(15) For the purpose of holding secret ballot to determine the collective
bargaining agent, the Director General shall-
(a) fix the date for the poll, and communicate it to every contesting
trade union and the employer;
(b) set up ballot boxes for voting in every polling station on the date
fixed for the poll and seal it in the presence of the
representatives of the contesting trade unions if any;
(c) conduct the poll at the polling station and facilitate the
representatives of the contesting trade unions to present at that
station;
(d) after the conclusion of the poll, open the ballot boxes in the
presence of the representatives of the contesting trade unions, if
they are present, and count the votes; and
(e) after the conclusion of counting votes, declare the trade union
which has received the highest number of votes to be the
collective bargaining agent.
(16) Where a trade union is declared to be the collective bargaining agent for
an establishment under sub-section (15)(e), it shall be the collective bargaining
agent for that establishment for 2 (two) years from the date of such declaration, and
no application for the determination of a new collective bargaining agent for such
establishment shall be entertained during this period:
Provided that in the case of a group of establishments, the duration of a
collective bargaining agent shall be of 3 (three) years.
(17) Notwithstanding anything contained in sub-section (16), where a trade
union desires to be the next collective bargaining agent for an establishment after
the expiry of the term of an existing collective bargaining agent, or where an existing
collective bargaining agent desires to continue as such for the next term also, it may
make an application to the Director General, not earlier than 150 (one hundred and
fifty) days and not later than 120 (one hundred and twenty) days immediately before
the expiry of the term of the existing collective bargaining agent, to hold a secret
ballot to determine the next collective bargaining agent for the establishment.
(18) Where an application is made under sub-section (17), a secret ballot to
determine the next collective bargaining agent shall be held within 120 (one hundred
and twenty) days from the date of receipt of such application, but the trade union
declared to be the next collective bargaining agent on the basis of the result of the
poll shall be the collective bargaining agent from the date of expiry of the term of the
existing collective bargaining agent.
(19) Where after receiving an application under sub-section (17), the next
collective bargaining agent for an establishment could not be determined before the
expiry of the tenure of the existing collective bargaining agent, due to reasons
beyond the control of the Director General, the existing collective bargaining agent
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shall continue to function as the collective bargaining agent in that establishment till
the new collective bargaining agent is determined.
(20) Where no application is received under sub-section (17), the Director
General shall declare the date of new election within 120 (one hundred and twenty)
days following the expiry of the tenure of the existing collective bargaining agent, and
the existing collective bargaining agent shall continue to function as collective
bargaining agent for the concerned establishment for the interim period.
(21) Any dispute arising out of any matter in relation to an election for
determination of collective bargaining agent shall be referred to the Labour Court,
and the decision of the Court thereon shall be final.
(22) (Repealed).
(23) A collective bargaining agent may, without prejudice to its own position,
plead any federation of trade unions, of which it is a member, as a party to any
proceeding under this Chapter to which it itself is a party.
(24) A collective bargaining agent in relation to an establishment to which it
relates shall be entitled to-
(a) bargain with the employer in matters of the state of jobless,
conditions of work or environment of work of the workers;
(b) represent all or any of the workers in any proceedings;
(c) give notice of, and declare, a strike in accordance with the
provisions of this Chapter;
(d) nominate representatives of the workers in any welfare
institution or provident fund and in the board of trustees of the
workers participation fund established under Chapter XV; and
(e) conduct cases on behalf of any individual worker or a group of
workers with their consent under this Act.
(25) The provisions of this section shall also apply to the election or
determination of collective bargaining agent in a group of establishments declared
under this Act.
(26) Every employer shall, in the manner prescribed by rules, allot an office
room for the elected collective bargaining agent (CBA) in his establishment.
202A. Appointment of specialists.- (1) Notwithstanding anything contained
in this Chapter, an employer or a collective bargaining agent (CBA) may, if he or it
deems necessary for carrying out collective bargaining activities, take assistance
from specialists.
(2) If any objection is raised in respect of a specialist mentioned in sub-section
(1), any party may request the Director General for arbitration to settle the issue.
203. Federation of trade unions to act as collective bargaining agent in
certain cases.- (1) Notwithstanding anything contained in this Chapter, a federation
of trade unions shall be deemed to be the collective bargaining agent in any
establishment or group of establishments, if any of its federated unions in that
establishment, by a resolution passed in the meeting of its executive committee,
authorizes it to act as the collective bargaining agent in that establishment on its
behalf:
Provided that no such authorization shall be permissible, unless the
constitutions of the federation and of the federated union provides for such
authorization.
(2) A federation of trade unions shall act as the collective bargaining agent
only in the establishment or group of establishments in which any of its federated
union is a collective bargaining agent.
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(3) Nothing in this section shall apply in the case of a federation of trade
unions on national level formed and registered under section 200(5).
204. Check-off.- (1) If the collective bargaining agent so requests, an
employer shall deduct from the wages of the workers working in his establishment,
who are members of that CBA union, such amounts towards their subscriptions to
the fund of the CBA union as may be specified, with the approval of each individual
worker named in the demand statement furnished by the CBA union and shall keep
the sum so deducted separately:
Provided that union members beyond CBA shall give subscription through
receipt.
(2) An employer making any deduction from the wages under sub-section (1)
shall deposit, within next 15 (fifteen) days, the entire amount so deducted in the
account of the CBA union concerned.
(3) The employer shall provide full facilities to the CBA concerned for
ascertaining whether deductions from the wages of its members are being made
under sub-section (1).
205. Participation committee.- (1) The employer of every establishment, in
which at least 50 (fifty) workers are ordinarily employed, shall, through direct
involvement of the workers working in that establishment, constitute a participatory
committee in his establishment in the manner prescribed by rules.
(2) Such committee shall consist of the representatives of the employer and
the workers.
(3) The number of representatives of workers in such committee shall not be
less than the number of representatives of the employer.
(4) (Repealed).
(5) (Repealed).
(6) The establishment where a participation committee is to be formed the
workers’ representatives of such establishment shall be elected from among the
workers in accordance with the prescribed by Rules.
(6a) In an establishment where no trade union exists, the worker
representatives of the participatory committee may carry out the activities related to
the interests of the workers until a trade union is formed in that establishment.
(7) Where in an establishment there is a unit in which at least 50 (fifty)
workers are employed, a unit participation committee may, on the recommendation
of the participation committee, be constituted there in the manner prescribed by
rules.
(8) Such unit participation committee shall consist of the representatives of
the employers and of the workers employed in or under that unit.
(9) An employer shall not transfer an elected or nominated officer or a
member of the participatory committee belonging to the workers side during the
tenure of the committee without his consent.
(10) An employer shall not raise any objection or take any retaliatory measure
against the workers’ representatives for anything done in good faith while carrying
out the activities related to the duties of the committee.
(11) The provisions of this section applicable to the participatory committee
shall, as far as possible, also apply to the unit participatory committee.
(12) In any establishment while there is a trade union, there shall not be
necessary to form participation committee.
(13) A true copy of certificate and other records of the participation
committee can be collected on the payment of the fee determined by the
Government.
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206. Functions of the participation committee.- (1) The main function of
the participation committee shall be to inculcate and develop sense of belonging to
the establishment among the workers and employers and to aware the workers of
their commitments and responsibilities to the establishment, and, in particular-
(a) to endeavour to promote mutual trust and faith, understanding
and co-operation between the employers and the workers;
(b) to ensure the application of labour laws;
(c) to foster a sense of discipline and to improve and maintain
safety, occupational health and working condition;
(d) to encourage vocational training, workers’ education and family
welfare training;
(e) to adopt measures for improvement of welfare services for the
workers and their families; and
(f) to fulfill production target, increase productivity, reduce
production cost, prevent wastage and raise quality of products.
(2) A unit participation committee shall, under the supervision of the principal
participation committee, discharge, as far as practicable, the functions mentioned in
sub-section (1).
207. Meetings of the participation committee.- (1) The participation
committee shall meet at least once in every 2 (two) months to discuss and exchange
views and recommend measures for performance of the functions under section 206.
(2) The minutes of every meeting of the participation committee shall be
submitted to the Director General and the Arbitrator within 7 (seven) days of the date
of the meeting.
208. Implementation of recommendations of the participation
committee.- (1) The employer of the establishment and the trade union shall take
necessary steps to implement the specific recommendations of the participation
committee within the period specified by the committee.
(2) If, for any reason, the employer or the trade union finds difficulties to
implement the recommendations within the specified time, it shall inform the
committee about it and make all possible efforts to implement the same as early as
possible.
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CHAPTER XIV
SETTLEMENT OF DISPUTE, LABOUR COURT, LABOUR APPELLATE
TRIBUNAL, LEGAL PROCEEDINGS, ETC.
209. Raising of industrial dispute.- No industrial dispute shall be deemed to
exist, unless it is raised by an employer or by a collective bargaining agent in
accordance with the provisions of this Chapter.
210. Settlement of industrial dispute.- (1) If at any time an employer or a
collective bargaining agent finds that an industrial dispute is likely to arise between
the employer and the workers, the employer or the collective bargaining agent shall
communicate his or its views in writing to the other party.
(2) Within 15 (fifteen) days of the receipt of a communication under subsection (1), the party receiving it shall, in consultation with the other party, arrange a
meeting with it for collective bargaining through discussion on the issue raised in the
communication with a view to reaching an agreement, and such meeting may be
held between the representatives of the parties authorized in this behalf.
(3) If the parties, after holding discussion, reach a settlement on the issues
discussed, a memorandum of settlement shall be recorded in writing and signed by
both the parties, and a copy thereof shall be forwarded by the employer to the
Government, the Director General and the Conciliator.
(4) If-
(a) the party receiving a communication under sub-section (1) fails
to arrange a meeting with the other party within the time
specified in sub-section (2), such other party, or
(b) no settlement is reached through dialogue within a period of 1
(one) month from the date of the first meeting for negotiation, or,
such further period as may be agreed upon in writing by the
parties, any of the parties,
may, within 15 (fifteen) days from the expiry of the period mentioned in subsection (2) or, clause (b) of this sub-section, as the case may be, report the matter to
a competent Conciliator mentioned insub-section (5) and may request him in writing
to settle the dispute through conciliation.
(5) For the purposes of this Chapter, the Government shall, by notification in
the official Gazette, appoint such number of persons as it considers necessary, as
Conciliator for such specific area or establishment or industry as may be specified in
the notification, and the Conciliator appointed for the area or establishment or
industry concerned shall take up any request for conciliation under sub-section (4).
(6) The Conciliator shall, within 10 (ten) days of receipt of the request as
aforesaid, start conciliation, and shall call a meeting between both the parties to
bring about a settlement.
(7) The parties to the dispute shall appear before the Conciliator in person or
through the representatives nominated and authorized by them to enter into an
agreement binding on both the parties on such date and at such time as the
Conciliator may specify.
(8) If any settlement of the dispute is arrived through conciliation, the
Conciliator shall submit a report thereon to the Government together with a
memorandum of settlement signed by both the parties.
(9) If no settlement is arrived at within 30 (thirty) days of receipt of any request
for settlement of any dispute by the Conciliator, the conciliation shall fail, or the
conciliation may be continued for further period agreed upon in writing by both the
parties.
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(10) If the conciliation fails, the Conciliator shall try to persuade the parties to
agree to refer the dispute to an Arbitrator.
(11) If the parties do not agree to refer the dispute to an Arbitrator, the
Conciliator shall, within 3 (three) days of failure of the conciliation issue a certificate
to the parties to the dispute to the effect that it has failed.
(12) If the parties agree to refer the dispute to an Arbitrator, they shall make a
joint request in writing for settlement of the dispute to an Arbitrator agreed upon by
them.
(13) An Arbitrator referred in sub-section (12) may be a person from the panel
of Arbitrators prepared by the Government in this behalf, or any other person agreed
upon by the parties.
(14) The Arbitrator shall give his award within 30 (thirty) days from the date of
receipt of the request for arbitration or within such further period as may be agreed
upon in writing by the parties.
(15) When an award is given by the Arbitrator, he shall forward one copy
thereof to the parties and another copy to the Government.
(16) The award of the Arbitrator shall be final and no appeal shall lie against it.
(17) An award shall be valid for such period not exceeding two years as may
be fixed by the Arbitrator.
(18) The Director General may, if he deems fit in the interest of settlement of a
dispute, at any time, take over any conciliation proceedings from any Conciliator and
proceed to conciliate the dispute himself, or transfer such proceedings to any other
Conciliator, and in such a case the other provisions of this section shall apply.
(19) Notwithstanding anything contained in this section, the collective
bargaining agent of the establishments, in respect of which a trade union of
employers or a federation of trade unions of employers has been registered shall
communicate with such trade union of employers or federation regarding any
industrial dispute and any agreement regarding settlement of industrial dispute made
with such trade union of employers or federation shall be binding upon all the
employers and workers of the establishments.
211. Strike and lock-out.- (1) The party which raises any industrial dispute
may, within 15 (fifteen) days of receipt of the certificate of failure under section 210
(11), give a notice to the other party, of strike or lockout, as the case may be, in
which the date of commencement of such strike or lockout shall be mentioned, which
shall not be earlier than seven days and later than 14 (fourteen) days of the date of
giving such notice, or the party raising such dispute may make an application to the
Labour Court for adjudication of the dispute:
Provided that no collective bargaining agent shall serve any notice of strike,
unless 51 (fifty one) percent of its members give their consent to it through a secret
ballot, specially held for that purpose, under the supervision of the Conciliator, in
such manner as may be prescribed by rules.
(2) If a strike or lock-out begins, either of the parties to the dispute may make
an application to the Labour Court for adjudication of the dispute.
(3) If any strike or lock-out lasts for more than 30 (thirty) days, the
Government may, by order in writing, prohibit it:
Provided that the Government may, by order in writing, prohibit a strike or
look-out at any time before the expiry of 30 (thirty) days if it is satisfied that the
continuance of such strike or lock-out is causing serious hardship to the public life or
is prejudicial to the national interest.
(4) In case of any public utility service, the Government may, by order in
writing, prohibit a strike or lock-out at any time before or after the commencement of
the strike or lock-out.
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(5) If the Government prohibits a strike or lock-out under sub-section (3) or
(4), it shall forthwith refer the dispute to the Labour Court for settlement.
(6) The Labour Court shall, after giving both the parties to the dispute an
opportunity of being heard, make such award as it deems fit as expeditiously as
possible but not later than 60 (sixty) days from the date on which the dispute was
referred to it:
Provided that the Labour Court may, if it deems necessary, make an interim
award on any matter of the dispute:
Provided further that an award shall not be invalid due to delay in making
such award.
(7) An award of the Labour Court shall remain in force for such period as may
be specified in the award, which shall not be more than 2 (two) years.
(8) The strike or lock-out shall be prohibited in an establishment for a period of
3 (three) years from the date of commencement of production therein, if such
establishment is a new one or is owned by foreigners or is established in
collaboration with foreigners, but other provisions of this Chapter relating to
resolution of any industrial dispute shall apply to such establishments.
212. Cessation of industrial dispute.- (1) If the party raising an industrial
dispute under section 210 fails to-
(a) make a request to the Conciliator to conciliate in the dispute
under section 210(4) within the time specified therein, or
(b) commence strike or lock-out on the date specified in the notice
served under section 211(1), or
(c) refer the dispute to the Labour Court for settlement or serve
notice of strike or lock-out, within the time specified in section
211 (1);
the dispute shall cease to exist on the expiry of such specified time or date.
(2) When an industrial dispute ceases to exist under sub-section (1), no fresh
dispute on the same subject shall be raised within a period of one year from the date
of cessation of such dispute.
213. Application to the Labour Court.- Any collective bargaining agent or
any employer or worker may apply to the Labour Court for the enforcement of any
right guaranteed or given by or under this Act or any award or settlement or
agreement or recognized by any existing custom or notice or order or notification or
in any other way.
214. Labour Courts.- (1) For the purposes of this Act, the Government may,
by notification in the official Gazette, establish as many Labour Courts as it considers
necessary.
(2) Where more than 1 (one) Labour Court is established under sub-section
(1), the Government shall specify in the notification the territorial limits within which
each of them shall exercise jurisdiction under this Act.
(3) A Labour Court shall consist of a Chairman and 2 (two) members to advise
him, but in case of trial of any offence or disposal of any matter under Chapter X and
XII, it shall consist of the Chairman only.
(3a) The members of a Labour Court may give their opinion, in writing, to the
Chairman of the Labour Court, and if the members give any opinion, it must be
mentioned in the judgment.
(4) The Chairman of a Labour Court shall be appointed by the Government
from amongst the District Judges or Additional District Judges who are in service.
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(5) The terms and conditions of appointment of the Chairman and of members
of a Labour Court shall be determined by the Government.
(6) One of the two members of the Labour Court shall be the representative of
the employers and the other shall be the representative of the workers and they shall
be appointed in the manner provided in sub-section (9).
(7) The Government shall, in the manner prescribed by rules, by notification in
the official Gazette, constitute two panels, one of which shall consist of six
representatives of the employers and the other of six representatives of the workers.
(8) The panel of members constituted under sub-section (7) shall be
reconstituted after every 2 (two) years, but notwithstanding the expiry of the said
period of 2 (two) years, the members shall continue on the panels till the new panel
is notified in the official Gazette.
(9) The Chairman of a Labour Court shall, for hearing or disposal of a case
relating to a specific industrial dispute, select one representative from each of the 2
(two) panels mentioned in sub-section (7), and the representatives so selected
together with the Chairman, shall be deemed to have constituted the Labour Court in
respect of the said industrial dispute:
Provided that the Chairman may select any representative from either of the
panels as a member of the Labour Court for hearing more than one cases relating to
industrial dispute.
(10) A Labour Court shall have exclusive jurisdiction in the following matters,
namely:-
(a) to adjudicate and determine any industrial dispute or any other
dispute or any question referred to or brought or made before it
under this Act;
(b) to enquire into, adjudicate and determine any matter relating to
the implementation or violation of a settlement referred to by the
Government;
(c) to try offences under this Act; and
(d) to exercise and perform such other powers and functions as are
or may be conferred upon or assigned to by or under this Act or
any other law.
(11) If any member of a Labour Court is absent or unable to attend for any
reason on the date of hearing of the Court, whether such absence or inability occurs
at the beginning of or during the continuance of the hearing thereof, the proceedings
of the Court may begin or continue, as the case may be, in his absence and the
decision or award of the Court may be given in his absence; and no act,
proceedings, decision or award of a Labour Court shall be invalid or be called in
question merely on the ground of such absence or on the ground of any vacancy in,
or any defect in the constitution of, the Labour Court:
Provided that if any member of the Court informs the Chairman beforehand of
his absence, the Chairman shall nominate another member from the panel of the
concerned parties:
Provided further that the opinion of the members of both the sides shall be
mentioned in the judgment of the case.
(12) The provisions of Chapter XXXV of the Code of Criminal Procedure shall
apply to a Labour Court, and for the purposes of that Chapter, the Labour Court shall
be deemed to be a Criminal Court.
(13) All Labour Courts shall be subordinate to the Tribunal.
215. Powers and Procedure of Labour Courts in trial of offences.- (1)
Subject to the provisions of this Act, a Labour Court shall, while trying an offence,
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follow, as far as possible, the summary procedure as prescribed under the Code of
Criminal Procedure.
(2) A Labour Court shall, for the purpose of trying an offence under this Act,
have the same powers as are vested in the Court of a Judicial Magistrate of the First
Class or Metropolitan Magistrate under the Code of Criminal Procedure.
(3) Notwithstanding anything contained in sub-section (2), for the purpose of
imposing a penalty, a Labour Court shall have the same power as is vested in a
Court of Sessions under that Code.
(4) A Labour Court shall, while trying an offence, hear the case without its
members.
216. Powers and procedure of Labour Court in any matter other than trial
of offences.- (1) A Labour Court shall, for the purposes of adjudicating and
determining any matter, question or dispute, other than offences, under this Act, be
deemed to be a civil Court and shall have the same powers as are vested in such
Court under the Code of Civil Procedure including the following powers, namely:-
(a) to enforce the attendance of any person, examine him on oath
and take evidence;
(b) to compel the production of any document or material;
(c) to send commissions for the examination of witnesses or
documents;
(d) to deliver ex-parte decision in the event of failure of any party to
appear before the Court;
(e) to set aside ex-parte decision;
(f) to set aside order of dismissal of a case made for nonappearance of any party; and
(g) in order to prevent the frustration of the purposes of the case, to
pass interim order upon any party.
(2) Subject to this Act, no court-fee shall be payable for filing, exhibiting or
recording any application or document in the Labour Court or obtaining any
document from it.
(3) The Labour Court shall, by notice to be served through process server or
special messenger or by registered post or by both methods, direct the opposite
party to a case to file written statement or objection, within a period not exceeding 10
(ten) days from the date of filing of the case.
(4) The Labour Court may, for reasons to be recorded in writing, extend the
said period by a further period of not exceeding 7 (seven) days in all.
(5) If the opposite party fails to file any written statement or objection within
the time specified in the notice or the extended time, the case shall be heard and
disposed of ex-parte.
(6) The Labour Court shall not grant adjournment of the hearing of a case on
the prayer of any party for more than 7 (seven) days in all:
Provided that if both the parties pray for adjournment, the hearing of a case
may be adjourned for not exceeding 10 (ten) days in all.
(7) If the party filing the case is absent on the date of hearing, the case shall
be dismissed for default:
Provided that the Court shall have power to set aside the order of dismissal, if
any application is made by the petitioner of the case within 3 (three) months from the
date of such order of dismissal.
(8) If the opposite party to the case is absent on the date of hearing, the case
shall be heard and disposed of ex-parte.
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95
(9) A case which is dismissed for default, shall not bar the filing of a fresh
case on the same cause of action, unless it is barred by any other reason and is filed
after a period of 3 (three) months from the date of dismissal.
(10) If any application is filed to the Labour Court by all the parties to a case
for withdrawal of a case, the Court may, after hearing both the parties, allow the
withdrawal of the case at any stage of the proceedings, if it is satisfied that the
dispute has been amicably settled.
(11) The judgment, decision or an award of a Labour Court shall be given in
writing and delivered in open Court, and a copy thereof shall be given to each party.
(12) The judgment, decision or an award of a Labour Court shall, in every
case, be delivered, within 60 (sixty) days from the date of filing of the case.
(13) Notwithstanding anything contained in sub-section (12), if the judgment,
decision or an award cannot be possible to deliver within the specified time-limit of
60 (sixty) days, the court may extend the time-limit to 90 days by recording the
reasons.
217. Appeal against judgments, etc. of Labour Courts.- Subject to this Act,
any party aggrieved by the judgment, decision, award or sentence passed or given
by a Labour Court may prefer an appeal to the Tribunal within 60 (sixty) days of the
delivery thereof, and the decision of the Tribunal in such appeal shall be final.
218. Labour Appellate Tribunal.- (1) For the purposes of this Act, there shall
be a Labour Appellate Tribunal in Bangladesh, which shall consist of a Chairman, or
if the Government deems fit, a Chairman and such number of other members as the
Government may appoint.
(2) The Chairman and the members, if any, of the Tribunal shall be appointed
by the Government, by notification in the official Gazette, and the terms and
conditions of their service shall be determined by the Government.
(3) The Chairman of the Tribunal shall be a person who is or was a judge or
an additional judge of the Supreme Court, and a member of the Tribunal shall be a
person who is or was a judge or an additional judge of the Supreme Court, or who is
or was a District judge for not less than 3 (three) years.
(4) If the Chairman is absent or unable to discharge his functions for any
reason, the senior member of the Tribunal, if any, shall perform the functions of the
Chairman.
(5) Where any member is appointed in the Tribunal, the Chairman may, for
the efficient performance of the functions of the Tribunal, constitute as many
benches as necessary, and such bench may consist of one or more than one
members or the Chairman and one or more members.
(6) An appeal or any matter before the Tribunal may be heard and disposed of
by the Tribunal sitting in full bench or by any bench thereof.
(7) Subject to this Act, the Tribunal shall follow, as far as possible, such
procedure as is prescribed in the Code of Civil Procedure, for hearing of appeal by
an appellate Court from original decrees.
(8) If the members of a bench differ in opinion as to the decision on any point-
(a) the matter shall be decided according to the opinion of the
majority of members, if any; and
(b) if the members of the bench are equally divided, they shall state
their opinion on the point on which they differ and shall refer the
matter to the Chairman for hearing on such point, the Chairman
if, he is not a member of the bench, himself may hear the matter
or send the matter for hearing to any other bench consisted of
one or more than one members and the matter shall be decided
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96
according to the opinion of the Chairman or member or majority
of the members of such newly constituted bench.
(9) Where a bench consists of the Chairman and any member and there is a
difference of opinion among the members and the members are equally divided, the
decision of the Chairman shall prevail and the decision of the bench shall be
expressed in terms of the opinion of the Chairman.
(10) The Tribunal may, on appeal, confirm, vary, modify or set aside any
judgment, decision, award or sentence of a Lobour Court or return the case to the
Labour Court for re-hearing; and shall, save otherwise provided, exercise all the
powers conferred by this Act upon a Labour Court.
(11) The judgment of the Tribunal shall be delivered within 60 (sixty) days
from the date of preferring an appeal.
(11A) Notwithstanding anything contained in sub-section (11), if the judgment
cannot be possible to deliver within the specified time-limit of 60 (sixty) days, the
Tribunal may extend the time-limit to 90 (ninety) days by recording the reasons.
(12) The Tribunal shall have authority to punish for contempt of it or of any
Labour Court, as if it were the High Court Division of the Supreme Court.
(13) If the Tribunal sentences any person of imprisonment or imposes a fine
exceeding two hundred taka under sub-section (12), the convicted person may
prefer an appeal to the High Court Division.
(14) The Tribunal may, on its own or on the application of a party, transfer a
case from one Labour Court to another Labour Court.
(15) The Tribunal shall have superintendence and control over all Labour
Courts.
219. Form of application or appeal.- An application to a Labour Court or an
appeal to the Tribunal shall be made in such form, as may be prescribed by rules,
and shall contain, in addition to such particulars as may be prescribed by rules, the
following particulars, namely:-
(a) the names and addresses of the parties;
(b) a concise statement of the circumstances of the application or appeal
and the relief claimed;
(c) the provision of the law under which the application or appeal is made
and the relief prayed for;
(d) in the case of a delay in making the application or appeal, the reason
for such delay and the provision of law under which condonation of
delay is prayed for;
(e) in a case of application under Chapter X, a statement showing
separately the basic wages, dearness allowance, ad-hoc or interim
wages, if any, and other sums payable with wages payable to the
applicant per month;
(f) in the case of an application under Chapter XII for payment of
compensation against an employer, the date of service of notice of the
accident on the employer; and if such notice has not been served or
has not been served in time, the reason thereof;
(g) in any case other than application by dependents for payment of
compensation under Chapter XII, a concise statement of the matters
on which agreement has been and of those on which agreement has
not been, arrived at;
(h) the date on which cause of action has arisen ; and
(i) a statement showing that the Labour Court has jurisdiction to entertain
the application.
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220. Appearance of parties to a case.- In any case other than a case of
appearance for giving witness, filing of application, appearance, or any other act
required to be made or done by any person before a Labour Court or Tribunal may
be made or done by himself or by any representative authorized by him in writing or
by a lawyer:
Provided that such representative or lawyer shall not be a representative of
the concerned Court.
221 Costs of the case.- All costs incidental to any case or appeal before a
Labour Court or Tribunal, shall, subject to this Act or any rules, be awardable at the
discretion of such Court or Tribunal.
222. On whom the settlement, etc. shall be binding.- (1) Any settlement
arrived at in a conciliation or any award of an Arbitrator or any judgment, decision or
award of a Labour Court or any judgment, decision or award of the Tribunal shall be
binding on the following persons, namely:-
(a) all parties to the dispute;
(b) unless the Court otherwise directs, any other party appeared in
any proceedings as a party to the dispute by order of a Labour
Court;
(c) where the employer of the establishment to which the dispute
relates is a party, the heirs or successors of the employer; and
(d) where a collective bargaining agent is a party to the dispute, all
workers who were employed in the establishment to which the
dispute relates on the date on which the dispute first arose or
employed therein after that date.
(2) A settlement arrived at by an agreement between the employer and a
trade union of the workers of his establishment, otherwise than by conciliation, shall
be binding on the parties to the agreement.
223. Date of enforcement of settlements, etc.- (1) A settlement shall
become effective-
(a) if a date is agreed upon by the parties to the dispute to which it
relates, on such date; and
(b) if a date is not so agreed upon, on the date on which the
memorandum of the settlement is signed by the parties.
(2) A settlement shall remain effective for such period as is agreed upon by
the parties and, if no such period is agreed upon, for a period of 1 (one) year from
the date of signing the memorandum of settlement by the parties.
(3) After expiry of the period mentioned in sub-section (2), such settlement
shall continue to be binding on the parties, until 2 (two) months expires from the date
on which either party informs the other party in writing of its intention not tobe bound
any longer by th e settlement.
(4) An award of a Labour Court shall, unless an appeal is preferred against it
to the Tribunal, become effective from the date specified by such Court and shall
remain effective for such period, not exceeding 2 (two) years, as may be specified by
it.
(5) The Arbitrator, Labour Court or the Tribunal, as the case may be, shall fix
the date on which different demands included in the award shall be effective and the
dates by which each of the demands shall be enforced.
(6) If at any time before the expiry of the period mentioned in sub-section (4)
or (5), any party bound by an award applies to the Labour Court which made the
award for reduction of the said period on the ground that the circumstances in which
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98
the award was made have materially changed, the Labour Court may by order, after
giving the other party an opportunity of being heard, if it considers expedient,
terminate the said period on a date specified in the order.
(7) A decision of the Tribunal in appeal in respect of an award shall be
effective from the date of the award.
(8) Notwithstanding the expiry of the period of an award under sub-section (4)
or (5), the award shall continue to be binding on the parties, until the period of 2
(two) months from the date on which either party informs the other party in writing of
its intention not to be bound any longer by the award expires.
(9) Notwithstanding anything contained in this section, no industrial dispute or
proceedings in respect thereof shall be raised or commenced again before the expiry
of 1 (one) year from the date of signing of the memorandum of settlement by the
parties to the dispute or the date of expiry of the period of settlement or award,
whichever is later.
224. Commencement and conclusion of proceedings.- (1) A conciliation
shall be deemed to have commenced on the date on which a request for conciliation
is received by the Conciliator under section 210(4).
(2) A conciliation shall be deemed to have concluded, where a settlement is
arrived at, on the date on which a memorandum of settlement is signed by the
parties to the dispute.
(3) Where no settlement is arrived at, a conciliation shall be deemed to have
concluded-
(a) if the dispute is referred to an Arbitrator under section 210 (12),
on the date on which the Arbitrator gives his award; or
(b) if the dispute is not referred to an Arbitrator, on the date on
which the Conciliator issues the certificate of failure of
conciliation.
(4) The proceedings before a Labour Court shall be deemed to have
commenced on the date on which any dispute, question or matter relating thereto is
referred to the Labour Court.
(5) The proceedings before a Labour Court shall be deemed to have
concluded on the date on which the judgment, decision or award relating thereto is
delivered.
225. Prohibition on service of notice of strike or lock-out while
proceeding remains pending.- No notice of strike or lock-out shall be served by
any party to an industrial dispute to the other party, during the continuance of
conciliation in any matter relating to the industrial dispute or a case in this behalf is
pending before a Labour Court or an appeal is pending before the Tribunal.
226. Powers of the Labour Court and the Tribunal to prohibit strike or
lock-out.- (1) Where a strike or lock-out in pursuance of an industrial dispute has
already commenced, and such strike or lock-out continues at the time of submitting
an application to the Labour Court in relation to that industrial dispute, or when it is
under consideration of the Labour Court, the said Court may, by an order in writing,
prohibit the continuance of the said strike or lock-out.
(2) Where an appeal in respect of any matter arising out of an industrial
dispute is preferred to the Tribunal, the Tribunal may, by an order in writing, prohibit
the continuance of any strike or lock-out in pursuance of such industrial dispute
which was in existence on the date on which the appeal was preferred.
227. Illegal strike and lock-out.- (1) A strike or lock-out shall be illegal, if-
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99
(a) it is declared, commenced or continued without giving to the
other party to the dispute a notice of strike or lock-out in the
manner prescribed by rules, or before or after the date specified
in such notice or in contravention of section 225;
(b) it is declared, commenced or continued in consequence of an
industrial dispute raised in a manner other than that provided in
section 209;
(c) it is continued in contravention of an order made under section
211 or 226; or
(d) it is declared, commenced or continued during the period in
which a settlement or award is in operation in respect of the
matter covered by such settlement or award.
(2) A lock-out declared in consequence of an illegal strike, and a strike
declared in consequence of an illegal lock-out shall not be deemed to be illegal.
228. Terms and conditions of service to remain unchanged while
proceeding is pending.- (1) An employer shall not, during the continuance of any
conciliation proceeding or proceedings before an Arbitrator, Labour Court or Tribunal
in any matter relating to an industrial dispute, alter to the disadvantage of any worker
who is involved in such dispute the conditions of service applicable to him before the
commencement of such proceedings, or shall not discharge, dismiss or otherwise
punish any worker or terminate his service, except for misconduct not connected
with such dispute, without the permission of the Conciliator, Arbitrator, Labour Court
or Tribunal, when, where or before which such proceeding is pending.
(2) Notwithstanding anything contained in sub-section (1), an officer of a trade
union shall not, during the pendency of any proceedings referred to in the said subsection, be discharged, dismissed or otherwise punished for misconduct, except with
the previous permission of the Labour Court.
229. Protection of rights, etc. of certain persons.- (1) If any person refuses
to take part or to continue in taking part in any illegal strike or illegal lock-out, he shall
not, by reason of such refusal, be subject to expulsion from any trade union, or to
any fine or penalty, or he or his legal representative shall not be deprived of any right
or benefit which he would otherwise have been entitled to, or be liable to be placed
in any respect, either directly or indirectly, under any disability or disadvantage as
compared with other members of the trade union.
(2) (Repealed).
(3) In any such proceedings, the Labour Court may, if it thinks just, in lieu of
ordering a person who has been expelled from membership of a trade union to be
restored to such membership, order to pay him from the fund of the trade union such
sum, as may be fixed by it, by way of compensation.
230. Representation of parties.- (1) A worker who is a party to an industrial
dispute shall be entitled to be represented in any proceedings under this Chapter by
an officer of a collective bargaining agent of his establishment, and, subject to the
provisions of sub-sections (2) and (3), any employer who is a party to an industrial
dispute shall be entitled to be represented in any such proceedings by a person duly
authorized by him.
(2) No party to an industrial dispute shall be entitled to be represented by a
legal practitioner in any conciliation proceedings under this Chapter.
(3) A party to an industrial dispute may be represented by a legal practitioner
in any proceeding before an Arbitrator, with his permission.
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231. Interpretation of settlements and awards.- (1) If any difficulty or doubt
arises as to the interpretation of any provision of any settlement or award, it shall be
referred to the Tribunal.
(2) The Tribunal shall, after giving the parties concerned an opportunity of
being heard, decide the matter and its decision thereon shall be final and binding on
the parties.
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CHAPTER XV
PARTICIPATION OF WORKERS IN THE PROFIT OF THE COMPANIES
232. Application of the Chapter.- (1) This Chapter shall apply to a company
or establishment which fulfils any one of the following conditions, namely:-
(a) the amount of its paid up capital on the last day of an accounting
year is not less than taka 1 (one) crore;
(b) the value of its permanent assets on the last day of an
accounting year is not less than taka 2 (two) crore.
(2) The Government may, by notification in the official Gazette, also apply this
Chapter to any other company or establishment specified therein.
(3) Notwithstanding anything contained in sub-sections (1) and (2), the
Government shall, in the cases of hundred percent export oriented industrial sectors
or hundred percent foreign exchange investing sectors, make, by rules, the
provisions for constitution of a fund, constitution of the fund management board,
determination of the amount of grant and manner of its collection and utilization of
the fund and the necessary provisions for other ancillary matters, centrally in each
such sector, consisting of the buyers and employers, for the beneficiaries working in
the respective sectors:
Provided that such board may, subject to the prior approval of the
Government, make regulations for carrying out the proposes of this section.
233. Special definitions.- (1) In this Chapter, unless there is anything
repugnant in the subject or context,-
(a) “Participation Fund” means the Workers Participation Fund
established under this Chapter;
(b) “Welfare Fund” means the Workers Welfare Fund established
under this Chapter;
(c) “company” means a company within the meaning of the
Companies Act, 1994 and also includes the following
establishments, namely:-
(i) a body corporate established by or under any law for the
time being in force;
(ii) any establishment, organization or association, whether
incorporated or not, declared by the Government, by
notification in the official Gazette, to be a company for the
purposes of this Chapter;
(d) “Fund” means the Participation Fund and the Welfare Fund;
(e) “Board”, in relation to Participation Fund and Welfare Fund,
means a Board of Trustees constituted under this Chapter;
(ee) “owner” means the owner or management authority or chief
executive of any company or establishment or any person who
succeeds them;
(f) “profits”, in relation to a company, means the net profit as
defined in section 119 of the Companies Act, 1994 which are
attributable to its business, trade, undertakings or any other
work in Bangladesh;
(g) the activities of any establishment, business establishment,
industry, factory, bank, money lending establishment or
insurance company run for profit, and the activities related with
one or more of the following shall be considered to be “industry
related activities”, namely:-
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(i) making changes in the original condition or making
addition to value, of any goods, material or thing by
manufacturing, assembling or polishing it or by bringing it
in any other normal or artificial process;
(ii) ship building and recycling;
(iii) transformation, generation, conversion, transmission or
distribution of electrical energy including hydraulic power;
(iv) working in mine, oil well or any other source of mineral
deposit including blending, refining or purifying of oil and
gas;
(v) distribution and marketing of oil and gas;
(vi) carriage of man or goods by air or sea;
(vii) service establishment, like mobile operator company,
construction establishment; and
(viii) any other activities declared by the Government, by
notification in the official Gazette, to be the industry
related activities for the purposes of this Chapter;
(h) “industrial establishment” means an industrial establishment
mentioned in clause (61) of section 2 which is run for profit;
(i) “beneficiary” of a company means any person including a
probationer who has been employed in the company for not less
than 9 (nine) months irrespective of any rank and status,
excepting the employer, a partner or a member of the
management board.
(2) In this Chapter, “paid-up capital” and “value of fixed assets” of a
company shall, in the case of a company incorporated in a foreign country, mean the
capital and the value of fixed assets of such company engaged in a branch of it in
Bangladesh.
234. Establishment of Participation Fund and Welfare Fund.- (1) Every
company to which this Chapter applies shall-
(a) establish a Workers Participation Fund and a Workers Welfare
Fund in accordance with the provisions of this Chapter within 1
(one) month of the date on which this Chapter becomes
applicable to it; and
(b) pay, within 9 (nine) months of the close of every year, five
percent (5%) of the net profit of the previous year at the
proportion of 80:10:10 to respectively the Participatory Fund,
Welfare Fund and Workers Welfare Foundation Fund
established under section 14 of the Bangladesh Workers
Welfare Foundation Act, 2006:
Provided that if an employer deposited one percent (1%)
of the net profit of the company to the Welfare Fund immediately
before this provision takes effect, the Trustee Board shall be
required to deposit fifty percent (50%) of the money so
deposited to the Welfare Fund to the above-mentioned Workers
Welfare Foundation Fund.
(2) The amount paid to the said Funds under sub-section (1) (b) in relation to
a year shall be deemed to have been allocated to those Funds on the first day of the
next succeeding year.
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103
235. Management of the Funds.- (1) As soon as may be, after the
establishment of the Participation Fund and the Welfare Fund, there shall be
constituted a Board of Trustees consisting of the following members, namely:
(a) two members nominated by the collective bargaining agent of
the company and if there is no collective bargaining agent, 2
(two) members elected by the workers of the company from
amongst themselves; and
(b) two members nominated by the management of the company, of
whom at least one shall be a person from the accounts section
of the company.
(2) The members of the Board of Trustees shall elect for every year a person
to be the Chairman of the Board alternatively from amongst the members under subsection (1) (a) and (1) (b), but the first Chairman shall be from amongst the members
under sub-section (1) (b).
(3) The Board of Trustees shall manage and administer the Funds in
accordance with the provisions of this Chapter and any rules made in this behalf.
(4) The Board of Trustees shall, in exercise of its powers and performance of
its functions, be subject to such directions as may be given by the Government from
time to time.
(5) If the Government is of opinion that the Board of Trustees or a member
thereof is persistently failing in the performance of its or his functions or is generally
acting in a manner inconsistent with the objects and interests of the Funds, the
Government may, after giving the Board or such member an opportunity of showing
cause by order-
(a) dissolve the Board for such period as may be specified therein
or remove such member from his office; and
(b) direct that until the Board of Trustees is reconstituted or until a
new member is nominated or elected to the office of such
member, the powers and functions of the Board or such member
shall be exercised and performed by a person specified in the
order.
(6) Upon the dissolution of the Board of Trustees under sub-section (5), the
members of the Board shall cease to hold office and any reference to the Board of
trustees in this Chapter or any rules shall be construed as reference to the person
specified in the order made under the sub-section.
(7) Before the expiry of the period of dissolution, the Board of Trustees shall
be re-constituted in accordance with the provisions of this Chapter so as to enable it
to take over its charge upon the expiry of such period.
(8) If any Board of Trustee is dissolved, or the Chairman or any member
thereof is removed, by the Government under clause (a) of sub-section (5), the
members of such Board or the Chairman or the member concerned thereof shall not
be re-elected or nominated to the Board of Trustee.
236. Fine, recovery of money, etc.- (1) Where any company or Trustee
Board fails to comply with the provisions of section 234, the Government may, by
order, direct it to do acts in accordance with the provisions within such time as may
be specified is that order.
(2) If any company or Board of Trustee fails to do any act within the time
specified in the order issued under sub-section (1), the Government may, by order,
impose on every director, manager or officer of that company who is directly or
indirectly responsible for the management of the affairs of the company or, as the
case may be, the Chairman, member or a person or persons of the Board of Trustee
concerned who is responsible for the management of the affairs of that Board a fine
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104
of taka not exceeding 1 (one) lac and, in the case of continuous failure, a further
amount of taka 5 (five) thousands for every day from the first day of such failure and
direct to pay the total amount of fine within the next 30 (thirty) days:
Provided that if any person contravenes the aforesaid provisions again or fails
to comply therewith, twice the amount of fine specified above shall be imposed on
him.
(3) If any amount payable under section 234 remains unpaid and any fine
imposed under this section is not paid within the time specified in the relevant order,
such unpaid amount and fine shall be deemed to be public demand and be
recoverable in accordance with the provisions of the Public Demands Recovery Act,
1913 (Act No. IX of 1913).
(4) Any person aggrieved by an order issued under sub-sections (1) and (2)
may, within 30 (thirty) days of making such order, apply to the Government for
review thereof and the Government shall, on receipt of such application, within not
exceeding 45 (forty-five) days, review the matter and make appropriate order and
inform the person, company or Board of Trustee concerned accordingly.
(5) An order made by the Government under sub-section (4) shall be final.
237. Power to call for information.- The Government may, at any time call
upon a company or a Board of Trustees to furnish it with such information or
documents or the records of the proceedings as may be relevant or useful for the
purposes of, or necessary, for ensuring proper compliance with the provisions of this
Chapter or rules.
238. Settlement of dispute, etc.- (1) Any difference which may arise
between the Board of Trustees and the company relating to the administration of the
Funds shall be reported to the Government, and the decision of the Government
thereon shall be final.
(2) Any complaint which a worker may have against the Board of Trustees or
the company relating to the benefits available from the Funds shall be settled in the
same manner as is provided in Chapter X for the settlement of dispute relating to
deductions from wages.
239. Delegation of power.- The Government may, by notification in the
official Gazette, delegate all or any of its powers or duties under this Chapter, subject
to such conditions as may be specified in the notification, upon any of its officers or
any other authority.
240. Investment of Participation Fund.- (1) The amount allocated or
deposited in the Participation Fund shall be available to the company for its business
operation.
(2) The company may request the Board of Trustees to utilize the amount of
the Participation Fund for investment under sub-section (11), and the Board may
decide for such investment.
(3) The company shall pay interest on the amount of the Participation Fund
which is used for its business at the rate of two and a half percent above the bank
rate or 75% (seventy five percent) of the rate at which dividend is declared on its
ordinary shares, whichever is higher.
(4) In case there is more than one class of ordinary shares of any company,
on which different rates of dividend are declared then, for the purpose of determining
the rate of interest payable under sub-section (3), the weight average of the different
rates of dividend shall be taken into consideration.
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105
(5) The interest to the Participation Fund, so payable, shall be deposited to
the Fund on and from the first day of the year next succeeding the year in which the
Fund has been used by the company.
(6) Where any company does not want to utilize any amount of the
Participation Fund in its business under sub-section (1), there shall also be payable
the aforesaid rate of interest by the company on the said amount of the Fund for the
periodnbetween the date of allocation of any amount to the said Fund and the date
of its investment under sub-section (11).
(7) If, at any time after the establishment of the Participation Fund, the
company raises any additional capital, otherwise than through the issue of bonus or
bonus shares, the Participation Fund shall have the first option to convert any
amount available to the company under sub-section (1), or any asset of the
Participation Fund into ordinary equity capital; provided that it, shall not, after such
conversion, be more than twenty five percent of the paid-up capital of the company
or of 50% (fifty percent) of the additional capital, whichever is less.
