Compensation and Benefit

Compensation and Benefit Management

Of BEXIMCO Textiles Ltd.

Bangladesh Export Import Company Limited

Submitted To

Mr. Ahsan Ullah

Compensation and Benefit managementPost Graduate Diploma in Human Resource Management

United International University

Submitted By

Sl. Name ID1 Kumar Bishawjit Roy 913143012

2 Shibli Husain Ahmad 9131430

3

4

5


21 November 2014

21 November 2014

Mr. Ahsan UllahCourse InstructorPGD in Human Resource ManagementUnited International University

Subject: Report Submission on Compensation & Benefit Management of BEXIMCO Textiles Ltd.

Dear Mr. Abdullah:

Enclosed is the proposal report entitled “Compensation & Benefit Management of BEXIMCO

Textiles Ltd." This will discuss the Compensation & Benefit package of of BEXIMCO Textiles

Ltd.

It was academic ventures for us because of implementing the mandatory information that

we have learn while constituting the report. In addition to that, this term paper benefits us

in another way too. It helped us to bridge the gap between the classroom learning and the

practical scenario regarding the real business world, which was a primary motive to go

through this report.

Thank you for all of your consideration and assistance in putting this report together.

Sincerely,

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Kumar Bishawjit RoyID: 913143012(On the behalf of Group Members)

PREFACE

As per decision of the Compensation & Benefit Management course coordinator Mr. Ahsan

Ullah, to make a report on change management on any reputed organization of Bangladesh

and we select BEXIMCO Textiles to identify their change process. It is a first attempt for

making this report for our course. This report serves good efforts for standard ways of

learning and knowing about Compensation & Benefit Management. The report is written

according to BEXIMCO Textiles, containing 2 parts, their business and the case,

compensation and benefit package. It is hopefully believed that this report will be a strong

foundation to procure knowledge about an existing process of BEXIMCO Textiles.

However, one may find a very few unintentional human errors and editing mistakes. Apart

from correction any useful suggestions for the improvement will be received with thanks.

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ACKNOWLEDGEMENT

We would like to thank the following for providing information and help for making a report

for our Compensation & Benefit Management course. He helped us to give information to

find a case on change management of BEXIMCO Textiles and makes things clear to us. Based

on his information we have made this report.

1. Mr. Kudrat Ullah Mustafa Zaki

Sr. Executive, Administration

BEXIMCO Limited (Textile & Apparel Division)

BEXIMCO Industrial Park

Saravo Kashimpur, Gazipur

Our course teacher also helps us to make a structural as well as formal report. He considers

her valuable time for us by consultation. All the time he helped us to make this successful.

1. Mr. Ahsan Ullah

Course Instructor

Compensation & Benefit Management course

Post Graduate Diploma in Human Resource Management


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Compensation & Benefit Management: BEXIMCO Textile Division

1.0 Introduction

Mr. Ahsan Ullah, Course Instructor of Compensation & Benefit Management has assigned us

to prepare a report on the Compensation and Benefits Package of an organization as a

partial fulfillment of the course.

1.1 Definition of the problem

Our problem statement is “Compensation and Benefits Package of Beximco Textiles

Division”. BTD is a group of Textiles Composite where more than 13,000 people work. Since

BTD considers its people as the main strength of the business, it conducts a well defined

Compensation and Benefits Package for all the employees of this organization.

1.2 Objective of the study

The aim of our study was to know the Compensation and Benefits Package of any

organization as a partial requirement of the course Compensation & Benefit Management.

Therefore, to obtain this aim we set the following objectives of studies.

Study the salary structure followed by the organization

Identify the different kind of incentives that organization giving

Identify the competitiveness of the Total pay structure of the organization.

Identify the qualified students attractiveness towards the organization

Identify the problems behind switching from the organization

1.3 Scope of the report

The report was prepared concerning the following areas:

Concepts of compensation and benefits package as per the management theory

Focusing on organizational people’s opinion about the incentives, they have been

provided.

1.4 Methodology

At first, we studied about the Compensation and benefits packages. Secondly, we studied

the practical process of this system and its impact to the employees. Finally, we analyze the

collected information revealed the findings.

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1.5 Limitations

Our study was mainly limited by the following factors.

Difficulties to disclose the data.

Lack of coordination due to communication problems.

Shortage of time.

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2.0 Profile of the organization

2.1 Introduction

Bangladesh Export Import Company Limited is the largest company within the BEXIMCO

Group and operates across multiple industry verticals. The company is present in textiles,

real estate & hospitality, marine food & commodities trading, ICT, ceramics and aviation.

The company's largest division is Textiles, which is a fully integrated manufacturer of cotton

and polyester blended garments for men, women and children, both for domestic and

export markets.

Over the years, BEXIMCO has developed in-house design capabilities with teams based in

Bangladesh and Spain. Furthermore it has partnered with some of the world’s renowned

design institutes, including FID and NIFD, for access to talented designers. The company has

built strong working relationships with its core clients through a continuous dialogue. Key

clients include American Eagle, Arcadia Group, Calvin Klein, H&M, JC Penny, Macy’s, Tommy

Hilfiger and Zara.

