Understanding the procedure for getting a company’s Service Rules (rules governing employment) approved by the relevant authority is crucial for businesses operating in Bangladesh. This guide outlines the step-by-step process, based on the Bangladesh Labour Act, 2006, and the Bangladesh Labour Rules, 2015.
The primary authority responsible for approving Service Rules is the Inspector General of the Department of Inspection for Factories and Establishments (DIFE).
Approval Process Overview#
graph TD;
A["Start: Draft Service Rules"] --> B{"Submit 5 Copies of Draft & Forms 1, 2, 2(A) to Inspector General (DIFE)"};
B --> C{"DIFE Notifies Employer & Trade Union (if any) within 10 Days (Form-3)"};
C --> D{"Employer Displays Notice & Draft within 7 Days"};
D --> E{"Workers/Union Submit Objections/Proposals within 10 Days (Form-3A)"};
E -- "Objections Received" --> F{"DIFE Schedules Hearing within 14 Days"};
E -- "No Objections" --> G["Inspector General Decides within 15 Days"];
F --> F1{"DIFE Forwards Reasonable Objections to Employer within 10 Days"};
F1 --> F2{"Employer Responds to DIFE within 10 Days"};
F2 --> G;
G -- "Approved (No Amendments)" --> H["Employer Submits 5 Signed & Stamped Copies within 15 Days"];
G -- "Amendments Required" --> G1{"Employer Amends & Submits 5 Copies within 7 Days"};
G1 --> H;
G -- "Draft Contrary/Inadequate" --> G2{"Employer Submits Revised Draft within 7 Days, Further Hearing"};
G2 --> G;
H --> I{"DIFE Signs & Stamps Copies"};
I --> J{"Service Rules Effective 30 Days Post-Stamping (unless appealed)"};
J --> K{"Optional: Appeal to Government within 30 Days of DIFE Decision"};
K -- "Appeal Filed" --> L["Rules Effective After Government's Final Decision (within 45 days)"];
K -- "No Appeal" --> M["End: Service Rules Approved & Effective"];
L --> M;
Step-by-Step Guide for Approval of Service Rules:#
1. Drafting the Service Rules:#
- The employer is responsible for drafting the Service Rules for their establishment.
- Crucially: The rules must incorporate provisions addressing the conditions of service as enumerated in Form-1 of the Bangladesh Labour Rules, 2015.
- The provisions within the draft Service Rules must not be less favourable to the workers than the corresponding provisions stipulated in the Bangladesh Labour Act, 2006.
2. Submission to the Inspector General (DIFE):#
- Submit at least five copies of the draft Service Rules to the Inspector General, DIFE.
- Accompanying the draft rules, the employer must submit:
- Form-1: Duly completed, indicating which clauses of the draft rules correspond to the required topics.
- Form-2 and Form-2(A): These forms should contain necessary information regarding the number of workers employed (categorised by role) and details of any registered trade union(s) operating within the establishment.
3. Notification to Trade Union (if applicable):#
- Within 10 days of receiving the draft Service Rules, the Inspector General will dispatch a copy of the draft rules and a notice (as per Form-3 of the Labour Rules, 2015) to the employer and to any registered trade union(s) present in the establishment.
4. Displaying the Notice:#
- The employer is obligated to display the Form-3 notice and the draft Service Rules on the establishment’s notice board within 7 days of their receipt.
- Following this, the employer must certify to the Inspector General that the notice has been duly displayed, specifying the date of display.
5. Receiving Objections or Proposals:#
- Workers or the trade union(s) have a period of 10 days from the date the notice is displayed to submit any objections or proposals concerning the draft Service Rules to the Inspector General.
- These submissions should be made using Form-3(A) of the Labour Rules, 2015.
6. Hearing and Consideration of Objections (if any):#
- If objections or proposals are received, the Inspector General will schedule a hearing within 14 days of their receipt.
- Should the Inspector General deem any objection or proposal reasonable after the hearing, it will be forwarded to the employer within 10 days.
- The employer must then communicate their opinion or response to the forwarded objections/proposals to the Inspector General within the subsequent 10 days.
7. Decision by the Inspector General:#
- After considering any opinions/responses (or if no objections were initially raised), the Inspector General will make a decision within 15 days regarding the acceptance of the draft Service Rules, either with or without amendments.
- If amendments are mandated based on the Inspector General’s decision, the employer will be directed to incorporate these changes and submit 5 copies of the amended draft within 7 days.
- If the Inspector General finds the draft to be contrary to the Labour Act, 2006, or otherwise inadequate, they may direct the employer to submit a revised draft within 7 days. A final decision will then be made after conducting another hearing with the concerned parties.
- Section 3(2) of the Bangladesh Labour Act, 2006, aims for the Inspector General to issue an order within 90 days of receiving the initial draft.
8. Final Approval and Stamping:#
- Once the Inspector General approves the rules (either initially or after amendments/resubmission), the employer must submit at least 5 copies of the final, approved Service Rules. These copies must be duly signed, dated, and stamped by the employer, and submitted to the Inspector General within 15 days of approval.
- The Inspector General will then sign and stamp these copies. One original copy is retained by DIFE, and one copy is sent to the employer and the Collective Bargaining Agent (CBA), if one exists.
9. Effective Date:#
- The approved Service Rules come into force 30 days after being signed and stamped by the Inspector General, unless an appeal is filed against the approval. If an appeal is lodged, the rules become effective following the Government’s final decision on the appeal.
10. Appeal Process (Optional):#
- If the employer (or another concerned party) is aggrieved by the Inspector General’s decision, they have the right to file an appeal with the Government. This appeal must be submitted within 30 days of receiving the Inspector General’s decision.
- The Government is mandated to dispose of the appeal within 45 days of its receipt. The Government’s decision on the appeal is considered final.
Related Issues:#
- Mandatory Approval: Service Rules drafted by an employer cannot be implemented without obtaining formal approval from the Inspector General, DIFE.
- Supremacy of Labour Act: The Service Rules must strictly comply with the Bangladesh Labour Act, 2006. No provision within the Service Rules can offer benefits or rights that are less favourable than those guaranteed by the Act.
- Scope of Application: The approved Service Rules apply specifically to the establishment for which they were approved. Different establishments, even if under the same ownership, may require separate Service Rules unless they meet the criteria for Group Service Rules.
- Amendments to Approved Rules: Any future amendments to already approved Service Rules must also undergo the same submission and approval process detailed above.
Key Contact
For assistance with drafting, reviewing, or obtaining approval for your company’s Service Rules in Bangladesh, please reach out to:
- Osman Goni
- Phone: +8801715569498
- Email: [email protected]
- Habib Morshed
- Phone: +8801678148367
- Email: [email protected]