Explanation.- In this sub-section “additional capital” does not include any
capital offered for payment or offered to a foreign partner of the company.
(8) For the purpose of exercising the right of conversion under sub-section (7),
the Board of Trustees shall be given sufficient time to sell assets of the Participation
Fund to realize the amount needed for participation in the additional capital of the
company.
(9) The shares acquired in the manner set out in sub-section (7) shall
participate in future bonus and right-issues in the same manner as of other shares.
(10) The shares acquired in the manner set out in sub-section (7) shall have
voting rights in the same manner as of other shares and such voting rights shall be
exercised by the Board of Trustee on behalf of the Participation Fund.
(11) The money of the Participatory Fund may be invested in any
Government-owned sector which is eligible for investment.
241. Eligibility to benefits.- (1) All beneficiaries shall be eligible to get all
benefits in equal proportions under this Chapter and to participate in the Funds.
(2) No beneficiary without completing 6 (six) months of service in a company
during a year of account shall participate in the Funds in respect of that year.
242. Utilization of Participation Fund.- (1) Two-thirds of the total amount
deposited in the Participation Fund in every year shall be distributed in equal
proportion to all beneficiaries in cash, and the remaining one-third shall be invested
in accordance with the provisions of section 240(11), whose profit shall also be
distributed in equal proportion to all beneficiaries.
(2) If a beneficiary voluntarily leaves the service of a company he shall be
entitled to benefits of both the Funds, if any, admissible to him under this Chapter.
(3) If the service of a beneficiary is terminated, otherwise than by dismissal,
he shall be as per with a beneficiary who retires from the service of a company.
(4) If any beneficiary is dismissed from service, his share in the Funds shall
be forfeited.
(5) In the event of transfer of a beneficiary from one office or unit of a
company to another office or unit of that company, the benefits of the Funds accrued
to the beneficiaries shall be transferred to the Funds of the office or unit to which he
is so transferred, and his service in the previous office or unit shall be counted
towards his entitlement to the benefits of the Funds of the office or unit to which he is
so transferred.
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106
(6) In the event of retirement of a beneficiary, the beneficiary himself, or in the
event of his death during employment in a company, his nominee, shall receive full
benefits under this Chapter.
243. Utilization of Welfare Fund.- Subject to the compliance of the
provisions of this Chapter, the amount deposited in the Welfare Fund may be utilized
for such purposes and in such manner as the Board of Trustee may decide, and the
Board shall inform the Government relating thereto.
244. Fiscal concessions to the companies.- In the cases of all companies
to which this Chapter applies any sum allotted to the said Funds by such companies
shall not be counted in calculating their taxable income.
245. Exemption of income of the Funds from income tax.- The income of
the Funds including their capital gains shall be exempted from income tax.
246. Exemption of income of the workers from income tax.- The sums
paid out of the Funds to the workers shall be exempted from income tax.
247. Location and work of the Board of Trustees.- (1) The office of the
Board of Trustees shall be located at the company premises and if there is more
than one office or unit of a company at the registered head office of the company.
(2) All expenses of the Board of Trustees, including the cost of maintenance
of accounts of the Board, shall be borne by the company.
248. Audit of accounts of the Funds.- The accounts of income and
expenditure of the Funds shall be audited every year at the company’s expense in
the same manner as the accounts of income and expenditure of a company is
audited:
Provided that the Government may, at its own cost, appoint independent
auditors for a special audit of the accounts of income and expenditure of the Funds.
249. Benefits from the Funds shall be in addition to other benefits.- Any
benefit payable to a worker under this Chapter shall be in addition to, and not in
derogation or substitution of, any other benefit to which the worker is entitled under
any other law, contract, terms and conditions of employment or otherwise.
250. Special provisions for industries working seasonally.-
Notwithstanding anything contained in this Chapter, the Government may, by
notification in the official Gazette, make provisions for the participation of the workers
in the profits of such companies which work in any part of a year instead of the whole
year.
251. Companies engaged in activities relating to more than one
industry.- Notwithstanding anything contained in this Chapter, the Government may,
at the request of a company which is engaged in activities relating to more than one
industry, located at more than one place of the country, permit splitting up of the
Funds amongst the different offices or units engaged in activities relating to industry
and constitution of an independent Board of Trustees for each office or unit of such
company; and the provisions of this Chapter shall apply to such office or unit as if it
were a company.
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107
252. Vesting of management of Participation Fund in the Investment
Corporation of Bangladesh, etc.- The Board of Trustees may, with the prior
approval of the Government, enter into an agreement with the Investment
Corporation of Bangladesh or the Sonali Bank, for vesting of the management of the
Participation Fund on it, and any fee payable under the terms of the agreement shall
be payable by the company.
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CHAPTER XVIA
PROVISIONS AS TO THE DISSOLVED DOCK WORKERS
MANAGEMENT BOARD
263A. Special provisions as to the dissolution, etc. of the Dockworkers
Management Board.- (1) The Dock-workers Management Board established in the
Chittagong Port Authority and the Mongla Port Authority under section 254 of the
repealed Chapter XVI, hereinafter referred to as the said Boards, shall stand
dissolved and the registration of the dock-workers registered by the said Boards
shall be deemed to have stood cancelled.
(2) Notwithstanding the dissolution of the two Boards,-
(a) all officers and employees of them shall be absorbed in the
Chittagong Port Authority and the Mongla Port Authority
respectively, and they shall be the officers and employees of
them, and shall hold office in the concerned Authority under the
same terms and conditions as were applicable to them in the
two dissolved Boards before such absorption, until they are
altered by the Chittagong Port Authority or as the case may be,
by the Mongla Port Authority;
(b) in the case of absorption of all officers and employees of them
under clause (a), the provisions of the Surplus Public Servants
Absorption Ordinance, 1985 (Ordinance No. XXIV of 1985) shall
be followed;
(c) the provident fund, gratuity, welfare fund, liquid fund of the
officers and employees of them shall stand transferred without
any charge to the Chittagong Port Authority and the Mongla Port
Authority, respectively, and the concerned Authority shall
maintain and administer them;
(d) all assets, rights, authorities and privileges and movable and
immovable property, cash and money deposited in banks or
financial institutions, investments, all books of accounts,
registers, records and all other documents of them shall stand
transferred to, and vested in, the Chittagong Port Authority and
the Mongla Port Authority, respectively, and the concerned
Authority shall be proprietor of them;
(e) all debts or liabilities incurred, all obligations undertaken and all
contracts entered into by or with them immediately before such
dissolution, shall be deemed to have been incurred, undertaken
or entered into by or with the Chittagong Port Authority and the
Mongla Port Authority, respectively;
(f) all suits and other legal proceedings instituted by or against
them immediately before such dissolution shall be deemed to
have been instituted by or against the Chittagong Port Authority
and the Mongla Port Authority, respectively, and shall be heard
and disposed of accordingly.
(3) If any difficulty arises as to the application of the provisions of sub-section
(2) due to ambiguity, the Government may, for the purpose of removing such
difficulty, by an order, take any such measure as may be required by clarifying or
explaining of such provisions.
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CHAPTER XVII
PROVIDENT FUND
264. Provident funds for workers in private sector establishments.- (1)
Any establishment in the private sector may constitute a provident fund for the
benefits of its workers.
(2) The said provident fund shall be constituted by an establishment in such
manner as may be prescribed by rules made in this behalf under sub-section (3).
(3) Notwithstanding anything contained in sub-section (2), the Government
may make rules for constitution of the provident fund for workers employed in
establishments in private sector, and where such rules are made the establishment
to which those rules apply, shall be required to comply with the provisions of such
rules.
(4) The said provident fund shall be administered by a Board of Trustees.
(5) Such Board of Trustees shall consist of equal number of representatives of
the employer and workers employed in the establishment concerned; and a person
nominated by the Government shall be its Chairman.
(6) The representatives of the employer shall be nominated by the employer
and the representatives of the workers shall be nominated by the collective
bargaining agent:
Provided that in the case where there is no collective bargaining agent in each
case representatives of the worker shall be nominated by participation committee.
(7) Where there is no collective bargaining agent or participation committee in
an establishment, the representatives of the workers shall be elected by the workers
of that establishment under the supervision of the Director General.
(8) All members of the Board of Trustees shall hold office for a period of 2
(two) years:
Provided that they shall continue to hold office until their successors enter
upon office.
(9) Every permanent worker shall, after completion of 1 (one) year of his
service in the establishment, where the provident fund is constituted, subscribe to
the provident fund, unless otherwise agreed upon, in every month a sum, not less
than seven percent and not more than eight per cent of his monthly basic wages;
and the employer shall contribute to it an equal amount.
(10) Notwithstanding anything contained in this section, an establishment in
the private sector shall be required to constitute a provident fund for the benefit of its
workers, if at least three-fourths of the total number of workers employed therein so
demand to the employer by an application in writing.
(11) Where a demand for constitution of a provident fund is made under subsection (10), the employer of the establishment shall, within 6 (six) months of the
receipt of application make necessary provisions for its constitution under subsection (3) and the provident fund shall start operation before the expiry of that
period.
(12) At least half of the total accumulations in such provident fund shall be
invested for any of the following purposes, namely:-
(a) I.C.B, Mutual Fund Certificate;
(b) I.C.B, Unit Certificate; and
(c) any government securities including defence and postal saving
certificate.
(13) The cost of maintenance of the provident fund shall be borne by the
employer.
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110
(14) The accounts of income and expenditure of the provident fund shall be
audited every year at the cost of the establishment in the same manner as the
accounts of income and expenditure of the establishment are audited:
Provided that the Government may appoint an independent auditor for any
special audit of the income and expenditure of such fund at its own cost.
(15) A statement of accounts of income and expenditure of the provident fund,
together with the audit report relating thereto, shall be forwarded to the Director
General within 1 (one) month of the submission of audit report.
(16) Where the Government is satisfied that a provident fund constituted in an
establishment in the private sector is working satisfactorily and the workers have no
complaint against it, the Government may, on application by the employer of that
establishment, by order in writing, exempt that establishment from the operation of
this section.
(17) An establishment constituting a provident fund under the provisions of
this section shall be deemed to be a government establishment for the purposes of
the Provident Funds Act, 1925 (Act No.XIX of 1925).
(18) In this section, an establishment in private sector shall mean such an
establishment which is not owned or managed directly by the Government or by any
local authority or to which any provident fund rules made by the Government or by
any local authority does not apply.
265. Tea Plantation Workers’ Provident Fund.- (1) There shall be
established a provident fund to be called the Tea Plantation Workers’ Provident
Fund.
(2) The Tea plantation Workers’ Provident Fund, hereinafter in this Chapter
referred to as the Provident Fund, shall vest in, and administered by, a Board of
Trustees constituted under section 266.
266. Tea plantation Workers’ Provident Fund Board of Trustees.- (1) The
Government shall, by notification in the official Gazette, constitute a Board to be
called the Board of Trustees of the Tea plantation Workers’ Provident Fund.
(2) The Board of trustees shall consist of the following members, namely:-
(a) a Chairman;
(b) three members representing the employers;
(c) three members representing the tea workers;
(d) two members who are not connected with tea industry.
(3) The Chairman and other members shall be appointed by the Government:
Provided that the members under clauses (b) and (c) of sub-section 2 shall be
appointed by the Government in consultation with the organizations of employers
and, as the case may be, the workers who are recognized by the Government in this
behalf.
(4) The Chairman and other members shall hold office for a term of 3 (three)
years from the date of their appointment:
Provided that notwithstanding the expiry of such term, they shall continue to
hold office until their successors enter upon office.
(5) The Chairman and other members shall perform such duties as are
assigned to them under this Chapter or by rules.
(6) The Board of Trustees shall be a body corporate and shall have perpetual
succession and a common seal, and shall by its own name sue and be sued.
(7) No person shall be a member of the Board of Trustees, if he-
(a) has been convicted in a criminal proceeding involving moral
turpitude;
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(b) has not passed 5 (five) years after being declared insolvent by a
competent Court;
(c) is declared by a competent Court to be of unsound mind or
mentally deranged.
(8) The Board of Trustees may, for efficient discharge of its functions, after
making regulations with prior approval of the Government in this behalf, appoint
necessary number of manpower.
267. Cost of administration.- (1) The Board of Trustees may levy an
administrative charge on the basis of subscription.
(2) The Government shall, in consultation with the Board, fix such percentage
of the total contributions of employers and workers as shall be the cost of
administration.
(3) The employers shall, within 15 (fifteen) days of the close of every month,
pay the administrative charge so fixed to the Provident fund by separate bank draft
or cheque.
(4) When the payment of the administrative charge is made by a cheque, the
collection charge, if any, shall be included in the amount for which the cheque is
drawn in respect of the administrative charge.
268. Subscription.- (1) Every employer of a tea plantation, which is in
operation for more than 3 (three) years, shall, in respect of every worker, other than
an apprentice, employed in his tea plantation for more than 1 (one) year, pay to the
provident fund a subscription at the rate of seven and a half per cent of the basic
wages for the time being payable to that worker.
(2) Every worker mentioned in sub-section (1) shall pay to the provident fund
a subscription equal to the subscription payable by the employer in respect of him.
(3) Where the amount of any subscription payable under this section involves
a fraction of taka, such fraction shall be rounded off to the nearest taka.
(4) If, in any case, the subscription made at the time of coming into force of
this Act to an existing provident fund is higher than that provided in this section, then
that higher rate of subscription shall continue to be made as if this Act had not come
into force.
(5) The total accumulations in the provident fund shall, in such manner as
may be prescribed by rules, be held in deposit and be invested.
269. Recovery of damages.- Where an employer makes default in the
payment of any subscription to the provident fund, or default in the payment of any
charges payable under this Chapter or any rules, the Board of Trustees may, in
addition to the amount of arrear so due, recover from the employer damages at the
rate not exceeding 25% (twenty five percent) of the amount of such arrear.
270. Provident fund not liable to attachment.- (1) The amount standing to
the credit of any worker in the account of his provident fund shall not in any way be
assigned or charged and shall not be liable to attachment under any decree or order
of any Court in respect of any debt or liability incurred by the worker, or no receiver
appointed under the Insolvency Act, 1920 (Act No.V of 1920) shall be entitled to
claim of such amount.
(2) Any amount standing to the credit of any worker in the account of his
provident fund at the time of his death shall, subject to any deduction authorized
under any other law, vest in his nominee and shall be free from any debt or other
liability incurred by him or by his nominee before his death.
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112
271. Payment of subscription to get preference over other debts.- If any
amount due in respect of any subscription under this Chapter is payable before the
employer is adjudged insolvent or in the case of a company ordered to be wound up
before the date of such order, it shall be deemed to be included among the debts
under section 61 of the Insolvency Act, 1920 (Act No. V of 1920) or under section
230 of the Companies Act, 1994 which shall get preference over all other debts in
the distribution of the property of the insolvent or the assets of the company being
wound up.
272. Employer not to reduce wages or other amenities.- No employer
shall, by reason only of his liability for payment of any subscription or any charges
under this Act or any rules, reduce, whether directly or indirectly, the wages of any
worker or other benefits.
273. Provident fund for newspaper workers.- (1) Every newspaper
establishment shall, for the benefit of its newspaper workers, constitute a provident
fund in such manner as may be prescribed by rules.
(2) The said provident fund shall be administered by a Board of Trustees.
(3) The said Board of Trustees shall consist of equal number of
representatives of the employer of the newspaper establishment and of the
newspaper workers employed in it and they shall be nominated and appointed in
such manner as may be prescribed by rules.
(4) Every newspaper worker shall, after completion of the first 2 (two) years of
his service in any newspaper establishment, subscribe to the provident fund every
month a sum not less than seven percent and not more than eight percent of his
monthly wages, and the employer shall also subscribe to that fund at the same rate.
(5) During the first 2 (two) years of his service, a newspaper worker may, at
his option, subscribe to the provident fund, but the employer of the newspaper
establishment may or may not, at his option, subscribe to that fund.
(6) A newspaper establishment shall be deemed to be a government
establishment for the purposes of the Provident Fund Act, 1925 (Act No. XIX of
1925).
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CHAPTER XVIII
APPRENTICESHIP
274. Application of the Chapter.- This Chapter shall apply to such an
establishment, which is in operation for more than 2 (two) years, and in which not
less than 50 (fifty) workers are ordinarily employed.
275. Special definitions.- In this Chapter, unless there is anything repugnant
in the subject or context,-
(a) “competent authority” means the Inspector General or an officer
authorized by him;
(b) “apprentice” means a person undergoing training through the system
of apprenticeship;
(c) “apprenticeship” means a system of training in which an employer
undertakes to employ a person and to train him or have trained him
systematically in an apprenticeable trade or occupation for a period
fixed in advance and in the course of which the apprentice is bound to
work in the employer’s service; and
(d) “apprenticeable occupation” means such trade or occupation in an
establishment as the competent authority may, from time to time,
declare by notification in the official Gazette, to be an apprenticeable
trade for the purposes of this Chapter.
276. Tripartite advisory committee.- The Government may, by notification in
the official Gazette, constitute, in the manner prescribed by rules, a tripartite advisory
committee to advise the Government and the competent authority in the matters
relating to apprenticeship.
277. Obligations of employers.- Subject to the provisions of this Chapter
and the rules, an employer shall-
(a) ensure proper compliance of the provisions of this Chapter and rules in
his establishment;
(b) introduce an apprenticeship programme in his establishment in
accordance with the rules; and get the programme registered with the
competent authority within such time as may be prescribed by rules;
(c) train apprentices at least one-fourth, in an average, of persons
employed in apprenticeable trade or occupation in his establishment, or
in such other proportion as the competent authority may, by order in
writing, fix, and in nominating the trainees as apprentices, shall give
preference to the handicapped workers;
(d) if any apprenticeship programme has been introduce in his
establishment prior to the coming into force of this Act, modify the
programme so as to bring it in conformity with the provisions of this
Chapter and rules and shall register such modified programme with the
competent authority within such time as may be prescribed by rules;
(e) ensure that an apprentice receives necessary theoretical instructions to
the extent of at least twenty percent of the total normal working hours;
(f) initiate and operate an apprenticeship programme entirely at his own
cost; and
(g) without permission in writing of the competent authority, not employ
any person as an apprentice who was an apprentice under another
employer and has left his apprenticeship or been discharged by the
employer on disciplinary grounds.
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114
278. Exemption from income-tax, etc.- (1) Notwithstanding anything
contained otherwise in the Income-tax Ordinance, 1984 (Ordinance No. XXXVI of
1984), no income-tax shall be payable by an employer in respect of any expenditure
incurred by him for the operation of an apprenticeship programme in accordance
with the provisions of this Chapter and rules.
(2) Notwithstanding anything contained otherwise in the Imports and Exports
(Control) Act, 1950 (Act No. XXXIX of 1950), or any rule or order, the Government
may, by order, make provisions for the grant of licences to the employers to import
necessary articles for operating apprenticeship programme under this Chapter.
279. Advice and guidance to employers.- The competent authority shall
offer to the employer all possible technical advice and guidance in all matters relating
to any apprenticeship programme operated in his establishment in accordance with
the provisions of this Chapter and rules.
280. Obligations of apprentice workers.- (1) Subject to the provisions of
this Chapter and rules, an apprentice worker-
(a) shall learn his trade or occupation conscientiously and diligently
and endeavour to qualify himself as a skilled worker on the
completion of his apprenticeship;
(b) shall attend the practical training and related theoretical
instructions given according to the programme laid down by the
employer;
(c) shall abide by all lawful orders of the employer or his
representative relating to apprenticeship and perform his
obligations under the contract of apprenticeship;
(d) shall appear in the examination held from time to time for
assessing the progress of his training;
(e) shall not become the member of a trade union of any class of
workers other than his own;
(f) may, in case of any grievance against his employer relating to
his apprenticeship and if it is not redressed by the employer,
apply to the competent authority for redress, and shall abide by
the decision of the competent authority ; and
(g) shall not, without the previous approval in writing of the
competent authority, leave his apprenticeship after the
completion of his apprenticeship period.
(2) If an apprentice worker fails to carry out the terms of his contract of
apprenticeship or if at any time during the period of his apprenticeship voluntarily
quits apprenticeship, or there are continued adverse reports regarding the progress
of his training, or he is charged for insubordination, breach of rules, absence from
duty or neglect of duties, he or, as the case may be, his father or guardian or the
surety shall severally or jointly be liable to the payment of such compensation and to
the refund to employer of such expenses accrued for his apprenticeship as may be
prescribed by rules.
281. Powers of entry, inspection, etc.- The competent authority may,-
(a) with necessary assistants, enter into, inspect and examine any
establishment or part thereof at any reasonable time;
(b) examine any apprentice worker employed in that establishment, or
require the production of any register, record or other documents
maintained in pursuance of this Chapter, and take statements of any
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person which it may consider necessary for carrying out the purposes
of this Chapter;
(c) make necessary examination and enquiry in order to ascertain whether
the provisions of this Chapter and rules are being properly observed in
that establishment; and
(d) exercise such other powers as may be prescribed by rules.
282. Delegation of powers.- Subject to the rules made in this behalf, the
competent authority may, by order in writing, delegate all or any of its powers to any
person or officer subordinate to him.
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CHAPTER XIX
OFFENCE, PENALTY AND PROCEDURE
283. Penalty for non-compliance of order of the Labour Court under
section 33.- If any person refuses or fails to comply with an order passed by the
Labour Court under section 33, he shall be punished with simple imprisonment for a
term which may extend to 3 (three) months, or with fine which may extend to 5,000
(five thousand) taka, or with both.
284. Penalty for employment of a child and adolescent.- If any person
employs any child or adolescent, or permits any child or adolescent to work in
contravention of any provision of this Act, he shall be punished with fine which may
extend to 5,000 (five thousand) taka.
285. Penalty for making agreement in respect of a child in contravention
of section 35.- If the parent or guardian of a child makes an agreement in respect of
the child in contravention of section 35, he shall be punished with fine which may
extend to 1,000 (one thousand) taka.
286. Penalty for contravention of the provisions of Chapter IV by an
employer.- (1) If any employer deprives a woman worker from maternity benefits as
per the provisions of Chapter IV, he shall be punished with fine which may extend to
25,000 (twenty five thousand) taka.
(2) Whenever a Court imposes a fine under sub-section (1), it may, at the time
of passing judgment, order the whole or any part of the compensation to be paid to
the woman concerned for any loss or damage caused to her by the contravention for
which the fine was imposed.
(3) The Court shall, in addition to the compensation provided in sub-section
(2), pass an order to the employer concerned to give the worker the benefit under
Chapter IV of which he was deprived.
287. Penalty for working for wages during permitted period of absence.-
If a woman does any work for cash or kind during the period when she has been
permitted by her employer to absent herself under the provisions of Chapter IV, she
shall be punished with fine which may extend to 1,000 (one thousand) taka.
288. Penalty for contravention of section 67.- If any person sells or lets on
hire, or as an agent of a seller or hirer causes or procures to be sold or let on hire for
use in an establishment any machinery driven by power which does not comply with
the provisions of section 67, he shall be punished with imprisonment for a term which
may extend to 3 (three) months, or with fine which may extend to 1,000 (one
thousand) taka, or with both.
289. Penalty for payment of wages at a rate below the minimum rate of
wages.- (1) Any employer, who pays any worker wages at a rate lower than the rate
declared under Chapter XI to be the minimum rate of wages, shall be punished with
imprisonment for a term which may extend to 1 (one) year, or with fine which may
extend to 5,000 (five thousand) taka, or with both.
(2) Where the Court imposes penalty under sub-section (1), it may, at the time
of passing the judgment, order that the employer shall pay to the worker concerned
such sum to represent the differences between the amount actually paid to such
worker and the amount which would have been payable to him if there was no such
contravention.
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290. Penalty for failure to give notice of accidents.- If any person, in
contravention of any provision of this Act, fails to give notice of any accident, he
shall, if the accident results in serious bodily injury, be punished with fine which may
extend to 1,000 (one thousand) taka, or if the accident results in loss of life, be
punished with imprisonment which may extend to 6 (six) months, or with fine which
may extend to 3,000 (three thousand) taka, or with both.
291. Penalty for unfair labour practice or anti-trade union
discrimination.- (1) If any person contravenes any provision of section 195 or 196A,
he shall be punished with imprisonment for a term which may extend to 1 (one) year,
or with fine which may extend to 10,000 (ten thousand) taka, or with both.
(2) If any worker contravenes any provision of section 196, he shall be
punished with imprisonment for a term which may extend to 6 (six) months, or with
fine which may extend to 5,000 (five thousand) taka, or with both.
(3) If any trade union or any person, other than a worker, contravenes any
provision of section 196, it or he shall be punished with imprisonment for a term
which may extend to 1 (one) year, or with fine which may extend to 10,000 (ten
thousand) taka, or with both.
292. Penalty for committing breach of settlement, etc.- If any person
commits any breach in the terms of any settlement, award or decision which is
binding on him under this Act, he shall be punished with imprisonment for a term
which may extend to 1 (one) year, or with fine which may extend to 10,000 (ten
thousand) taka, or with both.
293. Penalty for failing to implement settlement, etc.- If any person willfully
fails to implement any term of settlement, award or decision, which is his duty under
this Act to implement, he shall be punished with imprisonment for a term which may
extend to 2 (two) years, or with fine which may extend to 10,000 (ten thousand) taka,
or with both.
294. Penalty for illegal strike or lock-out.- (1) Any worker, who commences
or continues or otherwise acts in furtherance of an illegal strike, shall be punished
with imprisonment for a term which may extend to 6 (six) months, or with fine which
may extend to 5,000 (five thousand) taka, or with both.
(2) Any employer, who commences, continues or otherwise acts in
furtherance of an illegal lock-out, shall be punished with imprisonment for a term
which may extend to 6 (six) months, or with fine which may extend to 5,000 (five
thousand) taka, or with both.
295. Penalty for instigating illegal strike or lock-out.- If any person
instigates or encourages any other person to take part in, or to spend or supply
money for, or otherwise acts in furtherance of, an illegal strike or lock-out, he shall be
punished with imprisonment for a term which may extend to 6 (six) months, or with
fine which may extend to 5,000 (five thousand) taka, or with both.
296. Penalty for taking part in or instigating go-slow.- If any person takes
part in or instigates or encourages any other person to take part in, or otherwise acts
in furtherance of a go-slow, he shall be punished with imprisonment for a term which
may extend to 6 (six) months, or with fine which may extend to 5,000 (five thousand)
taka, or with both.
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297. Penalty for contravention of section 228(2).- If any employer
contravenes the provisions of section 228 (2), he shall be punished with
imprisonment for a term which may extend to 1 (one) year, or with fine which may
extend to 5,000 (five thousand) taka, or with both.
298. Penalty for misappropriation of provident fund and trade union
funds.- (1) If any person misappropriates or embezzles or spends to his own use
with bad intention any money of the provident fund of the workers, he shall be
punished with imprisonment for a term which may extend to 3 (three) years and shall
also be liable to fine.
Explanation.- If an employer fails to deposit his own subscription or the
subscription of a worker deducted from his wages by him to the provident fund of
workers of his establishment for a period of more than 3 (three) months without any
reasonable excuse to the satisfaction of the Director General, he shall be deemed to
have misappropriated the money of that provident fund.
(2) If an officer or employee of a trade union of workers or employers
misappropriates or embezzles or spends to his own use with bad intention any
money of the trade union fund, he shall be punished with imprisonment for a term
which may extend to 1 (one) year and shall also be liable to fine.
(3) The fine imposed under this section may extend to the amount found by
the Court to have been misappropriated or embezzled by, or spent with bad intention
to the use of, the accused, and upon realization the amount of fine shall be
reimbursed by the Court to the provident fund or trade union fund concerned.
299. Penalty for activities of unregistered trade unions.- If any person
takes part in, or encourages or instigates any other person to take part in the
activities, other than activities relating to registration, of an unregistered trade union
or of a trade union whose registration has been cancelled, or collects subscription,
except membership subscription, for the fund of any such trade union, he shall be
punished with imprisonment for a term which may extend to 3 (three) months or with
fine which may extend to 2,000 (two thousand) taka, or with both.
300. Penalty for dual membership of trade unions.- If any person
becomes, or continues to be a member of more than one trade union at the same
time, he shall be punished with imprisonment for a term which may extend to 1 (one)
months or with fine which may extend to 2,000 (two thousand) taka, or with both.
301. Penalty for non-compliance with the provisions of section 210(7).- If
any person fails, except for reasons satisfactory to the Conciliator, to comply with the
provisions of section 210(7), he shall be punished with imprisonment for a term
which may extend to 3 (three) months, or with fine which may extend to 2,000 (two
thousand) taka, or with both.
302. Penalty for using false certificate of fitness.- If any person knowingly
uses or attempts to use a certificate of fitness granted to any other person under any
provision of this Act as a certificate of fitness granted to him, or knowingly allows
another person to use or attempt to use such certificate, he shall be punished with
imprisonment for a term which may extend to 3 (three) months or with fine which
may extend to 1,000 (one thousand) taka, or with both.
303. Penalty for false statements, etc.- If any person-
(a) with intent to deceive, makes an entry in any register, notice, record or
other document required to be maintained under this Act or any rules,
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regulations or schemes which, he knows or has reason to believe, to
be false in any material particular;
(b) willfully omits or allows to omit to make any entry in any such register,
notice, record or other document required to be made therein;
(c) maintains more than one set of such registers, notices, records or other
documents, except the office copies thereof;
(d) willfully sends or allows to be sent to any officer or authority any
application, plan, record, statement, information, report, notice or other
document under this Act or any rules, regulations or schemes which he
knows, or has reason to believe, to be false in any material particular;
or
(e) willfully fails or neglects to maintain or send any plan, list, record,
register, information, report or other document required to be
maintained or send under this Act or any rules, regulations or schemes;
he shall be punished with imprisonment for a term which may extend to 6 (six)
months, or with fine which may extend to 5,000 (five thousand) taka, or with both.
304. Penalty for wrongful disclosure of information.- If any person
discloses, in contravention of any provision of this Act, any secret information
relating to any construction or business which has come to his knowledge during
discharge of his official duties or any result of an examination under this Act, he shall
be punished with imprisonment for a term which may extend to 6 (six) months, or
with fine which may extend to 2,000 (two thousand) taka, or with both.
305. Penalty for general offences by workers.- Subject to other provisions
of this Act, if any worker employed in an establishment contravenes any provision of
this Act or any rules, regulations or schemes, or any lawful orders, imposing any duty
or liability on him, he shall be punished with fine which may extend to 500 (five
hundred) taka.
306. Penalty for obstruction.- (1) If any person willfully obstructs any officer
acting under this Act or rules, regulations or schemes to discharge his duties there
under, or willfully refuses or neglects to afford such person any reasonable facility for
making any entry, enquiry, examination or inspection necessary or authorized under
the said Act, rules, regulations or schemes in relation to any establishment, he shall
be punished with imprisonment for a term which may extend to 6 (six) months, or
with fine which may extend to 25,000 (twenty five thousand) taka, or with both.
(2) If any person willfully refuses or fails to produce of the demand of any
officer any register, record or other documents maintained in pursuance of this Act or
any rules, regulations or schemes before an officer acting as mentioned in subsection (1) on his demand, or willfully prevents or attempts to prevent any person
from appearing before, or being examined by, an officer so acting he shall be
punished with imprisonment for a term which may extend to 3 (three) months, or with
fine which may extend to 10,000 (ten thousand) taka, or with both.
307. Penalty for other offences.- If any person contravenes or fails to
comply with any provision of this Act or any rules, regulations or schemes, and if no
other penalty is provided therein for such contravention or failure, he shall be
punished with imprisonment for a term which may extend to 3 (three) months, or with
fine which may extend to 25,000 (twenty five thousand) taka, or with both.
308. Enhanced penalty after previous conviction.- If any person who has
been convicted of any offence punishable under this Act or rules, regulations or
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schemes is again convicted of the same offence, he shall be punishable on a
subsequent conviction with twice the punishment provided for that offence:
Provided that for the purposes of this section, if the second time offence is
committed after 2 (two) years of the first conviction, the first conviction shall not be
taken into consideration.
309. Penalty for contravention of law with dangerous consequences.- (1)
Notwithstanding anything contained elsewhere in this Chapter, if any person
contravenes any provision of this Act or any rules, regulations or schemes, he shall
be punished,-
(a) if such contravention results in loss of life, with imprisonment for
a term which may extend to 4 (four) years or with fine which may
extend to 1,00,000 (one lakh) taka, or with both;
(b) if such contravention results in serious bodily injury, with
imprisonment for a term which may extend to 2 (two) years, or
with fine which may extend to 10,000 (ten thousand) taka, or
with both; or
(c) if such contravention otherwise causes injury or danger to a
worker or any other persons in an establishment, with
imprisonment for a term which may extend to 6 (six) months, or
with fine which may extend to 2,000 (two thousand) taka, or with
both.
(2) Any Court may, while passing an order of a sentence of fine under this
section, order the whole or any part of the fine recovered to be paid as compensation
to the person injured, or in the case of his death, to his legal representative.
(3) Nothing in this section shall apply to any contravention for which higher
penalty is provided in this Act or any rules, regulations or schemes.
310. Power of the Court to make certain orders.- (1) Where the employer
of an establishment is convicted of an offence punishable under this Act or any rules,
regulations or schemes, the Court may, in addition to punishment, by order in writing,
require him within a period specified in the order, which may be extended on
application, to take such measures as may be so specified therein to remove the
reasons for which the offence was committed.
(2) Where an order is made under sub-section (1), the employer of the
establishment shall not, during the period specified therein or extended period, be
liable for continuation of any offence mentioned in that sub-section for which he has
been convicted.
(3) If the order of the Court made under sub-section (1) is not fully complied
with during the aforesaid period, the employer shall on the expiry of such period, be
deemed to have committed further offence, for which he shall be punished with
imprisonment for a term which may extend to 6 (six) months, or with fine which may
extend to 2,000 (two thousand) taka, or with both.
311. Onus as to age.- (1) When an act or omission is an offence punishable
under this Act due to a person’s becoming under or over a certain age, and such
person is, in the opinion of the Court, apparently under or over such age, the burden
of proof that such person is not under or over such age shall be on the accused.
(2) If a registered medical practitioner certifies that he has examined a worker
and he believes that the age set forth in such certificate is his age, such certificate
shall, for the purposes of this Act, be conclusive evidence as to the age of that
worker.
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121
312. Offences by companies, etc.- Where an offence punishable under this
Act or any rules, regulations or schemes is committed by a company or any other
body corporate or a firm, every director, partner, manager, secretary or any other
officer or agent thereof, who is actively involved in the conduct of the business
thereof shall be deemed to have committed that offence, unless he proves that the
offence was committed without his knowledge or consent or that he exercised all due
diligence to prevent the commission of the offence.
313. Cognizance of offences.- (1) No Court other than a Labour Court shall
try an offence under this Act or any rules, regulations or schemes.
(2) No Labour Court shall take cognizance of an offence under this Act or any
rules, regulations or schemes except upon complaint made by the following persons,
namely:-
(a) aggrieved person, or aggrieved trade union;
(b) in the case of an offence under section 298 or 301 or Chapter
XIII, the Director General;
(c) in the case of an offence under Chapter XVII, the Chairman of
the Board of Trustees or the Controller of provident funds;
(d) in the case of an offence under Chapter XVIII, the competent
authority;
(e) in the case of any other offence, the Inspector General or any
officer subordinate to him authorized in this behalf.
314. Limitation of prosecution.- Unless otherwise specified in this Act or
any rules, regulations or schemes, no Labour Court shall take cognizance of an
offence thereunder, unless a complaint thereof is made within 6 (six) months from
the date of commission of the offence.
315. Report of offences.- Any contravention of, or refusal to comply with this
Act or any rules, regulations or schemes by any person may be reported to the
Director General, the Inspector General or Controller of provident funds, or to any
officer subordinate to them for information or for taking proper action.
316. Withdrawal of cases.- No case under this Act or any rules, regulations
or schemes shall be withdrawn, except on an application for such withdrawal made
by the person on whose complaint the case has been started:
Provided that no case shall be withdrawn without the permission of the
Director General or the Inspector General or the Controller of provident funds, if such
case was filed by any officer subordinate to them.
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CHAPTER XX
ADMINISTRATION, INSPECTION, ETC.
317. Director General, etc.- (1) For the purposes of this Act, the Government
shall, by notification in the official Gazette, appoint a Director General and may, by
such notification, appoint such number of Additional Director General, Director,
Deputy Director, Assistant Director and Labour Officer as may be necessary.
(2) Where the Additional Director General, Director, Deputy Director, Assistant
Director and Labour Officer are appointed, the Government shall specify the
jurisdiction or area of each of them under this Act in the said notification.
(3) The Director General shall have power of supervision and control over all
Additional Director General, Director, Deputy Director, Assistant Director and Labour
Officer.
(4) The Director General shall have the following powers and functions,
namely:-
(a) to register trade unions under Chapter XIII and maintain
registers in this behalf;
(b) to submit complaints to the Labour Court against any offence or
unfair labour practice or anti-trade union discrimination or
violation of any provision of Chapter XIII;
(c) to determine the question as to which 1 (one) of the trade unions
in an establishment or group of establishments is entitled to be
certified as the collective bargaining agent;
(d) to supervise the election of the executive committee of a trade
union and the holding of any secret ballot;
(e) to act as Conciliator in any industrial dispute;
(f) to supervise the functions of the Participation Committee; and
(g) to perform such other duties as are conferred by this Act or
rules.
318. Inspector General, etc.- (1) For the purposes of this Act, the
Government shall, by notification in the official Gazette, appoint an Inspector General
and may, by such notification, appoint such number of Additional Inspector General,
Joint Inspector General, Deputy Inspector General, Assistant Inspector General and
Labour Inspector.
(2) Where the Additional Inspector General, Joint Inspector General, Deputy
Inspector General, Assistant Inspector General and Labour Inspector are appointed,
the Government shall specify the jurisdiction or area or establishments under
jurisdiction of each of them under this Act in the said notification.
(3) The Inspector General shall, in addition to the powers conferred on him
under this Act, have the powers of a Labour Inspector throughout the country.
(4) The Inspector General shall have powers of supervision and control over
all the Additional Inspector General, Joint Inspector General, Deputy Inspector
General, Assistant Inspector General and Labour Inspector.
(5) The Inspector General may, by general or special order in writing,
delegate any of his powers and functions on any Additional Inspector General, Joint
Inspector General, Deputy Inspector General, Assistant Inspector General and
Labour Inspector.
(6) All principal officers of the Mercantile Marine Department shall be the
Establishment Inspectors, ex-officio, for the purposes of regulations made under
Chapter VI within the local limits of their jurisdictions.
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319. Powers and functions of Inspector General, etc.- (1) For the purposes
of this Act, the Inspector General or any Additional Inspector General, Joint Inspector
General, Deputy Inspector General, Assistant Inspector General and Labour
Inspector shall have the following powers and functions within their respective
jurisdictions, namely:-
(a) with necessary assistants, to enter, inspect and examine any
place, premises, vessel or vehicle, at any reasonable time,
which in his consideration, is deemed to be or used as, an
establishment;
(b) to require any registers, records, files, notices, certificates or any
other documents maintained in pursuance of this Act or any
rules, regulations or schemes to be produced, and to seize,
inspect or examine them and to make copy thereof;
(c) to make necessary investigation or examination for ascertaining
whether any provisions of this Act or any rules, regulations or
schemes in respect of any establishment or any worker
employed therein are properly complied with;
(d) to take deposition, in respect of any matter pertaining to this Act
or any rules, regulations or schemes, of any person who is
found in any establishment or who is believed to be or to have
been within the preceding 2 (two) months employed in any
establishment;
(e) to require every person so deposed or examined to sign the
records or papers of such deposition or examination for
verification;
(f) if necessary, to call to account or to demand an explanation
from an employer or any person employed by him in respect of
any register, record, certificate, notice or any other document
maintained by that employer; and
(g) to exercise such other powers or perform such other functions
as are conferred to them by this Act or any rules.
(2) The employer of an establishment shall provide such means or
arrangement as may be required by a Labour Inspector for making any entry,
inspection, examination, enquiry or doing any other act necessary for the exercise of
the powers or performance of the duties under this Act or any rules, regulations or
schemes.
(3) Every employer shall be required to produce for inspection before a
Labour Inspector all such records, registers, and any other documents as he may
require for the purposes of this Act or any rules, regulations or schemes; and shall
furnish any other information in connection therewith as may be required by such
Labour Inspector.
(4) A Labour Inspector shall have power to call for and to seize any record,
register or any other document from any employer in respect of enforcement of this
Act or any rules, regulations or schemes, as he may consider necessary for the
purpose of performing duties there under.
(5) The Inspector General or any other officer subordinate to him authorized
by him in this behalf, may submit any complaint with the Labour Court against any
person for any offence, in any matter under his jurisdiction, under this Act or any
rules, regulations or schemes.
(6) The Inspector General or an officer subordinate to him authorized by him
in this behalf shall, in all cases of approval of design of a factory or an industrial
establishment, grant and renewal of licence, permission for change of class and
extension, etc, take necessary actions after making on the spot inspections.
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320. Controller of Tea Plantation Workers’ Provident Fund.- (1) The
Government shall, by notification in the official Gazette, appoint a Provident Fund
Controller for the Tea Plantation Workers Provident Fund.
(2) The Controller shall be the Chief Executive Officer of the fund.
(3) The Controller shall perform his functions under the general control and
superintendence of the Board of Trustees and shall also act as the Secretary to the
Board.
(4) The Controller may take part in the meetings of the Board of Trustees, but
shall not be entitled to vote.
(5) The Controller shall, in consultation with the Chairman of the Board of
Trustees, convene meetings of the Board and shall record and keep records of its
minutes.
(6) The Controller shall be responsible for carrying out the decisions of the
Board of Trustees.
(7) The Controller may, if he thinks necessary, call for accounts of the said
provident fund from the owner of a tea plantation.
(8) The Controller or any person authorized by him may, at any reasonable
time and after giving notice of his intention to do so, enter into any tea plantation or
any premises connected therewith and require any person in-charge thereof to
produce any accounts, register, or any other documents relating to the employment
of tea plantation workers or the payment of their wages for his examination.
(9) The Controller or any person authorized by him may, with respect to any
matter mentioned in sub-section (8), examine the employer, any of his officers,
employees or agents or any person in charge of a tea plantation or any premises
connected therewith or any person who is, or is believed to have been, a worker in
such tea plantation.
(10) The Controller may also exercise such other powers as may be
prescribed by rules.
321. Accounts and audit.- (1) A Board shall maintain its accounts in such
manner and in such form as the Government may direct.
(2) The accounts of income and expenditure of a Board shall be audited every
year by the Comptroller and Auditor General of Bangladesh, hereinafter referred to
as the Auditor General, in such manner as he deems fit.
(3) For the purpose of audit, the Auditor General or any person authorized by
him in this behalf shall have access to all records, books, accounts, cash, stores,
documents or any other properties of the Board and may examine any member or
any officer or other employee of the Board.
(4) The Board shall, at the time of such audit, produce all its books of account
and connected documents to the Auditor General or any officer auditing, and shall
furnish such explanation and information as he may require.
(5) The Auditor General shall submit his audit report to the Board and shall
forward a copy thereof to the Government.
(6) The Board shall take steps forthwith to rectify any defects or irregularities
pointed out in the audit report.
(7) The Government may, at any time, require the Auditor General to report to
it upon the financial affairs of the Board.
(8) In this section, “Board” means “The Dock Workers Management Board” or
“the Board of Trustees of the Tea Plantation Workers Provident Fund”.
322. Reports, etc.- (1) A Board mentioned in section 321 shall, as soon as
possible after the end of every financial year, furnish to the Government a statement
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of accounts of its income and expenditure audited by the Auditor General together
with an annual report giving therein an account of its activity during that year and its
proposed programme for the next year.
(2) The Government may require the Board to furnish the following
information or documents which the Board shall be bound to furnish, namely:-
(a) any report, statement, estimate, statistics or any other
information regarding any matter under the control of the Board;
(b) a report on any such matter;
(c) a copy of any document which is in the custody of the Board.
323. National Council for Industrial health and safety.- (1) The
Government may, by notification in the official Gazette, constitute a Council, to be
called the National Council for Industrial Health and Safety.
(2) The said Council shall consist of the following members, namely:-
(a) Minister in charge of the Ministry of Labour and Manpower, exofficio, who shall also be its Chairman;
(b) Secretary, Ministry of Labour and Manpower, ex-officio;
(c) Secretary, Ministry of Industries, ex-officio;
(cc) Secretary, Ministry of Commerce, ex-officio;
(d) Secretary, Ministry of Health, ex-officio;
(e) Secretary, Ministry of Textile and Jute, ex-officio;
(f) Secretary, Ministry of Shipping, ex-officio;
(g) Secretary, Ministry of Communications, ex-officio;
(gg) Director General of Industrial Police, ex-officio;
(h) 7 (seven) members representing industrial establishment to be
appointed by the Government in consultation with
establishments widely representing the employers;
(i) 7 (seven) members representing workers, to be appointed by
the Government in consultation with trade unions widely
representing the workers:
Provided that at least one female representative shall be
included in the members representing both workers and the
employers;
(ii) 5 (five) specialists in industry, health and safety to be appointed
by the Government;
(j) Inspector General, ex-officio, who shall also be its Secretary.
