wages and benefits

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Wages & Benefits

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Definition of wage: „Wages‟ means all

remuneration including any other

additional remuneration (such as

termination, death, retirement benefit

etc.) payable if the terms of employment

were fulfilled.

Wages and Benefits

Section 2(45) of BLA’06

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Wages exclude:

• the value of any house accommodation,

supply of light, water, medical

attendance or other amenities or

services excluded by general or special

order of the Government

• employer‟s contribution to any pension

fund or provident fund

• travel allowance

• any sum paid to the worker for special

expenses entitled by the nature of his

employment

Wages and Benefits

Section 2 (45) of BLA’06

• bonus or other additional remuneration

payable under the terms of employment

• remuneration paid for overtime work, holiday

or leave

• remuneration payable under any award or

settlement between the parties or under order

of any court

• any sum payable under termination of

employment, whether by retrenchment,

discharge, removal, resignation, retirement,

dismissal or otherwise

• any sum payable due to lay off or suspension

Wages include: Section 120 of BLA’06

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• every employer is responsible to pay all wages to

the workers

• payment of wages if any worker is employed in the

establishment through contractor (such as security

guards)

• worker employed through contractor is not paid by

the contractor: the employer shall pay the wage and

adjust the same from the contractor

Wages and Benefits

Responsibility for the payment of wagesSection 121 of BLA’06

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• The employer shall pay at least the minimum wage to the workers as per the

minimum wage declared by the Minimum Wage Board.

• If under any agreement or award or otherwise a worker is entitled to receive any

wages at higher rate, any other amenities or advantages then s/he will continue to

enjoy the benefit already given.

Wages and Benefits

Minimum rate of wagesSection 149 of BLA’06

Prohibition to pay wages at a rate below the minimum rate of wages

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Extra allowance for overtime:

Overtime wage shall be paid at the rate of

twice his / her basic wage + dearness

allowance and ad-hoc or interim pay, if any.

The formula of calculation of overtime wage is:

Wages and Benefits

Basic wage + (dearness allowance + ad-hoc or interim pay, if any)

--------------------------------------------------------------------------------- x 2 x no. of overtime hours

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Overtime work Section 108 of BLA’06

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As per Sec 35 of BL(A)L’13, any overtime work for piece rate workers the

payment shall be made at the ordinary rate of wages as fixed in consolation of

the employer and the workers’ representatives (i.e. it will not be twice of basic

wage)

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Fixation of wage periods:

the employer shall fix periods for the payment

of wages which is called “wage period”; no wage

period shall exceed one month.

Time of payment of wages: the wages of every

worker shall be paid within seven working days

from the last day of the wage period.

Where the employment of any worker is call

an end to the job by the worker or by

retirement or by the employer, whether by

way of retrenchment, discharge, removal,

dismissal or otherwise, the wages payable to

him shall be paid before the expiry of the

thirtieth working day from the day on which

his employment is so terminated.

All wages shall be paid on a working day.

Wages and Benefits Wage periods Section 122 of BLA’06

Sec 123 of BLL’06 and Sec 37 of BL(A)L’13

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Deduction for absence from duty:

Deduction of wages can be made against the unauthorized absent time / day.

No such deduction can be made against the period of time while s/he was at

work / duty.

No such deduction can be made against the period of time / day while s/he

was not required to work.

Wages and Benefits

Section 126 of BLA’06

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Deduction can be made for damage or loss of goods or money caused to the

employer by neglect or default of the worker

• before making any deduction of wage, an employer should give the worker the

opportunity to defend him or herself

• all deductions shall be recorded in a register

Deductions for services rendered

Deduction from wages for house accommodation or for such amenities and

services supplied by the employer cannot be made unless:

• the house accommodation, amenities or services are accepted by the employee as

a term of employment or otherwise

• such deduction is equivalent to the value of the house accommodation, amenity or

service supplied by the employer

Wages and Benefits

Deduction of wage for damage or loss Section 127 of BLA’06


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1. The total amount of fine shall not exceed 10% of the wages payable to the

worker in respect of the wage period;

2 No fine shall be imposed to the worker under the age of fifteen years;

3. No fine shall be recovered by installments or after the expiry of 60 days from

the date of imposition;

4. Every fine shall be deemed to have been imposed on the day the misconduct

happened;

5. All fines and all realizations shall be recorded in a register and spent for the

welfare of the persons employed.

Wages and Benefits

Fines


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Casual Leave: Every worker shall be entitled to

10 days casual leave with full wages in a

calendar year.

Sick Leave: Every worker shall be entitled to

sick leave with full wages for 14 days in a

calendar year.

Casual and sick leave shall not be accumulated

and carried forward to the succeeding year.

Wages and Benefits

Casual and sick leave Section 115 of BLA’06


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Annual leave

Wages and Benefits

A worker who has completed one year of

continuous service shall be allowed during the

subsequent period of 12 months, to take leave

with wages at the rate of:

- One day for every 18 days of work, in case of

adult worker

- One day for every 15 days of work, in case of

non-adult worker

Any holiday which falls between annual leave shall be counted as annual leave.

Un-availed annual leave shall be accumulated. The accumulation of annual leave

shall be up to 40 days in case of adult workers and 60 days in case of adolescent

workers.



Section 117 (4) & (5) of BLA’06

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Any annual leave applied by a worker but refused by the employer for any reason,

shall be added to the accumulated annual leave.

When counting a period of continuous service of 12 months for the purpose of annual

leave calculation, the following days are also considered as work days:

• any holiday

• any leave with wages

• any leave with or without wages due to sickness or accident

• any maternity leave not exceeding sixteen weeks

• any period of lay off

• legal strike or illegal lock out

Wages and Benefits

Annual leave Section 117 (7) of BLA’06


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Every worker is allowed for 11 days of paid festival holidays in a

calendar year.