(3) The nominated members shall hold office for a term of 3 (three) years.
(4) The Council shall follow its own rules of procedure.
(5) The Council shall-
(a) prepare national policy for ensuring safety in industrial
establishments and for maintaining therein the healthy or neat
and clean environment and conditions;
(b) frame guidelines for implementation of its policy.
(6) Every establishment shall take necessary steps to implement the policy
prepared by the Council following the guidelines framed by it.
Bangladesh Labour Act, 2006
126
CHAPTER XXI
MISCELLANEOUS
324. Power to exempt.- (1) The Government may, by notification in the
official Gazette, exempt, subject to such conditions and restrictions as it may specify
therein, any employer or class of employers or any establishment or class of
establishments or any part thereof or any worker or class of workers from the
operation of or compliance with all or any provision of Chapter II, V, VI, VII, VIII, IX or
XVIII or any section thereof, or section 325, 326, 337 or 338 of Chapter XXI of this
Act.
(2) An order of exemption under sub-section (1) shall be made in the public or
national interest and shall be in operation for a period not exceeding 6 (six) months
at a time.
(3) The Inspector General may, by notification in the official Gazette, suspend
the operation of all or any provision of section 100, 101, 102, 103, 105 or 114 in
respect of any establishment or class of establishments for the purpose of any
festival, fair or exhibition, for any such period and on such conditions as may be
specified in the notification.
325. Notice to Inspector General before commencement of work.- (1) An
employer shall, at least 15 (fifteen) days before starting work or business in his
establishment, send a notice relating thereto to the Inspector General, and such
notice shall contain the following information or particulars, namely:-
(a) name and location of the establishment ;
(b) name and address of the employer;
(c) mailing address of the establishment;
(d) nature of work or business to be carried on in the establishment;
(e) nature and quantity of power to be used;
(f) name of the manager of the establishment;
(g) number of workers likely to be employed in the establishment;
(h) such other particulars as may be prescribed by rules.
(2) Where an establishment keeps in operation its manufacturing process,
ordinarily for a period of less than 180 (one hundred and eighty) working days in a
year, the employer thereof shall send a written notice to the Inspector General
containing the particulars specified in sub-section (1) at least 30 (thirty) days before
the date of the resumption of manufacturing process in that establishment.
(3) Whenever any new manager is appointed, the employer shall send to the
Inspector General a written notice of such change, within 7 (seven) days from the
date on which such person assumes his office.
(4) During a period when no manager is appointed in an establishment or the
person so appointed does not work, any person acting as manager or, if no such
person is found, the employer himself shall be deemed to be the manager of that
establishment for the purposes of this Act.
326. Approval of plans and fees for licence and registration.- (1) The
Government may-
(a) require that previous permission in writing be obtained in the
manner prescribed by rules from the Inspector General for the
construction, establishment or extension of any factory or class
of factories:
Bangladesh Labour Act, 2006
127
Provided that in such a case, no structural change in the
factory layout plan with structural design of the factory building
approved by the appropriate authority shall be made;
(b) require for registration of any factory or class of factories or for
obtaining license therefore or renewal thereof in such manner
and on payment of such fees as may be proscribed by rules.
(2) If, in accordance with the provisions of sub-section (1), an application for
permission accompanied by the plans is sent to the Inspector General and no order
or direction of the Inspector General is communicated to the applicant within 3
(three) months from the date of its receipt by him, the aggrieved owner of the
establishment may, within the following 30 (thirty) days, apply to the Government
seeking relief.
(3) Where the Inspector General refuses to grant permission for construction
or extension of a factory or for registration of or, granting license for a factory, the
applicant may, within 60 (sixty) days of the date of such refusal, appeal to the
Government.
Explanation.- A factory shall not be deemed to have been extended within
the meaning of this section by reason only of alteration or the replacement of any
plant or machinery or addition of any plant or machinery within such limits as may be
prescribed by rules.
327. Appeals against certain orders of Labour Inspector.- (1) Where an
order in writing of a Labour Inspector is served on an employer under this Act, he
may, within 30 (thirty) days of the receipt of such order, appeal against it to the
appellate authority, and such appellate authority may, subject to rules made in this
behalf, confirm, modify or set aside the order.
(2) Subject to the rules made in this behalf and to such conditions or such
performance as may be imposed or directed by the appellate authority, the appellate
authority may, if it thinks fit, suspend the order appealed against pending the
decision of the appeal.
(3) The Government may make rules for the purpose of this section.
(4) In this section, appellate authority means the Government or such other
authority as the Government may appoint in this behalf.
328. Seasonal factories.- The Government may, by notification in the official
Gazette, declare any factory, in which manufacturing process is ordinarily carried on
for not more than 180 (one hundred and eighty) working days in a year and cannot
be operated except during a particular season or at times dependent on the irregular
action of natural forces, to be a seasonal factory for the purposes of this Act.
329. Recovery of money recoverable under this Act.- (1) Subject to this
Act, any money directed by the Labour Court or the Tribunal to be paid under any
section of this Act or any money payable by any person under any provision of this
Act or any money payable by any person or an employer under any settlement or
agreement or under any award or decision of an Arbitrator or the Labour Court or
Tribunal may, on the application by any person entitled to receive such money and at
his option, be recovered by or at the direction of the Labour Court by any of the
following ways, namely:-
(a) as a public demand;
(b) by attachment and sale of the movable properties belonging to
the person who is liable to pay such money in the manner
prescribed by rules;
Bangladesh Labour Act, 2006
128
(c) if the entire money could not be recovered in the aforesaid
manner, by attachment and sale of the immovable property
belonging to such person, in the manner prescribed by rules; or
(d) as a money decree of a Civil Court.
(2) Where any worker is entitled to receive from the employer any benefit,
which is capable of being computed in terms of money under any settlement or
agreement or under any decision or award of an Arbitrator or the Labour Court or
Tribunal, such benefit being computed in money may be recovered under the
provisions of sub-section (1).
(3) No application for recovery of any money shall be entertained under this
section unless it is submitted within 1 (one) year from the date on which money
become payable:
Provided that any such application may be entertained after the expiry of the
said period if the Labour Court is satisfied that the applicant had sufficient cause for
not making the application within the said period:
Provided further that the matter of payment of the dues to the worker shall get
highest priority.
330. No recovery of money for proving facilities.- No employer shall
recover any fees or money, except the price for food supplied in the canteen, from
any worker for providing any facilities or supplying any equipment or appliances
which ought to be provided or supplied by the employer under this Act.
331. Obligations of workers.- No worker in an establishment shall-
(a) willfully misuse or interfere in the use of any system or appliance
provided in the establishment for the purpose of securing the health,
safety or welfare of the workers therein;
(b) willfully or without reasonable cause do anything which is likely to
endanger himself or any other person;
(c) willfully neglect to make use of any appliance or system provided in the
establishment for the purposes of securing the health or safety of the
workers therein.
332. Conduct towards women.- Where any woman is employed in any work
of any establishment, whatever her rank or status may be, no person of that
establishment shall behave with her which may seem to be indecent or unmannerly
or which is repugnant to the modesty or honour of that woman.
333. Service of notice and submission of return.- The Government may,
by rules,-
(a) prescribe the manner of service of any order under this Act; and
(b) direct an employer to submit such return as mentioned therein, either
regularly or time to time, for the purposes of this Act.
334. Certain persons to be public servants.- The Chairman or any member
or officer of a Board, by whatever name it may be called, constituted under this Act,
the Director General, the Inspector General, the Controller of the provident funds, the
Chairman of a Labour Court, the Chairman or any member of the Tribunal and any
person appointed under Chapter XX shall be deemed to be public servant within the
meaning of section 21 of the Penal Code, 1860 (XLV of 1860).
Bangladesh Labour Act, 2006
129
335. Protection of act done in good faith.- No civil or criminal case or other
legal proceeding shall lie against any person or authority for anything done or
intended to be done in good faith under this Act, rules, regulations or schemes.
336. Protection of existing conditions of employment in certain cases.-
Nothing in this Act or any rules, regulations or schemes shall affect any right or
privilege to which a worker was entitled on the date of commencement of this Act
under any law repealed by this Act or under any award, agreement, settlement,
custom or usage, so long he continues to be employed under the employer under
whom he was employed on the date of such commencement, if such right or
privilege is more favourable to him than those provided in this Act or rules,
regulations or schemes.
337. Abstracts of the Act, rules and regulations to be displayed.- (1) The
employer of every establishment shall cause to be displayed in a conspicuous and
accessible place at or near the main entrance of the place of work or the
establishment, as the case may be, a notice containing an abstract of the necessary
or important provisions of this Act and of the rules and regulations.
(2) All notices displayed under sub-section (1) shall be maintained in a clean
and legible condition.
(3) The Inspector General may, by order in writing served on the employer,
require that there shall be displayed in his establishment any other notice or poster
relating to the health, safety or welfare of the workers employed in his establishment.
338. Liability of owner of houses or premises in certain special
circumstances.- (1) Where in any premises, separate buildings are leased to
different employers for use as separate establishments, the owner of the premises
shall be responsible for providing and maintaining of common facilities and services,
like approach roads, drainage, water supply, lighting and sanitation.
(2) Where in any premises, the independent and self-contained flats or
houses are leased to different employers for use as separate establishments, the
owner of the premises shall be liable for any violation or contravention of provisions
of this Act or rules in respect of the following matters, as if he were the employer of
the establishments, namely:-
(a) common supply of water in toilets, washrooms and washing
facilities;
(b) fencing of machinery or plant belonging to the owner, which has
not been specially transferred to the tenant for his use;
(c) safe means of access to the higher floors and flats and
cleanliness of staircases and common passages;
(d) precautionary measures in case of fire;
(e) providing and maintenance of hoists and lifts; and
(f) maintenance of any other common facilities in the premises.
(3) Where in any premises the independent rooms with common toilets,
washrooms and washing facilities are leased to different employers for use as
separate establishments the provisions of sub-section (2) shall apply in that case
also.
(4) Where in any premises the portions of a room or a shed is leased to
different employers for use as separate establishments, the owner of the premises
shall be liable for any violation or contravention of any provisions of Chapter V,
except sections 53 and 55, and Chapter VI, except sections 40, 64, 74, 75 and 77,
and of section 91:
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130
Provided that in respect of the provisions of sections 63, 65 and 72, the
owner’s liability shall be only in so far as such provisions relate to things under his
control:
Provided further that the employer shall be liable for complying with the
provisions of Chapter VI in respect of plant and machinery belonging to, or supplied
by, him.
(5) The Inspector General shall have, subject to the control of the
Government, power to issue any necessary order to the owner of the premises in
respect of carrying out the provisions of this section.
(6) In respect of sub-sections (3) and (4), in computing the number of workers
employed for the purposes of this Act, the whole premises shall be deemed to be a
single establishment.
339. Powers to collect information.- Any Board, or any officer or authority
acting under this Act or any rules, regulations or schemes, may, for the due
discharge of its or his functions, direct any employer to furnish such records,
documents or information or do such other acts, as it or he may require, and every
such employer shall comply with such direction.
340. Presumption as to employment.- Any person who is found in a factory
when work is going on, or at any time except during intervals for meals or rest, or
when any of its machinery is in motion, shall, until anything is proved contrary, be
deemed to have at that time been employed in that factory.
341. Restrictions on disclosure of certain information.- (1) No person
shall disclose any information, other than in connection with the administration of this
Act, relating to any manufacturing or commercial secret which might have come to
his knowledge in the course of discharging his duties under this Act or any rules,
regulations or schemes, either during his service or after leaving his service.
(2) Nothing in sub-section (1) shall apply to any disclosure of information
made with the previous consent of the employer in writing of such secret, or for the
purposes of any legal proceeding including arbitration pursuant to this Act, or for any
criminal proceedings relating thereto, or for giving any report relating to such
proceedings.
342. Certain matters to be kept confidential.- No information shall be
included in any report, decision, award or judgment under this Act obtained by any
officer, authority, Conciliator, Arbitrator, Labour Court or Tribunal during the course
of any investigation or enquiry as to a trade union or to business or trade which is not
available otherwise than through the evidence given before them, if the trade union
or establishment, in question makes a request in writing that such information shall
be treated as confidential, nor shall any such information be disclosed in any such
proceedings without the consent in writing of the trade union or establishment
concerned:
Provided that nothing contained in this section shall apply to disclosure of any
such information for the purpose of a prosecution under section 193 of the Penal
Code.
343. Protection of proceedings of Boards.- No act or proceeding of any
Board, by whatever name it may be called, constituted under this Act, shall be invalid
or be called in question merely on the ground of any vacancy in, or any defect in the
constitution of the board or any defect in the appointment or qualification of any
member thereof.
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131
344. General provisions relating to tenure, powers, proceedings, etc. of
Boards.- (1) Unless otherwise contained in this Act, the term of office of the
Chairman and other members of any Board, by whatever name it may be called,
constituted or established under this Act, the manner of filling its vacancies, the
proceedings and conduct of business of it and its committees, and the allowances
payable to them for attending meetings shall be prescribed by rules.
(2) Unless otherwise contained in this Act, any such Board may, for the
purpose of performance of its functions,-
(a) direct any employer to furnish such records, documents or
information or do such other acts as it may specify;
(b) enter, at all reasonable times, in any establishment;
(c) inspect any books, registers and other documents relating to
such establishment;
(d) record the statement of any person connected with the
management of such establishment;
(e) like a Civil Court-
(i) compel any person to appear and to make deposition on
oath;
(ii) compel to produce any documents and anything; and
(iii) issue commission for examination of witness.
(3) The aforesaid powers of a Board may be exercised by its Chairman or
byany of its members or officers authorized in this behalf.
345. Payment of equal wages for equal work.- In determining wages or
fixing the minimum rate of wages for any worker, the principle of equal wages for
male, female and handicapped workers for work of equal nature or standard or value
shall be followed; and no discrimination shall be made in this respect on the ground
of being male-female-handicapped.
346. Court fees in general cases.- Subject to the provisions of this Act, the
Government may, by rules, prescribe the amount of court-fees or other fees payable
in respect of any application, proceedings or appeal under this Act.
347. Restrictions on certain questions, etc.- No person shall be compelled
under this Act to answer any question or make any statement which may tend
directly or indirectly to incriminate him.
348. Training on this Act.- (1) The Government shall take necessary steps
to organize training courses on this Act for officers of trade unions of workers and
employers.
(2) Any officer of a trade union of workers shall undertake such training
course when invited by the competent authority to do so.
(3) The employer of an establishment in which at least 50 (fifty) workers are
ordinarily employed or an officer of an establishment specified by the employer shall
undertake such training course when invited by the competent authority to do so.
(4) The cost of such training course shall be borne by the Government and
the employer in such proportion as the Government may determine.
(5) The period spent on such training shall be deemed to be a period spent on
duty of the establishment concerned.
(6) In this section, “competent authority” means the Government, or any
establishment or authority established or authorized by the Government to organize
or conduct training courses under this section.
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132
(7) Notwithstanding anything contained in this section, a collective bargaining
agent or a federation of trade unions may, with the approval of the Director General,
organize training courses on this Act for officers of trade unions for a period of not
exceeding 7 (seven) days, and in the case of a person attending such course with
the permission of the employer, the provisions of sub-section (5) shall apply.
348A. Formation of Tripartite Consultative Council.- (1) A “Tripartite
Consultative Council” shall be formed for offering counsel to the Government on the
subjects of law, policy or labour matters.
(2) Formation of the council and its procedure of work shall be determined by
the Government.
349. Certain activities of trade union are prohibited.- No trade union shall
engage in any activity which is not within the aims and objects of the union as
specified in its constitution.
350. Bar to jurisdiction of other Courts.- Any suit, complaint or other legal
proceeding which is cognizable or triable by the Labour Court or Tribunal under this
Act shall not be cognizable or triable by any other Court.
351. Power to make rules.- (1) The Government may, by notification in the
official Gazette, make single consolidated or separate rules for carrying out the
purposes of this Act or for every or any matter which shall be, or may be, prescribed
by rules under this Act.
(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters enumerated
under the following Chapters, namely:-
(a) under Chapter V-
(i) ventilation of sufficient light and air and determination of
reasonable standard of temperature for an establishment,
and maintenance thermometer therein;
(ii) arrangements for disposal of wastes and effluents of an
establishment there from and approval by the prescribed
authority for such arrangements;
(iii) in the case of an establishment where humidity is
required to be increased artificially-
(a) prescribing standard of humidification,
(b) regulating the methods for artificially increasing the
humidity of the air,
(c) test for determining and recording the humidity of
the air, and
(d) prescribing methods for sufficient ventilation of
light and air and ensuring to keep the air cold;
(iv) prescribing standard for suitable and sufficient lighting for
every establishment;
(v) ensuring compliance with the provisions relating to
drinking water in an establishment;
(vi) prescribing the number of toilets and washrooms for an
establishment;
(vii) prescribing the type and number of spittoons for an
establishment and providing its setting up and proper
maintenance; and
Bangladesh Labour Act, 2006
133
(viii) prescribing additional measures in respect of maintaining
health in an establishment;
(b) under Chapter VI-
(i) provision for additional precautionary measures in
respect of any particular machinery or part thereof in an
establishment;
(ii) prescribing safety measures for a dangerous part of any
machinery;
(iii) prescribing additional requirements to be followed in
respect of any lifting machinery;
(iv) examination of any plant or machinery and prescribing
additional safety measures in relation thereto; and
(v) prescribing maximum weights which may be lifted, carried
or moved by a woman, man and adolescent in an
establishment;
(vi) prescribing additional precautionary measures in respect
of fire preventive measures in an establishment;
(c) under Chapter X-
(i) maintenance of records, registers, returns and notices
required to be maintained for implementation of this
Chapter and prescribing forms thereof;
(ii) display, in a conspicuous place of an establishment, of
notices specifying rates of wages payable to workers
employed in that; establishment; and
(iii) provision for regular inspection of the weights, measures
and weighing machines kept by the employers for
payment of wages of the workers;
(d) under Chapter XI-
(i) procedure to be followed by the Board in fixing rates of
wages;
(ii) giving opportunities to persons likely to be affected by the
minimum rates of wages to offer comments and make
proposals relating thereto; and
(iii) maintenance of all necessary books, wage slips, registers
and other records and prescribing their forms and
particulars to be entered therein and the manner of
authenticating such entries;
(e) under Chapter XII-
(i) prescribing the manner in which money deposited with a
Labour Court may be invested for the benefit of
dependents of a deceased worker and for the transfer of
money so invested from one Labour Court to another;
(ii) prescribing the manner in which any balance of money
may, be transferred to the fund constituted for the benefit
of the workers, under section 155(5), and the
establishment and administration of such fund;
(iii) prescribing the form and manner in which memorandum
of agreement shall be presented and registered;
(iv) subject to the review, withholding of payment of monthly
compensation by the Labour Court, in whole or in part;
and
(v) maintenance of registers and records of proceedings by
the Labour Court;
Bangladesh Labour Act, 2006
134
(f) under Chapter XVII-
(i) the time and manner at or in which subscription of an
employer and workers shall be paid to a provident fund
by the employer, and the manner in which such
subscription may be realized;
(ii) the powers and duties of the Board of Trustees for the
administration of provident fund;
(iii) the conditions of withdrawal of money from provident fund
and permissible deduction and forfeiture relating thereto
and the maximum amount thereof;
(iv) the form in which a worker shall furnish information about
himself and his family whenever required;
(v) the nomination of a person to receive any amount of
money standing to the credit of a worker after his death
and the cancellation or modification of such nomination;
(vi) maintenance of record and register of members of the
provident fund and returns to be furnished by the
members;
(vii) the form or design of any subscription card, token or dice
and the issue, custody and replacement thereof; and
(viii) the conditions under which a member may be permitted
to pay premium for life insurance from the provident fund;
(g) under Chapter XVIII-
(i) the selection of apprentices and the conditions of contract
of apprenticeship;
(ii) the manner relating to discipline, welfare, supervision and
control of apprentices;
(iii) the forms of records to be maintained by the employers
pertaining to the training of apprentices;
(iv) the periodical tests and grant of certificates on the
successful completion of training; and
(v) prescribing the standards for practical and theoretical
tests.
352. Provision for penalty in rules, regulations and schemes.- Provisions
may be made in any rules, regulations or schemes that a violation or contravention
of a provision thereof shall be punishable with imprisonment for a term which may
extend to 3 (three) months, or with fine which may extend to 1,000 (one thousand)
taka, or with both.
353. Repeal and savings.- (1) The following laws are hereby repealed,
namely:-
(a) The Workmen’s Compensation Act, 1923 (VIII of 1923);
(b) The Children (Pledging of Labour) Act, 1933 (II of 1933);
(c) The Workmen’s Protection Act, 1934 (IV of 1935);
(d) The Dock Labourers Act, 1934 (XIX of 1934);
(e) The Payment of Wages Act, 1936 (IV of 1936);
(f) The Employer’s Liability Act, 1938 (XXIV of 1938);
(g) The Employment of Children Act, 1938 (XXVI of 1938);
(h) The Maternity Benefit Act, 1939 (IV of 1939);
(i) The Mines Maternity Benefit Act, 1941 (XIX of 1941);
(j) The Motor Vehicles (Drivers) Ordinance, 1942 (V of 1942);
(k) The Maternity Benefit (Tea Estate) Act, 1950 (XX of 1950);
Bangladesh Labour Act, 2006
135
(l) The Employment (Records of Service) Act, 1951 (XIX of 1952);
(m) The Bangladesh Plantation Employees Provident Fund
Ordinance, 1959 (XXXI of 1959);
(n) The Coal Mines (Fixation of Rates of wages) Ordinance, 1960
(XXXIX of 1960);
(o) The Road Transport Workers Ordinance, 1961 (XXVII of 1961);
(p) The Minimum Wages Ordinance, 1961 (XXXIV of 1961);
(q) The Plantation Labour Ordinance, 1962 (XXIX of 1962);
(r) The Apprenticeship Ordinance, 1962 (LVI of 1962);
(s) The Factories Act, 1965 (IV of 1965);
(t) The Shops and Establishment Act, 1965 (VII of 1965);
(u) The Employment of Labour (Standing Orders) Act, 1965 (VIII of
1965);
(v) The Companies Profits (Worker’s Participation) Act, 1968 (XII of
1968);
(w) The Industrial Relations Ordinance, 1969 (XXIII of 1969);
(x) The Newspaper Employees (Conditions of Service) Act, 1974
(XXX of 1974); and
(y) The Dock Workers (Regulation of Employment) Act, 1980 (XVII
of 1980).
(2) Notwithstanding such repeal, under any such repealed law-
(a) anything done, any rules, regulations or schemes made, or any
order, notice or notification issued or any chairman, member or
officer appointed, or any Court, Tribunal, Board, committee or
fund constituted, or any notice given, or any trade union or
federation registered, or any collective bargaining agent elected
or any complaint presented, or any application submitted, or any
permission, licence, constitution, service rules or exemption
granted, or any other action or proceedings taken or
commenced shall, subject to conformity with the provisions of
this Act, remain in force and shall be deemed to have been
done, made, issued, appointed, constituted, given, registered,
elected, filed, submitted, granted, taken or commenced under
the corresponding provision of this Act, until repealed, or
amended;
(b) any case or proceedings pending in any Court or Tribunal at the
time of commencement of this Act shall be continued in and
heard and disposed of by such Court or Tribunal, as if such laws
were not repealed.
354. Original text and English text.- The original text of this Act shall be in
Bangla and there may be an authentic text of translation in English of this Act:
Provided that in the event of conflict between the Bangla and English texts,
the Bangla text shall prevail.
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136
THE SCHEDULES
THE FIRST SCHEDULE
[see sections 2(1), (67) and section 151]
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT
PARTIAL DISABLEMENT
Serial
No.
Description of injury Percentage of
loss of earning
capacity
1 2 3
1. Loss of both hands or amputation from higher parts 100
2. Loss of 1 (one) hand or one leg 100
3. Loss of sight of both eyes to such an extent as to render
the claimant unable to perform any work for which eyesight is essential
100
4. Amputation of both legs or thighs, or amputation of one
leg or thigh and loss of any leg
100
5. Severe facial disfigurement 100
6. Absolute deafness 100
Amputation cases-upper limbs (either arm)
7. Amputation upto shoulder joint 80
8. Amputation below shoulder with stump less than 20
centimetres from tip of acromion
70
9. Amputation from 20 centimetres from tip of acromion to
less than 11 centimetres below tip of olecranon
60
10. Loss of a hand or of the thumb and four fingers of one
hand or amputation from 20 centimetres below tip of
olecranon
60
11. Loss of thumb 30
12. Loss of thumb and its metacarpal bone 30
13. Loss of 4 (four) fingers of 1 (one) hand 50
14. Loss of 3 (three) fingers of 1 (one) hand 30
15. Loss of 2 (two) fingers of 1 (one) hand 20
16. Loss of terminal phalanx of thumb 10
Amputation cases-lower limbs
17. Amputation of both feet 90
18. Amputation through both feet proximal to the
metatarsophalangeal joint
80
19. Loss of all toes of both feet through the metatarsophalangeal joint
40
20. Loss of all toes of both feet from proximal to the
proximal interphalangeal joint
30
21. Loss of all toes of both feet from distal to the proximal
interphalangeal joint
20
22. Amputation from lower part of the hip 90
23. Amputation from lower part of the hip with stump
exceeding 12.5 centimetres measured from tip of great
trenchanter, but not beyond middle thigh
80
24. Amputation from lower part of the hip with stump not
exceeding 12.5 centimetres measured from tip of great
trenchanter
70
Bangladesh Labour Act, 2006
137
25. Amputation from middle thigh to 9 centimetres below
knee
60
26. Amputation below knee with stump exceeding 9
centimetres but not exceeding 12.5 centimetres
50
27. Amputation below knee with stump exceeding 12.5
centimetres
40
28. Amputation of 1 (one) foot resulting in end-bearing 30
29. Amputation of one foot from proximal to the metatarsophalangeal joint
30
30. Loss of all toes of 1 (one) foot through the metatarsophalangeal joint
20
Other injuries
31. Loss of 1 (one) eye, without any complications, the
other being normal
40
32. Loss of vision of 1 (one) eye, without any complications
or disfigurement of eye-ball, the other being normal
30
Loss of fingers of right or left hand (Index finger)
33. Whole 14
34. 2 (two) phalanges 11
35. 1 (one) phalanx of finger 9
36 Guillotine amputation of tip without loss of bone 5
(Middle finger)
37. Whole 12
38. 2 (two) phalanges 9
39. 1 (one) phalanx 7
40. Guillotine amputation of tip without loss of bone 5
(Ring or little finger)
41. Whole 7
42. 2 (two) phalanges 6
43. 1 (one) phalanx 5
44. Guillotine amputation of tip without loss of bone 5
(Toes of right or left foot (great toe))
45. Through metatarso-phalangeal joint 10
46. Part, with some loss of bone 3
(Any other toe)
47. Through metatarso-phalangeal joint 3
48. Part, with some loss of bone 2
(2 (two) toes of one foot excluding great toe)
49. Through metatarso-phalangeal joint 5
50. Part, with some loss of bone 2
(3 (three) toes of 1 (one) foot, excluding great toe )
51. Through metatarso-phalangeal joint 6
52. Part, with some loss of bone 3
(4 (four) toes of 1 (one) foot, excluding great toe)
53. Through metatarso-phalangeal joint 9
54. Part, with some loss of bone 5
Bangladesh Labour Act, 2006
138
THE SECOND SCHEDULE
[see sections 82 and 83]
List of Notifiable Diseases
1. Lead poisoning;
2. Lead tetra-ethyl poisoning;
3. Phosphorus poisoning;
4. Mercury poisoning;
5. Manganese poisoning;
6. Arsenic poisoning;
7. Poisoning by nitrous fumes;
8. Carbon bi-sulphide poisoning;
9. Benzene poisoning or poisoning by any of its homologues;
10. Chrome ulceration;
11. Anthrax;
12. Silicosis;
13. Poisoning by halogens;
14. Pathological manifestation due to X-rays or radium or other radioactive
substances;
15. Primary epitheliomatous cancer of the skin;
16. Toxic anemia;
17. Toxic jaundice due to poisonous substances;
18. Oil acne or dermatitis due to mineral oils and compounds containing
mineral oil base;
19. Byssionosis;
20. Asbestosis;
21. Occupational or contract dermatitis caused by direct contract with
chemical and paints;
22. Noise induced hearing loss;
23. Beryllium poisoning;
24. Carbon monoxide;
25. Coal miners’ pneumoconiosis;
26. Phosgene poisoning;
27. Occupational cancer;
28. Isocyanides poisoning;
29. Toxic nephritis;
30. Jolt induced occupational diseases.
Bangladesh Labour Act, 2006
139
THE THIRD SCHEDULE
[see section 150]
List of Occupational Disease
Serial
No.
Occupational disease Employment
PART-A
1. Anthrax. Any employment-
(a) involving the handling of wool, hair,
bristles, animal carcasses or parts of
carcasses;
(b) in connection with animals infected
with anthrax; or
(c) involving the loading, unloading or
transport of any merchandise.
2. Compressed air illness and its
sequelae.
Any process carried on in compressed air.
3. Poisoning by lead tetra-ethyl. Any process involving the use of lead
tetraethyl.
4. Poisoning by nitrous fumes. Any process involving exposure to nitrous
fumes.
5. Poisoning by manganese. Using or handling of, or exposure to the
fumes, dust or vapour of manganese, or a
compound of manganese or substances
containing manganese.
6. Poisoning by carbon
bisulphide.
Using or handling of, or exposure to the
fumes, dust or vapour of carbon
bisulphide or a compound of carbon
bisulphide or a substances containing
carbon bisulphide.
7. Poisoning by tetrachlorethane. Using or handling of, or exposure to the
fumes, dust or vapour of compound of
tetrachlorethane.
8. Poisoning by pesticide. Spraying of pesticide.
PART-B
9. Poisoning by leptospira ictero
haemorrahagia.
Works in a rat infested place.
10. Poisoning by dinitrophenol or
homologue.
Using or handling of, or exposure to the
fumes, dust or vapour of dinitrophenol or
its homogenous.
11. Poisoning by tricresyl
phosphate.
Using or handling of, or exposure to the
fumes, dust or vapour of any substance
containing tricresyl.
12. Chrome ulceration or its
sequelae.
Using or handling of chromic acid or
chromates or bichromate of ammonium,
potassium, sodium or zinc, or preparation
or solution containing any of these
substances.
13. Contact produced by exposure
to the glare of, or rays from
molten glass or red-hot metal.
Frequent of prolonged exposure to the
glare of, or rays from molten glass or
molten or red-hot metal.
14. Poisoning by beryllium. Using or handling of, or exposure to the
Bangladesh Labour Act, 2006
140
fumes, dust or vapour of beryllium or a
compound of beryllium or any substance
containing beryllium.
15. Carcinoma of mucous
membranes of the nose or
associated air sinuses of
primary carcinoma branchus of
lung.
Any occupation in a factory where nickel is
produced by decomposition of a gaseous
nickel compound which involves work in or
about a building where that process
ancillary or incidental thereto is carried on.
16. Papilloma of urinal bladder. (a) Works in a building where the following
substances are produced for commercial
purposes, namely:-
(1) alpha-naphthylamine, betanaphtylamine or benzadine or any of their
salt;
(2) auramine or magenta;
(b) Using or handling of any substances
mentioned in paragraph (a) (1), or work in
process in which such substance is used
or liberated.
17. Lead poisoning or its sequelae
(excluding poisoning by lead
tetraethyl).
Any process involving the use of lead or
any of its preparations or compounds
except lead tetraethyl.
18. Poisoning by phosphorous or
its sequelae.
Any process involving the use of
phosphorous or its preparations or
compounds.
19. Mercury poisoning or its
sequelae.
Any process involving the use of mercury
or its preparations or compounds.
20. Poisoning by benzene and its
homologues, or the sequelae
of it.
Handling benzene or any of its
homologues and any process in the
manufacture or involving the use of
benzene or any of its homologues.
21. Arsenical Poisoning or its
sequelae.
Any process involving the production,
liberation or utilization of arsenic or its
compounds.
22. Pathological manifestations
due to X-ray, radium and other
radioactive substance;
Any process involving exposure to the
action of X-rays, radium or other radioactive substances.
23. Primary epitheliematous
cancer of the skin.
Any process involving the handling or use
of tar, pitch, bitumen, mineral oil, paraffin,
or the compounds, products or residues of
these substances.
24. Silicosis. Any employment involving exposure to the
inhalation of dust containing silica.
25. Pneumoconiosis of the coal
mine worker.
Any employment in coal mining.
26. Asbestosis. Any employment in producing fiber
cements materials or asbestos mill board,
processing of ore containing asbestos.
27. Bagassosis. Any employment in the production of
bagasse mill board or other article from
bagasse.
28. Byssinosis. Any employment in cotton-room, blowing-
Bangladesh Labour Act, 2006
141
room carding room in such industry where
spinning of raw cotton is produced.
29. Writer’s cramp. Hand-writing for prolonged period.
30. Twister’s cramp. The twisting of cotton or woolen yarn.
31. Miner’s nystagmus. Work in poorly illuminated mines.
32. Dermatitis. (1) Any occupation where organic or
inorganic chemicals are used or handled.
(2) Any occupation where any material is
handled manually.
33. Fibrosis of lung. Any process where jute and cotton fibre
are used.
THE FOURTH SCHEDULE
[see section 150 (8)]
LIST OF PERSONS WHO, SUBJECT TO THE PROVISION OF SECTION 150 (8),
ARE INCLUDED IN THE DEFINITION OF WORKER
Any person who is—
Bangladesh Labour Act, 2006
142
(1) employed, otherwise than in the railway or in a clerical capacity, in
connection with the operation or maintenance of a lift or a vehicle
propelled by steam or other mechanical power or by electricity;
(2) employed in any premises wherein or within the precincts whereof 5
(five) or more persons are employed in a manufacturing process or in
any kind of work whatsoever incidental to or connected with any such
manufacturing process or with the article made, and steam, water or
other mechanical power or electrical power is used, but does not
include any person who is employed as a clerk only in a place or room
where no manufacturing process is carried on;
(3) employed for the purpose of making, altering, repairing, ornamenting,
finishing or otherwise adapting for use, transport or sale any article or
part of an article in any premises wherein or within the precincts
whereof at least five persons are employed for a fixed wages;
(4) employed in the manufacture or handling of explosives in any premises
wherein or within the precincts whereof at least 10 (ten) persons are
employed;
(5) employed in a mine in any kind of work, other than clerical work,
incidental to or connected with mining operation or with the minerals
obtained, or in any kind of work whatsoever below ground:
Provided that any excavation in which not more than 50 (fifty)
persons were employed, or no explosive was used on any day within
the preceding 12 (twelve) months and whose depth is not more than 6
(six) metres shall not be deemed to be a mine for the purpose of this
clause;
(6) employed as master, seaman or otherwise on any ship or vessel
which is propelled wholly or in part by steam or other mechanical
power or by electricity, or which is towed by a ship or vessel so
propelled;
(7) employed for the purpose of loading, unloading, fuelling, constructing,
repairing, demolishing, cleaning or painting any ship of which he is not
the master or seaman, or employed in operation of transport within the
limits of any port subject to the Ports Act, 1908 (Act No. XV of 1908),
used for loading or unloading cargoes in or from a ship;
(8) employed in loading or unloading of goods in the vehicles propelled by
mechanical power in the Chittagong and Mongla Ports;
(9) employed in the following kinds of construction, maintenance, repair or
demolition, namely:-
(a) any building or structure,
(b) any dam or embankment which is 6 (six) metres or more in
height from its lowest to the highest point,
(c) any road, bridge or tunnel, or
(d) any wharf, quay, sea-wall or other marine work including any
moorings of ships;
(10) employed in setting up, maintaining, repairing or taking down any
telegraph or telephone line or post or any overhead electric line or
cable or post therefor;
(11) employed, otherwise than in a clerical capacity, in the construction,
working, repair or demolition of any aerial ropeway, canal, pipe-line, or
sewer;
(12) employed in any work of the fire brigade;
Bangladesh Labour Act, 2006
143
(13) employed in railway directly or through a sub-contractor, by a person
fulfilling a contract with the railway;
(14) employed as a Labour inspector, mail guard, sorter or van peon in the
Railway Mail Service, or employed in any occupation ordinarily
involving outdoor work in the Post and Telegraph Department;
(15) employed as treasurer clerk performing outdoor duties in the Post,
Telegraph and Telephone Department;
(16) employed, otherwise than in a clerical capacity, in connection with
operations for raising natural petroleum or natural gas;
(17) employed in any occupation involving blasting operations;
(18) employed in any construction or excavation work in which more than
25 (twenty-five) persons are employed or explosives are used, or
whose depth from its highest to the lowest point exceeds 6 (six)
metres;
(19) employed in the operation of any ferry boat capable of carrying more
than 10 (ten) persons;
(20) employed, otherwise than in a clerical capacity, in any estate which is
used for the purpose of growing coffee, rubber or tea, and where at
least 25 (twenty-five) persons are employed;
(21) employed, otherwise than in a clerical capacity, in the generating,
transforming or supplying of electricity or in the generating or supplying
of gas;
(22) employed in a lighthouse as defined in section 2 (d) of the Lighthouse
Act, 1927 (Act No. XVII of 1927);
(23) employed in producing cinematograph pictures intended for public
exhibition or in exhibiting such pictures;
(24) employed in the training or keeping of or working with elephants or
other wild animals;
(25) employed in the tapping of palm-trees or the felling or logging of trees,
or the transport of timber by inland waters, or the control or
extinguishing of forest-fires;
(26) employed in operations for the catching or hunting of elephants or
other wild animals;
(27) employed as a driver;
(28) employed in warehousing, or working within the precincts of any
warehouse or other place in which at least ten persons are employed,
or employed in the handling or transport of goods in any market or
precincts thereof in which at least 100 (one hundred) persons are
employed;
(29) employed in any occupation involving the handling and manipulation of
radium or X-rays apparatus, or contact with radio-active substances;
(30) employed as driver, cleaner, conductor and checker in the road
transport service; or
(31) employed in the service of watch and ward.
THE FIFTH SCHEDULE
[see section 151]
Amount of compensation payable in certain cases
Monthly wages
of the injured
worker
Amount of compensation Monthly payment as
compensation for temporary
disablement
In case of In case of
Bangladesh Labour Act, 2006
144
death permanent total
disablement
1 2 3 4
Whatever be the
amount of basic
wages of the
worker
Tk/-200,000 Tk/-250,000 Compensation shall be paid for
the period of disablement or for
1 (one) year, whichever is
shorter.
Such compensation shall be
paid at the rate of full monthly
wages for the first 2 (two)
months, at the rate of twothirds of the monthly wages for
the next 2 (two) months and at
the rate of half of monthly
wages for the subsequent
months.
In the case of prolonged
occupational disease,
compensation for disablement
shall be paid at the rate of half
of monthly wages during the
period of disablement, but such
period shall in no case exceed
2 (two) years.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
The Social Insurance Law
The Insurance Act, 1938
( ACT NO. IV OF 1938
An Act to consolidate and amend the law relating to the business of insurance.
WHEREAS it is expedient to consolidate and amend the law relating to the business of insurance;
It is hereby enacted as follows:-
Part I
PRELIMINARY
Short title, extent and commencement
- (1) This Act may be called the Insurance Act, 1938
(2) It extends to the whole of Bangladesh.
(3) It shall come into force on such date as the Government may, by notification in the official Gazette, appoint in this behalf.
Definitions
- In this Act, unless there is anything repugnant in the subject or context,-
(1) “actuary” means an actuary is possessing such qualifications as may be prescribed;
1[* * *]
2[(3) “approved securities” means Government securities, and any other security charged on the revenues of the Government, or guaranteed fully as regards principal and interest by the Government; and any debenture or other security for money issued under the authority of any Act of Parliament and specified as an approved security for the purposes of this Act by the Government by notification in the official Gazette];
3[(3A) “approved investments” means such investments as the Government may, by notification in the official Gazette, specify as approved investments for the purposes of this Act;]
(4) “auditor” means a person qualified under the provisions of section 144 of the Companies Act, 1913, to act as an auditor of companies;
(5) “certified” in relation to any copy or translation of a document required to be furnished by or on behalf of an insurer or a provident society as defined in Part III means certified by a principal officer of such insurer or provident society to be a true copy or a correct translation, as the case may be;
4[(5A) “company” has the meaning assigned to it in clause (2) of section 2 of the Companies Act, 1913;
(5B) “Chief Controller of Insurance” or “Chief Controller” means the officer appointed by the Government to perform the duties of the Chief Controller of Insurance under this Act;]
(6) “Court” means the principal Civil Court of original jurisdiction in a district, and includes the High Court Division in exercise of its ordinary original civil jurisdiction;
5[(6A) “employer of agents” means a person certified under section 42A who procures insurance business for an insurer whether wholly or in part by employing or causing to be employed insurance agents on behalf of the insurer;
(6B) “fire insurance business” means the business of effecting, otherwise than incidentally to some other class of insurance business, contracts of insurance against loss by or incidental to fire or other occurrence customarily included among the risks insured against in fire insurance policies;
(6C) “general insurance business” means fire, marine or miscellaneous insurance business, whether carried on singly or in combination with one or more of them;]
(7) “Government securities” means Government securities as defined in the Securities Act, 1920;
6[(7A) “health insurance business” means the business of effecting contract of insurance upon human sickness or accidental human body injury necessitating medical treatment by a medical practitioner registered under Medical and Dental Council Act, 1980 (XVI of 1980);]
(8) “insurance company” means any insurer being a company, association or partnership which may be wound up under the Companies Act, 1913, or to which the Partnership Act, 1932, applies;
7[(8A) “insurance surveyor” means a person (certified under section 44A) who examines the goods, property or any interests insured under a policy of general insurance to
ascertain the cause, extent and location of any loss and to determine the amount of such loss and the amount which is payable to the insured by the insurer or insurers or any person liable in respect of such loss;]
(9) “insurer” means-
(a) any individual or unincorporated body of individuals or body corporate incorporated under the law of any country or State outside Bangladesh, carrying on insurance business not being a person specified in sub-clause (c) of this clause which-
(i) carries on that business in Bangladesh; or
(ii) has his or its principal place of business or is domiciled in Bangladesh; or
(iii) with the object of obtaining insurance business, employs a representative, or maintains a place of business, in Bangladesh;
(b) any body corporate not being a person specified in sub-clause (c) of this clause carrying on the business of insurance, which is a body corporate incorporated under any law for the time being in force in Bangladesh; or stands to any such body corporate in the relation of a subsidiary company within the meaning of the Companies Act, 1913, as defined by sub-section (2) of section 2 of that Act, and
(c) any person who in Bangladesh has a standing contract with underwriters who are members of the Society of Lloyd’s whereby such person is authorised within the terms of such contract to issue protection notes, cover notes, or other documents granting insurance cover to others on behalf of the underwriters,
but does not include an insurance agent licensed under section 42 or a provident society as defined in Part III;
(10) “insurance agent” means a person who has been granted a licence under section 42 to act as an insurance agent;
(11) “life insurance business” means the business of effecting contracts of insurance upon human life, including any contract whereby the payment of money is assured on death (except policies for death by accident only) or the happening of any contingency dependent on human life or which is subject to payment of premiums for a term dependent on human life and shall be deemed to include-
(a) the granting of disability and double or triple indemnity accident benefits, if so provided in the contract of insurance;
(b) the granting of annuities upon human life; 8[* * *]
(c) the granting of superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of person engaged or who have been engaged in any particular profession, trade or employment or of the dependents of such person;
9[(d) health insurance;]
(12) “manager” and “officer” have the meanings assigned to those expressions in clauses (9) and (11) respectively of section 2 of the Companies Act, 1913;
(13) “managing agent” means a person, firm or company entitled to the management of the whole affairs of a company by virtue of an agreement with the company, and under the control and direction of the directors except to the extent, if any, otherwise provided for in the agreement, and includes any person, firm or company occupying such position by whatever name called.
Explanation.- If a person occupying the position of managing agent calls himself manager or managing director, he shall nevertheless be regarded as managing agent for the purposes of section 32 of this Act;
10[(13A) “marine insurance business” means the business of effecting contracts of insurance upon vessels of any description, including cargoes, freights and other interests which may be legally insured, in or in relation to such vessels, cargoes and freights, goods, wares, merchandise and property of whatever description insured for any transit by land, water or air, or by any combination thereof and whether or not including warehouse risks or similar risks in addition or as incidental to such transit, and includes any other risks customarily included among the risks insured against in marine insurance policies;
11[(13AA) “member of the family”, in relation to any person, means the husband or a wife, the dependent father, mother, brother or sister, or a minor son or unmarried daughter of that person;]
(13B) “miscellaneous insurance business” means the business of effecting contracts of insurance which is not principally of any kind included in clauses 12[clause (6B), excluding sub-clause (d) of clause (11) and clause (13A)];
13[* * *]]
14[(13D) “policy-holder” includes a person to whom the whole of the interest of the policy-holder in the policy is assigned once and for all, but does not include an assignee thereof whose interest in the policy is defeasible or is for the time being subject to any condition;]
(14) “prescribed” means prescribed by rules made under section 114;
15[(14A) “private company” has the meaning assigned to it in clause (13) of section 2 of the Companies Act, 1913;
(14B) “public company” means a company incorporated under the Companies Act, 1913 or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, which is not a private company or a subsidiary of a private company;]
16[(15) “scheduled bank” has the same meaning as assigned to it in clause (k) of Article 2 of the Bangladesh Bank Order, 1972;]
(16) “specified miscellaneous insurance business” means such classes or sub-classes of miscellaneous insurance business as may be prescribed for the purposes of section 3AA or section 6.
Part II
PROVISIONS APPLICABLE TO INSURERS
Insurers to be subject to this Act while liabilities remain unsatisfied
17[2A. Every insurer shall be subject to all the provisions of this Act in relation to any class of insurance business so long as his liabilities in Bangladesh in respect of business of that class remain unsatisfied or not otherwise provided for.
2B. This Act not to apply to certain insurers ceasing to enter into new contracts before commencement of Act
2B. The provisions of this Act shall not apply to an insurer as defined in paragraph (i) or (iii) of sub-clause (a) of clause (9) of section 2 in relation to any class of his insurance business where such insurer has ceased, before the commencement of this Act, to enter into any new contracts of that class of business.]
Prohibition of transaction of insurance business by certain persons
18[2C. (1) No person other than-
(a) a public company, or
(b) a society registered under 19[any] law for the time being in force in Bangladesh relating to co-operative societies, or
(c) a body corporate incorporated under the law of any country outside Bangladesh not being of the nature of a private company or a subsidiary of a private company,
shall start any insurance business in Bangladesh and a person, other than a person specified in clause (a), (b) or (c), who, immediately before the commencement of the Insurance (Amendment) Ordinance, 1958, was carrying on such business in Bangladesh shall, after the expiry of one year from such commencement, discontinue such business.
(2) No Mutual Insurance Company which was not registered, before the commencement of the Insurance (Amendment) Ordinance, 1958, for any class of insurance business, shall be registered for any class of general insurance business and no Mutual Insurance Company which was registered, before such commencement, for any class of insurance business, shall, be registered for any additional class of insurance business unless such company satisfies such conditions as may be prescribed.
Explanation.- In this section, ÔÇÿMutual Insurance Company’ has the meaning assigned to it in Part IV of this Act and includes any company constituted or incorporated outside Bangladesh which is of the nature of a Mutual Insurance Company.]
Registration
- (1) No person shall, after the commencement of this Act, begin to carry on any class of insurance business in Bangladesh, and no insurer carrying on any class of insurance business in Bangladesh shall, after the expiry of three months from the commencement of this Act, continue to carry on any such business, unless he has obtained from the Chief Controller of Insurance a certificate of registration for the particular class of insurance business:
Provided that in the case of an insurer who was carrying on any class of insurance business in Bangladesh at the commencement of this Act, failure to obtain a certificate of registration in accordance with the requirements of this sub-section shall not operate to invalidate any contract of insurance entered into by him if before such date as may be fixed in this behalf by the Government by notification in the official Gazette, he has obtained that certificate.
20[(1A) Notwithstanding anything contained in this Act, no certificate of registration shall be granted by the Chief Controller of Insurance to any person 21[* * *] for carrying on any class of insurance business in Bangladesh without the prior permission of the Government.]
(2) Every application for registration shall be accompanied by-
(a) a certified copy of the memorandum and articles of association, where the applicant is a company and incorporated under the Companies Act, 1913 or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, or, in the case of any other insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2, a certified copy of the deed of partnership or of the deed of constitution of the company, as the case may be, or, in the case of an insurer having his principal place of business or domicile outside Bangladesh, the document specified in clause (a) of section 63;
(b) the name, address and the occupation, if any, of the directors where the insurer is a Company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, and in the case of an insurer specified in sub-clause (a) (ii) of clause (9) of section 2 the names and addresses of the proprietors and of the manager in Bangladesh, and in any other case the full address of the principal office of the insurer in Bangladesh, and the names of the directors and the manager at such office and the name and address of some one or more persons resident in Bangladesh authorised to accept any notice required to be served on the insurer;
(c) a statement of the class or classes of insurance business done or to be done, and a statement that the amount required to be deposited by section 7 or section 98 before application for registration is made has been deposited together with a certificate from the Bangladesh Bank showing the amount deposited;
(d) where the provisions of section 6 or 97 apply, a statement duly certified by an auditor showing the total paid up capital or the total working capital of the insurer and a declaration verified by an affidavit made by the principal officer of the insurer authorised in that behalf that the provisions of those sections as to paid up capital or working capital, as the case may be, have been complied with;
(e) in the case of an insurer having his principal place of business or domicile outside Bangladesh, a statement verified by an affidavit made by the principal officer of the insurer setting forth the requirements (if any) not applicable to nationals of the country in which such insurer is constituted, incorporated or domiciled which are imposed by the laws or practice of that country upon Bangladesh nationals as a condition of carrying on insurance business in that country;
(f) a certified copy of the published prospectus, if any, and of the standard policy forms of the insurer and statements of the assured rates, advantages, terms and conditions to be offered in connection with insurance policies together with a certificate in connection with life insurance business by an actuary that such rates, advantages, terms and conditions are workable and sound:
Provided that in the case of marine, accident and miscellaneous insurance business other than workmen’s compensation and motor car insurance the Chief Controller of Insurance may exempt any insurer from the above requirements regarding prospectus, forms and statements to such extent and for such period as he may deem fit; and
(g) the receipt showing payment in the prescribed manner of the prescribed fee which shall not be more than 22[five lakh Taka] for each class of business.
(3) In the case of any insurer having his principal place of business or domicile outside Bangladesh, the Chief Controller of Insurance shall withhold registration or shall cancel a registration already made, if he is satisfied that in the country in which such insurer has his principle place of business or domicile Bangladesh nationals are debarred by the law or practice of the country relating to, or applied to insurance from carrying on the business of insurance, or that any requirement imposed on such insurer under the provisions of section 62 is not satisfied.
(4) The Chief Controller of Insurance shall cancel the registration of an insurer either wholly or in so far as it relates to a particular class of insurance business, as the case may be,-
(a) if the insurer fails to comply with the provisions of section 7 or section 98 as to deposits, or
(b) if the insurer is in liquidation or is adjudged an insolvent, or
(c) if the business or a class of the business of the insurer has been transferred to any person or has been transferred to or amalgamated with the business of any other insurer, or
(d) if the whole of the deposit made in respect of a class of insurance business has been returned to the insurer under section 9; or
(e) if, in the case of an insurer specified in sub-clause (c) of clause (9) of section 2, the standing contract referred to in that sub-clause is cancelled or is suspended and continues to be suspended for a period of six months,
and the Chief Controller of Insurance may cancel the registration of an insurer-
(f) if the insurer makes default in complying with, or acts in contravention of, any requirement of this Act or any rule or order made thereunder, and
(g) if the Chief Controller of Insurance has reason to believe that any claim upon the insurer arising in Bangladesh under any policy of insurance remains unpaid for three months after final judgment in regular course of law.
(5) When the Chief Controller of Insurance withholds or cancels any registration under sub-section (3) or clause (a), clause (e), clause (f) or clause (g) of sub-section (4), he shall give notice in writing to the insurer of his decision, and the decision shall take effect on such date as he may specify in that behalf in the notice, such date not being less than one month nor more than two months from the date of the receipt of the notice in the ordinary course of transmission.
23[(5A) When the Chief Controller of Insurance cancels any registration under clause (b), clause (c) or clause (d) of sub-section (4) the cancellation shall take effect on the date on which notice of the order of cancellation is served on the insurer.
(5B) When a registration is cancelled the insurer shall not, after the cancellation has taken effect, enter into any new contracts of insurance, but all rights and liabilities in respect of contracts of insurance entered into by him before such cancellation takes effect shall, subject to the provisions of sub-section (5D), continue as if the cancellation had not taken place.
(5C) Where a registration is cancelled under clause (a), clause (e), clause (f), or clause (g) of sub-section (4), the Chief Controller of Insurance may at his discretion revive the
registration, if the insurer makes the deposits required by section 7 or section 98, or has his standing contract restored or has had an application under sub-section (4) of section 3A accepted, or satisfies the Chief Controller of Insurance that no claim upon him such as is referred to in clause (g) of sub-section (4) remains unpaid or that he has complied with the requirement for the non-compliance or contravention of which the registration was cancelled under clause (f) of sub-section (4), as the case may be, and complies with any directions which may be given to him by the Chief Controller of Insurance.
(5D) Where the registration of an insurance company is cancelled under sub-section (4), the Chief Controller of Insurance may, after the expiry of six months from the date on which the cancellation took effect, apply to the Court for an order to wind up the insurance company, or to wind up the affairs of the company in respect of a class of insurance business, unless the registration of the insurance company has been revived under sub-section (5C) or an application for winding up the company has been already presented to the Court. The Court may proceed as if an application under this sub-section were an application under sub-section (2) of section 53, or sub-section (1) of section 58, as the case may be.]
(6) Subject to compliance with the provisions of sections 2C, 5, sub-section (2A) of section 10 and section 32 and of any order made under section 3B, the Chief Controller of Insurance shall, on being satisfied that the applicant has fulfilled all the requirements of this section applicable to him, register the insurer and grant him a certificate of registration.
(7) The Chief Controller of Insurance may, on payment of the prescribed fee which shall not exceed 24[five hundred Taka], issue a duplicate certificate of registration to replace a certificate lost, destroyed or mutilated, or in any other case where he is of opinion that the issue of a duplicate certificate is necessary.
Determination of premium rates for general insurance business
25[3BBB. The Chief Controller of Insurance shall, at intervals of not less than one year, determine, in consultation with the insurers carrying on general insurance business, the rates of premium for such insurance business.]
Restriction on issue of certain policies at new rates, etc.
3F. No insurer shall offer any policy or contract in respect of life insurance business other than those described in the prospectus filed with the Chief Controller of Insurance under clause (f) of sub-section (2) of section 3 or any amendment to such prospectus filed with the Chief Controller of Insurance under section 26 under he files with the Chief Controller the rates, advantages and terms and conditions of such policy or contract.]
Renewal of Registration
26[3A. (1) An insurer who has been granted a certificate of registration under section 3 shall have the registration renewed annually for each year.
(2) An application for the renewal of a registration for any year shall be made by the insurer to the Chief Controller of Insurance before the 31st day of December of the preceding year, and shall be accompanied as provided in sub-section (3) by evidence of payment of a fee of 27[three Taka and fifty poisha] per thousand of gross direct premium written in Bangladesh during the year preceding the year ending on the said date.
(2A) and (2B) [Omitted by section 3 of the Insurance (Amendment) Ordinance 1984 (Ordinance No. L of 1984.]
(3) The prescribed fee for the renewal of a registration for any year shall be paid into the Bangladesh Bank or, where there is no office of that Bank, into the 28[Sonali Bank] acting as the agent of that Bank, or into any Government treasury, and the receipt shall be sent along with the application for renewal of the registration.
(4) If an insurer fails to apply for renewal of registration before the date specified in sub-section (2) the Chief Controller of Insurance may, so long as an application to the Court under sub-section (5D) of section 3 has not been made, accept an application for renewal of the registration on receipt from the insurer of the fee payable with the application and such penalty, not exceeding the prescribed fee payable by him as the Chief Controller of Insurance may require:
Provided that an appeal shall lie to the Government from an order passed by the Chief Controller of Insurance imposing a penalty on the insurer.
(5) The Chief Controller of Insurance shall, on fulfilment by the insurer of the requirements of this section, renew the registration and grant him a certificate of renewal of registration.]
Insurers not to transact both life and general insurance business
29[3AA. (1) After the commencement of the Insurance (Amendment) Ordinance, 1970, no person shall be registered as an insurer-
(a) for life insurance business and specified miscellaneous insurance business if he seeks registration for any class of general insurance business; or
(b) for general insurance business other than specified miscellaneous insurance business if he seeks registration for life insurance business.
(2) No insurer registered before the commencement of the Insurance (Amendment) Ordinance, 1970, for life insurance business and also for any class of general insurance business shall, after the expiry of five years from such commencement, transact both types of business:
Provided that the Government may, on the application of an insurer, from time to time extend the said period of five years by such further period, not exceeding two years in the aggregate, as it may deem fit.
(3) An insurer who, immediately before the commencement of the Insurance (Amendment) Ordinance, 1970, was transacting both life insurance business and general insurance business shall, as soon as practicable, submit for the sanction of the Chief Controller of Insurance a scheme for the separation, transfer or winding up of either type of its business.
(4) The Chief Controller of Insurance shall, upon receipt of a scheme under sub-section (3), refer it for approval to the Government suggesting such modifications therein as he may consider necessary for protecting the interests of the policy-holders and shall,-
(a) if the scheme is approved by the Government with or without any modification, sanction the scheme accordingly; and
(b) if it is not approved by the Government, return it to the insurer for submission of a fresh scheme.
(5) Where a scheme of an insurer is sanctioned under sub-section (4), with or without modification, the insurer shall separate, transfer or wind up his business according to the scheme as sanctioned.
(6) Where any scheme sanctioned under sub-section (4) involves the establishment of a new insurance company, the Government shall give its consent under the Capital Issues (Continuance of Control) Act, 1947 (XXIX of 1947), to the issue of such capital as may be necessary for the establishment of such company.
(7) No insurer transacting life insurance business shall, after the expiry of five years from the commencement of the Insurance (Amendment) Ordinance, 1970 or of the period by which the said period of five years is extended under the proviso to sub-section (2), employ in any capacity any officer employed by an insurer transaction general insurance business.
Explanation.- In this sub-section, “officer” means any person, whosoever designated, who is responsible for the conduct of any business, or the management of any of the affairs, of the insurer.]
Rates, terms and conditions of operation of an insurer
30[3B. If, when considering an application for registration under section 3 or at any other time, it appears to the Chief Controller of Insurance that the rates, advantages, terms and conditions offered or to be offered in connection with, or any
class, condition or warranty in, any proposal, policy or other forms of any class or sub-class of insurance business are in any respect not workable or sound or are in any respect unrealistic or un-reasonable in relation to the general experience of the business of that class or sub-class in Bangladesh or any provision in the memorandum and Articles of Association or the instrument constituting or defining the constitution of the insurer is objectionable or that the reinsurance arrangements of the insurer are not adequate, he may, by order in writing and after giving the insurer an opportunity of being heard, issue such directions to the insurer or require the insurer to make within such time as may be specified in the order such modifications, additions, or omissions in the said rates, advantages, terms, conditions, clauses, warranties, memorandum and articles of association, instrument or reinsurance arrangements as he may think necessary:
Provided that no directions under this section shall be issued without the prior approval of the Government to an insurer already registered under this Act.]
Basis for determination of premium rates
31[3BB. (1) The Chief Controller of Insurance shall, at intervals of not less than five years,-
(a) prepare mortality tables indicating the average rate of mortality of the policy-holders;
(b) prepare statement of yield indicating the range of rates of interest or yield on the investment of the insurers’ funds; and
(c) lay down the level of expenses of procurement and management of an insurer.
(2) The Chief Controller of Insurance may direct an insurer to furnish such information as the Chief Controller may require for the purpose of preparing the mortality table and the statement of yield and laying down the level of expenses under sub-section (1); and every insurer shall comply with such direction.
(3) The mortality table, the statement of yield and the level of expenses prepared and laid down under sub-section (1) shall be published in the official Gazette.
(4) Every insurer shall, on the basis of the current mortality table, the statement of yield and the level of expenses published under sub-section (3),-
(a) determine the rates of premium for non-participating policies issued by him; and
(b) review and, if necessary, make consequential adjustments in, the rates of premium in the participating policies and submit to the Chief Controller of Insurance a statement indicating such adjustments.]
Provisions relating to collection of premiums
32[3C. (1) Every insurer shall declare to the Chief Controller of Insurance the total amount of premiums including agents’ balances in respect of fire, marine and miscellaneous insurance business outstanding on the first day of February, 1958, and shall recover the same within such time as may be allowed and comply with such directions as may be given, by the Chief Controller.
(2) Every insurance agent and every employer of agents shall, within such time as may be allowed to him by the Chief Controller of Insurance, pay to the insurer for whom he has been acting as an insurance agent or employer of agents, all amounts due to the insurer on account of the premiums in respect of general insurance business received by him on behalf of the insurer and outstanding against him as on the first day of February, 1958.
(3) No insurer shall write off any premium in respect of general insurance business which was outstanding on the first day of February, 1958, without the prior approval of the Chief Controller of Insurance.
(4) No insurer shall assume in Bangladesh any risk in respect of general insurance business unless and until the premium payable or such part thereof as may be prescribed, has been received by him or has been guaranteed to be paid by such person in such manner and within such time as may be prescribed.
(5) Any refund of premium which may become due to the insured on account of the cancellation of a policy of general insurance or alteration in its terms and conditions shall be paid directly to the insured by a crossed or order cheque or by money-order and a proper receipt shall be obtained from the insured, and such refund shall in no case be credited to the account of the agent.
Licensing of branch offices of insurers
33[3E. (1) No insurer shall, after the expiry of six months from the commencement of the Insurance (Amendment) Ordinance, 1970, transact any business at any of his branches or offices, other than the head office, unless he has obtained a licence from the Chief Controller of Insurance for each such branch or office; and the Chief Controller of Insurance shall, upon an application made in this behalf and payment of the prescribed fee, grant such licence.
(2) No insurer shall, after the commencement of the Insurance (Amendment) Ordinance, 1970, open a new branch or office unless he has obtained a licence for such branch or office from the Chief Controller of Insurance.
(3) Application for a licence under sub-section (1) or sub-section (2) shall be made in the prescribed form and shall be accompanied by a prescribed fee which shall not be more than 34[twenty-thousand Taka].
(4) The Chief Controller of Insurance may, for reasons to be recorded in writing, refuse a licence under sub-section (2) to open a new branch or office and, if he so refuses, shall
communicate his decision in writing to the applicant within six weeks from the date of the application.
(5) An insurer to whom a licence to open a new branch or office has been refused by the Chief Controller may prefer an appeal against the refusal to the Government whose decision on such appeal shall be final.
(6) Where a licence to open a new branch or office has been refused, no fresh application for a licence to open such branch or office shall be entertained within a period of one year from such refusal.
Provisions relating to reinsurances and insurances abroad
3D. (1) No insurer shall reinsure outside Bangladesh any insurance business or any part thereof underwritten by him in Bangladesh which is in excess of its treaty reinsurance arrangement unless a certificate has been obtained from the Chief Controller to the effect that such excess cannot be placed within Bangladesh.
35[* * *]
Explanation I.- For the purposes of this sub-section a reinsurance arrangement shall not be deemed to be a treaty reinsurance arrangement if such arrangement operates in a casual manner and in determining whether a particular reinsurance arrangement is a treaty reinsurance arrangement or not, the decision of the Chief Controller of Insurance shall be final.
Explanation II.- For the purposes of this sub-section a reinsurance arrangement in respect of life insurance business entered into by an insurer domiciled elsewhere than in Bangladesh with his head office shall be deemed to be treaty reinsurance arrangement to the extent determined by the Chief Controller of Insurance.
(2) No person shall insure outside Bangladesh any risk or any part thereof in respect of any property or interests in Bangladesh unless a certificate has been obtained from the Chief Controller to the effect that the risk in question cannot be insured in Bangladesh:
Provided that the Chief Controller may grant an exemption to any person from the requirements of this sub-section in respect of such property or interests and for such period as he may deem fit.
(3) The Chief Controller shall, if he refuses a certificate under sub-section (1) or sub-section (2), communicate his decision in writing to the applicant for the certificate, within one month from the date of the application.
(4) Every insurer shall submit, in the prescribed manner, to the Chief Controller of Insurance before the expiry of six months from the commencement of the Insurance (Amendment) Ordinance, 1970, a certified statement giving salient features of his reinsurance arrangement in respect of his business in Bangladesh and such other information about the reinsurance treaty as may be required by the Chief Controller.
(5) Where any reinsurance treaty the particulars of which have been submitted to the Chief Controller of Insurance under sub-section (4) is altered or any new reinsurance arrangement is made after the submission of the information under sub-section (4), the insurer concerned shall submit to the Chief Controller, in the prescribed manner, a report giving the particulars or such alteration in the treaty of such reinsurance arrangement within one month of such alteration or arrangement and shall submit such further information or clarification as the Chief Controller may require.
(6) The Chief Controller of Insurance may, after examining the statement submitted under sub-section (4) and the report, if any, submitted under sub-section (5), and giving the insurer an opportunity of being heard, for reasons to be recorded in writing, direct the insurer to make such modifications in his reinsurance treaty or reinsurance arrangement as the Chief Controller may specify.
(7) Notwithstanding anything contained in any other law for the time being in force, the Government may require insurers to reinsure within Bangladesh with reinsurers approved for this purpose, or among themselves, such proportion of the insurance business or such proportion of the reinsurance treaties as may be prescribed.]
[Omitted.]
- [Minimum limits for annuities and other benefits secured by policies of life insurance.- Omitted by section 8 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958).]
Restriction on name of insurer
- (1) An insurer shall not be registered by a name identical with that by which an insurer in existence is already registered, or so nearly resembling that name as to be calculated to deceive except when the insurer in existing is in the course of being dissolved and signifies his consent to the Chief Controller of Insurance.
(2) If any insurer, through inadvertence or otherwise, is without such consent as aforesaid registered by a name identical with that by which an insurer already in existence whether previously registered or not is carrying on business or so nearly resembling it as to be calculated to deceive, the first-mentioned insurer shall, if called upon to do so by the Chief Controller of Insurance on the application of the second-mentioned insurer, change his name within a time to be fixed by the Chief Controller of Insurance:
Provided that nothing in this section shall apply to any insurer carrying on business before the 27th day of January, 1937, under the Indian Life Insurance Companies Act, 1912:
Provided further that in the application of this section to any insurer who begins to carry on insurance business after the commencement of the Insurance (Amendment) Act, 1946, the references to an insurer in existence in sub-section (1) and this sub-section shall be construed as including references to a provident society (as defined in Part III) in existence, whether or not the society is in the course of being dissolved.
(3) No insurer other than a provident society as defined in Part III, who begins to carry on insurance business after the commencement of this Act, shall adopt as its name and so such insurer carrying on business before the commencement of this Act shall continue after the expiry of six months from the commencement thereof to use as its name any combination of words which includes the word “provident”.
Requirements as to capital and share-holdings
36[6. (1) No insurer, other than an insurer who was transacting any class of insurance business in Bangladesh immediately before the commencement of the Insurance (Amendment) Ordinance, 1984 (L of 1984), shall be registered after such commencement for transacting any class of insurance business unless he has a paid-up capital of not less than the amount specified in the Seventh Schedule and his shares have been subscribed in such manner as may be prescribed:
Provided that the Government may, by notification in the official Gazette, relax the provision of this section relating to the amount of paid-up capital, subject to such conditions as it deems fit to specify, for a period not exceeding three years from the date of commencement of the Insurance (Amendment) Ordinance, 1984 (L of 1984).]
Deposits
- 37[(1) Every insurer shall deposit, at the time of making application for registration, and keep deposited with the Bangladesh Bank, for and on behalf of the Government, the amount specified in the Seventh Schedule, either in cash or in approved securities estimated at the market value of the securities on the day of the deposit, or partly in cash and partly in approved securities so estimated.]
(2) [Omitted by section 6 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984).]
(3) and (4) [Omitted by section 10 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958).]
(5) and (6) [Omitted by section 6 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984).]
(7) [Omitted by section 10 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958).]
(8) A deposit made in cash shall be held by the Bangladesh Bank to the credit of the insurer and shall except to the extent, if any, to which the cash has been invested in securities under sub-section (9A), be returnable to the insurer in cash in any case in which under the provisions of this Act a deposit is to be returned; and any interest accruing due and collected on securities deposited under sub-section (1) or sub-section (2) shall be paid to the insurer, subject only to deduction of the normal commission chargeable for the realisation of interest.
38[(9) The insurer may at any time replace any securities deposited by him under this section with the Bangladesh Bank either by cash or by other approved securities or partly by cash and partly by other approved securities, provided that such cash, or the value of such other approved securities estimated at the market rates prevailing at the time of replacement, or such cash together with such value, as the case may be, is not less than the value of the securities replaced estimated at the market rates prevailing when they were deposited.
(9A) The Bangladesh Bank shall, if so requested by the insurer,-
(a) sell any securities deposited by him with the Bank under this section and hold the cash realised by such sale as deposit, or
(b) invest in approved securities specified by the insurer the whole or any part of a deposit held by it in cash or the whole or any part of cash received by it on the sale of or on the maturing of securities deposited by the insurer, and hold the securities in which investment is so made as deposit, and may charge the normal commission on such sale or on such investment.
(9B) Where sub-section (9A) applies,-
(a) If the cash realised by the sale of or on the maturing of the securities (excluding in the former case the interest accrued) falls short of the market value of the securities at the date on which they were deposited with the Bank, the insurer shall make good the deficiency by a further deposit either in cash or in approved securities estimated at the market value of the securities on the day on which they are deposited, or partly in cash and partly in approved securities so estimated, within a period of two months from the date on which the securities matured or were sold and unless he does so the insurer shall be deemed to have failed to comply with the requirements of this section as to deposits; and
(b) if the cash realised by the sale of or on the maturing of the securities (excluding in the former case the interest accrued) exceeds the market value of the securities at the date on which they were deposited with the Bank, the Government may, if satisfied that the full amount required to be deposited under sub-section (1) is in deposit, direct the Bangladesh Bank to return the excess.]
(10) If any part of a deposit made under this section is used in the discharge of any liability of the insurer, the insurer shall deposit such additional sum in cash or approved securities estimated at the market value of the securities on the day of deposit, or partly in cash and partly in such securities, as will make up the amount so used. The insurer shall be deemed to have failed to comply with the requirements of sub-section (1), unless the deficiency is supplied within a period of two months from the date when the deposit or any part thereof is so used for discharge of liabilities.
Reservation of deposits
- (1) Any deposit made under section 7 or section 98 shall be deemed to be part of the assets of the insurer but shall not be susceptible of any assignment or charge; nor shall it be available for the discharge of any liability of the insurer other than liabilities arising out of policies of insurance issued by the insurer so long as any such liabilities remain undischarged; nor shall it be liable to attachment in execution of any decree except a decree obtained by a policy-holder of the insurer in respect of a debt due upon a policy which debt the policy-holder has failed to realise in any other way.
(2) Where a deposit is made in respect of life insurance business the deposit made in respect thereof shall not be available for the discharge of any liability of the insurer other than liabilities arising out of policies of life insurance issued by the insurer.
Refund of deposits
- (1) Where an insurer has ceased to carry on in Bangladesh any class of insurance business in respect of which a deposit has been made under section 7 or section 98 and his liabilities in Bangladesh in respect of business of that class have been satisfied or are otherwise provided for, the Court may, on the application of the insurer, order the return to the insurer of so much of the deposit as does not relate to the classes of insurance, if any, which he continues to carry on.
(2) [Omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).]
Separation of accounts and funds
- (1) Where the insurer carries on business of more than one of the classes specified in clauses (a), (b), (c) and (d) of sub-section (1) of section 7, he shall keep a separate account of all receipts and payments in respect of each such class of insurance business and where the insurer carries on business of the class specified in clause (d) of that sub-section whether alone or in conjunction with business of another class, he shall,
unless the Chief Controller of Insurance waives this requirement in writing, keep a separate account of all receipts and payments in respect of each such sub-class of the class specified in clause (d) as may be prescribed in this behalf.
(2) Where the insurer carries on the business of life insurance, all receipts due in respect of such business, shall be carried to and shall form a separate fund to be called the life insurance fund the assets of which shall be kept free from all encumbrances and distinct and separate from all other assets of the insurer and the deposit made by the insurer in respect of life insurance business shall be deemed to be a part to the assets of such fund; and every insurer shall furnish to the Chief Controller of Insurance along with the returns referred to in section 11, a statement showing in detail such assets as at the close of every calendar year duly certified by an auditor:
Provided that an insurer may show in such statement all the assets held in his life department and any deductions on account of general reserves and other liabilities of that department:
Provided further that the Chief Controller may call for a statement similarly certified of such assets as at any other date specified by him to be furnished within a period of three months from the date with reference to which the statement is called for.
39[(2A) No insurer carrying on life insurance business shall be entitled to be registered for any class of insurance business in addition to the class or classes for which he has been already registered unless the Chief Controller of Insurance is satisfied that the assets of the life insurance fund of the insurer are adequate to meet all his liabilities on policies of life insurance maturing for payment.]
(3) The life insurance fund shall be as absolutely the security of the life policy-holders as though it belonged to an insurer carrying on no other business than life insurance business and shall not be liable for any contracts of the insurer
for which it would not have been liable had the business of the insurer been only that of life insurance and shall not be applied directly or indirectly for any purposes other than those of the life insurance business of the insurer.
Accounts and balance-sheet
- (1) Every insurer, in the case of an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 in respect of all insurance business transacted by him, and in the case of any other insurer in respect of the insurance business transacted by him in Bangladesh, shall at the expiration of each calendar year prepare with reference to that year-
(a) in accordance with the regulations contained in Part I of the First Schedule, a balance-sheet in the form set forth in Part II of that Schedule;
(b) in accordance with the regulations contained in Part I of the Second Schedule, a profit and loss account in the forms set forth in Part II of that Schedule, except where the insurer carries on business of one class only of the classes specified in clauses (a), (b) and (c) of sub-section (1) of section 7 and no other business;
(c) in respect of each class or sub-class of insurance business for which he is required under sub-section (1) of section 10 to keep a separate account of receipts and payments, a revenue account in accordance with the regulations, and in the form or forms, set forth in the Third Schedule applicable to that class or sub-class of insurance business.
(2) Unless the insurer is a company as defined in clause (2) of sub-section (1) of section 2 of the Companies Act, 1913, the accounts and statements referred to in sub-section (1) shall be signed by the insurer, or in the case of a company by the chairman, if any, and two directors and the principal officer of the company, or in the case of a firm by two partners of the firm and shall be accompanied by a statement containing the names and descriptions of the persons in charge of the management of the business during the period to which such accounts and statements refer and by a report by such persons on the affairs of the business during that period.
Audit
- The balance-sheet, profit and loss account, revenue account and profit and loss appropriation account of every insurer, in the case of an insurer specified in sub-clause (a)(ii) or sub-clause (b) of clause (9) of section 2 in respect of all insurance business transacted by him, and in the case of any other insurer in respect of the insurance business transacted by him in Bangladesh, shall, unless they are subject to audit under the Companies Act, 1913, be audited annually by an auditor, and the auditor shall in the audit of all such accounts have the powers of, exercise the functions vested in, and discharge the duties and be subject to the liabilities and penalties imposed on, auditors of companies by section 145 of the Companies Act, 1913.
Special audit
40[12A. (1) The books and records of every insurer, in the case of an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 in respect of all insurance business transacted by him, and in the case of any other insurer in respect of the insurance business transacted by him in Bangladesh, shall be audited annually by an auditor or auditors to be appointed every year by the Chief Controller of Insurance for making such investigation and submitting such reports as may be prescribed:
Provided that the auditor or any of the auditors appointed under this section for any year of account shall not be the auditor or auditors employed by the insurer for an audit under the Companies Act, 1913 or under section 12 of this Act for that year of account.
(2) An auditor appointed under this section shall have a right of access to all such books of account, registers, vouchers, correspondence and other documents of the insurer, and shall be entitled to require from the directors and officers of the insurer such information and explanation, as may be necessary for the performance of his function and duties under this section.
(3) Every report prepared by an auditor or auditors appointed under this section shall be submitted in quadruplicate to the Chief Controller who may take such action thereon in accordance with the provisions of this Act as he deems fit.
(4) An auditor appointed under this section shall be paid by the insurer such fees as may be prescribed and in prescribing such fees regard shall be had to the size of the insurer and the class or classes of business transacted by him.
(5) The fee payable by an insurer under sub-section (4) shall be paid to the auditor within such time as may be specified by the Chief Controller.]
Actuarial report and abstract
- (1) Every insurer carrying on life insurance business shall, in respect of the life insurance business transacted by him in Bangladesh, and also in the case of an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 in respect of all life insurance business transacted by him, once at least in every 41[two] years cause an investigation to be made by an actuary into the financial condition of the life insurance business carried on by him, including a violation of his liabilities in respect thereto and shall cause an abstract of the report of such actuary to be made in accordance with the regulations contained in Part I of the Fourth Schedule and in conformity with the requirements of Part II of that Schedule.
(1A) and (1B) [Omitted by section 7 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984).]
(2) The provisions of sub-section (1) regarding the making of an abstract shall apply whenever at any other time an investigation into the financial condition of the insurer is made with a view to the distribution of profits or an investigation is made of which the results are made public.
(3) There shall be appended to every such abstract as is referred to in sub-section (1) or sub-section (2) a certificate
signed by the principal officer of the insurer that full and accurate particulars of every policy under which there is a liability either actual or contingent have been furnished to the actuary for the purpose of the investigation.
(4) There shall be appended to every such abstract a statement, in conformity with the requirements of Part II of the Fifth Schedule and prepared in accordance with the regulations contained in Part I of that Schedule, of the life insurance business in force at the date which the accounts of the insurer are made up for the purposes of such abstract:
Provided that, if the investigation, referred to in sub-sections (1) and (2) is made annually by any insurer, the statement need not be appended every year but shall be appended at least once in every three years.
(5) Where an investigation into the financial condition of an insurer is made as at a date other than the expiration of the year of account, the accounts for the period since the expiration of the last year of account and the balance-sheet as at the date at which the investigation is made shall be prepared and audited in the manner provided by this Act.
(6) The provisions of this section relating to life insurance business shall apply also to any such sub-class of miscellaneous insurance business as may be prescribed in this behalf:
Provided that no sub-class of miscellaneous insurance business shall be prescribed under this sub-section if the insurance business comprised in the sub-class consists of insurance contracts which are terminable by the insurer at intervals not exceeding twelve months and under which if a claim arises, the insurer’s liability to pay benefit ceases within one year of the date on which the claim arose:
Provided further that the Chief Controller of Insurance may authorise such modifications and variations of the regulations contained in Part I of the Fourth and Fifth Schedules and of the requirements of Part II of those Schedules as may be necessary to facilitate their application to any such sub-class of miscellaneous insurance business:
Provided also that if the Chief Controller of Insurance is satisfied that the number and amount of the transactions carried out by an insurer in any such sub-class of miscellaneous insurance business is so small as to render periodical valuation unnecessary, he may exempt that insurer from the operation of this sub-section in respect of that sub-class.
(7) The valuation of liabilities under sub-section (1) shall be carried out in such a manner and on such basis that the actuarial reserves calculated in that manner and on that basis are not less than the actuarial reserves calculated in the manner and on the basis laid down by the Chief Controller of Insurance in this behalf.
Register of policies and register of claims
- Every insurer, in the case of an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 in respect of all business transacted by him, and in the case of any other insurer in respect of the insurance business transacted by him in Bangladesh, shall maintain-
(a) a register or record of policies, in which shall be entered, in respect of every policy issued by the insurer, the name and address of the policy-holder, the date when the policy was effected and a record of any transfer, assignment or nomination of which the insurer has notice, and
(b) a register or record of claims, in which shall be entered every claim made together with the date of the claim, the name and address of the claimant and the date on which the claim was discharged, or, in the case of a claim which is rejected, the date of rejection and the grounds therefore.
Submission of returns
- (1) The audited accounts and statements referred to in section 11 or sub-section (5) of section 13 and the abstract and statement referred to in section 13 shall be printed, and four copies thereof shall be furnished as returns to the Chief Controller of Insurance in the case of the accounts and statements referred to in section 11 or sub-section (5) of section 13 within six months and in the case of the abstract and statement referred to in section 13 within nine months from the end of the period to which they refer:
Provided that the said period of six months shall in the case of insurers having their principal place of business or domicile outside Bangladesh and in the case of insurers constituted, incorporated or domiciled in Bangladesh but also carrying on business outside Bangladesh be extended by three months, and provided further that the Chief Controller may in any case extend the time allowed by this sub-section for the furnishing of such returns by a further period not exceeding one month.
(2) Of the four copies so furnished one shall be signed in the case of a company by the Chairman and two directors and by the principal officer of the company and, if the company has a managing director by that director in the case of a firm, by two partners of the firm, and, in the case of an insurer being an individual, by the insurer himself and one shall be signed by the auditor who made the audit or the actuary who made the valuation, as the case may be.
(3) Where the insurer’s principal place of business or domicile is outside Bangladesh, he shall forward to the Chief Controller of Insurance, along with the documents referred to in section 11, the balance-sheet, profit and loss account and revenue account and the valuation reports and valuation statements, if any, which the insurer is required to file with the public authority of the country in which the insurer is constituted, incorporated or domiciled, or, where such documents are not required to be filed, a certified statement showing the total assets and liabilities of the insurer at the close of the period covered by the said documents and his total income and expenditure during that period.
[Omitted.]
- [Returns by insurers established outside the Provinces etc.- Omitted by section 16 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958).]
[Omitted.]
17A. [This Act not to apply to preparation of accounts, etc. for periods prior to this Act coming into force.- Omitted by section 17 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958). ]
Exemption from certain provisions of the Companies Act, 1913
- Where an insurer, being a company incorporated under the Companies Act, 1913 or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, in any year furnishes his balance sheet and accounts in accordance with the provisions of section 15, he may at the same time send to the Registrar of Companies copies of such balance-sheet and accounts; and where such copies are so sent it shall not be necessary for the company to file copies of the balance-sheet and accounts with the Registrar as required by sub-section (1) of section 134 of the first mentioned Act and such copies so sent shall be chargeable with the same fees and shall be dealt with in all respects as if they were filed in accordance with that section.
Furnishing reports
- Every insurer shall furnish to the Chief Controller of Insurance a certified copy of every report on the affairs of the concern which is submitted to the members or policy-holders of the insurer immediately after its submission to the members or policy-holders as the case may be.
Abstract of proceedings of general meetings
- Every insurer, being a company or body incorporated under any law for the time being in force in Bangladesh, shall furnish to the Chief Controller of Insurance a certified copy of the minutes of the proceedings of every general meeting as entered in the Minutes Book of the insurer within thirty days from the holding of the meeting to which it relates.
Custody and inspection of documents and supply of copies
- (1) Every return furnished to the Chief Controller of Insurance or a certified copy thereof shall be kept by the Chief Controller and shall be open to inspection; and any person may procure a copy of any such return, or of any part thereof, on payment of a fee of 42[two Taka] for every hundred words or fractional part thereof required to be copied, any five figures being deemed equivalent to one word.
(2) A printed or certified copy of the accounts, statements and abstract furnished in accordance with the provisions of section 15 shall, on the application of any shareholder or policy-holder made at any time within two years from the date on which the document was so furnished, be supplied to him by the insurer within fourteen days when the insurer is constituted, incorporated or domiciled in Bangladesh and in any other case within one month of such application.
(3) A copy of the memorandum and Articles of Association of the insurer, if a company, shall on the application of any policy-holder, be supplied to him by the insurer on payment of one Taka.
Powers of Chief Controller of Insurance regarding returns
- (1) If it appears to the Chief Controller of Insurance that any return furnished to him under the provisions of this Act is inaccurate or defective in any respect, he may-
(a) require from the insurer such further information, certified if he so directs by an auditor or actuary, as he may consider necessary to correct or supplement such return;
(b) call upon the insurer to submit for his examination at the principal place of business of the insurer in Bangladesh any book of account, register or other document or to supply any statement which he may specify in a notice served on the insurer for the purpose;
(c) examine any officer of the insurer on oath in relation to the return;
(d) decline to accept any such return unless the inaccuracy has been corrected or the deficiency has been supplied before the expiry of one month from the date on which the requisition asking for correction of the inaccuracy or supply of the deficiency was delivered to the insurer and if he declines to accept any such return, the insurer shall be deemed to have failed to comply with the provisions of section 15 or section 28 relating to the furnishing of returns.
(2) [Omitted by section 11 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970).]
Power of Chief Controller of Insurance to order revaluation 23. Evidence of documents
- (1) If it appears to the Chief Controller of Insurance that an investigation or valuation to which section 13 refers does not properly indicate the condition of the affairs of the insurer by reason of the faulty basis adopted in the valuation, he may, after giving notice to the insurer and giving him an opportunity to be heard, cause an investigation and valuation as at such date as the Chief Controller of Insurance may specify to be made at the expense of the insurer by an actuary appointed by the insurer for this purpose and approved by the Chief Controller of Insurance and the insurer shall place at the disposal of the actuary so appointed and approved all the material required by
the actuary for the purposes of the investigation and valuation within such period, not being less than three months, as the Chief Controller of Insurance may specify.
(2) The provisions of sub-sections (1) and (4) of section 13, and of sub-sections (1) and (2) of section 15 shall apply in relation to an investigation and valuation under this section:
Provided that the abstract and statement prepared as the result of such investigation and valuation shall be furnished by such date as the Chief Controller of Insurance may specify.
Evidence of documents
- (1) Every return furnished to the Chief Controller of Insurance, which has been certified by the Chief Controller to be a return so furnished, shall be deemed to be a return so furnished.
(2) Every document, purporting to be certified by the Chief Controller of Insurance, to be a copy of a return so furnished, shall be deemed to be a copy of that return and shall be received in evidence as if it were the original return, unless some variation between it and the original return is proved.
[Omitted.]
- [Summary of returns to be published.- Omitted by section 16 of the Insurance (Amendment) Act, 1941 (Act No. XIII of 1941).]
Returns to be published in statutory forms
- (1) No insurer shall,-
(a) make, issue, circulate or cause to be made, issued or circulated, any estimate, illustration, circular or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the bonuses, shareholders’ dividends or share of the surplus to be received thereon, or make any false or misleading statement as to be bonuses, shareholders’ dividends or share of surplus previously paid on similar policies or make any misleading representation or any misrepresentation as to the financial condition of any insurer or use any name or title of any policy or class of policies misrepresenting the true nature thereof or make any misrepresentation to any policy-holder insured in any company for the purpose of inducing or tending to induce such policy-holder to lapse, forfeit or surrender his insurance; and(b) make, publish, disseminate, circulate or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated or placed before the public in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster or in any other manner an advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance, or the financial position of any insurer or with respect to any person in the conduct of his insurance business, which is false, untrue, deceptive, misleading or calculated to injure any person engaged in the business of insurance:
Provided that nothing contained in this section shall prevent an insurer from publishing any return in a form in which it has been furnished to the Chief Controller of Insurance or a true and accurate abstract from such returns or any other factual statement for the purposes of publicity.
Alterations in the particulars furnished with application for registration to be reported
- Whenever any alteration occurs or is made which affects any of the matters which are required under the provisions of sub-section (2) of section 3 to accompany an application by an insurer for registration, the insurer shall forthwith furnish to the Chief Controller of Insurance full particulars of such alteration.
All such particulars shall be authenticated in the manner required by that sub-section for the authentication of the matters therein referred to, and, where the alteration affects the assured rates, advantages, terms and conditions offered in connection with life insurance policies, the actuarial certificate referred to in clause (f) of the said sub-section shall accompany the particulars of the alteration.
Part II
INVESTMENT, LOANS AND MANAGEMENT
Restriction on certain investments, etc.
43[27B. Except with the prior approval of the Board of Directors at a regularly convened meeting by the vote of not less than two-thirds of the total number of directors and also upon a reference by the Board, of the Government, no insurer shall invest in, or hold any shares or debentures of, any company, firm or other business concern in which any of its directors, or any member of the family of such director, has any interest as proprietor, partner, director, manager or managing agent: Restriction on certain investments etc.
Provided that no investment shall be permissible in the first issue of capital by a company, firm or other business concern in which any of the directors of the insurer or any member of the family of such director has any interest as proprietor, partner, director, manager or managing agent.]
Investment of assets
- (1) Every insurer shall invest and at all times keep invested in the manner provided in sub-section (2) assets equivalent to not less than the sum of –
(a) the amount of his liabilities to holders of life insurance policies in Bangladesh on account of matured claims; and
(b) the amount required to meet the liability on policies of life insurance maturing for payment in Bangladesh less-
(i) the amount of premiums which have fallen due to the insurer on such policies but have not been paid and the days of grace for payment of which have not expired, and
(ii) any amount due to the insurer for loans granted on and within the surrender values of policies of life insurance maturing for payment in Bangladesh issued by him or by an insurer whose business he has acquired and in respect of which he has assumed liability:
Provided that where an insurer has accepted reassurance in respect of any policies of life insurance issued by another insurer and maturing for payment in Bangladesh or has ceded reassurance to another insurer in respect of any such policies issued by himself, the said sum shall be increased by the amount of the liability involved in such acceptance and decreased by the amount of liability involved in such cession:
Provided further that the said sum shall not be decreased by the amount of any liability in respect of any reinsurances ceded to an insurer not registered in Bangladesh for life insurance business except to the extent of the amount of the liability incurred up to the 31st December, 1957.
(2) The investment required under sub-section (1) shall be made in the following manner, namely:-
44[(i) thirty per cent of the sum referred to in the said sub-section shall be invested in Government securities; and
(ii) the balance shall be invested in any other investment including capital market in such manner as may be prescribed.]