If a worker is required to work on any festival holiday, 2 (two) days

compensatory holidays and 1 (one) substitute holiday shall be

provided.

Wages and Benefits

Festival holidaySection 118 of BLA’06


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Wages and Benefits

Service book (Condition of employment)


Every employer shall provide a service book to every worker employed by him at

the employer‟s cost.

The worker who has service book already, shall hand it over to the new employer

and the employer shall give a receipt of it to the worker.

If a worker wants to keep and maintain a duplicate copy of his service book, he

may do it at his own cost.

The employer shall hand over the service book to the worker on the termination of

the worker‟s service.

If the service book handed over to the worker or the duplicate one maintained by

him is lost by the worker, the employer shall provide him with a duplicate service

book at the cost of the worker.

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Wages and Benefits

Retirement Benefit (Condition of employment)

A worker employed in any establishment shall retire from employment after

completion of 57 years of age.

The date of birth recorded in the service book of the concerned worker shall be the

conclusive proof for counting the age.

The employer shall pay compensation at the rate of 30 days‟ wages (basic) for every

completed year of service or gratuity, if any, whichever is higher, in addition to any

other benefit to which s/he may be entitled.


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Sec 28(a)of BLA’06 and Sec 14 of BL(A)L’13

Employers-Workers relations due to any disaster beyond control or damage thereby:

Notwithstanding whatever in this Chapter, if any industry ceased to be transferred or

production of an industrial establishment comes to a halt permanently due to any

sudden natural disaster or any disaster or emergency reason beyond control, in that

case, the owners-workers relations may be determined by the Government under the

prescribed procedures set out by the Rule.

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If three fourths of the total work force of the establishment ask the

management in written to set up a provident fund, it is legally mandatory for

the employer to do so.

If such provision exists, every permanent worker, after completion of one

year of service, shall contribute not less than seven percent and not more

than eight per cent of his/her basic wage to the provident fund, and the

employer shall contribute to it an equal amount.

Wages and Benefits

Provident fund (Condition of employment)



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The following acts and omissions shall be treated as misconduct:

Wages and Benefits

List of misconducts (Condition of employment)

a) Willful insubordination or disobedience, whether alone or in combination

with others, to any lawful or reasonable order of a superior;

b) Theft, grabbing, fraud or dishonesty in connection with the employer‟s

business or property;

c) Taking or giving bribes in connection with his or any other worker‟s

employment under the employer;

d) Habitual absence without leave or absence without leave for more than ten

days;

e) Habitual late attendances;

Sec 23 (4) of BLA’06 and Sec 11(b) of BL(A)A’13

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f) Habitual breach of any law or rule or regulation applicable to the

establishment;

g) Disorderly behaviour in the establishment, fighting, setting fire or

vandalism;

h) Habitual negligence of work;

i) Habitual breach of any rule of employment, including conduct or

discipline, approved by the Chief Inspector;

j) Falsifying, tampering with, damaging or causing loss of employer‟s

official records.

Wages and Benefits

List of misconducts (cont.)

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a) The allegations against him / her are recorded in writing;

b) S/he is given a copy thereof and not less than seven days‟ time to explain;

c) S/he is given an opportunity of being heard;

d) S/he is found guilty, after enquiry;

e) The employer or the manager approves such order.

Wages and Benefits

Procedure of punishment (Condition of employment)

No order of punishment under section 23 shall be made against a worker

unless:


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Punishment for conviction and misconduct:

A worker may be dismissed without prior notice or pay in lieu thereof if s/he is:

a) convicted for any criminal offence, or

b) s/he is found guilty of misconduct under section 24.

Wages and Benefits

Dismissal (Condition of employment)

If a worker is removed for any of the above reasons, and if his / her continuous

service is not less than one year, s/he shall be paid compensation at the rate of 15

days‟ wages for every completed year of service.

No compensation shall be paid to the worker who is dismissed for the following

misconducts:

• Theft, grabbing, fraud, or dishonesty in connection with the employer‟s

business or property.

• Disorderly behaviour in the establishment, fighting, setting fire or vandalism;


Section 23 (3) of BLA’06 and Sec 11(a) of BL(A)A’13

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a) Removal

b) Demotion to a lower post, grade or scale of pay for a period not

exceeding one year

c) Stoppage of promotion for a period not exceeding one year

d) Withholding of increment for a period not exceeding one year

e) Fine

f) Suspension without wages and subsistence allowance for a period not

exceeding seven days

g) Censure or warning

Wages and Benefits

Dismissal (cont.)

Any worker found guilty of misconduct may be awarded any of the following

punishments, instead of dismissal in consideration of any extenuating

circumstances:


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Workers’ Responsibilities

Workers should

• count money at the time of receiving wage

• inform immediately to the responsible person if any mistake found in wage calculation

• give 60 days notice before resigning from service

• apply for leave in advance

• try not to be absent without granted leave

• report immediately to the superior if not being able to attend the factory due to any unavoidable circumstances; such as sudden sickness, accident or else

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Workers’ Responsibilities (cont.)

Workers should

• obey all legal and reasonable orders of the superior

• do not involve in any act which is subversive of discipline

• do not falsify, tamper with, damage or cause loss of employer‟s

official records.

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Consequences of non-compliance with wages and benefits

• Workers may get less income due to non-compliances in wage and benefitpayments

• Delayed payment of wages, non-compliances in termination practices,granting leave and the handling of misconducts may create dissatisfactionamong workers and even unrest

• Loss of workers„ motivation

• Increase of worker migration rate

• Risk of loosing business from buyers

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Thank You

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wages and benefits

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