Explanation.- For the purpose of this sub-section the amount of any deposits made under section 7 or section 98 by the insurer in respect of his life insurance business shall be deemed to be invested or kept invested in Government securities.
45[(2A) If at any time the Government is of the opinion that any investment made by an insurer in pursuance of sub-section (2) is not suitable or desirable, it may, after giving the insurer an opportunity of being heard, direct him to realise the investment within such time as may be specified in the direction and to re-invest the amount so realised in accordance with the provisions of this section.]
(3) In computing the assets required by this section to be kept invested by an insurer, a sum equal to the amount of his liabilities to persons who are not citizens of Bangladesh in respect of life insurance policies issued in Bangladesh in favour of such persons but expressed in a currency other than the Bangladesh Taka may, if such sum is invested in securities of, and guaranteed as to principal and interest by, the Government of the country in whose currency such policies are expressed, be taken into account.
(4) The assets required by this section to be kept invested by an insurer shall be deposited by the insurer in Bangladesh for safe custody in the prescribed manner with a scheduled bank approved by the Government and the assets so deposited shall not be released or dealt with in any manner except in such circumstances and in such manner as may be prescribed:
Provided that the Government may, by notification in the official Gazette, exclude from the requirements of this sub-section any approved investments which cannot be deposited for safe custody with a scheduled bank on account of the nature of such investments.
Insurers of general insurance business to have assets invested in Bangladesh
46[27A. (1) Every insurer transacting general insurance business in Bangladesh shall have assets invested in Bangladesh exceeding his liabilities by at least a sum of five lakhs of Taka or ten per cent of the net premium income, whichever is the higher:
Provided that an insurer defined in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 who has no paid-up capital or has a paid-up capital of less than five lakhs of Taka shall be deemed to have complied with the requirements of this sub-section if the assets invested by him in Bangladesh, not being less than ten per cent of the net premium income, exceed his liability,-
(a) up to the 31st day of December, 1970, by a sum of not less than two lakh and fifty thousand Taka;
(b) up to the 31st day of December, 1971, by a sum of not less than three lakh seventy-five thousand Taka; and
(c) up to the 31st day of December, 1972, by five lakh Taka.
(2) For the purpose of sub-section (1), the following shall be deemed to be the liability of the insurer, namely:-
(a) the net claims outstanding in respect of general insurance business in Bangladesh;
(b) forty per cent of the net premium in respect of Fire, Marine and Miscellaneous insurance business written in Bangladesh;
(c) one hundred per cent of the net premium in respect of Marine and Aviation Hull insurance business written in Bangladesh;
(d) amount of provision for dividends and unpaid dividends;
(e) amount due to Insurance Companies carrying on insurance business;
(f) amount provided for taxation;
(g) amount due to other creditors but excluding share capital, general reserves, investment reserve, reserve for bad and doubtful debts, depreciation funds except on such items as are taken credits for as “assets”.
Explanation.- Marine and Aviation Hull insurance business shall include any policies issued to an owner of a vessel or aircraft relating to any interest of such an owner in respect of a vessel or aircraft.
(3) For the purpose of computing assets referred to in sub-section (1), the following shall be excluded to the extent specified, namely:-
(a) in respect of premium outstanding as at 31st January, 1958, which still remains to be collected so much as still remains to be collected till the signing of the returns under section 15 by the auditors;
(b) in respect of the premium outstanding as at the end of 31st December, 1958, and subsequent years, so much as has not been collected by the 31st March next following;
(c) sundry debts outstanding as have not been recovered till the signing of the returns under section 15 by the auditors;
(d) furniture and fixtures, stationery, dead-stock;
(e) deferred and prepaid expenses to the extent determined by the Chief Controller of Insurance.
(4) Notwithstanding anything contained in sub-section (1), an insurer carrying on business at the commencement of the Insurance (Amendment) Ordinance, 1960, to whom that sub-section applies, shall be deemed to have complied with the requirements of this section if he has invested not less than one-fourth of the amount required to be invested before 31st December, 1960, not less than one-half before 31st December, 1961, and not less than three fourth before 31st December, 1962.
(5) Every insurer carrying on general insurance business in Bangladesh shall, along with the returns under section 15, submit to the Chief Controller of insurance a return certified by an auditor showing as at 31st day of December of the preceding year the assets invested in Bangladesh and all other particulars necessary to establish that the requirements of this section have been complied with and such return shall be certified by a principal officer of the insurer.
(6) The Chief Controller of Insurance may, at any time, take such steps as he may consider necessary for the inspection or verification of the assets invested in pursuance of sub-section (1) or for the purpose of securing the particulars necessary to establish that the requirements of that sub-section have been complied with and the insurer shall comply with any requisition made in this behalf by the Chief Controller of Insurance and if he fails to do so within two months from the receipt of the requisition he shall be deemed to have made default in complying with the requirements of this section.]
Statement of investments of assets
- (1) Every insurer registered under this Act carrying on the business of life insurance shall every year, within thirty-one days from the beginning of the year, submit to the Chief Statement of investments of assets
Controller of Insurance a return showing as at the 31st day of December of the preceding year the assets held invested in accordance with section 27, and all other particulars necessary to establish that the requirements of that section have been complied with, and such return shall be certified by a principal officer of the insurer.
(2) Every such insurer shall also furnish, within fifteen days from the last day of March, June and September, a return certified as aforesaid showing as at the end of each of the said months the assets held invested in accordance with section 27.
(3) The Chief Controller of Insurance may at his discretion require any insurer to whom sub-section (1) applies to submit before the 1st day of August in each or any year a return of the nature referred to in sub-section (1), certified as required by that sub-section and prepared as at the 30th day of June.
(4) In the case of an insurer having his principal place of business or domicile outside Bangladesh, the Chief Controller of Insurance may, on application made by the insurer, extend the periods of fifteen and thirty-one days mentioned in the foregoing sub-sections to thirty days and sixty days, respectively.
(5) The Chief Controller of Insurance shall be entitled at any time to take such steps as he may consider necessary for the inspection or verification of the assets invested in compliance with section 27 or for the purpose of securing the particulars necessary to establish that the requirements of that section have been complied with. The insurer shall comply with any requisition made in this behalf by the Chief Controller of Insurance, and if he fails to do so within two months from the receipt of the requisition he shall be deemed to have made default in complying with the requirements of this section.
Prohibition of loans
29.(1) No insurer shall grant to, or to any member of the family of, any director, manager, actuary, auditor or officer of the insurer any loan or temporary advance, either on hypothecation or property or on personal security or otherwise, except a loan on life policies issued by the insurer within the surrender value.
(2) Except with the prior approval of the Board of Directors at a regularly convened meeting by the vote of not less than two-thirds of the total number of directors and also, upon a reference by the Board, of the Government, no insurer shall grant any loan or temporary advance to any firm or company in which any director, manager, actuary, auditor or officer of the insurer, or any member of the family of such director, manager, actuary, auditor or officer, has any interest as proprietor, partner, director, manager or managing agent.
(3) The director concerned shall not vote at, or otherwise participate in, the proceedings of the meeting of the Board considering the grant of any such loan or advance as is referred to in sub-section (2).
(4) Where any event occurs giving rise to circumstances the existence of which at the time of the grant of any subsisting loan or temporary advance would have made such grant a contravention of sub-section (1) or sub-section (2), such loan shall, notwithstanding any contract to the contrary, be repaid within three months from the occurrence of such event and, in case of default, the director, manager, actuary, auditor or officer concerned shall, without prejudice to any other penalty to which he may be liable, cease to hold office with the insurer granting the loan or advance on the expiry of the said three months.
(5) Nothing in sub-section (1) or sub-section (2) shall apply to loans or advances granted by an insurer to a banking company or to a subsidiary company being an insurer or to any insurer to which the insurer granting the loan or advance is a subsidiary company.
(6) Nothing in sub-section (1) shall apply to any stipend paid to any insurance agent or employer of agents while he is undergoing a course of training approved by the Government.
(7) The provisions of section 86D of the Companies Act, 1913 (VII of 1913), shall not apply to a loan granted to a director of an insurer being a company, if the loan is one granted on the security of a policy on which the insurer bears the risk and the policy was issued to the director on his own life, and the loan is within the surrender value of the policy.
(8) Subject to the provisions of sub-section (1) no insurer shall grant to any employee, insurance agent or employer of agents any loan or temporary advances except-
(a) loans on life policies issued by him to an employee, insurance agent or employer of agents within their surrender value;
(b) loans on mortgage of immovable property provided-
(i) the Chief Controller of Insurance certified that the insurer, if he transacts life insurance business, has complied with the provision of section 27;
(ii) the value of the property is at least twice the amount of the loan;
(iii) the property is situated in such towns as may be notified in this behalf;
(iv) the loan is made in such instalments 47[as may be decided by the Board of Directors of the insurer] if the purpose of the loan is to construct a house;
(v) the loan is repayable within a period of fifteen years; and
(vi) the loan is of such amount that the instalment of capital and interest does not exceed one-fourth of the basic salary of the employee or one-fourth of the renewal commission or over-riding commission of an agent or an employer of agents, as the case may be, during a year;
(c) loans for the purchase of a conveyance to an employee, insurance agent or employer of agents, provided-
(i) the employee, insurance agent or employer of agents has served the insurer continually for such period 48[as may be decided by the Board of Directors of the insurer];
(ii) the conveyance purchased is mortgaged to the insurer;
(iii) the loan does not exceed such amount, and is subject to such conditions as to the time allowed for its repayment, 49[as may be decided by the Board of Directors of the insurer] 50[:
Provided that the total loan referred to in sub-clause (b) (iv) and (c) shall not exceed ten per cent of the net profit of the preceding year of the insurer after payment of income tax;]
(d) temporary advances to an employee, insurance agent or employer of agents not exceeding,-
(i) in the case of an employee, two months’ salary;
(ii) in the case of an insurance agent, the renewal commission earned by him during two years immediately preceding the date of application for the advance, or a sum not exceeding two hundred and fifty Taka if he has not earned a renewal commission or has earned a renewal commission of less than two hundred and fifty Taka; and
(iii) in the case of an employer of agents, the renewal commission and the over-riding renewal commission earned by him during the year immediately preceding the date of application for the advance, or a sum not exceeding one thousand Taka if he has not earned any renewal commission and over-riding renewal commission or has earned a renewal commission and over-riding renewal commission of less than one thousand Taka:
Provided that, in respect of the life insurance business of an insurer, the total temporary advances referred to in this clause shall not exceed at any time ten thousand Taka, in the case of insurers having a life insurance
fund of less than ten lakhs of Taka and one per cent of the life insurance fund subject to a maximum of two hundred thousand Taka, in any other case.
Liability of directors, etc., for loss due to contraventions of sections 27 and 29
- If by reason of contravention of any of the provisions of section 27 or section 29, any loss is sustained by the insurer or by the policy-holders, every director, manager, officer or partner who is knowingly a party to such contravention shall, without prejudice to any other penalty to which he may be liable under this Act, be jointly and severally liable to make good the amount of such loss.
Appointment of managing agent prohibited
- No insurer shall appoint a managing agent for the conduct of his business.
Assets of insurer how to be kept
- (1) None of the assets in Bangladesh of any insurer shall, except in the case of deposits made with the Bangladesh Bank under section 7 or section 98 or in so far as assets are required to be deposited for safe custody with a scheduled bank under sub-section (4) of section 27, be kept otherwise than in the name of a public officer approved by the Government, or in the corporate name of the undertaking, if a company, or in the name of the partners, if a firm, or in the name of the proprietor, if an individual.
(2) [Omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).]
Power to restrict payment of excessive remuneration
51[32A. (1) The Chief Controller of Insurance may, if he is satisfied that any insurer in the case of an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 in respect of all insurance business transacted by him and in the case of any other insurer in respect of the insurance business transacted by him in Bangladesh is paying any person remuneration, whether by way of commission or otherwise, on a scale disproportionate according to the normal standards prevailing in insurance business to the resources of the insurer, call upon the insurer to comply within six months with such directions as he may think fit to issue in the matter and if compliance with the direction so issued required the modification of any of the terms of the contract entered into by the insurer with such person no compensation shall be payable to such person by the insurer by reason only of such modification or of the resignation of such person if the modified terms are not acceptable to him and no payment by way of renewal commission or otherwise shall be made to such person by the insurer in respect of any payments made after the date of such resignation except at such rates as may be approved by the Chief Controller of Insurance in this behalf.
(2) Every insurer shall before the 30th day of June, 1958, and thereafter before the first day of March every year submit to the Chief Controller of Insurance a statement in the prescribed form showing the remuneration paid by way of commission or otherwise to any person in cases where such remuneration exceeds the sum of six thousand Taka in the previous calendar year.
(3) Where an insurer pays any person remuneration exceeding six thousand Taka a year in pursuance of any agreement between him and such person, the Chief Controller may, by notice in writing, require the insurer to submit a certified copy of such agreement and the insurer shall comply with any such requisition within the time specified in the notice.
Provisions relating to managers, etc.
32B. (1) Notwithstanding anything to the contrary contained in the Companies Act, 1913, or in the Articles of Association of the insurer, if a company, or in any contract or agreement, no insurer shall, after the expiry of one year from the commencement of the Insurance (Amendment) Act, 1958, be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus on the total insurance business or on the total business of any class or sub-class of insurance business or on a part of any class or sub-class of general insurance business transacted by the insurer:
Provided that nothing in this sub-section shall be deemed to prohibit-
(i) the payment of commission to an insurance agent or employer of agents in respect of any insurance business procured by or through him;
(ii) the employment of any individual in a clerical or other subordinate capacity who, as an insurance agent, receives commission in respect of insurance business procured by him;
(iii) the employment as an officer of any individual who receives commission in respect of life insurance business procured by him in his capacity as an insurance agent or as an employer of agents;
(iv) the payment of a share in the profit of general insurance business;
(v) the payment of bonus in any year on a uniform basis to all salaried employees or any class of them by way of additional remuneration, such bonus, in the case of any employee, not exceeding in amount the equivalent of his salary for a period which, in the opinion of the Government, is reasonable having regard to the circumstances of the case.
(2) No person shall have any right, whether in contract or otherwise, to any compensation for any loss incurred by reason of the operation of any provision of this section.]
Part II
INVESTIGATION
Power of Chief Controller of Insurance to order investigation
- (1) The Chief Controller may, at any time investigate the affairs of an insurer and, wherever necessary, employ an auditor or actuary or both for assisting him in any such investigation.
(2) It shall be the duty of every manager, managing director or other officer of the insurer to produce before the Chief Controller, auditor or actuary all such books of account, registers and other documents in his custody or power and to furnish him with any such statement or information relating to the affairs of the insurer within such time as the Chief Controller, auditor or actuary may require.
(3) When an investigation is made under this section, the Chief Controller may, after giving an opportunity to the insurer to make a representation in writing or be heard in person, by order in writing,-
(a) require the insurer to take such action in respect of any matter arising out of the investigation as he may think fit to secure compliance with the provisions of this Act, or
(b) cancel the registration of the insurer under clause (f) of sub-section (4) of section 3, or
(c) apply to the Court for the winding up of the insurer, if a company, whether the registration of the insurer has been cancelled under clause (b) or not.
(4) No order made under this section other than an order made under clause (b) of sub-section (3) shall be called in question in any Court.
(5) All expenses of, and incidental to, any investigation made under this section shall be defrayed by the insurer, and shall have priority as debts due from the insurer and be recoverable as an arrear of land revenue.
Powers of investigator
- All the books and records of every insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 in respect of all insurance business transacted by him and in the case of any other insurer in respect of the insurance business transacted by him in Bangladesh shall at all reasonable times be open to inspection by the Chief Controller of Insurance or any other person appointed by him in this behalf.
Power to give directions to the insurer
52[34A. (1) The Chief Controller of Insurance may, from time to time, issue such directions as he may deem fit to all or any of the insurers if he is satisfied that it is necessary so to do-
(a) in the public interest, or
(b) to prevent the affairs of any insurer being conducted in any manner detrimental to the interests of the policy-holders or of the insurer, or
(c) generally to secure the proper management of the insurer.
(2) The Chief Controller of Insurance may, on representation made in this behalf, or on his own motion, modify or cancel any direction issued under sub-section (1) and may, in so modifying or cancelling a direction, impose such conditions as he may deem fit.
(3) Every insurer shall comply with any direction issued under sub-section (1) or such direction as modified under sub-section (2) subject to conditions, if any.
(4) No direction under sub-section (1) or modification or cancellation under sub-section (2) or any such direction shall be issued without the prior approval of the Government.
Power to require calling of meeting of directors, etc.
34B. The Chief Controller of Insurance may, during the course, or after the completion of special audit under section 12A or investigation under section 33, by order in writing, and on such terms and conditions as may be specified therein,-
(a) require the insurer to call a meeting of its directors for the purpose of considering any matter relating to, or arising out of, the affairs of the insurer;
(b) require the principal officer of the insurer to discuss any matter with him or any of his officers;
(c) require the insurer to allow any officer deputed for the purpose to watch the proceedings of, and to speak at, any meeting of the Board of Directors of the insurer or of any committee or other body constituted by the insurer and to furnish such officer with a copy of the proceedings of such meeting;
(d) require the insurer to send in writing to any officer specified in this behalf by the Chief Controller, at the usual address of such officer, all notices of, and other communications relating to, any meeting of the Board of Directors of the insurer, or of any Committee or other body constituted by the insurer;
(e) require the insurer to allow any officer appointed or deputed for the purpose to observe for a specified period which may be extended from time to time the manner in which the affairs of the insurer or of any of its officers or branches are being conducted:
Provided that such order has been passed with the prior approval of the Government; and
(f) with the prior approval of the Government, require the insurer to make within such time as may be specified in the order such changes in the management as the Chief Controller may consider necessary to put the affairs of the insurer in order.
Power to remove Chairman, Director, etc., of the insurer
34C. (1) If, after the completion of a special audit under section 12A or investigation under section 33, the Chief Controller has reason to believe that a person holding the office of the Chairman, a director, manager or principal officer, by whatever name called, of an insurer has contravened the provisions of any law and that the contravention is of such a nature that the association of such person with the insurer is or is likely to be detrimental to the interests of the insurer or of the policy-holders, or is otherwise undesirable, the Chief Controller shall, after giving such person an opportunity of being heard, make a report of the fact to the Government.
(2) If, after considering a report under sub-section (1), the Government is satisfied that the association with the insurer of the person in respect of whom the report has been made is or is likely to be detrimental to the interests of the insurer or of the policy-holders, or is otherwise undesirable, it may make an order that such person shall cease to hold the office with the insurer with effect from such date as may be specified in the order, and thereupon that office shall, with effect from the said date, become vacant.
(3) An order under sub-section (2) in respect of any person may also provide that he shall not, without the previous permission of the Government in writing, in any way, directly or indirectly, be concerned with, or take part in the management of, the insurer or any other insurer for such period not exceeding five years as may be specified in the order.
(4) No order under sub-section (2) shall be made in respect of any person without giving him an opportunity of being heard unless the Government is of the opinion that any delay in making the order would be detrimental to the interests of the insurer or of the policy-holders.]
Part II
AMALGAMATION AND TRANSFER OF INSURANCE BUSINESS
Amalgamation and transfer of Insurance business
- (1) No life insurance business of an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 shall be transferred to any person or transferred to or amalgamated with the life insurance business of any other insurer except in accordance with a scheme prepared under this section and sanctioned by the Court having jurisdiction over one or other of the parties concerned.
(2) Any scheme prepared under this section shall set out the agreement under which the transfer or amalgamation is proposed to be effected, and shall contain such further provisions as may be necessary for giving effect to the scheme.
(3) Before an application is made to the Court to sanction any such scheme, notice of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be and of the reason therefore shall, at least two months before the application is made, be sent to the Government, and certified copies, four in number, of each of the following documents shall be furnished to the Government, and other such copies shall during the two months aforesaid be kept open for the inspection of the members and policy-holders at the principal and branch offices and chief agencies of the insurers concerned, namely:-
(a) a draft of the agreement or deed under which it is proposed to effect the amalgamation or transfer;
(b) balance-sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in the Form set forth in part II of the First Schedule and in accordance with the regulations contained in Part I of that Schedule;
(c) actuarial reports and abstracts in respect of the life insurance business of each of the insurers so concerned, prepared in conformity with the requirements of Part II of the Fourth and Fifth Schedules and in accordance with the regulations contained in Part I of the Schedule concerned;
(d) a report on the proposed amalgamation or transfer prepared by an independent actuary who has never been professionally connected with any of the parties concerned in the amalgamation or transfer at any time in the five years preceding the date on which he signs his report;
(e) any other reports on which the scheme of amalgamation or transfer was founded.
The balance-sheets, reports and abstracts referred to in clauses (b), (c) and (d) shall all be prepared as at the date at which the amalgamation or transfer if sanctioned by the Court is to take effect, which date shall not be more than twelve months before the date on which the application to the Court is made under this section:
Provided that if the Government so directs in the case of any particular insurer there may be substituted respectively for the balance-sheet, report and abstract referred to in clauses (b) and (c) prepared in accordance with this sub-section certified copies of the last balance-sheet and last report and abstract prepared in accordance with sections 11 and 13 if that balance-sheet is prepared as at a date not more than twelve months, and that report and abstract as at a date not more than five years before the date on which the application to the Court is made under this section.
Sanction of amalgamation and transfer by Court
- When any application such as is referred to in sub-section (3) of section 35 is made to the Court, the Court shall cause, if for special reasons it so directs, notice of the application to be sent to every person resident in Bangladesh 53[* * *] who is the holder of a life policy of any insurer concerned and shall cause a statement of the nature and terms of the amalgamation or transfer, as the case may be, to be published in such manner and for such period as it may direct, and after hearing the directors and such policy-holders as apply to be heard and any other persons whom it considers entitled to be heard, may sanction the arrangement, if it is satisfied that no Sanction of amalgamation and transfer by Court
sufficient objection to the arrangement has been established and shall make such consequential orders as are necessary to give effect to the arrangement, including orders as to the disposal of any deposit made under section 7 or section 98:
Provided that-
(a) no part of the deposit made by any party to the amalgamation or transfer shall be returned except where, after effect is given to the arrangement, the whole of the deposit to be made by the insurer carrying on the amalgamated business or the person to whom the business is transferred is completed,
(b) only so much shall be returned as is no longer required to complete the deposit last mentioned in clause (a), and
(c) while the deposit last mentioned in clause (a) remains incompleted, no accession, resulting from the arrangement, to the amount already deposited by the insurer carrying on the amalgamated business or the person to whom the business is transferred shall be appropriated as payment or part payment of any instalment of deposit subsequently due from him under section 7 or section 98.
Statements required after amalgamation and transfer
- Where an amalgamation takes place between any two or more insurers, or where any business of an insurer is transferred whether in accordance with a scheme confirmed by the Court or otherwise, the insurer carrying on the amalgamated business or the person to whom the business is transferred as the case may be, shall, within three months from the date of the completion of the amalgamation or transfer, furnish in duplicate to the Government-
(a) a certified copy of the scheme, agreement or deed under which the amalgamation or transfer has been effected, and
(b) a declaration signed by every party concerned or in the case of a company by the chairman and the principal officer that to the best of their belief every payment made or to be made to any person whatsoever on account of the amalgamation or transfer is therein fully set forth and that no other payments beyond those set
forth have been made or are to be made either in money, policies, bonds, valuable securities or other property by or with the knowledge of any parties to the amalgamation or transfer, and
(c) where the amalgamation or transfer has not been made in accordance with a scheme sanctioned by the Court under section 36-
(i) balance-sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in the Form set forth in Part II of the First Schedule and in accordance with the regulations contained in Part I of that Schedule, and
(ii) certified copies of any other reports on which the scheme of amalgamation or transfer was founded.
Part II
ASSIGNMENT OR TRANSFER OF POLICIES AND NOMINATIONS
Assignment and transfer of insurance policies
- (1) A transfer or assignment of a policy of life insurance, whether with or without consideration, may be made only by an endorsement upon the policy itself or by a separate instrument, signed in either case by the transferor or by the assignor or his duly authorised agent and attested by at least one witness, specifically setting forth the fact of transfer or assignment. Assignment and transfer of insurance policies
(2) The transfer or assignment shall be complete and effectual upon the execution of such endorsement or instrument duly attested but except where the transfer of assignment is in favour of the insurer shall not be operative as against an insurer and shall not confer upon the transferee or assignee, or his legal representative, any right to sue for the amount of such policy or the moneys secured thereby until a notice in writing of the transfer or assignment and either the said endorsement or instrument itself or a copy thereof certified to be correct by both transferor and transferee or their duly authorised agents have been delivered to the insurer:
Provided that where the insurer maintains one or more places of business in Bangladesh, such notice shall be delivered only at the place in Bangladesh mentioned in the policy for the purpose or at his principal place of business in Bangladesh.
(3) The date on which the notice referred to in sub-section (2) is delivered to the insurer shall regulate the priority of all claims under a transfer or assignment as between persons interested in the policy; and where there is more than one instrument of transfer or assignment the priority of the claims under such instruments shall be governed by the order in which the notices referred to in sub-section (2) are delivered.
(4) Upon the receipt of the notice referred to in sub-section (2), the insurer shall record the fact of such transfer or assignment together with the date thereof and the name of the transferee or the assignee and shall, on the request of the person by whom the notice was given, or of the transferee or assignee, on payment of a fee not exceeding one Taka grant a written acknowledgement of the receipt of such notice, and any such acknowledgment shall be conclusive evidence against the insurer that he has duly received the notice to which such acknowledgement relates.
(5) Subject to the terms and conditions of the transfer or assignment, the insurer shall, from the date of the receipt of the notice referred to in sub-section (2), recognise the transferee or assignee named in the notice as the only person entitled to benefit under the policy, and such person shall be subject to all liabilities and equities to which the transferor or assignor was subject at the date of the transfer or assignment and may institute any proceedings in relation to the policy without obtaining the consent of the transferor or assignor or making him a party to such proceedings.
(6) Any rights and remedies of an assignee or transferee of a policy of life insurance under an assignment or transfer effected prior to the commencement of this Act shall not be affected by the provisions of this section.
(7) Notwithstanding any law or custom having the force of law to the contrary, an assignment in favour of a person made with the condition that it shall be inoperative or that the interest
shall pass to some other person on the happening of a specified event during the lifetime of the person whose life is insured, and an assignment in favour of the survivor of survivors of a number of persons, shall be valid.
Nomination by policy-holder
- (1) The holder of a policy of life insurance on his own life, may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death: Nomination by policy-holder
Provided that where any nominee is a minor, it shall be lawful for the policy-holder to appoint in the prescribed manner any person to receive the money secured by the policy in the event of his death during the minority of the nominee.
(2) Any such nomination in order to be effectual shall, unless it is incorporated in the text of the policy itself, be made by an endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy and any such nomination may at any time before the policy matures for payment be cancelled or changed by an endorsement or a further endorsement or a will, as the case may be, but unless notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment under the policy made bona fide by him to a nominee mentioned in the text of the policy or registered in records of the insurer.
(3) The insurer shall furnish to the policy-holder a written acknowledgement of having registered a nomination or a cancellation or change thereof, and may charge a fee not exceeding one Taka for registering such cancellation or change.
(4) A transfer or assignment of a policy made in accordance with section 38 shall automatically cancel a nomination:
Provided that the assignment of a policy to the insurer who bears the risk on the policy at the time of the assignment, in consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its re-assignment on repayment of the loan shall not cancel a nomination, but shall affect the rights of the nominee only to the extent of the insurer’s interest in the policy.
(5) Where the policy matures for payment during the lifetime of the person whose life is insured or where the nominee or, if there are more nominees, than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policy-holder or his heirs or legal representatives or the holder of a succession certificate, as the case may be.
(6) Where the nominee or, if there are more nominees than one, a nominee or nominees survive the person whose life is insured, the amount secured by the policy shall be payable to such survivor or survivors.
(7) The provisions of this section shall not apply to any policy of life insurance to which section 6 of the Married Women’s Property Act, 1874, applies or has at any time applied:
Provided that where a nomination made whether before or after the commencement of the Insurance (Amendment) Act, 1946, in favour of the wife of the person who has insured his life or of his wife and children or any of them is expressed, whether or not on the face of the policy, as being made under this section, the said section 6 shall be deemed not to apply or not to have applied to the policy.
Part II
COMMISSION AND REBATES AND LICENSING OF AGENTS
Prohibition of payment by way of commission or otherwise for procuring business
- 54[(1) No person shall pay or contract to pay any remuneration or reward whether by way of commission or otherwise for soliciting or procuring insurance business in Bangladesh to any person except an insurance agent or an employer of agent.]
(1A) [Omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).]
55[(1B) No person shall pay and no insurance agent shall receive any renewal commission in respect of a life insurance business after the expiry of licence during the validity of which such business was procured by the insurance agent unless such licence has been renewed under sub-section (4) of section 42.
Explanation.- For the purposes of this sub-section all the life insurance business to the credit of an insurance agent as at the date of the expiry of his licence, shall be deemed to have been procured by the insurance agent while holding the licence valid on the said date.]
(2) No insurance agent shall be paid or contract to be paid by way of commission or as remuneration 56[in any form an amount exceeding, in the case of life insurance business,] forty per cent of the first year’s premium payable on any policy or policies effected through him and five per cent of a renewal premium payable on such a policy, 57[or, in the case of business of any other class, fifteen per cent] of the premium:
Provided that insurers, in respect of 58[life insurance policy only,] may pay, during the first ten years of their business, to their insurance agents fifty-five per cent of the first year’s premium payable on any policy or policies effected through them and six per cent of the renewal premiums payable on such policies.
59[* * *]
60[(2A) Save as hereinafter provided, no insurance agent shall be paid or contract to be paid by way of commission or as remuneration in any form any amount in respect of any policy not effected through him:
Provided that where a policy of life insurance has lapsed, and it cannot, under the terms and conditions applicable to it be revived without further medical examination of the person whose life was insured thereby, an insurer, after giving by notice in writing, to the insurance agent through whom the policy was effected if such agent continues to be an agent of the insurer, an opportunity to effect the revival of the policy within a time specified in the notice, being not less than one month from the date of the receipt by him of the notice, may pay to another insurance agent who effects the revival of the policy an amount calculated at a rate not exceeding the rate of commission at which the agent through whom the policy was effected would have been paid had the policy not lapsed, on the sum payable on revival of the policy on account of arrear premiums (excluding any interest on such arrear premiums) and also on the subsequent renewal premiums payable on the policy.]
(3) Nothing in this section shall prevent the payment under any contract existing prior to the 27th day of January, 1937, of gratuities or renewal commission to any person, whether an insurance agent within the meaning of this Act or not, or to his representatives after his decease in respect of insurance business effected through him before the said date.
Limitation of expenditure on commission
61[40A. (1) No person shall pay or contract to pay an insurance agent, and no insurance agent shall receive or contract to receive by way of commission or remuneration in any form in respect of any policy of life insurance issued in Bangladesh by an insurer after the commencement of the Insurance (Amendment) Ordinance, 1970, and effected through an insurance agent, an amount exceeding such maximum percentage or below such minimum percentage as may be prescribed: Provided that in prescribing such percentages regard shall be had to –
(a) the type of the life insurance business;
(b) the term of the policy;
(c) the amount of business procured by the agent during a calendar year;
(d) the number of policies lapsing from out of the business procured by the agent;
(e) the age of the insurer; and
(f) whether or not the agent has successfully completed a course of training.]
62[(2) No person shall pay or contract to pay to an insurance agent, and no insurance agent shall receive or contract to receive by way of commission or remuneration in any form, in respect of any policy of general insurance issued in Bangladesh by an insurer and effected through an insurance agent an amount exceeding-
(a) where the policy relates to fire or miscellaneous insurance, fifteen per cent of the premium payable on the policy; and
(b) where the policy relates to marine insurance, ten per cent of the premium payable on the policy:
Provided that a further amount not exceeding five per cent of the premium payable on the policy may be paid to an insurance agent who procures a yearly business yielding a premium income of not less than thirty thousand Taka and satisfies such other conditions as may be prescribed.
(3) No person shall pay or contract to pay to any employer of agents and no employer of agents shall receive or contract to receive, by way of commission, over-riding commission or any other remuneration in any form, in respect of any policy of general insurance issued by an insurer in Bangladesh, and effected through an employer of agents, an amount exceeding-
(a) in the case referred to in clause (a) of sub-section (2), fifteen per cent of the premium payable on the policy; and
(b) in the case referred to in clause (b) of sub-section (2), ten per cent of the premium payable on the policy,
inclusive of any commission payable to any insurance agent in respect of the said policy:
Provided that a further amount not exceeding five per cent of the premium payable on a policy may be paid to an employer of agents who procures a yearly business yielding a premium income of not less than one lakh Taka and satisfies such other conditions as may be prescribed:
Provided further that the Government may, in such circumstances and to such extent and for such period as may be specified, authorise the payment of commission or remuneration exceeding the limits specified in this sub-section to an employer of agents acting on behalf of an insurer incorporated or domiciled elsewhere than in Bangladesh if such employer of agents carries out and has continuously carried out in his own office duties on behalf of the insurer which would otherwise have been performed by the insurer.]
63[(3A) No person shall pay or contract to pay any employer of agents, and no employer of agents shall receive or contract to receive, by way of commission, over-riding commission or any other remuneration in any form, in respect of any life insurance policy issued by an insurer in Bangladesh after the commencement of the Insurance (Amendment) Ordinance, 1970, and effected through an employer of agents, an amount exceeding such maximum percentage or below such minimum percentage as may be prescribed:
Provided that in prescribing such percentages regard shall be had to-
(a) the type of the life insurance business;
(b) the term of the policy;
(c) the amount of business procured by the employer of agents during a calendar year;
(d) the number of policies lapsing from out of the business procured by the employer of agents;
(e) the age of the insurer;
(f) the number of successful insurance agents selected by him in a calendar year;
(g) the number of employers of agents intervening between the insurer and the insurance agents; and
(h) whether or not the employer of agents has undergone successfully a course of training.
(3B) No insurer shall pay over-riding commission to more than two employers of agents intervening between him and the insurance agents.
(3C) Where an employer of agents also works as an agent, the insurer may, subject to any rules made in this behalf, pay over-riding commission to him in respect of business procured by him as an insurance agent:
Provided that the insurer shall not pay over-riding commission to an employer of agents on the business procured by him as an insurance agent if such business exceeds such percentages as may be prescribed.]
(4) No insurer shall pay or contract to pay outside Bangladesh to any person any commission in any form in respect of the insurance business transacted by such person in Bangladesh and no insurer shall receive or contract to receive outside Bangladesh from any person any commission in any form in respect of any business reinsured abroad.
(5) Without prejudice to the provisions of section 102 in respect of a contravention of any of the provisions of the preceding sub-section by an insurer, an insurance agent or employer of agents who contravenes any of the provisions of sub-sections (1) 64[, (2), (3)] or (4) shall be punishable with fine which may extend to one thousand Taka.
(6) An insurer incorporated outside Bangladesh who receives or contracts to receive any commission in respect of any business transacted in Bangladesh and reinsured abroad shall not be deemed to have contravened the provisions of sub-section (4) if all amounts received by him outside Bangladesh in this respect have been fully credited to the Bangladesh revenue account.
Remuneration
40D. For the purposes of sections 32A, 40, 40A, 40B and 40C, “remuneration” shall be deemed to include travelling and entertainment allowances and all other payments or disbursements of any kind or form.]
Limitation of expenses of management in life insurance business
40B. (1) No insurer shall, in respect of life insurance business transacted by him in Bangladesh, spend as expenses of management in any calendar year an amount in excess of the prescribed limits and in prescribing any such limits regard shall be had to the size and age of the insurer and the provision generally made for expenses of management in the premium rates of insurers:
Provided that the Chief Controller of Insurance may, on an application made to him in this behalf, condone the contravention of this sub-section by an insurer who has, on reasonable grounds, spent as such expenses an amount in excess of such limits.
(2) Every insurer transacting life insurance business in Bangladesh shall incorporate in the revenue account-
(a) a certificate signed by the chairman and two directors and by the principal officer of the insurer, and an auditor’s certificate, certifying that all expenses of management in respect of life insurance business transacted by the insurer in Bangladesh have been fully debited in the revenue account as expenses; and
(b) if the insurer is carrying on any other class of insurance business in addition to life insurance business, an auditor’s certificate certifying that all charges incurred in respect of his life insurance business and in respect of his business other than life insurance business have been fully debited in the respective revenue accounts.
Explanation.- In this section “expenses of management” means all charges wherever incurred whether directly or indirectly, and includes:-
(i) commission payments of all kinds;
(ii) a proper share of expenses capitalised; and
(iii) in the case of an insurer having his principal place of business outside Bangladesh, a proper share of head office expenses which shall not exceed such percentage of the total net premiums, that is to say, gross premiums written direct in Bangladesh plus reinsurances accepted minus reinsurances ceded during the year in respect of life insurance business transacted by him in Bangladesh as may be prescribed, but does not in the case of an insurer having his principal place of business in Bangladesh include any share of head office expenses in respect of life insurance business transacted by him outside Bangladesh.
Limitation of expenses of management in general insurance business
40C. (1) No insurer shall, in respect of any class of general insurance business transacted by him in Bangladesh, spend in any calendar year as expenses of management 65[, including commission or remuneration for procuring business], an amount in excess of the prescribed limits and in prescribing any such limits regard shall be had to the size and age of the insurer:
Provided that the Chief Controller of Insurance may, on an application made to him in this behalf, condone the contravention of this sub-section by an insurer who has, on reasonable grounds, spent as such expenses an amount in excess of such limits.
(2) Every insurer as aforesaid shall incorporate in the revenue account a certificate signed by the chairman, two directors and the principal officer of the insurer, and an auditor’s certificate, certifying that all expenses of management wherever incurred, whether directly or indirectly, in respect of the business referred to in this section have been fully debited in the revenue account as expenses.
Explanation.- In this section,-
(a) “expenses of management” means all charges, wherever incurred whether directly or indirectly [including commission payments of all kinds] and, in the case of an insurer having his principal place of business outside Bangladesh, a proper share of head office expenses which shall not exceed such percentage of the total net premiums, that is to say, gross premiums written direct in Bangladesh plus reinsurances accepted minus reinsurances ceded during the year as may be prescribed; and
(b) “insurance business transacted in Bangladesh” includes insurance business, wherever effected, relating to any property situated in Bangladesh or to any vessel or aircraft registered in Bangladesh.
Prohibition of rebates
- (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in Bangladesh any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer:
Provided that acceptance by an insurance agent of Commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.
(2) Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred Taka.
Licensing of insurance agents
- (1) Any person who possesses such qualifications as may be prescribed in this behalf and who makes an application in the prescribed manner to the Chief Controller of Insurance accompanied by the prescribed fee, which shall not be more than 66[two hundred] Taka may be granted a temporary licence for the purpose of soliciting or procuring life insurance business.
(2) A temporary licence issued under sub-section (1) shall remain in force for a period of two years.
(3) On his making an application to the Chief Controller of Insurance in the prescribed manner accompanied by the prescribed fee, the holder of a temporary licence who has passed such examination as may be prescribed, and any other person who has passed the examination, shall be granted a renewable licence.
(4) A renewable licence shall remain in force for a period of three years from the date of issue but shall be renewed for a further period of three years at any one time if-
(i) an application in the prescribed form for renewal of the licence reaches the Chief Controller at least one month before the date on which the licence ceases to remain in force;
(ii) the applicant has paid the prescribed renewal fee which shall not be more than 67[three hundred] Taka; and
(iii) except in such circumstances as may be prescribed, the applicant has procured during the previous three years such volume of business, and from out of the business procured by him the number of policies lapsing has been below such percentage, as may be prescribed.
(5) A person to whom a temporary licence is granted and who is unable to pass the examination prescribed under sub-section (3) shall not be entitled to apply for another temporary licence:
Provided that the Chief Controller may grant a fresh temporary licence to a person who has previously held a temporary licence if such person has procured such volume of business, and from out of the business procured by whom the number of policies lapsing is below such percentage as may be prescribed.
68[(6) The Chief Controller of Insurance or an officer authorised by him in this behalf shall, in the prescribed manner and on payment of prescribed fee, which shall not be more than 69[two hundred Taka], issue to any individual making an application in the prescribed manner a licence to act as an insurance agent for the purpose of soliciting or procuring general insurance business.
(7) A licence issued under sub-section (6) shall remain in force for a period of one year from the date of issue but shall be renewed for a period of three years at any one time if :-
(i) an application in the prescribed form for renewal of the licence reaches the issuing authority at least one month before the date on which the licence ceases to remain in force;
(ii) the applicant has paid the prescribed renewal fee which shall not be more than three hundred Taka; and
(iii) the applicant has procured during the previous three years general insurance business yielding at an average a premium income of not less than one lakh Taka.
(8) No fresh licence for general insurance business shall be issued to an insurance agent whose licence has not been renewed under sub-section (7), until after one year from the date on which his last licence ceased to remain in force.]
(9) Notwithstanding the provisions of clause (i) of sub-section (4) 70[or clause (i) of sub-section (7)], an application for the renewal of a licence which does not reach the issuing authority at least one month before the date on which the licence ceases to remain in force shall be entertained at any time before that date if the applicant has paid an additional fee of a prescribed amount not exceeding five Taka by way of penalty:
Provided that the Chief Controller of Insurance may, if satisfied that undue hardship would be caused otherwise, entertain an application received after the licence ceases to remain in force on payment by the applicant of a penalty of a prescribed amount not exceeding thirty Taka.
71[(10) For the purpose of sections 40 and 40A, no insurance agent who is licensed to act as an insurance agent for life insurance business be deemed to be an insurance agent for general insurance business and no insurance agent who is licensed to act as an insurance agent for general insurance business shall be deemed to be an insurance agent for life insurance business.]
(11) A licence issued under this section shall entitle the holder thereof to act as an insurance agent for any insurer.
(12) No person shall apply for temporary or renewable licence or apply for the renewal of a licence in respect of life insurance business 72[or a licence in respect of general insurance business] if:-
(i) he is a minor;
(ii) he has been found to be of unsound mind by a Court of competent jurisdiction;
(iii) he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction:
Provided that where, in the case of a person convicted of any such offence, five years have elapsed since the date of the sentence or, where the sentence was of imprisonment with or without fine, from the date of his release, the Chief Controller of Insurance shall ordinarily declare in respect of such person that his conviction shall cease to debar him from making such an application.
(iv) in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer, it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured.
(13) If it be found that an insurance agent is debarred by sub-section (12) from making an application, without prejudice to any other penalty to which he may be liable, the Chief Controller of Insurance shall, and if the agent has knowingly contravened any provision of this Act, or any rule or order made thereunder may, cancel a licence issued to the agent under this section.
(14) In the event of the cancellation of a licence under sub-section (13), the Chief Controller of Insurance may refuse to grant a fresh licence to the insurance agent for such period as the Chief Controller deems fit.
(15) The authority which issued any licence under this section may issue a duplicate licence to replace a licence lost, destroyed or mutilated on payment of the prescribed fee which shall not be more than one Taka.
(16) The Chief Controller shall if he refuses any licence or the renewal of any licence under this section, communicate his decision in writing to the applicant for the licence or the renewal within six weeks of the date of the application.]
Certificates to employers of agents
73[42A. (1) Any individual who has-
(a) worked as a life insurance agent for such period as may be prescribed;
(b) procured such volume of life insurance as may be prescribed of which such percentage as may be prescribed remains in force one month prior to the date of application referred to in clause (c); and
(c) applied in the prescribed manner to the Chief Controller of Insurance and has paid the prescribed fee which shall not be more than 74[five] hundred Taka,
may be granted a temporary certificate to act as an employer of agents on behalf of an insurer for the purpose of procuring life insurance business.
(2) A temporary certificate issued under sub-section (1) shall remain in force for a period of two years.
(3) On his making to the Chief Controller of Insurance in the prescribed manner an application accompanied by the prescribed fee which shall not be more than 75[seven hundred and fifty] Taka, the holder of a temporary certificate who has passed such examination as may be prescribed, and any other person who is qualified to be granted a temporary certificate and has passed the examination, shall be granted a renewable certificate.
(4) A renewable certificate shall remain in force for a period of three years from the date of issue but shall be renewed for a further period of three years at any one time if-
(i) an application in the prescribed form for renewal of the certificate reaches the issuing authority at least one month before the date on which the certificate ceases to remain in force;
(ii) the applicant has paid the prescribed renewal fee which shall not be more than 76[seven hundred and fifty] Taka;
(iii) except in such circumstances as may be prescribed, the applicant has complied with such provisions relating to recruitment of agents who have qualified for a renewable certificate and produced such volume of business and from out of the business procured by whom the number of policies lapsing has been below such percentage as may be prescribed.
(5) An individual to whom a temporary certificate has been granted and who is unable to pass the examination prescribed under sub-section (3) shall not be entitled to apply for another temporary certificate:
Provided that the Chief Controller of Insurance may grant a fresh temporary certificate to an individual who has previously held a temporary certificate if such individual has introduced such number of agents who have qualified for a renewable licence and produced such volume of business and from out of the business procured by whom the number of policies lapsing has been below such percentage as may be prescribed.
(6) Notwithstanding the provisions of clause (i) of sub-section (4), an application for the renewal of a renewable certificate which does not reach the issuing authority at least one month from the date on which the certificate ceases to remain in force shall be entertained at any time before that date if the applicant has paid an additional fee of a prescribed amount not exceeding 77[two hundred and fifty] Taka by way of penalty:
Provided that the Chief Controller of Insurance may, if satisfied that undue hardship would be caused otherwise, entertain an application received after the certificate ceases to remain in force on payment by the application of a penalty of a prescribed amount not exceeding 78[seven hundred and fifty] Taka.
79[(7) The Chief Controller of Insurance or an officer authorised by him in this behalf shall, in the prescribed manner and on payment of the prescribed fee which shall not be more than five hundred Taka, issue to any person making an application in the prescribed manner a certificate to act as an employer of agents on behalf of an insurer for the purposes of procuring general insurance business.
(8) A certificate issued under sub-section (7) shall remain in force for a period of one year from the date of issue, but shall, on application made in this behalf, be renewed from year to year if-
(i) an application in the prescribed form for renewal of the certificate reaches the issuing authority before the date on which the certificate ceases to remain in force;
(ii) the applicant has paid the prescribed renewal fee which shall not be more than five hundred Taka; and
(iii) the applicant has procured or caused to be procured such minimum amount of general insurance business and has complied with such conditions as may be prescribed in this behalf:
Provided that an application for the renewal of a certificate which does not reach the issuing authority before the certificate ceases to remain in force shall be entertained if the applicant has submitted an application within twelve months from the date the certificate ceases to remain in force and has paid an additional fee of the prescribed amount not exceeding five hundred Taka by way of penalty.
(9) No fresh certificate shall be issued to an employer of agents whose certificate has not been renewed under sub-section (8), until after one year from the date on which his last certificate ceased to remain in force.]
(10) No person shall apply for any certificate or for the renewal thereof if-
(i) he is a minor;
(ii) he has been found to be of unsound mind by a Court of competent jurisdiction;
(iii) he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction:
Provided that where, in the case of a person convicted of any such offence, five years have elapsed since date of the sentence or, where the sentence was of imprisonment with or without fine, from the date of his release, the Chief Controller of Insurance shall ordinarily declare in respect of such person that his conviction shall cease to debar him from making such an application;
(iv) in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer, it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured.
(11) Where it is found that an employer of agents being an individual is, or being a company or firm contains a director or partner who is, debarred by sub-section (10) from making an application, without prejudice to any other penalty to which he may be liable, the Chief Controller of Insurance shall, and where an employer of agents has contravened any of the provisions of this Act or any rule or order made thereunder may, cancel a certificate issued to the employer of agents under this section.
(12) In the event of the cancellation of a certificate under sub-section (11), the Chief Controller of Insurance may refuse to grant a fresh certificate to the employer of agents for such period as the Chief Controller may deem fit.
(13) The authority which issued any certificate under this section may issue a duplicate certificate to replace a certificate lost, destroyed or mutilated on payment of the prescribed fee, which shall not be more than five Taka.
(14) A certificate issued under this section shall entitle the holder thereof to act as an employer of agents for any insurer.
(15) The Chief Controller shall, if he refuses a certificate or the renewal of a certificate under this section, communicate his decision in writing to the applicant for the certificate or renewal within six weeks from the date of the application.]
Powers to ensure compliance with certain provisions
80[42B. For the purposes of ensuring compliance with the provisions of sections 40, 40A, 40B, 40C, 42, 42A, 44A and 44B the Chief Controller may, by notice,-
(a) require from an insurer, or an employer of agents or an insurance agent, or an insurance surveyor such information certified, if so required by an auditor or an actuary, as he may consider necessary;
(b) issue such directions to the insurer as he may deem necessary;
(c) require an insurer or an employer of agents or an insurance agent or an insurance surveyor to submit for his examination at the principal place of business of the insurer in Bangladesh, any book of account, register or other document or to supply any statement which may be specified in the notice.]
Provisions of contracts with agents
81[43A. Every contract made by an insurer with an insurance agent or employer of agents shall contain such provisions as may be prescribed and every such contract in force immediately before the commencement of the Insurance (Amendment) Ordinance, 1970, shall be deemed to contain the said provisions or provisions to the same effect.]
Register of insurance agents
- (1) Every insurer and every person who acting on behalf of an insurer employs insurance agents shall maintain a register showing the name and address of every insurance agent appointed by him and the date on which his appointment began and the date, if any, on which his appointment ceased.
(2) Any individual not holding a licence issued under section 42 who acts as an insurance agent shall be punishable with fine which may extend to fifty Taka, and any insurer who, or any person acting on behalf of an insurer who, appoints as an insurance agent any individual not so licensed, or transacts any insurance business in Bangladesh through any such individual, shall be punishable with fine which may extend to one hundred Taka.
(3) The provisions of sub-section (2) shall not take effect until the expiry of six months from the commencement of this Act.
Prohibition of cessation of payment of commission
- (1) Notwithstanding anything to the contrary contained in any contract between any person and any insurance agent providing for the forfeiture or stoppage of payment of renewal commission to such insurance agent, no such person shall, in respect of life insurance business transacted in Bangladesh, refuse payment to an insurance agent of commission due to him on renewal premium under the agreement by reason only of the termination of his agreement, except for fraud:
Provided that-
(a) such agent ceases to act for the insurer concerned after the Chief Controller of Insurance is satisfied and has conveyed the fact to the insurer and the agent that the circumstances in which the said insurer is placed are such as to justify the agent’s ceasing to act for him; or
(b) such agent has served the insurer continually and exclusively in respect of life business for not less than three years and has earned a minimum renewal commission of three hundred Taka during the twelve months preceding the date of his ceasing to act as such agent for the insurer.
(2) Any commission payable to an insurance agent whether under the provisions of sub-section (1) or otherwise shall, notwithstanding the death of the agent and notwithstanding the provisions in this Act regarding the holding of an insurance agent’s licence continue to be payable to his heirs for so long as such commission would have been payable had such insurance agent been alive or in one or more lump sums commuted under sub-section (4):
Provided that no commission on renewal premiums shall be paid under this sub-section if the total amount of commission on renewal premiums earned by the insurance agent during the twelve months preceding the date of his death was less than three hundred Taka.
(3) For the purposes of sub-section (2) an insurance agent may nominate the person or persons to whom the commission due to him shall be paid in the event of his death:
Provided that any such nomination to be effectual shall be communicated to the insurer and registered by him in writing and any such nomination may at any time before the death of the insurance agent, be cancelled or changed by him, but unless a notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment of the commission made bona fide by him to a nominee registered with the insurer:
Provided further that the insurer shall furnish to the insurance agent a written acknowledgment of having registered nomination or cancellation or change thereof :
Provided also that where the nominee is a minor, it shall be lawful for the insurance agent to appoint any person to receive the commission in the event of his death during the minority of the nominee.
(4) If the commission payable to any heir or nominee of a deceased insurance agent under the provisions of sub-section (2) is less than three hundred Taka a year, the insurer shall and in any other case the insurer may, with the consent of the heir or the nominee of the deceased insurance agent, commute such renewal commission and pay the amount or amounts mutually agreed to in lump sum or sums.
(5) An insurer may recover out of the commission payable under sub-section (2) any sums owing to the insurer by the insurance agent at the date of his death.
(6) In this section, reference to “insurance agent” or “agent” shall be construed as including reference to “employer of agent”, and reference to “commission” shall be construed as including reference to “over-riding commission”.
Insurance surveyors to hold certificates
82[44A. (1) No person other than an insurance surveyor holding an appropriate certificate under this section shall, after the expiry of six months from the commencement of the Insurance (Amendment) Act, 1958, undertake in Bangladesh the surveying assessment or adjustment of any loss in respect of general insurance business and no insurer shall pay any claim in respect of general insurance business transacted by him in Bangladesh unless the loss has been surveyed, assessed or adjusted, as the case may be, by an insurance surveyor holding an appropriate certificate under this section:
Provided that the provisions of this sub-section shall not apply to such persons and to such losses as may be prescribed.
(2) An application for a certificate under this section shall be made to the Chief Controller of Insurance in the prescribed manner and be accompanied by a prescribed fee which shall not be more than 83[two thousand Taka].
(3) The insurance surveyors may be classified into such classes or sub-classes as may be prescribed, and, if so classified, separate application shall be made and separate certificates issued in respect of each such class or sub-class.
(4) The Chief Controller of Insurance or any person authorised by him in this behalf may, on receipt of an application under this section, call for such information or explanation as he may deem fit, or ask the applicant to appear before him in person, and on being satisfied that the applicant fulfils such requirements as may be prescribed and is fit to hold the certificate applied for, grant such certificate.
(5) An applicant who has been refused a certificate of any class or sub-class under sub-section (4) shall not be entitled to make a fresh application for a certificate of the same class or sub-class before the expiry of a period of one year from the date of such refusal.
(6) A certificate issued under this section shall remain in force for a period of one year only from the date of issue, but shall, on application made in this behalf, be renewed from year to year, if –
(i) an application in the prescribed form for renewal of the certificate reaches the issuing authority before the certificate ceases to remain in force;
(ii) the applicant has paid the prescribed fee which shall not be more than 84[one thousand Taka];
(iii) the applicant fulfils the requirements prescribed under sub-section (4); and
(iv) in the case of an individual, the applicant, or, in the case of a company or firm, any of its directors or partners, does not suffer from any of the disqualifications mentioned in clauses (b), (c), or (d) of sub-section (4) of section 42:
Provided that an application for renewal of the certificate which does not reach the issuing authority before the certificate ceases to remain in force shall be entertained if the applicant has submitted an application within twelve months from the date the certificate cases to remain in force and has paid an additional fee of the prescribed amount not exceeding fifteen Taka by way of penalty.
85[(6A) The Chief Controller shall, if he refuses a certificate or the renewal of a certificate under this section, communicate his decision in writing to the applicant for such certificate or renewal within three months from the date of the application.]
(7) Where it is found that an insurance surveyor being an individual is, or being a company or firm contains a director or partner who is, suffering from any of the disqualifications mentioned in sub-section (4) of section 42, without prejudice to any other penalty to which he may be liable, the Chief Controller shall, and where it is proved to the satisfaction of the Chief Controller that the insurance surveyor has-
(i) given a false report; or
(ii) grossly over-assessed or under-assessed any loss; or
(iii) made an adjustment of loss in a grossly unjust manner;
the Chief Controller may cancel the certificate or certificates held by that insurance surveyor:
Provided that in the event of cancellation of a certificate under the discretionary powers of the Chief Controller under this sub-section the Government may, upon an application made to it in this behalf, call for a report from the Chief Controller, and, after considering such report and hearing the applicant, give such direction to the Chief Controller as it may deem fit.
(8) The authority which issued any certificate under this section may issue a duplicate certificate to replace a certificate lost, destroyed or mutilated on payment of the prescribed fee, which shall not be more than five Taka.
(9) Any person who acts in contravention of this section shall be punishable with fine which may extend to one thousand Taka and where the person contravening is a company or a firm, then, without prejudice to any other proceedings which may be taken against the company or firm, every director, manager, secretary or any other officer of the company and every partner of the firm who is knowingly a party to such contravention shall be punishable with fine which may extend to one thousand Taka.
Second survey
44B. (1) If in any case the Chief Controller of Insurance has reason to believe that an insurance surveyor has given a false report or has grossly over-assessed or under-assessed a loss or has made an adjustment of loss in a grossly unjust manner, he may direct the insurer to arrange for another survey of that loss through any other surveyor or surveyors approved by him.
(2) In the event of the second survey made under sub-section (1) the surveyor or surveyors shall forward one copy of the report to the Chief Controller who on considering such report and after giving an opportunity to the first surveyor to be heard, may cancel the certificate of the surveyor concerned in accordance with the provisions of sub-section (7) of section 44A.]
Part II
SPECIAL PROVISIONS OF LAW
Policy not to be called in question on ground of mis-statement after two years
- No policy of life insurance effected before the commencement of this Act shall after the expiry of two years from the date of commencement of this Act and no policy of life insurance effected after the coming into force of this Act shall, after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policy-holder and that the policy-holder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose:
Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that age of the life insured was incorrectly stated in the proposal.
Application of Bangladesh law to policies issued in Bangladesh
- The holder of a policy of insurance issued by an insurer in respect of insurance business transacted in Bangladesh after the commencement of this Act shall have the right, notwithstanding anything to the contrary contained in the policy or in any agreement relating thereto, to receive payment in Bangladesh, of any sum secured thereby and to sue for any relief in respect of the policy in any Court of competent jurisdiction in Bangladesh; and if the suit is brought in Bangladesh any question of law arising in connection with any such policy shall be determined according to the law in force in Bangladesh:
Provided that nothing in this section shall apply to a policy of marine insurance.
Dispute over claims on life policies of small amount
86[47A. (1) Any dispute arising under a policy of life insurance assuring a sum not exceeding five thousand Taka (exclusive of any profit or bonus not being a guaranteed profit or bonus) issued by an insurer in respect of insurance business transacted by him in Bangladesh, between the claimant and the insurer who issued the policy or has otherwise assumed the liabilities in respect thereof, may, at the option of the claimant, be referred to the Chief Controller of Insurance for settlement and the Chief Controller may, after hearing the parties and taking such evidence as he may, in his absolute discretion, consider necessary, settle the dispute.
(2) The decision of the Chief Controller under this section shall be final and shall not be called in question in any Court and shall be deemed to be a decree of a Court which would have been competent to decide the dispute and be executed accordingly.
(3) The Chief Controller shall, in respect of the duties performed by him for the purpose of this section, charge and collect such fees whether by way of percentage or otherwise as may be prescribed.]
Interest on late settlement of claims
87[47B. (1) Where payment on a policy issued by an insurer becomes due and the person entitled thereto has complied with all the requirements, including the filing of complete papers, for claiming the payment, the insurer shall, if he fails to make the payment within a period of ninety days from the date on which the payment becomes due or the claimant complies with the requirements, whichever is later, pay interest as specified in sub-section (2) on the amount so payable unless he proves that such failure was due to circumstances beyond his control.
(2) The interest under sub-section (1) shall be payable for the period during which the failure continues and shall be calculated at monthly rates at the rate of five per cent higher than the prevailing bank rate.
Payment of money into Court
- (1) Where in respect of any policy of life insurance maturing for payment an insurer is of opinion that by reason of conflicting claims to or insufficiency of proof of title to the amount secured thereby or for any other adequate reason it is impossible otherwise for the insurer to obtain a satisfactory discharge for the payment of such amount, the insurer may, before the expiry of nine months from the date of the maturing of the policy or, where the circumstances are such that the insurer cannot be immediately aware of such maturing, from the date on which notice of such maturing is given to the insurer, apply to pay the amount into the Court within the jurisdiction of which is situated the place at which such amount is payable under the terms of the policy or otherwise.
(2) A receipt granted by the Court for any such payment shall be a satisfactory discharge to the insurer for the payment of such amount.
(3) An application for permission to make a payment into Court under this section shall be made by a petition verified by an affidavit signed by a principal officer of the insurer setting forth the following particulars, namely:-
(a) the name of the insured person and his address;
(b) if the insured person is deceased, the date and place of his death;
(c) the nature of the policy and the amount secured by it;
(d) the name and address of each claimant so far as is known to the insurer with details of every notice of claim received;
(e) the reasons why in the opinion of the insurer a satisfactory discharge cannot be obtained for the payment of the amount; and
(f) the address at which the insurer may be served with notice of any proceedings relating to disposal of the amount paid into Court.
(4) An application under this section shall not be entertained by the Court if the application is made before the expiry of six months from the maturing of the policy by survival, or from the date of receipt of notice by the insurer of the death of the insured, as the case may be.
(5) If it appears to the Court that a satisfactory discharge for the payment of the amount cannot otherwise be obtained by the insurer it shall allow the amount to be paid into Court and shall invest the amount in Government securities pending its disposal.
(6) The insurer shall transmit to the Court every notice of claim received after the making of the application under sub-section (3), and any payment required by the Court as a costs of the proceedings or otherwise in connection with the disposal of the amount paid into Court shall as to the costs of the application under sub-section (3) be borne by the insurer and as to any other costs be in the discretion of the Court.
(7) The Court shall cause notice to be given to every ascertained claimant of the fact that the amount has been paid into Court, and shall cause notice at the cost of any claimant applying to withdraw the amount to be given to every other ascertained claimant.
(8) The Court shall decide all questions relating to the disposal of claims to the amount paid into Court.
Dispute over motor insurance claim
47C. (1) Where any dispute arises under a policy insuring a motor vehicle or covering any liability of its owner arising out of the use of the vehicle, any party to the dispute may make an application for adjudication to the Claims Settlement Board constituted under sub-section (2).
(2) The Government shall for the purpose of adjudication of disputes referred to in sub-section (1) constitute a Claims Settlement Board consisting of such number of members, including a Chairman, as it may think fit.
(3) The Chairman and a member shall be appointed on such terms and conditions as the Government may determine and shall hold office for a term of three years and be eligible, on the expiry of his term, for re-appointment for a further like term or terms.
(4) Where a vacancy occurs in the office of a member during his term, the Government shall appoint another person to fill such vacancy and the person so appointed shall hold office for the un-expired period of the term of his predecessor.
(5) In this section and in sections 47D, 47E, 47F, 47G, 47H, 47I, 47J, 47K and 47L, unless the context otherwise requires,-
(a) “application” means an application made under sub-section (1);
(b) “Board” means the Claims Settlement Board constituted under sub-section (2) and includes a bench of the Board constituted under section 47F;
(c) “Chairman” means the Chairman of the Board; and
(d) “member” means a member of the Board.
Qualifications of Chairman, etc.
47D. (1) The Chairman shall be a person who is, or has been, a District Judge, or is or has been, or is qualified to be, a judge of the 88[the Supreme Court].
(2) No person shall be appointed, or shall continue to be, a member of the Board if he is an undischarged insolvent, or is convicted of an offence which, in the opinion of the Government, involves moral turpitude.
Resignation and removal
47E. (1) A member may, at any time before the expiry of his term, by letter addressed to the Government, resign his office.
(2) The Government may, by order in writing, remove any member if he-
(a) refuses or fails to discharge, or becomes, in the opinion of the Government, incapable of discharging, his responsibilities as a member; or
(b) has, in the opinion of the Government, abused his position as member.
Benches of the Board
47F. (1) The Chairman may, and, if so required by the Government, shall, constitute such number of benches of the Board as may be necessary for the expeditious disposal of the applications; and each such bench shall consist of not less than two members.
(2) A bench shall try such applications as the Chairman may refer to it and shall hold its sittings at such place or places as he may direct.
Fees for application
47G. No application shall be received by the Board unless the application has paid such fee not exceeding one per cent of the amount of the claim in dispute and in such manner as may be prescribed.
Appeal
47I. (1) Except as provided in sub-section (2), the decision of the Board on an application shall be final and shall not be questioned in any Court or before any other authority.
(2) Any party aggrieved by a decision of the Board may, if the amount of the claim in dispute is not less than twenty thousand Taka, prefer an appeal to the High Court Division within a period of thirty days from the date of such decision.
Recovery of the claim as decided
47J. Where an insurer fails to pay the amount of any claim in accordance with the decision on an application within a period of thirty days from the date of the decision, the decision shall be deemed to be a decree of a Court which would have been competent to decide the dispute and be executed accordingly.
Notice to and hearing of insurance companies
47K. When application is made to the Board for the adjudication of a dispute, the Board shall, unless the insurer has himself made the application or has been made a party thereto, send to the insurer a copy of the application together with intimation of the date fixed for the hearing thereof and shall give him an opportunity of being heard.
Restriction on becoming directors of insurers
89[ 90[48B. Notwithstanding anything contained in any other law for the time being in force, a director of an insurer shall not be a director of another insurer registered for the same class of insurance business.]
Directors of insurers being public subscribers
48BB. Where the insurer is a company incorporated under the Companies Act, 1913 (VII of 1913), not less than one-third of the total member of directors of the company, shall, notwithstanding anything to the contrary in the Articles of Association of the company, be elected, in the prescribed manner, by the shareholders who are public subscribers to the paid up capital or the company from amongst themselves.
Restriction on appointment of nominated director
48BBB. Notwithstanding anything contained in any other law for the time being in force or in the Articles of Association of any insurer, no person other than a member of the Board of Directors of an insurer shall act as a director:
Provided that where a director is absent from Bangladesh for a period exceeding three months, a person qualified to be a director may be nominated by him to act as director in his place with the prior intimation to the Chief Controller of Insurance.
Chairman and Vice-Chairman
48BBBB. Notwithstanding anything contained in the Articles of Association of an insurer, the Chairman or Vice-Chairman of the Board of Directors of an insurer shall be elected from amongst the directors.]
Procedure and Powers of the Board
47H. (1) The Board shall, for the purpose of the trial of an application, follow such procedure as may be prescribed, and have the same powers as are vested in a civil Court trying a suit under the Code of Civil Procedure, 1908 (Act V of 1908), in respect of-
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents and material objects;
(c) receiving evidence on affidavits; and
(d) issuing commissions for the examination of witnesses or documents.
(2) If, in the course of the trial of an application, any one of the members ceases to hold office, or is, for any reason, unable to attend the sittings of the Board, the trial shall continue before, and the decision may be given by, the remaining members.
(3) If upon any matter requiring the decision of the Board there is a difference of opinion amongst its members, the opinion of the majority shall prevail and the decision of the Board shall be expressed in terms of the view of the majority:
Provided that where the members are equally divided on any point it shall,-
(a) in the case of the full Board or of a bench of which the Chairman is a member, be decided in accordance with the views of the Chairman; and
(b) in the case of a bench of which the Chairman is not a member, be referred to the Chairman and decided in accordance with his views.
(4) The decision of the Board shall be given in writing and shall be signed,-
(a) if it is of the full Board or of a bench of which the Chairman is a member, by the Chairman; and
(b) if it is of a bench of which the Chairman is not a member, by such member of the bench as is designated by the Chairman to be its senior member.
(5) The Board shall give a copy of the decision to each party to the dispute and shall also forward a copy to the Chief Controller of Insurance.
(6) The board shall, upon an application made in this behalf by any party to a dispute adjudicated by it and on payment of such fee not exceeding one Taka for every one hundred words, and subject to such conditions, as may be prescribed, furnish certified copies of its proceedings or of any document submitted to or produced before it.
Other Jurisdiction of Board
47L. The Government may, by notification in the official Gazette, authorise the Board-
(a) to enquire into, and determine the causes and quantum of, and fix the responsibility for, any such loss or series of losses payable under a policy of insurance as may be specified in the notification and to suggest to the Government measures calculated to prevent such losses; and
(b) to adjudicate upon such class of disputes arising under a policy relating to a class of insurance business other than motor insurance as may be so specified,
and thereupon the provisions of sections 47C to 47K shall apply to such inquiry and to such class of disputes as they apply to a dispute arising under a policy insuring a motor vehicle.]
Directors of insurers being companies
- (1) Where the insurer is a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, and carries on the business of life insurance, not less than one-third of the directors of the company shall notwithstanding anything to the contrary in the Articles of Association of the company be elected in the prescribed manner by the holders of policies of life insurance issued by the company.
91[(1A) Where in the case of an insurer the number of directors required to be elected under sub-section (1) was, immediately before the commencement of the Insurance (Amendment) Ordinance, 1970, less than one-third of the directors, such insurer shall take such steps as may be necessary for complying with the provisions of sub-section (1) within a period of one year from such commencement; and no proceedings of the directors shall, during that period, be invalid or be questioned merely on the ground of non-compliance with those provisions.]
(2) Only and all persons holding otherwise than as assignees policies of life insurance issued by the company of such minimum amount and having been in force for such minimum period as may be prescribed shall unless disqualified under sub-section (2A) be eligible for election as directors under sub-section (1), and only and all persons holding policies of life insurance issued by the company and having been in force at the time of the election for not less than six months shall be eligible to vote at such elections:
Provided that the assignment of a policy to the person who took out the policy shall not disqualify that person for being eligible for election as a director under sub-section (1).
92[(2A) A person shall be ineligible for election as a director under sub-section (1) of any company if he is a director, officer, employee, or legal or technical adviser of that company, or of any other insurer, and shall cease to be a director under sub-section (1) if after election he acquires any disqualification specified in this sub-section or no longer holds the qualifications required by sub-section (2):
Provided that nothing in this sub-section shall disqualify a person who is an elected director under sub-section (1) and is not otherwise disqualified under this sub-section, from being re-elected.]
(3) The Government may, for such period, or to such extent and subject to such conditions as may be specified by it in this behalf, exempt from the operation of this section-
(a) any Mutual Insurance Company as defined in clause (a) of sub-section (1) of section 95, in respect of which the Chief Controller of Insurance certifies that in his opinion owing to the conditions governing membership of the company or to the nature of the insurance contracts undertaken by it the application of the provisions of this sub-section to the company is impracticable, or
(b) any company in respect of which the Chief Controller of Insurance certifies that in his opinion the company, having taken all reasonable steps to achieve compliance with the provisions of this section, has been unable to obtain the required number of directors with the required qualifications.
(4) This section shall not take effect, in respect of any company in existence at the commencement of this Act, until the expiry of one year therefrom, and in respect of any company incorporated after the commencement of this Act, until the expiry of two years from the date of registration to carry on life insurance business.
Restriction on the life insurance agents’ becoming directors of Life Insurance Companies
93[48A. (1) No Insurance agent who solicits or procures life insurance business, and no employer of agents who procures life insurance business, shall be eligible to be or remain a director of any insurance company carrying on life insurance business unless he suspends such solicitation or procurement.
(2) Any insurance agent or employer of agents who contravenes the provisions of sub-section (1) shall cease to be a director and shall also be liable to the cancellation of his licence as insurance agent or, as the case may be, certificate as employer of agents.]
Appointment of Chief Executives of insurers
94[48C. (1) No insurer shall carry on any insurance business without having appointed a chief executive officer for that purpose.
(2) No person shall be appointed as the chief executive officer of an insurer without the prior permission of the Chief Controller of Insurance and he shall not accord permission for such appointment unless the person proposed to be appointed has prescribed qualification and experience in the field of insurance.
(3) The chief executive officer shall not be removed, terminated or dismissed by the insurer without the prior approval of the Chief Controller of Insurance and he shall not give decision in such cases without hearing the concerned chief executive officer and the insurer or any person authorised by the insurer in this behalf.]
Advisers of insurers
95[48CC. Notwithstanding anything contained in the Articles of Association of an insurer, no insurer shall appoint more than three advisers:
Provided that no share-holder or director of the concerned insurer or member of their families shall be an adviser under this section.]
Restriction on dividends and bonuses
- (1) No insurer, being an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2, who carries on the business of life insurance or any other class or sub-class of insurance business to which section 13 applies shall for the purpose of declaring or paying any dividend to shareholders or any bonus to policy-holders or of making any payment in service of any debentures, utilise directly or indirectly any portion of the life insurance fund or of the fund of such other class or sub-class of insurance business, as the case may be, except a surplus shown in the valuation balance-sheet in Form I as set forth in the Fourth Schedule submitted to the Chief Controller of Insurance as part of the abstract referred to in section 15 as a result of an actuarial valuation of the assets and liabilities of the insurer; nor shall he increase such surplus by contributions out of any reserve fund or otherwise unless such contributions have been brought in as revenue through the revenue account applicable to that class or sub-class of insurance business on or before the date of the valuation aforesaid, when the reserve fund is made up solely of transfers from similar surpluses disclosed by valuations in respect of which returns have been submitted to the Chief Controller of Insurance under section 15 of this Act 96[* * *]:
Provided that payments made out of any such surplus in service of any debentures shall not exceed fifty per cent of such surplus including any payment by way of interest on the debentures, and interest paid on the debentures shall not exceed ten per cent of any such surplus except when the interest paid on the debentures is off-set against the interest credited to the fund or funds concerned in deciding the interest basis adopted in the valuation disclosing the aforesaid surplus.
(2) No insurer other than an insurer specified in sub-clause (a)(ii) or sub-clause (b) of clause (9) of section 2 who carries on the business of life insurance in Bangladesh shall for the purpose of declaring or paying any bonus to policy-holders in Bangladesh utilise directly or indirectly any portion of the life insurance fund except a surplus shown in the valuation balance-sheet in Form I as set forth in the Fourth Schedule submitted to the Chief Controller of Insurance as part of the abstract referred to in section 15 as a result of an actuarial valuation of the assets and liabilities of the insurer in Bangladesh; nor shall he increase such surplus by contributions out of any reserve fund or otherwise unless such contributions have been brought in as revenue through the revenue account applicable to life insurance business on or before the date of the valuation aforesaid, except when the reserve fund is made up solely of transfers from similar surpluses disclosed by valuations in respect of which returns have been submitted to the Chief Controller of Insurance under section 15 of this Act 97[* * *].
Distribution of profits on life insurance business among policy-holders
98[49A. Notwithstanding anything contained to the contrary in its Memorandum or Articles of Association or any other documents, no insurer transacting life insurance business shall after the commencement of the Insurance (Amendment) Ordinance, 1970, allocate for the benefit of the policy-holders a sum less than such percentage of the surplus, being not less than 99[ninety] per cent or more than ninety-seven and one-half per cent, as may be prescribed:
Provided that in prescribing the percentage regard shall be had to the size of the insurer.
Explanation.- In this section, “Surplus” means the sum shown as surplus in Form I of the Fourth Schedule enhanced by any sum transferred to any reserve other than a reserve for depreciation in investment adjusted by an amount representing surplus disclosed at a previous valuation and already allocated.]
Notice of options available to the assured on the lapsing of a policy
- An insurer shall, before the expiry of three months from the date on which the premiums in respect of a policy of life insurance were payable but not paid, give notice to the policy-holder informing him of the options available to him unless these are set forth in the policy.
Special provision in respect of certain life insurance policies
100[50A. (1) If, in respect of a policy of life insurance under which the whole of the benefits become payable either on, or at a fixed interval or intervals after, the occurrence of a contingency which is bound to occur, all the premiums have been paid for at least two consecutive years and the policy-holder does not, or is unable to, pay further premiums, any one of the following consequences according as the policy-holder has indicated his option in writing, shall ensue, namely:-
(a) the policy shall be paid up after advancing one year’s premium subject to the availability of the surrender value; or
(b) the surrender value of the policy shall be applied to the payment of the premium due until the surrender value is exhausted.
(2) The option under sub-section (1) may be indicated by the policy-holder either at the time of taking the policy or at any time thereafter before the cessation of the payment of premium; and any option so indicated may be modified at any time before such cessation.]
Supply of copies of proposals and medical reports
- Every insurer shall, on application by a policy-holder and on payment of a fee not exceeding one Taka, supply to the policy-holder certified copies of the questions put to him and his answers thereto contained in his proposal for insurance and in the medical report supplied in connection therewith.
Part II
MANAGEMENT BY ADMINISTRATOR
Cancellation of contracts and agreements
52D. The Administrator may, at any time during the continuance of his appointment with respect to any insurer and after giving an opportunity to the persons concerned to be heard, cancel or vary (either unconditionally or subject to such conditions as he thinks fit to impose) any contract or agreement (other than a policy) between the insurer and any other person which the Administrator is satisfied is prejudicial to the interests of holders of insurance policies.
Termination of appointment of Administrator
52E. If at any time, on a report made by the Chief Controller in this behalf, it appears to the Government that the purpose of the order appointing the Administrator has been fulfilled or that for any reason it is undesirable that the order of appointment should remain in force, the Government may cancel the order and thereupon the Administrator shall be divested of the management of the insurance business which shall, unless otherwise directed by the Government again vest in the person in whom it was vested immediately prior to the date of appointment of the Administrator.
Finality of decision of appointing Administrator
52F. Any order or decision of the Government made in pursuance of section 52A or section 52E shall be final and shall not be called in question in any Court.
Penalty for withholding document or property from Administrator
52G. If any director or officer of the insurer or any other person fails to deliver to the Administrator any books of account, registers or any other documents in his custody relating to the business of the insurer the management of which has vested in the Administrator, or retains any property of such insurer, he shall be punishable with imprisonment which may extend to six months, or with fine which may extend to one thousand Taka or with both.
Protection of action taken under sections 52A to 52D
52H. (1) No suit, prosecution or other legal proceeding shall lie against an Administrator for anything which is in good faith done or intended to be done in pursuance of section 52A, section 52B, section 52C or section 52D.
(2) No suit or other legal proceeding shall lie against the Government or the Chief Controller for any damage caused or likely to be caused by anything which is in good faith done or intended to be done under section 52A, section 52B or section 52E.]
Part II
SPECIAL PROVISIONS OF LAW
Prohibition of business on dividing principle
- (1) No insurer shall after the commencement of this Act, begin, or after three years from that date continue to carry on, any business upon the dividing principle, that is to say, on the principle that the benefit secured by a policy is not fixed but depends either wholly or partly on the results of a distribution of certain sums amongst policies becoming claims within certain time-limits, or on the principle that the premiums payable by a policy-holder depend wholly or partly on the number of policies becoming claims within certain time-limits:
Provided that nothing in this section shall be deemed to prevent an insurer from allocating bonuses to holders of policies of life insurance as a result of a periodical actuarial valuation either as reversionary additions to the sums insured or as immediate cash bonuses or otherwise:
Provided further that an insurer who continues to carry on insurance business on the dividing principle after the commencement of this Act shall withhold from distribution a sum of not less than forty per cent of the premiums received during each year after the commencement of this Act, in which such business is continued so as to make up the amount required for investment under section 27.
(2) and (3) 101[Omitted by section 43 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958).]
Part II
MANAGEMENT BY ADMINISTRATOR
When Administrator for management of insurance business may be appointed
52A. (1) If at any time the Chief Controller has reason to believe that an insurer carrying on insurance business is acting in a manner likely to be prejudicial to the interest of holders of insurance policies, he may, after giving such opportunity to the insurer to be heard as he thinks fit, make a report thereon to the Government.
(2) The Government, if it is of opinion after considering the report that it is necessary or proper to do so, may appoint an Administrator to manage the affairs of the insurer under the direction and control of the Chief Controller.
(3) The Administrator shall receive such remuneration as the Government may direct and the Government may at any time cancel the appointment and appoint some other person as Administrator.
(4) The management of the business of the insurer shall as on and after the date of appointment of the Administrator vest in such Administrator but except with the leave of the Chief Controller the Administrator shall not issue any further policies.
(5) As on and after the date of appointment of the Administrator any person vested with any such management immediately prior to that date shall be divested of that management.
(6) The Chief Controller may issue such directions to the Administrator as to his powers and duties as he deems desirable in the circumstances of the case, and the Administrator may apply to the Chief Controller at any time for instructions as to the manner in which he shall conduct the management of the business of the insurer or in relation to any matter arising in the course of such management.
Powers and duties of the Administrator
52B. (1) The Administrator shall conduct the management of the business of the insurer with the greatest economy compatible with efficiency and shall, as soon as may be possible, file with the Chief Controller a report stating which of the following courses is in the circumstances most advantageous to the general interest of the holders of insurance policies, namely:-
(a) the transfer of the business of the insurer to some other insurer;
(b) the carrying on of its business by the insurer (in case of life insurance business whether with the policies of the business continued for the original sum insured with the addition of bonuses that attach to the policies or for reduced amounts);
(c) the winding up of business of the insurer; or
(d) such other course as he deems advisable.
(2) On the filing of the report with the Chief Controller, the Chief Controller may take such action as he thinks fit for promoting the interest of the holders of insurance policies in general.
(3) Any order passed by the Chief Controller under sub-section (2) shall be binding on all persons concerned, and shall have effect notwithstanding anything in the Memorandum or Articles of Association of the insurer, if a company.
Powers of Administrator respecting property liable to attachment under section 106
52C. (1) If the Administrator is satisfied that any person has rendered himself liable to be proceeded against under section 106, he may, pending the institution of proceedings against such person under that section, by order in writing prohibit him or any other person from transferring or otherwise disposing of any property which, in the opinion of the Administrator, would be liable to attachment in proceedings under that section.
(2) Any person aggrieved by an order made by the Administrator under sub-section (1) may, within fourteen days from the date on which the order is served on him, appeal against such order to the Government and the Government may pass such order thereon as it thinks fit.
(3) An order made by the Administrator under sub-section (1) shall, subject to any order made by the Government on appeal, be in force for a period of three months from the date of the order, unless, before the expiry of the said period, an application is made under sub-section (1) of section 106 to the Court competent to exercise jurisdiction under that sub-section, and when such an application is made, the order shall, subject to any order made by that Court, continue in force as if it were an order of attachment made by that Court in proceedings under that section.
(4) An order made by the Administrator under this section shall,-
(a) in the case of an order affecting a corporation or firm, be served in the manner provided for the service of summons in rule 2 of Order XXIX or rule 3 of Order XXX, as the case may be, in the First Schedule to the Code of Civil Procedure, 1908, and
(b) in the case of an order affecting a person not being a corporation or firm, be served on such person,-
(i) personally, by delivering or tendering to him the order, or
(ii) by post, or
(iii) where the person cannot be found, by leaving a copy of the order with some adult male member of his family or by affixing such copy to some conspicuous part of the premises in which he is known to have last resided or carried on business or personally worked for gain, and every such order shall also be published in the official Gazette.
(5) If any question arises whether a person was duly served with an order under sub-section (4) the publication of the order in the official Gazette shall be conclusive proof that the order was so served, and a failure to comply with the provisions of clause (a) or clause (b) of sub-section (4) shall not affect the validity of the order.
(6) Notwithstanding anything contained in this section, any property in respect of which an order has been made by the Administrator may, with the previous permission of the Administrator and subject to such terms and conditions as he may impose, be transferred or otherwise disposed of.
(7) Notwithstanding anything contained in any other law for the time being in force, the transfer or other disposition of any property in contravention of any order made by the Administrator under this section or of any terms and conditions imposed by him shall be void.
(8) For the purpose of enabling him to form an opinion as to whether any property would be liable to attachment in proceedings under section 106 or for the purpose of enabling him to institute proceedings under that section, the Administrator may require any person to furnish information on such points or matters as, in the opinion of the Administrator may be relevant for the purpose, and any person so required shall be deemed to be legally bound to furnish such information within the meaning of section 176 of the 102[Penal Code].
(9) The Administrator shall have all the powers of a civil Court under the Code of Civil Procedure, 1908, while trying a suit in respect of the following matters, namely:-
(a) summoning and enforcing the attendance of witnesses and examining them on oath;
(b) requiring the production of documents; and
(c) receiving evidence on affidavits;
and any proceeding before the Administrator under this section shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the 103[Penal Code].
(10) Save as provided in this section or in section 106, and notwithstanding anything contained in any other law for the time being in force,-
(a) no suit or other legal proceeding shall lie in any Court to set aside or modify any order of the Administrator or the Government made under this section, and
(b) no Court shall pass any decree, grant any injunction or make any other order which shall have the effect of nullifying or affecting in any way any such order.
Part II
WINDING UP
Unpaid-up share capital
104[53A. Notwithstanding anything contained in any other law, in ascertaining for any purpose of this Act the solvency or otherwise of any insurer, no account shall be taken of any assets of the insurer consisting of unpaid-up share capital.]
Winding up by the Court
- (1) The Court may order the winding up in accordance with the Companies Act, 1913, of any insurance company and the provisions of that Act shall, subject to the provisions of this Act apply accordingly.
(2) In addition to the grounds on which such an order may be based, the Court may order the winding up of an insurance company-
(a) if with the sanction of the Court previously obtained a petition in this behalf is presented by shareholders not less in number than one-tenth of the whole body of shareholders and holding not less than one-tenth of the whole share capital or by not less than fifty policy-holders holding policies of life insurance that have been in force for not less than three years and are of the total value of not less than fifty thousand Taka; or
(b) if the Chief Controller of Insurance, who is hereby authorised to do so, applies in this behalf to the Court on any of the following grounds, namely:-
(i) that the company has failed to deposit or to keep deposited with the Bangladesh Bank the amounts required by section 7 or section 98,
(ii) that the company having failed to comply with any requirement of this Act has continued such failure or having contravened any provision of this Act has continued such contravention for a period of three months after notice of such failure or contravention has been conveyed to the company by the Chief Controller of Insurance,
(iii) that it appears from the returns furnished under the provisions of this Act or from the results of any investigation made thereunder that the company is insolvent, or
(iv) that the continuance of the company is prejudicial to the interests of the policy-holders.
Voluntary winding up
- Notwithstanding anything contained in the Companies Act, 1913, an insurance company shall not be wound up voluntarily except for the purpose of effecting an amalgamation or a re-construction of the company, or on the ground that by reason of its liabilities it cannot continue its business.
Valuation of liabilities
- (1) In the winding up of an insurance company or in the insolvency of any other insurer the value of the assets and the liabilities of the insurer shall be ascertained in such manner and upon such basis as the liquidator or receiver in insolvency thinks fit, subject, so far as applicable, to the rule contained in the Sixth Schedule and to any directions which may be given by the Court.
(2) For the purposes of any reduction by the Court of the amount of the contracts of any insurance company the value of the assets and liabilities of the company and all claims in respect of policies issued by it shall be ascertained in such manner and upon such basis as the Court thinks proper having regard to the rule aforesaid.
(3) The rule in the Sixth Schedule shall be of the same force and may be repealed, altered or amended as if it were a rule made in pursuance of section 11138)and rules may be made under that section for the purpose of carrying into effect the provisions of this Act with respect to the winding up of insurance companies.
Application of surplus assets of life insurance fund in liquidation or insolvency
- (1) In the winding up of an insurance company and in the insolvency of any other insurer the value of the assets and the liabilities of the insurer in respect of life insurance business shall be ascertained separately from the value of any other assets or any other liabilities of the insurer and no such assets shall be applied to the discharge of any liabilities other than those in respect of life insurance business except in so far as those assets exceed the liabilities in respect of life insurance business.
(2) In the winding up of an insurance company carrying on the business of life insurance or in the insolvency of any other insurer carrying on such business where any proportion of the profits of the insurer was before the commencement of the winding up or insolvency allocated to policy-holders, if, when the assets and liabilities of the insurer have been ascertained, there is found to be a surplus of assets over liabilities (hereinafter referred to as a prima facie surplus) there shall be added to the liabilities of the insurer in respect of the life insurance business an amount equal to such proportion of the prima facie surplus as is equivalent to such proportion of the profits allocated to shareholders and policy-holders as was allocated to policy-holders during the ten years immediately preceding the commencement of the winding up and the assets of the insurer shall be deemed to exceed his liabilities only in so far as those assets exceed those liabilities after such addition:
Provided that-
(a) if in any case there has been no such allocation or if it appears to the Court that by reason of special circumstances it would be inequitable that the amount to be added to the liabilities of the insurer in respect of the life insurance business should be an amount equal to such proportion as aforesaid, the amount to be so added shall be such amount as the Court may direct, and
(b) for the purpose of the application of this sub-section to any case where before the commencement of the winding up or insolvency a proportion of such profits as aforesaid of a branch only of the life insurance business in question has been allocated to policy-holders, the value of the assets and liabilities of the insurer in respect of that branch shall be separately ascertained in like manner as the value of his assets and liabilities in respect of the life insurance business was ascertained, and the surplus so found, if any, of assets over liabilities shall, for the purpose of determining the amount to be added to the liabilities of the insurer in respect of the life insurance business be deemed to be the prima facie surplus.
Winding up secondary companies
- (1) Where the insurance business or any part of the insurance business of an insurance company has been transferred to another insurance company under an arrangement in pursuance of which the first mentioned company (in this section referred to as the secondary company) or the creditors thereof has or have claims against the company to which such transfer was made (in this section referred to as the principal company then, if the principal company is being wound up by or under the supervision of the Court, the Court shall (subject as hereinafter mentioned) order the secondary company to be wound up in conjunction with the principal company and may by the same or any subsequent order appoint the same person to be liquidator for the two companies and make provision for such other matters as may seem to the Court necessary with a view to the companies being wound up as if they were one company.
(2) The commencement of the winding up of the principal company shall, save as otherwise ordered by the Court, be the commencement of the winding up of the secondary company.
(3) In adjusting the rights and liabilities of the members of the several companies among themselves the Court shall have regard to the constitution of the companies and to the arrangements entered into between the companies in the same manner as the Court has regard to the rights and liabilities of different classes of contributories in the case of the winding up of a single company or as near thereto as circumstances admit.
(4) Where any company alleged to be secondary is not in process of being wound up at the same time as the principal company to which it is alleged to be secondary, the Court shall not direct the secondary company to be wound up, unless, after hearing all objections (if any) that may be urged by or on behalf of the company against its being wound up, the Court is of opinion that the company is secondary to the principal company and that the winding up of the company in conjunction with the principal company is just and equitable.
(5) An application may be made in relation to the winding up of any secondary company in conjunction with the principal company by any creditor of, or person interested in, the principal or secondary company.
(6) Where a company stands in the relation of a principal company to one insurance company and in the relation of a secondary company to some other insurance company or where there are several insurance companies standing in the relation of secondary companies to one principal company, the Court may deal with any number of such companies together or in separate groups as it thinks most expedient upon the principles laid down in this section.
Schemes for partial winding up of insurance companies
- (1) If at any time it appears expedient that the affairs of an insurance company in respect of any class of business comprised in the undertaking of the company should be wound up but that any other class of business comprised in the undertaking should continue to be carried on by the company or be transferred to another insurer, a scheme for such purposes may be prepared and submitted for confirmation of the Court in accordance with the provisions of this Act.
(2) Any scheme prepared under this section shall provide for the allocation and distribution of the assets and liabilities of the company between any classes of business affected (including the allocation of any surplus assets which may arise on the proposed winding up), for any future rights of every class of policy-holders in respect of their policies and for the manner of winding up any of the affairs of the company which are proposed to be wound up and may contain provisions for altering the memorandum of the company with respect to its objects and such further provisions as may be expedient for giving effect to the scheme.
(3) The provisions of this Act relating to the valuation of liabilities of insurers in liquidation and insolvency and to the application of surplus assets of the life insurance fund in liquidation or insolvency shall apply to the winding up of any part of the affairs of a company in accordance with the scheme under this section in like manner as they apply in the winding up of an insurance company, and any scheme under this section may apply with the necessary modifications to any of the provisions of the Companies Act, 1913, relating to the winding up of companies.
(4) An order of the Court confirming a scheme under this section whereby the memorandum of a company is altered with respect to its objects shall as respects the alteration have effect as if it were an order confirmed under section 12 of the Companies Act, 1913, and the provisions of sections 15 and 16 of that Act shall apply accordingly.
(5) When making an order confirming a scheme under this section, the Court may make such orders as it considers necessary for the disposal of so much of the deposit made by the company under section 7 or section 98 as does not relate to the classes of insurance business, if any, which the company continues to carry on.
Return of deposits
- In the winding up of an insurance company (otherwise than in a case to which section 58 applies) and in the insolvency of any other insurer, the liquidator or assignee, as the case may be, shall apply to the Court for an order for the return of the deposit made by the company or the insurer, as the case may be, under section 7 or section 98 and the Court shall, on such application, order a return of the deposit subject to such terms and conditions as it shall direct.
Notice of policy values
- In the winding up of an insurance company for the purposes of a cash distribution of the assets and in the insolvency of any other insurer the liquidator or assignee, as the case may be, in the case of all persons appearing by the books of the company or other insurer to be entitled to or interested in the policies granted by the company or other insurer shall ascertain the value of the liability of the company or other insurer to each such person and shall give notice of such value to those persons in such manner as the Court may direct and any person to whom notice is so given shall be bound by the value so ascertained unless he gives notice of his intention to dispute such value in such manner and within such time as may be specified by a rule or order of the Court.
Power of Court to reduce contracts of insurance
- (1) Where an insurance company is in liquidation or any other insurer is insolvent the Court may make an order reducing the amount of the insurance contracts of the company or other insurer upon such terms and subject to such conditions as the Court thinks just.
(2) Where a company carrying on the business of the life insurance has been proved to be insolvent, the Court may, if it thinks fit in place of making a winding up order reduce the amount of the insurance contracts of the company upon such terms and subject to such conditions as the Court thinks fit.
(3) Application for an order under this section may be made either by the liquidator or by or on behalf of the company or by a policy-holder, or by the Chief Controller of Insurance and the Chief Controller of Insurance and any person whom the Court thinks likely to be affected shall be entitled to be heard on any such application.
Part II
SPECIAL PROVISIONS RELATING TO EXTERNAL COMPANIES
Power of Government to impose reciprocal disabilities on non-Bangladesh companies
- Where, by the law or practice of any country outside Bangladesh in which an insurer carrying on insurance business in Bangladesh is constituted, incorporated or domiciled, insurance companies incorporated in Bangladesh are required as a condition of carrying on insurance business in that country to comply with any special requirements whether as to the keeping of deposits of assets in that country or otherwise which is not imposed upon insurers of that country under this Act the Government shall, if satisfied of the existence of such special requirement, by notification in the official Gazette, direct that the same requirement, or requirements as similar thereto as may be shall be imposed upon insurers of that country as a condition of carrying on the business of insurance in Bangladesh.
Particulars to be filed by insurers established outside Bangladesh
- Every insurer, having his principal place of business or domicile outside Bangladesh, who establishes a place of business within Bangladesh, or appoints a representative in Bangladesh with the object of obtaining insurance business, shall within three months from the establishment of such place of business or the appointment of such representative, file with the Chief Controller of Insurance-
(a) a certified copy of the charter, statutes, deed of settlement or memorandum and articles or other instrument constituting or defining the constitution of the insurer, and, if the instrument is not written in the English language, a certified translation thereof,
(b) a list of the directors, if the insurer is a company,
(c) the name and address of some one or more persons resident in Bangladesh authorised to accept on behalf of the insurer service of process and any notice required to be served on the insurer, together with a copy of the power of attorney granted to him,
(d) the full address of the principal office of the insurer in Bangladesh,
(e) a statement of the classes of insurance business to be carried on by the insurer, and
(f) a statement verified by an affidavit setting for the special requirements, if any, of the nature specified in section 62 imposed in the country of origin of the insurer on Bangladesh nationals, and, in the event of any alteration being made in the address of the principal office or in the classes of business to be carried on, or in any instrument here referred to, or in the name of any of the persons here referred to, or in the matters specified in clause (f) above, the company shall forthwith furnish to the Chief Controller of Insurance particulars of such alteration.
Books to be kept by insurers established outside Bangladesh
- Every insurer having his principal place of business or domicile outside Bangladesh shall manage its affairs in Bangladesh at his principal office in Bangladesh and shall keep thereat all the records relating to the business of the insurer in Bangladesh including such books of account, registers and documents as will enable him to furnish the accounts, statements and abstracts which he is required under this Act to furnish to the Chief Controller of Insurance in respect of the insurance business transacted by him in Bangladesh.
Part III
PROVIDENT SOCIETIES
Definition of “provident society”
- (1) In this Part “provident society” means, a person who, or a body of persons (whether corporate or un-incorporate) which, not being an insurer registered for the time being under Part II of this Act, carries on the business of insuring the payment, on the happening of any of the contingencies mentioned in sub-section (2), of-
(a) an annuity of or equivalent to one hundred Taka or less, payable for an uncertain period, or
(b) a gross sum of nine hundred Taka or less, whether paid or payable in a lump sum or in two or more instalments over a certain period,
exclusively in both cases (a) and (b) of any profit or bonus not being a guaranteed profit or bonus.
Explanation.- For the purposes of this sub-section a period is “certain” if its duration is ascertainable in advance and “uncertain” if its duration is not so ascertainable.
(2) The contingencies referred to in sub-section (1) are the following, namely:-
(a) the birth, marriage or death of any person or the survival by a person of a stated or implied age or contingency;
(b) failure of issue;
(c) the occurrence of a social, religious or other ceremonial occasion;
(d) loss of or retirement from employment;
(e) disablement in consequence of sickness or accident;
(f) the necessity of providing for the education of a dependent;
(g) any other contingency which may be prescribed or which may be authorised by the 105[Government].
(3) For the purposes of sub-sections (1) and (2)-
(a) contracts entered into before the commencement of this Act shall not be taken into account;
(b) two or more policies issued to one person shall, for the purposes of determining whether the limits fixed by sub-section (1) have or have not been exceeded, be deemed to be one policy if the contingencies on the happening of which the sums are payable under the policies (whether the contingencies be the same or different) relate to one person only, whether he be the policy-holder or some other person.
(4) Every person or body of persons for the time being registered as a provident society under the Provident Insurance Societies Act, 1912, and every person or body of persons for the time being registered as a provident society under this Act, shall be deemed to be a provident society for all the purposes of this Act.
(5) If any question arises whether any person or body of persons is or is not a provident society within the meaning of this section, the Chief Controller of Insurance shall decide the question and his decision shall be final.
Restrictions on provident societies
- No provident society shall undertake any form of insurance not falling within the limits fixed by sub-section (1) of section 65, nor shall any provident society be eligible to be registered under section 3.
Name
- No provident society established after the commencement of this Act, shall adopt as its name, and no provident society established before the commencement of this Act shall continue after the expiry of six months from the commencement thereof to use as its name, any combination of words which fails to include the word “provident” or which includes the word “life”.
Insurable interest
- No provident society shall receive any premium or contribution for insuring money to be paid to any person other than the person paying such premium or contribution or the wife, husband, child, grand-child, parent, brother or sister, nephew or niece of such a person.
Dividing business
- (1) No provident society shall carry on any business upon the dividing principle, that is to say, on the principle that the benefit secured by a policy is not fixed but depends either wholly or partly on the results of a distribution of certain sums amongst policies becoming claims within certain time-limits, or on the principle that the premiums payable by a policy holder depend wholly or partly on the number of policies becoming claims within certain time-limits.
(2) The Chief Controller of Insurance shall, as soon as possible, take steps to have any provident society which carries on business on the dividing principle wound up:
Provided that, where any such provident society in existence at the commencement of this Act applies within three months of such commencement to the Chief Controller of Insurance for permission to continue carrying on its business with a view meanwhile to reorganise its business in accordance with the provisions of this Act, the Chief Controller of Insurance may at his discretion, with due regard to the past history of the society, permit the society to continue business for a period not exceeding two years from the date of receipt of such permission, so however that no new business on the dividing principle is undertaken by the society.
(3) Where after the commencement of the Insurance (Amendment) Act, 1941, a provident society is to be wound up in pursuance of this section, or where, whether before or after the commencement of that Act, a provident society ceases to carry on business on the dividing principle, the provisions of sub-section (2) and sub-section (3) of section 52 shall, so far as may be, apply in like manner as they apply to an insurer ceasing to carry on business on the dividing principle.
Registration
- (1) No provident society except a provident society registered under the provisions of the Provident Insurance Societies Act, 1912, shall receive any premium or contribution until it has obtained from the Chief Controller of Insurance a certificate of registration.
(2) Every application for registration shall be accompanied by-
(a) a certified copy of the rules of the society, and when the society is a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1886, or under any Act repealed thereby a certified copy of the Memorandum and Articles of Association, or where the society is not such a company, a certified copy of the deed of constitution of the society;
(b) the names and addresses of the proprietors or directors, and the managers of the society, the full address of the registered office of the society, the full address of the principal office of the society in Bangladesh, the name of the manager at such office, and the name and address of some one or more persons resident in Bangladesh authorised to accept any notice required to be served on the society;
(c) a certificate from the Bangladesh Bank that the initial deposit referred to in section 73 has been made;
(d) a declaration verified by an affidavit made by the principal officer of the society authorised in that behalf that the minimum working capital required by section 72, is available; and
(e) the receipt showing payment in the prescribed manner of the prescribed fee for registration being not more than two hundred Taka.
(3) The Chief Controller of Insurance may refuse to issue a certificate of registration until he is satisfied that the rules of the society comply with the provisions of this Act and that the Society complies with the provisions of sections 67,71,72,73 and 73A , but if he is so satisfied he shall register the society and its rules.
106[(3A) The Chief Controller of Insurance shall, if he refuses a certificate of registration, communicate his decision in writing to the applicant for such registration within three months from the date of the application.]
(4) The Chief Controller of Insurance may, after giving previous notice in writing in such manner as he thinks fit specifying the grounds for the proposed cancellation, and allowing the society concerned an opportunity of being heard, cancel the registration of the society made under this section or made under the provisions of the Provident Insurance Societies Act, 1912-
(a) if he is satisfied from the returns furnished under the provisions of this Act or as the result of an inquiry made under section 87-
(ii) that the business of the society is conducted fraudulently or not in accordance with the rules thereof, or that it is in the interests of the policy-holders that the society should cease to carry on business,
(b) if the initial deposit or any of the further deposits required by section 73 has not been made, or
(c) if the society, having failed to comply with any requirement or having contravened any provision of this Act, has continued such failure or contravention, for a period of one month after notice of such failure or contravention has been conveyed to the society by the Chief Controller of Insurance:
Provided that the Chief Controller of Insurance may without such previous notice,-
(a) cancel the registration of a provident society, which has failed to have its registration renewed, or
(b) cancel, on such terms and conditions as he thinks fit, the registration of any provident society which applies to him for such cancellation if he is satisfied that the society has ceased to carry on insurance business and that all its liabilities in respect of insurance policies are either satisfied or otherwise provided for, or
(c) cancel the registration of a provident society if he has reason to believe that any claim upon the society arising in Bangladesh under any policy of insurance remains unpaid for three months after final judgment in regular course of law.
(5) When a registration is cancelled the provident society shall not, after the cancellation has taken effect, enter into any new contracts of insurance, but all rights and liabilities in respect of contracts of insurance entered into by it before such cancellation takes effect shall, subject to the provisions of section 88, continue as if the cancellation had not taken place.
(6) Where a registration is cancelled under clause (b) of sub-section (4) or clause (c) of the proviso to that sub-section, or because the society has failed to have its registration renewed, the Chief Controller of Insurance may at his discretion revive the registration if the provident society, within six months from the date on which the cancellation took effect, makes the deposits required by section 73 or satisfies the Chief Controller of Insurance that no claim upon it such as is referred to in the said clause (c) remains unpaid or has had an application under sub-section (3) of section 70A accepted, as the case may be, and complies with any directions which may be given to it by the Chief Controller of Insurance.
(7) The Chief Controller of Insurance may, on payment of the prescribed fee which shall not exceed five Taka, issue a duplicate certificate of registration to replace a certificate lost, destroyed or mutilated, or in any other case where he is of opinion that the issue of a duplicate certificate is necessary.
Renewal of registration
107[70A. (1) Every provident society registered under this Act, or under the Provident Insurance Societies Act, 1912, shall have its registration renewed annually for each period of twelve months after that ending on the 30th day of June, 1942.
(2) An application for the renewal of a registration shall be made by the society to the Chief Controller of Insurance before the 30th day of June preceding the period for which renewal is sought, and shall be accompanied as provided in sub-section (3) by evidence of payment of the prescribed fee which shall not exceed two hundred Taka but may vary according to the volume of insurance business done by the society.
(3) The prescribed fee for the renewal of a registration for any year shall be paid into the Bangladesh Bank, or, where there is no office of that Bank, 108[* * *] into any Government treasury, and the receipt shall be sent along with the application for renewal of the registration.
(4) If a provident society fails to apply for renewal of registration before the date specified in sub-section (2) the Chief Controller of Insurance may, so long as he has taken no action under section 88 to have the society wound up, accept an application for renewal of registration on receipt from the society of the fee payable with the application and such penalty, not exceeding the prescribed fee payable by the society, as he may require.
(5) The Chief Controller of Insurance shall, on being satisfied that the society has fulfilled the requirements of this section, renew the registration and grant it a certificate of renewal of registration.
(6) The Chief Controller of Insurance shall, if he refuses the renewal of registration, communicate his decision in writing to the application for such renewal within three months from the date of the application.
Supplementary information and reports of alterations in particulars furnished with application for registration
70B. (1) Every provident society registered under section 70 before the commencement of the Insurance (Amendment) Act, 1941, shall, before the expiration of three months from the commencement of the Insurance (Amendment) Act, 1941, furnish to the Chief Controller of Insurance such particulars in addition to those already supplied for the purpose of obtaining registration as are required by sub-section (2) of section 70 of this Act as amended by the Insurance (Amendment) Act, 1941.
(2) [Omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).]
(3) When any alteration occurs or is made which affects any of the matters which are required under the provisions of sub-section (2) of section 70 to accompany an application by a provident society for registration under that section, or are to be furnished to the Chief Controller of Insurance under this section, the provident society shall furnish forthwith to the Chief Controller of Insurance full particulars duly authenticated of such alteration.]
Certain provisions of Part II to apply to provident societies
- The provisions of sections 20,32,46 and 53A shall apply to provident societies as they apply to insurers, and in such application references to shareholders of an insurer shall be construed as references to members of a provident society:
Provided that a provident society may charge a fee not exceeding one Taka for supplying a copy of any document referred to in sub-section (2) of section 20.
Working capital
- No provident society shall be registered unless it has a paid-up capital sufficient to provide as working capital a net sum of not less than five thousand Taka exclusive of deposits made under this Act and exclusive in the case of a company of any expenses incurred in connection with the formation of the company.
Deposits
- (1) Every provident society shall, if established before the commencement of this Act within one year from such commencement, or, if established after the commencement of this Act before the society applies for registration under section 70, deposit and keep deposited with the Bangladesh Bank in one of the offices in Bangladesh of the Bank, for and on behalf of the Government cash or approved securities amounting at the market value of the securities on the date of deposit to five thousand Taka, and shall thereafter make in each calendar year a further deposit amounting to not less than one-fifth of the premium income for the preceding calendar year as shown in the revenue account of the society (including admission fees and other fees received by the society) until the total amount so deposited and kept is fifty thousand Taka.
(2) The provisions of sub-sections (8),(9),(9A),(9B) and (10) of section 7 and of sub-section (1) of section 8 and of section 9 shall apply to the deposits made under this section as they apply to deposits made by an insurer.
Restriction on name of provident society
109[73A. (1) A provident society shall not be registered by a name identical with that by which an insurer or another provident society in existence is already registered, or so nearly resembling that name as to be calculated to deceive, except when the provident society in existence is in the course of being dissolved and signifies its consent, or the insurer in existence signifies his consent, to the Chief Controller of Insurance.
(2) If a provident society, through inadvertence or otherwise, is without such consent as aforesaid registered by a name identical with that by which an insurer or another provident society already in existence is registered, or so nearly resembling it as to be calculated to deceive, the first-mentioned society shall, if called upon to do so by the Chief Controller of Insurance on the application of the insurer or the second-mentioned society, change its name within a time to be fixed by the Chief Controller of Insurance:
Provided that nothing in this section shall apply to any provident society carrying on business before the commencement of the Insurance (Amendment) Act, 1946.]
Rules
- (1) Every provident society shall in its rules set forth-
(a) the name, the object and the location of the registered office of the society;
(b) the contingencies or classes of contingency on the happening of which money is to be paid;
(c) the conditions to be complied with before, and the payments to be made on, admission to the society;
(d) the rates of premium or contribution, and the periods for which or the times at which premiums or contributions are payable;
(e) the maximum amount payable to a subscriber or policy-holder;
(f) the nature and amounts of the benefits provided for by the society;
(g) the circumstances in which a bonus may be paid to a policy-holder;
(h) the nature of the evidence required for the proof of the happening of any contingency on which money is to be paid;
(i) the circumstances in which policies may be forfeited or renewed or the whole or a part of the premiums paid on a policy may be returned, or a surrender value of a policy may be granted;
(j) the penalties for delay in paying or failure to pay premiums or contributions;
(k) the proportion of the annual income of the society which may be disbursed on and the provisions to be made for meeting the expenses of the management of the society;
(l) the person or persons who or the authority which shall have power to invest the funds of the society;
(m) the provisions for appointment of auditors and their remuneration;
(n) the procedure to be adopted in altering the rules of the society;
(o) unless these are provided for in the Articles of Association of a society which is a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby,-
(i) the mode of appointment and removal, the qualification and the powers of a director, manager, secretary or other officer of the society;
(ii) the manner of raising additional capital; and
(iii) the provisions for the holding of general meetings of the members and policy-holders and for the powers to be exercised and the procedure to be followed thereat; and
(p) such other matters as may be prescribed.
(2) Where the rules of any provident society registered under the Provident Insurance Societies Act, 1912, fail to comply with the provisions of this section the society shall, before the expiry of twelve months from the commencement of this Act, amend the rules so as to comply with these provisions.
Amendment of rules
- (1) No amendment of any rule of a provident society shall be valid until it has been sent to the Chief Controller of Insurance and has been registered by him.
(2) The Chief Controller of Insurance on being satisfied that the proposed amendment is not contrary to the provisions of this Act shall, unless he is of opinion that the amendment unfairly affects the rights of existing members or policy-holders of the society, issue to the society an acknowledgment of the registration of the amended rule.
(3) The Chief Controller of Insurance shall, if he refuses registration of any amendment of any rule, communicate his decision in writing to the applicant for such registration within three months from the date of the application.
Supply of copy of rules
- Every provident society shall on demand deliver free of cost to any member of the society a copy of the rules of the society and to any person other than a member a copy of such rules on the payment of a sum not exceeding one Taka.
Registered office
- Every provident society shall have in Bangladesh a principal office (on the outside of which it shall keep displayed its name in a conspicuous position in legible characters) to which all communications and notices may be addressed, and shall give notice to the Chief Controller of Insurance of any change in the location thereof within twenty-eight days of its occurrence.
Publication of authorised capital to contain also subscribed and paid-up capital
- Where any notice, advertisement or other official publication of a provident society contains a statement of the amount of the authorised capital of the society, the publication shall also contain a statement of the amount of the capital which has been subscribed and the amount paid up.
Registers and books
- Every provident society shall keep at its principal office in Bangladesh-
(a) such registers in such form as may be prescribed;
(b) a cash book in which shall be entered separately for each class of contingency separately specified in section 65 all sums received and expended by the society and the matters in respect of which the receipt of expenditure takes place;
(c) a ledger;
(d) a journal.
Revenue account, balance-sheet and annual statements
- (1) Every provident society shall at the expiry of the calendar year prepare a revenue account and balance-sheet in the prescribed form verified in the prescribed manner, together with a report on the general state of the society’s affairs and shall cause the revenue account and balance-sheet to be audited by an auditor, and the auditor shall so far as may be in the audit of a provident society have the powers of, exercise the functions vested in, and discharge the duties and be subject to the liabilities imposed on, an auditor of companies by section 145 of the Companies Act, 1913.
(2) Every provident society shall at the expiry of the calendar year prepare with respect to that year-
(a) a statement showing separately for each class of contingency separately specified in section 65-
(i) the number of new policies effected, the total amount insured thereby and the total premium income received in respect thereof and the number of existing policies discontinued during the year with the total amount insured thereby, and
(ii) the total amount of claims made and the total amount paid in satisfaction thereof;
(b) a statement showing details of every insurance effected on a life other than the life of the person insuring; and
(c) a statement showing the total amount paid as allowances to agents and canvassers.
(3) [Omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).]
Actuarial report and abstract
- (1) Every provident society shall once in every five years or at such shorter intervals as may be laid down by the rules of the society cause an investigation to be made as at the last day of a calendar year into its financial condition including the valuation of its liabilities and assets by an actuary. (2) The report of the actuary shall contain an abstract in which shall be stated-
(a) the general principles adopted in the valuation including the method by which the valuation age of lives was ascertained,
(b) the rate at each age of the mortality and any other factor assumed and the annuity values used in valuation,
(c) the reserve values held against policies effected,
(d) the rate of interest assumed, and
(e) the provision made for expenses,
and shall have appended to it a certificate signed by a principal officer of the society that all material necessary for proper valuation has been placed at the disposal of the actuary and that full and accurate particulars of every policy under which there is a liability either actual or contingent have been furnished to the actuary for the purpose of the investigation.
(3) If the actuary finds that the financial condition of the society is such that no surplus exists for distribution as bonus to the policy-holders or as dividend to the shareholders, he shall state in his report whether in his opinion the society is insolvent and, if so, whether it should be wound up or not, and the extent to which in his opinion existing contracts should be modified or existing rates of premium should be adjusted to make good the deficiency in the assets.
Submission of returns to Chief Controller of Insurance
- (1) The revenue account and balance-sheet with the auditor’s report thereon and the report on the general state of the society’s affairs referred to in sub-section (1) of section 80, shall be printed and four copies of these and of the statements referred to in sub-section (2) of section 80, shall be furnished as returns to the Chief Controller of Insurance within six months from the end of the period to which they relate.
(2) All the material necessary for the proper valuation of the liabilities of the society under the provisions of section 81 shall be placed at the disposal of the actuary within three months from the end of the period to which such material relates, and the report and abstract referred to in section 81 shall be furnished as a return to the Chief Controller of Insurance within a further period of three months.
(3) The provisions of sub-section (2) of section 15 relating to the copies therein referred to shall apply to the returns referred to in sub-section (1) of this-section, and the provisions of section 17 shall apply to the accounts and balance-sheet of a provident society being a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, as they apply to the accounts and balance-sheet of an insurer and the Chief Controller of Insurance may exercise, in respect of returns made by a provident society and in respect of an investigation or valuation to which section 81 refers, the same powers as are exercisable by him under section 21 and section 22, respectively, in the case of an insurer.
Actuarial examination of schemes
- (1) Every provident society 110[shall cause every scheme of insurance which it proposes to put into operation] to be examined by an actuary, and shall not receive any premium or contribution in connection with the scheme until the actuary has certified that the rates, advantages, terms and conditions of the scheme are workable and sound, and such certificate has been forwarded to the Chief Controller of Insurance.
(2) The provisions of sub-section (1) shall apply to any alteration of a scheme already in operation but the Chief Controller of Insurance may, if he is of opinion that the alteration unfairly affects the interests of existing policy-holders, prohibit the alteration, and, if he does so, the society shall not put the altered scheme into operation, unless it first discharges to the satisfaction of the Chief Controller of Insurance all its liabilities to those of the existing policy-holders who dissent from the alteration.
Separation of accounts and funds
- Where a provident society effects policies of insurance in connection with more than one of the classes of contingency separately specified in sub-section (2) of section 65, the receipts and payments in respect of each such class shall be recorded in a separate account in the cash book kept in accordance with section 79.
Investment of funds
- (1) Every provident society shall, unless it already holds invested in approved securities or securities mentioned or referred to in clauses (c) and (d) of section 20 of the Trusts Act, 1882, not less than fifty per cent of the total assets of the society, invest in such securities every increase that takes place in those assets and in that part of those assets which is held in cash as soon as practicable after the increase takes place and in any case within six months of its taking place, until the total amount so invested amounts to not less than fifty per cent of the total assets of the society, and shall thereafter keep invested in such securities not less than fifty per cent of the total assets of the society:
Provided that for the purpose of determining the amount to be invested under this sub-section, any deposit made in cash under section 73 shall be taken into account as if such cash were Government securities amounting at the market value of the securities on the date the deposit was made to the total deposited in cash.
(2) No funds or investments of a provident society except a deposit made under section 73 or under the law of any State or country relating to insurance shall be kept otherwise than in the name of the society or in the name of a public officer approved by the Government.
(3) No loan shall be made out of the assets of a provident society, to any director, manager, managing agent, auditor, actuary, officer or partner of the society except on the security of a policy of insurance held in the society and within its
surrender value and no such loan shall be made to any concern of which a director, manager, managing agent, auditor, actuary, officer or partner of the society is a director, manager, managing agent, actuary, officer or partner:
Provided that nothing in this sub-section shall apply to loans made by a provident society to a banking company:
Provided further that where any event occurs giving rise to circumstances, the existence of which at the time of the grant of any subsisting loan would have made such grant a contravention of this sub-section, such loan shall, notwithstanding any contract to the contrary, be repaid within three months from the occurrence of such event or from the commencement of the Insurance (Amendment) Act, 1946, whichever is later; and in case of default, the director, manager, managing agent, auditor, actuary or partner concerned shall, without prejudice to any other penalty which he may incur, cease to hold office in the society on the expiry of the said three months.
111[(3A) Any loan prohibited under sub-section (3), made before and outstanding at the commencement of the Insurance (Amendment) Act, 1940, shall be repaid before the 1st day of January, 1941, and in case of default the director, manager, managing agent, auditor, actuary, officer or partner who has received the loan or is connected with the concern which has received the loan, as the case may be, shall cease to hold office in or be a partner of the society and shall be ineligible to hold office in or be a partner of the society until the loan is repaid.]
(4) Any director, manager, managing agent, auditor, actuary, officer or partner of a society which contravenes the provisions of sub-section (3) who is knowingly a party to the contravention, shall without prejudice to any other penalty which he may incur be jointly and severally liable to the society for the amount of the loan, and such amount, together with interest from the date of the loan at such rate not exceeding twelve per cent per annum as the Chief Controller of Insurance
may fix, shall on application by the Chief Controller of Insurance to any Civil Court of competent jurisdiction be recoverable by execution as if a decree for such amount had been passed by that Court.
(5) The provisions of section 86D of the Companies Act, 1913, shall not apply to a loan granted to a director of a provident society being a company if the loan is once granted on the security of a policy on which the society bears the risk and the policy was issued to the director on his own life and the loan is within the surrender value of the policy.
Inspection of books
- The books of every provident society shall at all reasonable times be open to inspection by the Chief Controller of Insurance or any person appointed by him in this behalf or by any member or policy-holder of the society who has, on application in this behalf, been permitted by the Chief Controller of Insurance, subject to such conditions, if any, as he may impose, to make such inspection.
Inquiry by or on behalf of Chief Controller of Insurance
- (1) The Chief Controller of Insurance shall at least once in two years and may, if he thinks fit, at any time visit personally or depute a suitable person to visit the principal office of a provident society or the principal office in Bangladesh of a society having its principal place of business or domicile outside Bangladesh and inquire into the affairs of the society, or may, after giving notice to the society and giving it an opportunity to be heard, direct such an inquiry to be made by an auditor or actuary appointed by him or by both an auditor and an actuary appointed simultaneously, or first by an auditor only or an actuary only and afterwards by an actuary or auditor.
(2) For the purposes of any such inquiry the Chief Controller or the auditor or actuary, as the case may be, shall be entitled to examine all books and documents of the society and may demand from the society or any officer of the society such explanations as he may require on any matter relating to the affairs of the society.
(3) The results of any such inquiry shall be recorded in writing by the person making the inquiry, and four copies of the record shall be supplied to the Chief Controller of Insurance; and when the inquiry is completed, a copy of the
record, or of each such record where more than one are made in the course of the same inquiry, shall be sent by the Chief Controller of Insurance to the society concerned and shall be open to inspection by any member or policy-holder of the society.
(4) All expenses of and incidental to any inquiry made by an auditor or actuary under sub-section (1) including any expenses incurred before the date on which the Chief Controller of Insurance receives notice of an appeal under clause (e) of sub-section (1) of section 110 shall be defrayed by the provident society, shall have priority over other debts due from the society, and shall be recoverable as an arrear of land-revenue.
(5) The Chief Controller of Insurance may, by notice in writing require the provident society to comply within a time to be specified therein (not being less than fifteen days from the receipt of the notice by the society) with any directions he may issue to remedy defects disclosed by an inquiry under this section.
(6) If the society fails to comply with any directions issued under sub-section (5), the Chief Controller of Insurance may, after giving notice to the society and giving it an opportunity to be heard, apply to the Court for the winding up of the society.
Amalgamation and transfer of insurance business
112[87A. (1) The insurance business of a provident society may be transferred to any person or transferred to or amalgamated with the insurance business of any other provident society in accordance with a scheme prepared under this section and sanctioned by the Chief Controller of Insurance.
(2) Any scheme prepared under this section shall set out the agreement under which the transfer or amalgamation is proposed to be effected, and shall contain such further provisions as may be necessary for giving effect to the scheme.
(3) Before an application is made to the Chief Controller of Insurance to sanction any such scheme, notice of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be, and of the reason therefore, shall at least two months before the application is made, be sent to the Chief Controller of Insurance and certified copies, four in number, of each of the following documents shall be furnished to him, and other such copies shall during the two months aforesaid be kept open for the inspection of the members and policy-holders at the principal and branch offices of the provident societies concerned, namely:-
(a) a draft of the agreement or deed under which it is proposed to effect the amalgamation or transfer,
(b) balance-sheets in respect of the insurance business of each of the provident societies concerned in such amalgamation or transfer,
(c) actuarial reports and abstracts in respect of the insurance business of each of the provident societies so concerned,
(d) a report on the proposed amalgamation or transfer, prepared by an independent actuary,
(e) any other reports on which the scheme of amalgamation or transfer was founded;
and the balance-sheets, reports and abstracts referred to in clauses (b), (c) and (d) shall all be prepared as at the date at which the amalgamation or transfer if sanctioned by the Chief Controller of Insurance is to take effect, which date shall not be more than twelve months before the date on which the application to the Chief Controller of Insurance is made under this section:
Provided that the Chief Controller of Insurance may exempt the provident society or societies concerned from furnishing to him and from keeping open for inspection any one or more of the above documents.
(4) When any application such as is referred to in sub-section (3) is made to the Chief Controller of Insurance, he may require, if for special reasons he so directs, notice of the application to be sent to every person resident in Bangladesh; 113[* * *] who is the holder of a policy of any provident society concerned and may cause a statement of the nature and terms of the amalgamation or transfer, as the case may be, to be published in such manner and for such periods as he may direct, and after hearing the societies concerned, such policy-holders as apply to be heard and such other persons as he may deem fit, may sanction the arrangement, if he is satisfied that no sufficient objection to the arrangement has been established and shall make such consequential orders as are necessary to give effect to the arrangement, including orders as to the disposal of any deposit made under section 73:
Provided that-
(a) no part of the deposit made by any party to the amalgamation or transfer shall be returned except where, after effect is given to the arrangement the whole of the deposit to be made by the provident society carrying on the amalgamated business or the person to whom the business is transferred is completed;
(b) only so much shall be returned as is no longer required to complete the deposit last mentioned in clause (a);
(c) while the deposit last mentioned in clause (a) remains uncompleted, no accession, resulting from the arrangement, to the amount already deposited by the provident society carrying on the amalgamated business or the person to whom the business is transferred shall be appropriated as payment or part payment of any instalment of deposit subsequently due from it or him under section 73.
(5) A copy of the order under sub-section (4) sanctioning or refusing to sanction the arrangement shall be sent to each of the societies concerned and to each of the policy-holders who applied to be heard.
(6) If the scheme involves a reduction of the amount of the insurance and other contracts of the transfer or society or of any or all of the societies concerned in the amalgamation, the Chief Controller of Insurance may sanction the scheme, reducing the amount of such contracts upon such terms and subject to such conditions as he may think proper and the reduction of the contracts as sanctioned by the Chief Controller of Insurance shall be valid and binding on all the parties concerned.]
Winding up by Court and voluntary winding up
- (1) The Court may order the winding up of a provident society being a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, and the provisions of the Companies Act, 1913, shall, subject to the provisions of this Part, apply accordingly.
(2) In addition to the grounds on which such an order may be based, the Court may order the winding up of a provident society if the Chief Controller of Insurance, who is hereby authorised to do so, applies in this behalf to the Court on any of the following grounds, namely:-
(a) that the registration of the society has been cancelled under sub-section (4) of section 70;
(b) that it appears from the returns furnished under the provisions of this Act or as the result of an inquiry made under section 87 that the society is insolvent;
(c) that the continuance of the society is prejudicial to the interests of the policy-holders.
(3) A provident society being a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, may be wound up voluntarily in accordance with the provisions of the Companies Act, 1913, but shall not be so wound up except for the purpose of effecting an amalgamation or reconstruction of the society or on the ground that by reason of its liabilities it cannot continue its business.
(4) A provident society not being a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, may be wound up voluntarily under this Act if a resolution is passed by the proprietors that the society should be wound up voluntarily for the purpose or on the ground specified in sub-section (3), and the Chief Controller of Insurance may, in any case where he has ordered the cancellation of the registration of a society under sub-section (4) of section 70, order the winding up of the society under this Act.
Reduction of insurance contracts
- The Court may make an order reducing the amount of the insurance contracts of a provident society upon such terms and subject to such conditions as the Court thinks just-
(a) if the Chief Controller of Insurance as an alternative to cancelling the registration of a society under sub-section (4) of section 70 applies to the Court in this behalf;
(b) if while a society is in liquidation the Court thinks fit;
(c) if when a society has been proved to be insolvent, the Court thinks fit to do so in place of making an order for the winding up of the society; or
(d) if the Court is satisfied on an application made in this behalf by the society supported by the report of an actuary, and after giving the policy-holders an opportunity to be heard that it is desirable to do so.
Application of Act to liquidators
114[90A. Notwithstanding anything to the contrary contained in the Companies Act, 1913, the provisions of sections 91, 92 and 93 shall apply to any liquidator appointed to wind up a provident society, whether by the Court, the Chief Controller of Insurance or the society itself.]
Appointment of liquidator
- (1) Where a provident society is to be wound up whether under the Companies Act, 1913, or under this Act, the society shall, within seven days from the date of the order of the Court ordering the winding up or the passing of the resolution authorising the winding up, as the case may be, give notice thereof to the Chief Controller of Insurance and, except where the winding up is done by an order of the Court, the Chief Controller of Insurance shall appoint the liquidator and shall determine the remuneration to be paid to him:
Provided that if the Chief Controller of Insurance is not satisfied that the assets of the society are sufficient to meet the costs of liquidation including the remuneration of the liquidator, he may decline to make such appointment, and in such a case the society shall itself appoint a liquidator who shall carry out the liquidation as if the winding up was being done by an order of the Court.
(2) Any liquidator appointed by the Chief Controller of Insurance under sub-section (1) may be removed by the Chief Controller of Insurance if satisfied that the duties entrusted to him are not being properly discharged.
Powers of liquidator
- (1) A liquidator appointed to wind up a society shall have power-
(a) to institute or defend any legal proceedings on behalf of the society by his name of office;
(b) to determine the contribution to be made by members of the society respectively to the assets of the society;
(c) to investigate all claims against the society and to decide questions of priority arising between claimants;
(d) to determine by what persons and in what proportion the costs of the liquidation including the remuneration of the liquidator and any expenses incurred under clause (g) of this sub-section are to be borne;
(e) to give such directions in regard to the collection and distribution of the assets of the society as may appear to him to be necessary for winding up the affairs of the society;
(f) to summon, and enforce the attendance of, witnesses and to compel the production of documents by the same means and as far as may be in the same manner as is provided in the case of a Civil Court by the Code of Civil Procedure, 1908; and
(g) with the sanction of the Chief Controller of Insurance, to employ such establishment and to obtain such assistance from an actuary or an auditor as may be necessary for the discharge of his duties.
(2) The liquidator shall, for settling the list of contributories and realising the amount of contributions, have the same powers as an official liquidator appointed by the Court for the winding up of a company under the Companies Act, 1913.
Procedure at liquidation
- (1) As soon as a liquidator is appointed to wind up a society he shall take charge of all property movable or immovable of the society and of all its books and documents.
(2) If any proprietor or officer of the society or any other person retains any portion of the assets of the society or fails to deliver to the liquidator any book or document when so required by the liquidator he shall be punishable with imprisonment which may extend to six months, or with fine which may extend to five hundred Taka, or with both, and the Court may order the delivery of the assets or book or document to the liquidator.
(3) The liquidator shall, within fifteen days of his appointment, send notice by post to all persons who appear to him to be creditors of the society that a meeting of the creditors of the society will be held on a date not being less than twenty-one nor more than twenty-eight days after his appointment, and at a place and hour to be specified in the notice, and shall also advertise notice of the meeting once in the 115[* * *] official Gazette and once at least in two newspapers 116[* * *].
(4) At the meeting so held the creditors shall determine whether an application shall be made for the appointment of any person as liquidator in the place of or jointly with the liquidator already appointed, or for the appointment of a committee of inspection, and, if they so resolve and an application accordingly is made at any time not later than fourteen days after the date of the meeting by any creditor appointed for the purpose at the meeting, the Chief Controller of Insurance shall appoint a suitable person in place of or jointly with the liquidator already appointed, and determine the remuneration to be paid to him, and if so desired, shall also appoint a committee of inspection.
(5) The committee of inspection shall, subject to any prescribed conditions, have a general power of supervision over the acts of the liquidator and shall have the right to inspect his accounts at all reasonable times.
(6) The liquidator shall, with such assistance from an actuary as may be required, ascertain as soon as practicable the amount of the society’s liability to every person appearing by the society’s books to be entitled to or interested in any policy issued by the society, and shall give notice of the amount so found to each such person in the prescribed manner and each such person on receiving such notice shall be bound by the value so ascertained.
(7) The liquidator shall make a valuation of the assets of the society and an estimate of the costs of the winding up, and shall on the basis of these, settle the list of contributories.
(8) The liquidator shall apply to the Chief Controller of Insurance for an order for the return of the deposit made by the society under section 73 and the Chief Controller of Insurance shall on such application order the return of the deposit subject to such terms and conditions as he may think fit.
(9) In administering and distributing the assets of the society the liquidator shall have regard to any directions that may be given by the creditors or contributories at a general meeting or by the Chief Controller of Insurance.
(10) The liquidator shall keep books of account in which he shall record the proceedings at all meetings attended by him, all amounts received or expended by him and any other matter that may be prescribed, and these books may, with the sanction of the Chief Controller of Insurance, be inspected by any creditor or contributory.
(11) If the winding up continues for more than a year, the liquidator shall summon a meeting of the creditors and contributories at the end of the first year and of each succeeding year, and shall lay before them an account of his acts and dealings and of the conduct of the winding up, and that account together with any views expressed thereon by the meeting shall be forwarded by the liquidator to the Chief Controller of Insurance.
(12) So far as is not otherwise provided herein or is not otherwise prescribed under this Act, the liquidator shall so far as practicable follow the procedure to be followed by an official liquidator appointed by the Court for the winding up of a company under the Companies Act, 1913.
(13) The costs of the liquidation including the remuneration of the liquidator and any expenses incurred under clause (g) of sub-section (1) of section 91 shall, if the liquidator decides that they shall be payable out of the assets of the society, be payable in priority to all other claims.
Dissolution of provident society
- (1) As soon as the affairs of a provident society are fully wound up, the liquidator shall prepare an account of the winding up showing how the winding up has been conducted and the property of the society has been disposed of and shall call a meeting of the members, creditors and contributories for the purpose of laying before it the account and giving any explanation thereof.
(2) Notice of the meeting shall be sent to each person individually and shall be advertised in the 117[* * *] official Gazette and in at least two newspapers 118[* * *].
(3) Within one week after the meeting the liquidator shall send to the Chief Controller of Insurance a copy of the account and shall report to him the holding of the meeting and its date and shall forward to him a copy of the proceedings of the meeting.
(4) The Chief Controller of Insurance may return the account to the liquidator if it is incomplete or unsatisfactory and may require the liquidator to carry out any further steps necessary to complete the winding up and the liquidator shall comply with such requirement and shall submit a further report to the Chief Controller of Insurance within six months.
(5) If the Chief Controller of Insurance is satisfied that the affairs of the society have been fully wound up he shall register the account of the liquidator who shall forthwith make over to the Chief Controller of Insurance sums, if any, remaining undisposed of, and on the expiry of three months from the registering of the account the Chief Controller of Insurance shall declare the society dissolved and cause the dissolution of the society to be notified in the official Gazette, and the liquidator shall thereupon be discharged from further responsibility.
(6) If within a period of five years from the date on which any sums have been made over to the Chief Controller of Insurance under sub-section (5) an order of a Court of competent jurisdiction has not been obtained at the instance of any claimant to such sums for their disposal the said sums shall become the property of Government.
Nominations and assignments
- (1) The provisions of section 38 and section 39 relating to assignment, transfer and nomination in the case of life insurance policies shall, subject to the provisions of this section, apply to policies of insurance issued by any provident society covering any of the contingencies specified in clause (a) of sub-section (2) of section 65.
(2) No nomination shall be valid if the person nominated is not the husband, wife, father, mother, child, grand-child, brother, sister, nephew or niece of the holder of the policy.
Part IV
MUTUAL INSURANCE COMPANIES AND
CO-OPERATIVE INSURANCE SOCIETIES
Definitions
- (1) In this Part-
(a) “Mutual Insurance Company” means an insurer, being a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, which has no share capital and of which by its constitution only and all policy-holders are members; and
119[(b) “Co-operative Insurance Society” means an insurer, being a society registered under any law governing the registration of co-operative societies.]
120[* * *]
(2), (3) and (4) 121[Omitted by section 12 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984).]
Application of Act to Mutual Insurance Companies and Co-operative 122[* * *]Life Insurance Societies
- The provisions of sections 6 and 7 and of sub-section (2) of section 20, so far as those provisions are inconsistent with the provisions of this Part, shall not apply, and the provisions of this Part shall apply to Mutual Insurance Companies and Co-operative 123[* * *] Insurance Societies.
Working capital of Mutual Insurance Companies and Co-operative Insurance Societies
124[97. No Mutual Insurance Company incorporated after the commencement of the Insurance (Amendment) Ordinance, 1984 (L of 1984), and no Co-operative Insurance Society registered after that date under any law governing the registration of co-operative societies shall be registered under this Act, unless it has as working capital a sum specified in the Seventh Schedule, exclusive of the deposit to be made before application for registration and of the preliminary expenses, if any, incurred in the formation of the company or society.
Deposits to be made by Mutual Insurance Companies and Co-operative Insurance Societies
- Every Mutual Insurance Company and every Co-operative Insurance Society shall deposit at the time of making application for registration and keep deposited with the Bangladesh Bank, for and on behalf of the Government, the amount specified in the Seventh Schedule either in cash or in approved securities estimated at the market value of the securities on the day of the deposit.
Prohibitions of loans
98A. The provisions of section 29 shall apply to Co-operative Insurance Societies as they apply to other insurers.]
Transferees and assignees of policies not to become members
- No transferee or assignee of a policy issued by an insurer to whom this Part applies shall become a member of a Mutual Insurance Company or a Co-operative 125[* * *] Insurance Society merely by reason of any such transfer or assignment.
Publication of notices and documents of Mutual Insurance Companies and Co-operative 126[* * *] Insurance Societies
- Notwithstanding the provisions of section 79 and section 131 of the Companies Act, 1913, a Mutual Insurance Company or a co-operative 127[* * *] Insurance Society may, instead of sending the notices and the copies of the balance-sheet, revenue account and other documents which they are required to send to the members under those sections, publish such notices or documents once in a newspaper published in the English language and in a newspaper published in the local language circulating in the place where the principal office of the company is situated. 128[* * *]
Supply of documents to members
- Every Mutual Insurance Company and every Co-operative 129[* * *] Insurance Society shall, on the application of any member made within two years from the date on which any such document is furnished to the Registrar of Companies under the provisions of section 134 of the Companies Act, 1913, or to the Registrar of Co-operative Societies 130[* * *], furnish a copy of the document free of cost to the member within fourteen days of the application.
Part V
MISCELLANEOUS
Penalty for default in complying with, or act in contravention of this Act
- (1) Except as otherwise provided in this Act, any insurer who makes default in complying with or acts in contravention of any requirement of this Act, and, where the insurer is a company, any director, managing agent, manager or other officer of the company, or where the insurer is a firm, any partner of the firm who is knowingly a party to the default, shall be punishable with fine which may extend to 131[one lakh Taka and not less than fifty thousand Taka] and, in the case of a continuing default, with an additional fine which may extend to 132[ten thousand Taka] for every day during which the default continues.
(2) Any provident society as defined in Part III which makes default in complying with or acts in contravention of any of the requirements of this Act and any director, managing
agent, manager, secretary or other officer of the society who is knowingly a party to the default or contravention, shall be punishable with fine which may extend to 133[five thousand Taka] or, in the case of a continuing default or contravention with fine which may extend to 134[five hundred Taka] for every day during which the default or contravention continues.
Penalty for transacting insurance business in contravention of sections 3, 7 and 9
- (1) Any insurer or any person acting on behalf of an insurer, who carries on any class of insurance business in contravention of any of the provisions of section 3, section 7, or section 98, or does any one or more of the acts constituting the business of insurance in relation to any insurance business carried on in contravention of any of the said sections shall be punishable with fine which may extend to 135[ten thousand Taka].
(2) Any person knowingly taking out a policy of insurance with any insurer or person guilty of an offence under sub-section (1) shall be punishable with fine which may extend to 136[five thousand Taka]:
Provided that nothing in sub-section (1) or sub-section (2) shall apply to the business of re-insurance between the head office of an insurer in Bangladesh and the head office of an insurer not having an office in Bangladesh.
(3) Any provident society or any person acting on behalf of a provident society who carries on any class of insurance business in contravention of any of the provisions of section 70, section 73 or section 83 or does any one or more of the acts constituting the business of insurance in relation to any insurance business carried on in contravention of any of the said sections shall be punishable with fine which may extend to one thousand Taka.
Penalty for false statement in document
- Whoever, in any return, report, certificate, balance-sheet or other document, required by or for the purposes of any of the provisions of this Act, wilfully makes a statement false in any material particular, knowing it to be false, shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to 137[ten thousand Taka], or with both.
Wrongfully obtaining or withholding property
- (1) Any director, managing agent, manager or other officer or employee of an insurer who wrongfully obtains possession of any property of the insurer or having any such property in his possession wrongfully withholds it or wilfully applies it to purposes other than those expressed or authorised by this Act shall on the complaint of the Chief Controller of Insurance made after giving the insurer not less than fifteen days’ notice of his intention, or, on the complaint of the insurer or any member or any policy-holder thereof, be punishable with fine which may extend to 138[ten thousand Taka] and may be ordered by the Court trying the offence to deliver up or refund within a time to be fixed by the Court any such property improperly obtained or wrongfully withheld or wilfully misapplied and in default to suffer imprisonment for a period not exceeding two years.
(2) This section shall apply in respect of a provident society as defined in Part III as it applies in respect of an insurer.
Power of Court to order restoration of property of insurer or compensation in certain cases
- (1) If, on the application of the Chief Controller or an Administrator appointed under section 52A or an insurer or any policy-holder or any member of an insurance company or the liquidator of an insurance company (in the event of the insurance company being in liquidation), the Court is satisfied-
(a) that any insurer (including in any case where the insurer is an insurance company any person who has taken part in the promotion or formation of the insurance company or any past or present director, managing agent,
manager, secretary or liquidator) or any officer, employee or agent of the insurer,-
(i) has misapplied or retained or become liable or become accountable for any money or property of the insurer; or
(ii) has been guilty of any misfeasance or breach of trust in relation to the insurer; or
(b) that any person, whether he is or has been in any way connected with the affairs of the insurer or not, is in wrongful possession of any money or property of the insurer or having any such money or property in his possession wrongfully withholds it or has converted it to any use other than that of the insurer, or
(c) that by reason of any contravention of the provisions of this Act, the amount of the life insurance fund has been diminished;
the Court may examine any such insurer, director, managing agent, manager, secretary or liquidator or any other officer, employee or agent of the insurer or such other person, as the case may be, and may compel him to contribute such sums to the assets of the insurer by way of compensation in respect of the misapplication, retainer, misfeasance or breach of trust as the Court thinks fit, or to pay such sum as may be found due from him in respect of any money or property of the insurer for which he is liable or accountable or to restore any money or property of the insurer or any part thereof, as the case may be; and where the amount of the life insurance fund has been diminished by reason of any contravention of the provisions of this Act, the Court shall have power to assess the sum by which the amount of the fund has been diminished and to order the person guilty of such contravention to contribute to the fund the whole or any part of that sum by way of compensation; and in any of the aforesaid cases the Court shall have power to order interest to be paid at such rate and from such time as the Court may deem fit.
(2) Without prejudice to the provisions contained in sub-section (1) or sub-section (3), where it is proved that any money or property of an insurer has disappeared or has been lost, the Court shall presume that every person in charge of, or
having a disposing power over, such money or property at the relevant time (whether a director, manager, principal officer or any other officer) has become accountable for such money or property within the meaning of sub-clause (i) of clause (a) of sub-section (1), and the provisions of that sub-section shall apply accordingly, unless such person proves that the money or property has been utilised or disposed of in the ordinary course of the business of the insurer and for the purpose of that business or that he took all reasonable steps to prevent the disappearance or loss of such money or property or otherwise satisfactorily accounts for such disappearance or loss.
(3) Where the insurer is an insurance company and any of the acts referred to in clauses (a), (b) and (c) of sub-section (1) has been committed by any person, every person who was at the relevant time a director, managing agent, manager, liquidator, secretary or other officer of the insurance company shall, for the purposes of that sub-section be deemed to be liable for that act in the same manner and to the same extent as the person who has committed the act, unless he proves that act was committed without his consent or connivance and was not facilitated by any neglect or omission on his part.
(4) Where at any stage of the proceedings against any person under this section (hereinafter referred to as the delinquent), the Court is satisfied by affidavit or otherwise-
(a) that a prima facie case has been made out against the delinquent; and
(b) that it is just and proper so to do in the interests of the policy-holders of an insurer or of the members of an insurance company, the Court may direct the attachment of-
(i) any property of the insurer in the possession of the delinquent;
(ii) any property of the delinquent which belongs to him or is deemed to belong to him within the meaning of sub-section (5);
(iii) any property transferred by the delinquent within two years before the commencement of the proceedings under sub-section (1) or during the pendency of such proceedings, if the Court is satisfied by affidavit or otherwise that the transfer was otherwise than in good faith and for consideration.
(5) For the purposes of sub-section (4), the following classes of property shall be deemed to belong to a delinquent:-
(a) any property standing in the name of any person which by reason of the person being connected with the delinquent, whether by way of relationship or otherwise, or on account of any other relevant circumstances appears to belong to the delinquent;
(b) the property of a private company in respect of the affairs of which the delinquent, by himself or through his nominees, relatives, partners or persons interested in any shares of the company is able to exercise or is entitled to acquire control, whether direct or indirect.
Explanation.- For the purposes of this section a person shall be deemed to be a nominee of a delinquent, if, whether directly or indirectly, he possesses on behalf of the delinquent, or may be required to exercise on the direction or on behalf of the delinquent, any right or power which is of such a nature as to enable the delinquent to exercise or to entitle the delinquent to acquire control over the company’s affairs.
(6) Any claim to any property attached under this section or any objection to such attachment shall be made by an application to the Court and it shall be for the claimant or objector to adduce evidence to show that the property is not liable to attachment under this section, and the Court shall proceed to investigate the claim or objection in a summary manner.
(7) When disposing of an application under sub-section (1), the Court shall, after giving all persons who appear to it to be interested in any property attached under this section an opportunity of being heard, make such order as it thinks fit respecting the disposal of any such property for the purpose of effectually enforcing any liability under this section, and all such persons shall be deemed to be parties to the proceedings under this section.
(8) In any proceedings under this section the Court shall have full powers and exclusive jurisdiction to decide all questions of any nature whatsoever arising thereunder and in particular, with respect to any property attached under this section, and no other Court shall have jurisdiction to decide any such question in any suit or other legal proceeding.
(9) In making any order with respect to the disposal of the property of any private company referred to in clause (b) of sub-section (5), the Court shall have due regard to the interests of all persons interested in such property other than the delinquent and persons referred to in that clause.
(10) This section shall apply notwithstanding that the act is one for which the person concerned may be criminally liable.
(11) In proceedings under this section the Court shall have all the powers which a Court has under section 237 of the Companies Act, 1913.
(12) This section shall apply in respect of a provident society as defined in Part III as it applies in respect of an insurer.
(13) The Court entitled to exercise jurisdiction under this section shall be the High Court Division 139[* * *] and any proceedings under this section pending immediately before the commencement of the Insurance (Amendment) Ordinance, 1960, in any Court other than the High Court Division shall, on such commencement, stand transferred to the High Court Division.
(14) The 140[Supreme Court] may make rules providing for-
(a) the manner in which enquiries and proceedings may be held under this section;
(b) any other matter for which provision has to be made for enabling the High Court Division effectively exercise its jurisdiction under this section.
Notice to and hearing of Chief Controller of Insurance
141[106A. (1) When application is made to the Court for the making of any order to which this section applies the Court shall, unless the Chief Controller of Insurance has himself made the application or has been made a party thereto, send a copy of the application together with intimation of the date fixed for the hearing thereof to the Chief Controller of Insurance, and shall give him an opportunity of being heard.
(2) The orders to which this section applies are the following, namely:-
(a) an order for the attachment in execution of a decree of any deposit made under section 7 or section 98;
(b) an order under section 9 or section 59 for the return of any such deposit;
(c) an order under section 36 sanctioning any arrangement for the transfer or amalgamation of life insurance business or any order consequential thereon;
(d) an order for the winding up of an insurance company or a provident society;
(e) an order under section 58 confirming a scheme for the partial winding up of an insurance company;
(f) an order under section 89 reducing the amount of the insurance contracts of a provident society.]
Previous sanction of Attorney General for institution of proceedings
- (1) Except where proceedings are instituted by the Chief Controller of Insurance, no proceedings under this Act against an insurer or any director, manager or other officer of an insurer or any person who is liable under sub-section (2) of section 41 shall be instituted by any person unless he has previous thereto obtained the sanction of the 142[Attorney-General] to the institution of such proceedings.
(2) This section shall apply in respect of a provident society as defined in Part III as it applies in respect of an insurer.
Power of Court to grant relief
- If in any proceedings, civil or criminal, it appears to the Court hearing the case that a person is or may be liable in respect of negligence, default, breach of duty or breach of trust but that he has acted honestly and reasonably and that having regard to all the circumstances of the case he ought fairly to be excused for the negligence, default, breach of duty or breach of trust, the Court may relieve him either wholly or partly from his liability on such terms as it may think fit.
Cognizance of offences
- No Court inferior to that of a Magistrate of the first class shall try any offence under this Act.
Appeals
- (1) Except as otherwise provided in this Act, any person aggrieved by any order, direction or decision in respect of the following matters may, within a period of thirty days from the date of the communication of such order, direction or decision, appeal against it to the Insurance Appellate Tribunal constituted under sub-section (2), namely:-
(a) withholding of registration under section 3;
(b) cancellation of registration under clause (f) or clause (g) of sub-section (4) of section 3;
(c) alteration of memorandum and Articles of Association under section 3B;
(d) the mortality table, the statement of yield and the level of expenses published under sub-section (3) of section 3BB on the basis of which the rates of premium are required to be determined;
(e) withholding a certificate under section 3D for insurance or reinsurance outside Bangladesh;
(f) modification of reinsurance treaty or reinsurance arrangement under sub-section (6) of section 3D;
(g) change of name under section 5;
(h) any order issued under section 21;
(i) modification of remuneration under sub-section (1) of section 32A;
(j) any direction under section 34A;
(k) removal of a director, manager or other officer under section 34C;
(l) refusal to issue or renew, or cancellation of, a licence under section 42;
(m) refusal to issue or renew, or cancellation of, a certificate under section 42A;
(n) termination of a contract of an agent or employer of agents by an insurer;
(o) refusal to issue or renew, or cancellation of, a certificate under section 44A;
(p) refusal or cancellation of registration under section 70;
(q) refusal to renew registration under sub-section (1) of section 70A;
(r) imposition of penalty under sub-section (4) of section 70A;
(s) refusal to register amendment of rules under section 75;
(t) direction to remedy defects under section 87; and
(u) refusal to sanction a scheme under section 87A.
(2) The Government shall, for the purpose of hearing appeals under sub-section (1), constitute an Insurance Appellate Tribunal consisting of such number of members not exceeding seven, including a Chairman as it may appoint.
(3) The Chairman shall be a person who is qualified to be a Judge of the 143[Supreme Court] and the other members shall be persons possessing such qualifications and experience as may be prescribed.
(4) The Chairman and other members shall hold office for a period of three years from the date of appointment on such terms and conditions as may be prescribed.
(5) The Chairman may constitute such number of benches of the Tribunal as may be necessary for the expeditious disposal of appeals under sub-section (1); and each such bench shall consist of such number of members, not less than two, as may be prescribed.
(6) Subject to the provisions of this Act and the rules made thereunder, the Tribunal shall regulate its own procedure and shall, for the purpose of hearing an appeal, have the same powers as are vested in a civil Court trying a suit under the Code of Civil Procedure, 1908 (Act V of 1908), in respect of the following matters namely:-
(a) summoning and enforcing the attendance of any person and examining him on oath,
(b) requiring the discovery and production of any documents,
(c) receiving evidence on affidavits, and
(d) issuing commissions for the examination of witnesses or documents.
(7) If, in the course of the hearing of an appeal, any member of the Tribunal ceases, for any reason, to hold office, the proceedings of the Tribunal shall be stayed and the Government shall appoint another member in his place; and the hearing may continue before the Tribunal from the stage at which it was stayed as if there has been no change in the membership of the Tribunal.
(8) If, in the course of the hearing of an appeal, any one on the members is, for any reason, unable to attend the sitting of the Tribunal the hearing shall continue before, and the decision may be given by, the remaining members.
(9) If upon any matter requiring the decision of the Tribunal there is a difference of opinion amongst its members, the opinion of the majority shall prevail and the decision of the Tribunal shall be expressed in terms of the views of the majority:
Provided that where the members are equally divided on any point it shall,-
(a) in the case of the Tribunal or of a bench of which the Chairman is a member, be decided in accordance with the views of the Chairman; and
(b) in the case of a bench of which the Chairman is not a member, be referred to the Chairman and decided in accordance with his views.
(10) The Tribunal shall be deemed to be a civil Court for the purposes of section 195 of the Code of Criminal Procedure, 1898 (Act V of 1898), and a Court subordinate to the High Court Division 144[* * *] for the purpose of the Contempt of Courts Act, 1926 (XII of 1926), and any proceeding before the Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the 145[Penal Code] (Act XLV of 1860).
(11) The Tribunal may issue a stay order against any order of the Government or the Chief Controller of Insurance.
(12) Any person aggrieved by a decision of the Tribunal may appeal to the High Court Division if the case is certified by the Tribunal, in the prescribed manner, to be a fit one for appeal to the High Court Division.
(13) In this section, unless the context otherwise requires,-
(a) “Chairman” means the Chairman of the Tribunal;
(b) “member” means a member of the Tribunal; and
(c) “Tribunal” means the Tribunal constituted under sub-section (2) and includes a bench thereof constituted under sub-section (5).
Delegation of powers and duties of Chief Controller of Insurance
146[110A. The Chief Controller of Insurance may by general or special order delegate any of his powers or duties under this Act to any person subordinate to him. The exercise or discharge of any of the powers or duties so delegated shall be subject to such restrictions, limitations and conditions, if any, as the Chief Controller of Insurance may impose, and shall be subject to his control and revision.
Signature of documents
110B. Every document which is required by this Act or by any rule made thereunder to be signed by the Chief Controller of Insurance or by any person subordinate to him or by any officer authorised by him under sub-section (1) of section 42 or sub-section (1) of section 42A or sub-section (4) of section 44A shall be deemed to be properly signed, if it bears a facsimile of the signature of such Chief Controller, person or officer printed, engraved, lithographed or impressed by any other mechanical process approved by the Government.]
Powers to call for information
147[110C. (1) The Chief Controller may by notice in writing require any insurer to supply him any information relating to his insurance business and the insurer shall comply with such requirement within such period after the receipt of the notice as may be specified therein.
(2) Any information supplied under this section shall be certified by the principal officer if the insurer and if the notice so requires, also by an auditor.]
Service of notices
- (1) Any process or notice required to be served on an insurer or provident society shall be sufficiently served if addressed to any person registered with the Chief Controller of Insurance as a person authorised to accept notices on behalf of the insurer or provident society and left at, or sent by registered post to, the address of such person as registered with the Chief Controller of Insurance.
(2) Any notice or other document which is by this Act required to be sent to any policy-holder may be addressed and sent to the person to whom notices respecting such policy are usually sent and any notice so addressed and sent shall be deemed to be notice to the holder of such policy:
Provided that, where any person claiming to be interested in a policy as transferee, assignee or nominee has given to an insurer or to a provident society notice in writing of his interest, any notice which is by this Act required to be sent to policy-holders shall also be sent to such person at the address specified by him in his notice.
Declaration of interim bonuses
- Notwithstanding anything to the contrary contained in this Act an insurer carrying on the business of life insurance shall be at liberty to declare an interim bonus or bonuses to policy-holders whose policies mature for payment by reason of death or otherwise during the inter-valuation period on the recommendation of the investigating actuary made at the last preceding valuation.
Acquisition of surrender values policy
- 148[(1) A policy of life insurance under which the whole of the benefits become payable either on, or at a fixed interval or intervals after, the occurrence of a contingency which is bound to occur shall, if all premiums have been paid,-
(a) in the case of a policy issued by an insurer, for at least two consecutive years, and
(b) in the case of a policy issued by a provident society as defined in section 65, for at least five consecutive years,
acquire a guaranteed surrender value which shall not be less than the minimum guaranteed surrender value prescribed in respect of such policy.
(1A) In prescribing the minimum guaranteed surrender value for the purpose of sub-section (1), regard shall be had to the term of the policy and the contingency on the occurrence of which the benefits become payable.
(1B) Every insurer and every provident society shall within a period of one year-
(a) in the case of an insurer or society transacting business immediately before the commencement of the Insurance (Amendment) Ordinance, 1970, from such commencement, and
(b) in the case of an insurer or society registered after such commencement, from such registration,
submit to the Chief Controller of Insurance for his approval, a statement showing the basis and formula on which the guaranteed surrender value of the policies issued by such insurer or society is determined; and the Chief Controller of Insurance, before according his approval, may, after giving the insurer or the provident society an opportunity of being heard, direct such modifications to be made in the basis and formula as he may deem fit.
(1C) No basis and formula approved under sub-section (1B) shall be modified without the previous approval in writing of the Chief Controller.]
(2) Notwithstanding any contract to the contrary and subject to any option exercised by the policy-holder under section 50A, a policy which has acquired a surrender value shall not lapse by reason of the non-payment of further premiums but shall be kept alive to the extent of the paid-up sum insured, and the paid-up sum insured shall for the purposes of this sub-section include in full all subsisting reversionary bonuses that have already attached to the policy, and shall, where the policy is one on which the maximum number of annual premiums payable is fixed and the premiums are of uniform amount, be before the inclusion of such bonuses not less than the amount bearing to the total sum insured by the policy exclusive of bonuses the same proportion as the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable.
(3) A policy kept alive to the extent of the paid-up sum insured under sub-section (2) shall not be entitled by virtue of that sub-section to participate in any profits declared distributable after the conversion of the policy into a paid-up policy.
(4) Sub-section (2) and sub-section (3) shall not apply,-
(a) where the paid-up sum insured by a policy, being a policy issued by an insurer, is less than one hundred Taka inclusive of any attached bonus, or takes the form of any annuity of less than twenty-five Taka, or where the paid-up sum insured by a policy, being a policy issued by a provident society as defined in Part III, is less than fifty Taka inclusive of any attached bonus or takes the form of an annuity of less than twenty-five Taka, or
(b) where the parties after the default has occurred in the payment of the premium agree in writing to some other arrangement, or
(c) to policies in which the surrender value is automatically applied under the terms of the contract to maintaining the policy in force after its lapse through non-payment of premium.
Power to amend Schedules
149[114A. The Government may, by notification in the official Gazette, make such amendments in the Schedules as it may deem fit.
Powers of the Chief Controller
114B. The Chief Controller shall exercise the powers given to him by or under this Act in accordance with such general or special directions, if any, as may be issued by the Government.]
Power of Government to make rules
- (1) The Government may, subject to the condition of previous publication by notification in the official Gazette, make rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may prescribe-
(a) the qualifications to be possessed by actuaries;
150[(aa) the form and language of documents issued to the public by insurers;
(aaa) the qualifications and experience which the principal officer of an insurer and any other officer of a class specified in the rules shall possess;]
(b) the manner in which it shall be determined which of the transactions of an insurer are to be deemed for the purposes of this Act to be insurance business transacted in Bangladesh;
(c) the procedure to be followed by the Bangladesh Bank in dealing with deposits made in pursuance of this Act, including the receipt of, custody of, withdrawal of, and payment of interest on securities lodged as such deposits, and their inspection and verification by the Chief Controller of Insurance;
151[* * *]
(e) the manner in which the prospectuses and tables referred to in sub-section (1) of section 41 shall be published and the form in which they shall be drawn up;
(f) the matters to be prescribed for the purposes of section 48;
(g) the manner in which licences to act as insurance agents may be applied for, issued or cancelled;
(h) the contingencies other than those specified in clauses (a) to (f) of sub-section (2) of section 65 on the happening of which money may be paid by provident societies;
(i) the matters other than those specified in clauses (a) to (o) of sub-section (1) of section 74 on which a provident society shall make rules;
(j) the form of any account, return or register required by Part III and the manner in which such account, return or register shall be verified;
(k) subject to the provisions of this Act, the fees payable thereunder and the manner in which they are to be collected;
(l) the conditions and the matters which may be prescribed under sub-sections (5), (6), (10) and (12) of section 92;
(m) any other matter which is to be or may be prescribed.
(3) [Omitted by section 11 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993).]
(4) [Omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).]
Alteration of forms
- The Government may, on the application or with the consent of an insurer, not being a company, alter the forms contained in the Schedules as respects that insurer, for the purpose of adapting them to the circumstances of that insurer:
Provided that nothing done under this section shall exempt the insurer from supplying all information required under this Act so far as it is possible for the insurer to do so.
[Omitted.]
- [Power to exempt from certain requirements.- Omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).]
Summary returns to be published
152[116A. The Government shall every year cause to be published, in such manner as it may direct, a summary of the accounts, balance-sheets, statements, abstracts and other returns under this Act or purporting to be under this Act which have been furnished in pursuance of the provisions of this Act to the Chief Controller of Insurance during the year preceding the year of publication, and may append to such summary any note of the Chief Controller of Insurance or of the Government and any correspondence:
Provided that nothing in this section shall require the publication of the statement referred to in sub-section (2) of section 10 or sub-section (4) of section 13 in respect of the first valuation of an insurer or sub-section (2) of section 32A or section 42B or of the returns referred to in sub-section (1) of section 28.]
Saving of provisions of Companies Act, 1913
- Nothing in this Act shall affect the liability of an insurer being a company or a provident society as defined in Part III being a company to comply with the provisions of the Companies Act, 1913, in matters not otherwise specifically provided for by this Act.
Exemptions
- Nothing in this Act shall apply to any Trade Union registered under the 153[Industrial Relations Ordinance, 1969] or to any insurance business carried on by the Government, or to any provident fund to which the provisions of the Provident Funds Act, 1925, apply, or, if the Chief Controller of Insurance so orders in any case, and to such extent or subject to such conditions or modifications as he specifies in such order, to-
(a) any fund in existence and officially recognised by the Government before the 27th day of January, 1937, maintained by or on behalf of Government servants or Government pensioners for the mutual benefit of contributors to the fund and of their dependents, or
(b) any mutual or provident insurance society composed wholly of Government servants or of railway servants which has been exempted from any or all of the provisions of the Provident Insurance Societies Act, 1912.
Inspection and supply of copies of published prospectus, etc.
- Any person may on payment of a fee of five Taka inspect the documents filed by an insurer with the Chief Controller of Insurance under clause (f) of sub-section (2) of section 3, and may obtain a copy of any such document or part thereof on payment in advance at the prescribed rate for the making of the copy.
Determination of market value of securities deposited under this Act
- The market value on the day of deposit of securities deposited in pursuance of any of the provisions of this Act with the Bangladesh Bank shall be determined by the Bangladesh Bank whose decision shall be final.
Advisory Board
154[120A. The Government shall constitute an Advisory Board to advise the Chief Controller in the performance of his duties under this Act.]
Publicity Board
155[120AA. The Government may constitute a Publicity Board to perform such functions as may be prescribed.]
[Omitted.]
120B. [Regional Offices.- Omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).]
]
121, 122 and 123. [Amendment of section 130, Act IV of 1882., Amendment of Schedule I, Act IX of 1908 and Repeals.- Omitted by section 3 and 2nd Schedule of the Repealing and Amendment Ordinance, 1965 (Ordinance No. X of 1965).]
1
Clause (2) was renumbered as clause (13D) by section 2 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958) and has been inserted after clause (13C) of this law
2
Clause (3) was substituted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
3
Clause (3A) was originally inserted by section 2 of the Insurance (Amendment) Act, 1953 (Act No. XI of 1953) and substituted by section 2 of the Insurance (Amendment) Ordinance, 1961 (Ordinance No. XXXIII of 1961)
4
Clauses (5A) and (5B) were inserted by section 2 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
5
Clauses (6A), (6B) and (6C) were inserted by section 2 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
6
Clause (7A) was inserted by section 2 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
7
Clause (8A) was inserted by section 2 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
8
The word “and” was omitted by section 2 of the Insurance (Amendment) Act, 1990 (Act No. XXVI of 1990)
9
Sub-clause (d) was added by section 2 of the Insurance (Amendment) Act, 1990 (Act No. XXVI of 1990)
10
Clauses (13A), (13B) and (13C) were inserted by section 2 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
11
Clause (13AA) was inserted by section 2 of the Insurance (Amendment) Ordinance, 1970 (Act No. XXV of 1970)
12
The words, brackets, figures and commas “clause (6B), excluding sub-clause (d) of clause (11) and clause (13A)” were substituted for the words, brackets, figures and comma “clauses (6B), (11) and 13(A)” by section 2 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
13
Clause (13C) was omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
14
The original clause (2) was renumbered as clause (13D) and has been inserted after clause (13C) accordingly by section 2 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958).
15
Clauses (14A) and (14B) were inserted by section 2 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
16
Clause (15) was substituted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
17
Sections 2A and 2B were inserted by section 2A of the Insurance (Amendment) Act, 1939 (Act No. XI of 1939)
18
Section 2C was inserted by section 3 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
19
The word “any” was substituted for the words, commas and figure “the Co-operative Societies Act, 1912, or under any other” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
20
Sub-section (1A) was inserted by section 2 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
21
The words, brackets, letters and figures “specified in clause (c) of sub-section (1) of section 2C or to any Provident Society or Mutual Insurance Company” were omitted by section 3 of the Insurance (Amendment) Act, 1990 (Act No. XXVI of 1990)
22
The words “five lakh Taka” were substituted for the words “ten thousand Taka” by section 2 of the Insurance (Amendment) Act, 2004 (Act No. IV of 2004)
23
Sub-sections (5A) to (5D) were inserted by section 3 of the Insurance (Amendment) Act, 1940 (Act No. XX of 1940)
24
The words “five hundred Taka” were substituted for the words “twenty-five Taka” by section 2 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
25
Section 3BBB was inserted by section 4 of the Insurance (Amendment) Act, 1990 (Act No. XXVI of 1990).
26
Section 3A was inserted by section 4 of the Insurance (Amendment) Act, 1941 (Act No. XIII of 1941)
27
The words “three Taka and fifty poisha” were substituted for the words “one Taka and fifty poisha” by section 3 of the Insurance (Amendment) Act, 2004 (Act No. IV of 2004)
28
The words “Sonali Bank” were substituted for the words “National Bank of Pakistan” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
29
Section 3AA was inserted by section 4 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
30
Section 3B was inserted by section 4 of the Insurance (Amendment) Act, 1946 (Act No. VI of 1946)
31
Section 3BB was inserted by section 5 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
32
Sections 3C and 3D were inserted by section 7 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958).
33
Sections 3E and 3F were inserted by section 8 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
34
The words “twenty-thousand Taka” were substituted for the words “one thousand Taka” by section 4 of the Insurance (Amendment) Act, 2004 (Act No. IV of 2004)
35
The proviso was omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
36
Section 6 was substituted by section 5 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
37
Sub-section (1) was substituted for sub-section (1) by section 6 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
38
Sub-sections 9, (9A) and (9B) were substituted for the original sub-section (9), by section 4 of the Insurance (Amendment) Act, 1940 (Act No. XX of 1940)
39
Sub-sections 9, (9A) and (9B) were substituted for the original sub-section (9), by section 4 of the Insurance (Amendment) Act, 1940 (Act No. XX of 1940)
40
Sub-sections 9, (9A) and (9B) were substituted for the original sub-section (9), by section 4 of the Insurance (Amendment) Act, 1940 (Act No. XX of 1940)
41
Sub-sections 9, (9A) and (9B) were substituted for the original sub-section (9), by section 4 of the Insurance (Amendment) Act, 1940 (Act No. XX of 1940)
42
The words “two Taka” were substituted for the words “thirty seven poisha” by section 8 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
43
Section 27B was inserted by section 14 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
44
Clauses (i) and (ii) were substituted for clauses (i), (ii) and (iii) by section 2 of the Insurance (Amendment) Act, 2000 (Act No. XIV of 2000)
45
Sub-section (2A) was inserted by section 12 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
46
Section 27A was inserted by section 5 of the Insurance (Amendment) Ordinance, 1960 (Ordinance No. V of 1960)
47
The words “as may be decided by the Board of Directors of the insurer” were substituted for the words “as may be prescribed” by section 3 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
48
The words “as may be decided by the Board of Directors of the insurer” were substituted for the words “as may be prescribed” by section 3 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
49
The words “as may be decided by the Board of Directors of the insurer” were substituted for the words “as may be prescribed” by section 3 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
50
The colon (:) was substituted for the semi-colon (;) at the end of sub-clause (c) and the proviso was added thereafter by section 3 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
51
Sections 32A and 32B were inserted by section 28 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
52
Sections 34A, 34B and 34C were inserted by section 18 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
53
The words “in an Acceding State or in a non Acceding State” were omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
54
Sub-section (1) was substituted by section 4 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
55
Sub-section (1B) was inserted by section 6 of the Insurance (Amendment) Ordinance, 1960 (Ordinance No. V of 1960)
56
The words and commas “in any form an amount exceeding, in the case of life insurance business,” were substituted for the words “in any form of in respect of life insurance business an amount exceeding” by section 4 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
57
The words and commas “or, in the case of business of any other class, fifteen per cent” were inserted by section 4 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
58
The words and comma “life insurance policy only,” were substituted for the words “life insurance policy” by section 4 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
59
Second proviso to sub-section (2) was omitted by section 6 of the Insurance (Amendment) Act, 1990 (Act No. XXVI of 1990)
60
Sub-section (2A) was inserted by section 21 of the Insurance (Amendment) Act, 1946 (Act No. VI of 1946)
61
Sections 40A to 40D were inserted by section 34 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
62
Sub-sections (2) and (3) were substituted by section 5 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
63
Sub-sections (3A), (3B) and (3C) were inserted by section 20 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
64
The commas, brackets and figures “, (2), (3)” were inserted by section 5 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
65
The comma and the words “, including commission or remuneration for procuring business” were inserted by section 6 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
66
The words “two hundred” were substituted for the words “twenty” by section 7 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
67
The words “three hundred” were substituted for the words “thirty” by section 7 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
68
Sub-sections (6), (7) and (8) were substituted by section 7 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
69
The words “two hundred Taka” were substituted for the words “one hundred Taka” by section 5 of the Insurance (Amendment) Act, 2004 (Act No. IV of 2004)
70
The words and commas “or clause (i) of sub-section (7)” were inserted by section 7 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
71
Sub-section (10) was inserted by section 7 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
72
The words and commas “or a licence in respect of general insurance business” were inserted by section 7 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
73
Section 42A was inserted by section 36 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958) and subsequently substituted by section 22 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
74
The word “five” was substituted for the word “one” by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
75
The words “seven hundred and fifty” were substituted for the words “one hundred and fifty” by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
76
The words “seven hundred and fifty” were substituted for the words “one hundred and fifty” by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
77
The words “two hundred and fifty” were substituted for the words “twenty-five” by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
78
The words “seven hundred and fifty” were substituted for the words “one hundred and fifty” by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
79
Sub-sections (7), (8) and (9) were substituted by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
80
Section 42B was inserted by section 38 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
81
Section 43A was inserted by section 23 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
82
Sections 44A and 44B were inserted by section 38 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
83
The words “two thousand Taka” were substituted for the words “fifty Taka” by section 6 of the Insurance (Amendment) Act, 2004 (Act No. IV of 2004)
84
The words “one thousand Taka” were substituted for the words “fifty Taka” by section 6 of the Insurance (Amendment) Act, 2004 (Act No. IV of 2004)
85
Sub-section (6A) was inserted by section 25 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
86
Section 47A was inserted by section 39 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
87
Sections 47B to 47L were inserted by section 27 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
88
The words “the Supreme Court” were substituted for the words “a High Court” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
89
Sections 48B, 48BB, 48BBB and 48BBBB were substituted for section 48B by section 11 of the Insurance (Amendment) Act, 1990 (Act No. XXVI of 1990)
90
Section 48B was substituted by section 3 of the Insurance (Amendment) Act, 2000 (Act No. XIV of 2000)
91
Sub-section (1A) was inserted by section 28 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
92
Sub-section (2A) was inserted by section 3 of the Insurance (Amendment) Act, 1944 (Act No. VII of 1944)
93
Section 48A was inserted by section 24 of the Insurance (Amendment) Act, 1946 (Act No. VI of 1946) which was later substituted by section 29 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
94
Section 48C was substituted by section 7 of the Insurance (Amendment) Act, 2004 (Act No. IV of 2004)
95
Section 48CC was substituted by section 9 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
96
The words, figures and comma “or to the Central Government under section 11 of the Indian Life Assurance Companies Act, 1912” were omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
97
The words, figures and comma “or to the Central Government under section 11 of the Indian Life Assurance Companies Act, 1912” were omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
98
Section 49A was inserted by section 9 of the Insurance (Amendment) Ordinance, 1961 (Ordinance No. XXXIII of 1961) which was later substituted by section 30 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
99
The words “ninety” was substituted for the words “ninety-two and one-half” by Section 10 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
100
Section 50A was inserted by section 31 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
101
The heading and sections 52A to 52H were inserted by section 9 of the Insurance (Amendment) Ordinance, 1960 (Ordinance No. V of 1960)
102
The words “Penal Code” were substituted for the words “Pakistan Penal Code” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
103
The words “Penal Code” were substituted for the words “Pakistan Penal Code” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
104
Section 53A was inserted by section 25 of the Insurance (Amendment) Act, 1946 (Act No. VI of 1946)
105
The word “Government” was substituted for the words “Provincial Government with the approval of the Central Government” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
106
Sub-section (3A) was inserted by section 32 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
107
Sections 70A and 70B were inserted by section 40 of the Insurance (Amendment) Act, 1941 (Act No. XIII of 1941)
108
The words and comma “into the Imperial Bank of India acting as the agent of that Bank, or” were omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
109
Section 73A was inserted by section 32 of the Insurance (Amendment) Act, 1946 (Act No. VI of 1946)
110
The words “shall cause every scheme of insurance which it proposes to put into operation” were substituted for the commas, words and figure “, registered after the commencement of this Act, shall cause every scheme of insurance which it proposes to put into operation, and every provident society registered before the commencement of this Act under the provisions of the Provident Insurance Societies Act, 1912, shall cause any scheme which it proposes to put into operation for the first time after such commencement” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
111
Sub-section (3A) was inserted by section 13 of the Insurance (Amendment) Act, 1940 (Act No. XX of 1940)
112
Section 87A was inserted by section 38 of the Insurance (Amendment) Act, 1946 (Act No. VI of 1946)
113
The words “or an Acceding State or a non-Acceding State” were omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
114
Section 90A was inserted by section 40 of the Insurance (Amendment) Act, 1946 (Act No. VI of 1946)
115
The words “local” was omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
116
The words “circulating in the province in which the society is situated” were omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
117
The words “local” was omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
118
The words “circulating in the province in which the society is situated” were omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
119
Clause (b) was substituted by section 12 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
120
The proviso to clause (b) was omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).
121
The word “Life” was omitted by section 12 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
122
Application of Act to Mutual Insurance Companies and Co-operative [* * *] Insurance Societies
123
The word “Life” was omitted by section 12 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
124
Sections 97, 98 and 98A were substituted for former sections 97, 98 and 98A, by section 12 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
125
The word “Life” was omitted by section 12 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
126
The word “Life” was omitted by section 12 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
127
The word “Life” was omitted by section 12 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
128
The proviso was omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
129
The word “Life” was omitted by section 12 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
130
The words “of the Province in which the Co-operatives Life Insurance society is registered” were omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
131
The words “one lac Taka and not less than fifty thousand Taka” were substituted for the words “ten thousand Taka” by section 8 of the Insurance (Amendment) Act, 2004 (Act No. IV of 2004)
132
The words “ten thousand Taka” were substituted for the words “one thousand Taka” by section 8 of the Insurance (Amendment) Act, 2004 (Act No. IV of 2004)
133
The words “five thousand Taka” were substituted for the words “five hundred Taka” by section 13 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
134
The words “five hundred Taka” were substituted for the words “two hundred and fifty Taka” by section 13 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
135
The words “ten thousand Taka” were substituted for the words “two thousand Taka” by section 14 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
136
The words “five thousand Taka” were substituted for the words “five hundred Taka” by section 14 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
137
The words “ten thousand Taka” were substituted for the words “one thousand Taka” by section 15 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
138
The words “ten thousand Taka” were substituted for the words “one thousand Taka” by section 16 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984)
139
The words and brackets “within whose jurisdiction the registered office of the insurer is situate (hereinafter referred to as the High Court)” were omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
140
The words “Supreme Court” were substituted for the words “High Court” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
141
Section 106A was inserted by section 14 of the Insurance (Amendment) Act, 1940 (Act No. XX of 1940)
142
The words “Attorney-General” were substituted for the words “Advocate General of the Province where the principle place of the business in Pakistan of such insurer is situated” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
143
The words “Supreme Court” were substituted for the words “High Court” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
144
The words “within the territorial limits of whose jurisdiction the Tribunal sits to hear appeal” were omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
145
The words “Penal Code” were substituted for the words “Pakistan Penal Code” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
146
Sections 110A and 110B were inserted by section 15 of the Insurance (Amendment) Act, 1940 (Act No. XX of 1940)
147
Section 110C was inserted by section 47 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
148
Sub-sections (1), (1A), (1B) and (1C) were substituted for the former sub-section (1) by section 36 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
149
Sections 114A and 114B were inserted by section 38 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
150
Clauses (aa) and (aaa) were inserted by section 37 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
151
Clause (d) was omitted by section 48 of the Insurance (Amendment) Act, 1958 (Act No. XXVI of 1958)
152
Sections 116A was inserted by section 64 of the Insurance (Amendment) Act, 1941 (Act No. XIII of 1941)
153
The words, comma and figure “Industrial Relations Ordinance, 1969” were substituted for the words, comma and figure “Trade Unions Act, 1926” by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
154
Sections 120A was inserted by section 50 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
155
Section 120AA was added by section 39 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
Copyright © 2019, Legislative and Parliamentary Affairs Division
Ministry of Law, Justice and Parliamentary Affairs
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
Income Tax Law of the Republic of Bangladesh
Individual – Taxes on personal income
Taxation of individuals in Bangladesh is primarily based on their residential status in the relevant tax year. The residential status of individuals is determined independently for each tax year and is ascertained on the basis of their physical presence in Bangladesh during the relevant tax year and past years. See the residence section for more information.
Under Bangladesh tax laws, the scope of taxation differs as per the residential status of an individual.
- For a resident person, income is taxable in Bangladesh if it is accrued or arisen or deemed to be accrued or arisen in Bangladesh. Income is taxable if it is received or deemed to be received in Bangladesh. Income from outside Bangladesh that is accrued, arisen, or received by or on behalf of the person in the same year is also taxable.
- For a non-resident person, income is taxable if it is accrued or arisen or deemed to be accrued or arisen in Bangladesh or received or deemed to be received in Bangladesh during the year.
Personal income tax rates
Resident individual or non-resident individual (NRI) who is a Bangladeshi citizen for financial year (FY) 2024/25
| Total income (BDT) | Tax rate (%) |
| First 350,000 | Nil |
| Next 100,000 | 5 |
| Next 400,000 | 10 |
| Next 500,000 | 15 |
| Next 500,000 | 20 |
| Next 2 million | 25 |
| On rest of the income | 30 |
Note:
- The basic exemption limit for general taxpayers is BDT 350,000.
- The basic exemption limit for women and senior citizens aged 65 years or older is BDT 400,000.
- The basic exemption limit for persons with physical challenges is BDT 475,000.
- The basic exemption limit for war wounded gazette freedom fighters is BDT 500,000.
- The basic exemption limit for third-gender taxpayers is BDT 475,000.
- The basic exemption limit for the parent or legal guardian of a physically challenged person increases by an additional BDT 50,000.
| Total income (BDT) | Tax rate (%) |
| First 375,000 | Nil |
| Next 300,000 | 10 |
| Next 400,000 | 15 |
| Next 500,000 | 20 |
| Next 2 million | 25 |
| On rest of the income | 30 |
- The basic exemption limit for general taxpayers is BDT 375,000.
- The basic exemption limit for women and senior citizens aged 65 years or older is BDT 425,000.
- The basic exemption limit for persons with physical challenges is BDT 500,000.
- The basic exemption limit for freedom fighters who are war-wounded and gazetted and wounded July fighters who are gazetted is BDT 525,000.
- The basic exemption limit for third-gender taxpayers is BDT 500,000.
- The basic exemption limit for the parent or legal guardian of a physically challenged person increases by an additional BDT 50,000.
NRIs who are not Bangladeshi citizens are taxable at the maximum rate (i.e. 30%).
Surcharge on total income tax
A surcharge is payable on the regular tax amount by the taxpayer if one’s net worth exceeds the prescribed threshold. The rates of surcharge are as follows:
| Net wealth | Rate |
| Up to BDT 40 million | Nil |
One or more of the following:
| 10% of tax payable |
| Above BDT 100 million to BDT 200 million | 20% of tax payable |
| Above BDT 200 million to BDT 500 million | 30% of tax payable |
| Above BDT 500 million | 35% of tax payable |
Minimum tax regime
A three-way comparison of regular tax on profits, WHT under certain sections (interest on savings deposit, interest on fixed deposit, etc.), and tax on gross receipts (0.25% on gross receipts) must be done. The higher of the three is considered as the final tax liability for an individual having gross receipts of more than BDT 40 million.
Minimum tax to be applied in case total income exceeds tax-free threshold
If the total income exceeds the tax-free limit, the minimum amount of tax will be BDT 5,000. However, in the case of new taxpayers, the minimum amount of tax will be BDT 1,000.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
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Regulation Updates in Bangladesh
Gazette notification declaring a seven-day holiday from 25 to 31 May 2026
What it is: A Gazette notification declares a seven-day holiday from 25 to 31 May 2026, which requires closure of government and private offices.
What it changes: This change affects working time obligations by requiring the closure of offices during the seven-day holiday period.
Who is affected:
- Workers or employers explicitly mentioned or clearly implied by the policy summary.
What employers should do:
- Plan and communicate the holiday period to staff.
- Ensure offices are closed during 25 to 31 May 2026 as required.
Notes: Effective month: 2026-05. Manual verification recommended.
Bangladesh Labour (Amendment) Act, 2026
What it is: The Bangladesh Labour (Amendment) Act, 2026 updates the Labour law to expand the definition of ‘worker’, extend maternity leave to 120 days, and introduce mandatory workplace welfare funds and other new benefits.
What it changes: It broadens who is considered a worker, increases maternity leave to 120 days, and creates new mandatory workplace welfare funds and benefits that employers and payroll/EOR providers must implement.
Who is affected:
- Workers
- Employers
- Payroll/EOR providers
What employers should do:
- Align workforce definitions with the expanded ‘worker’ category.
- Provide 120 days of maternity leave as required.
- Establish and operate the mandated workplace welfare funds and other mandatory benefits.
Notes: Effective month: 2026-04. Manual verification recommended.
Discover the latest employment and compliance updates in Bangladesh — helping you stay ahead in a changing regulatory landscape.