2.2 Brief History

BEXTEX Ltd. (the "Company") was incorporated in Bangladesh as a Public Limited Company

with limited liability on 8 March 1994 and commenced commercial operation in 1995 and

also went into the public issue of shares and debentures in the same year. The shares of the

Company are listed in the Dhaka and Chittagong Stock Exchanges of Bangladesh.

BEXTEX Ltd. is the most modern composite mill in the region. BEXTEX Ltd. has an installed

capacity of 288 high-speed air-jet looms in its weaving section and a high-tech dyeing and

finishing section with a capacity of 100,000 yards of finished fabric per day. This company is

located at the Beximco Industrial Park.

2.3 Location

Both the Head Office & Factory of Beximco Textiles Division (BTD) are located at its own

industrial park known as “Beximco Industrial Park”, Kashimpur, and Gazipur. Besides this,

BTD has five trading offices around the world located in UK, USA, Hong Kong, Singapore and

Pakistan.

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2.4 Establishment

BTD started its incorporation in 1985 by its garment section. Sequentially, it established it’s

spinning units on 1990 and fabric units in 1996. Still is on its expansion works with the aim

of completion by 2005.

BEXTEX Ltd. has a state of the art composite knit fabric production mill, which serves the

growing needs of high-quality knit garments exporters in Bangladesh. The project was set up

as a state of the art knit fabric knitting, dyeing and finishing facility. During the year the

Company produced and sold high quality of knit fabrics and bringing forth all the latest in

hard and soft technologies in knitting, dyeing and finishing of knit fabric.

BEXTEX Ltd. also has cotton and polyester blended yarn-spinning mill, with 122,000 spindles

is one of the largest spinning mills of the country. The mill was set up to feed the country's

export oriented industries.

2.5 Board of Directors

A S F Rahman – Chairman & Managing Director

Salman F Rahman – Vice Chairman

Iqbal Ahmed – Director

A B Siddiqur Rahman – Director

Md. Asad Ullah, FCS – Director

Barrister Faheemul Haque – Independent Director

2.6 Vision

Gain market leadership in high value added apparel in USA & Europe.

Use “Innovation” & “Speed” as prime drivers, rather than cotton & cheap labor.

Dominate these markets in high quality:

Men's, Women's , Children

Shirts ( Dress & Casual )

Blouses ( formal & casual ) , Skirts, Jackets

Jeans & Casual non - denim bottoms

Knitted tops & bottoms

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2.7 Mission

BEXTEX Ltd. is a full service vendor with strong vertically integrated production facilities as

well as creative & analytical capabilities which clearly sets us apart from most other South

Asian vendors.

2.8 Objective

Beximco Textiles Division plans for long-term Perspective and designs its Policy for clarity,

responsibility and accountability.

2.9 Philosophy

The business Philosophy of BTD is to add value to each of the parties they are connected

with.

2.10 Strategy

To secure a strong market position as a 100% export oriented supplier of textiles product

BTD has set up its business strategy in high quality through continuous improvement and

differentiation in products through Research & Development.

2.11 People of the organization

In order to service customers in a more efficient manner your company has moved its

Marketing IT, MIS, HRD, Logistics, Commercial, Finance & Accounts, Administration and

Central Procurement to the Industrial Park. This has resulted in much better co-ordination

improving customer service thereby. BEXTEX Ltd. has established a central planning

department for smoother order planning and monitoring.

BTD has near about 13000 workers staffs for its smooth operation among which 2900

people work in spinning units, 2900 work in fabric units and remaining 7000 belongs to

garments units.

To control the total work environment BTD having a large number of worker staffs has more

than 800 management staffs from different backgrounds (mainly 40% Textiles Engineers,

30% BBA & MBA)

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2.12 Main strength

BTD considers the following as the main strength for the organization

Beximco People

Corporate Management & Culture

State of the Art Technology

World class Product

Sound Communication System

2.13 Target Market

BTD targeted the following markets based on age group, income group and geographic

location

Child to adult

Male and female of all age group

America & Europe

2.14 Human Resources & Compliance Department

2.14.1 HRM

Recruitment, selection and relevant support services support

Organization Research & Development

Documentation & Control

Training & Development

Industrial & Public Relations

Internship

2.14.2 Compliance & Human Rights

Employees Safety, Health & Hygiene

Employees Rights & Obligations

Work Environment

Implementation of the “Land of Law” & ILO convention

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3.0 Total Compensation and Benefits Package

3.1 Objectives

This chapter outlines the rules relating to compensation structure and the benefit

package of the company and gives detailed procedures for exercising them in

order to promote fair treatment and consistency within the organisation.

3.2 Salary Structure

Refer to the Salary & Remuneration Package Structure for Supervisors and

Executive Staff of BTD for details regarding the structure of salary and allowances

for different units under BTD. Refer to the Salary & Remuneration Package

Structure for Workers of BTD, for details regarding the structure of salary and

allowances for different units under BTD.

3.3 Revision of Pay Elements

The compensation structure may be revised, if necessary, with the approval of the

Director, Admin/HR, Head of the Dept., Finance and the Chief Executive.

3.4 Employee Compensation Records

Employee Pay Records are maintained by the Personnel & Admin Department for

Workers and Supervisors and by the Human Resource Department for the

Executives. These departments maintain personal file of all employees where all

records in regards to the employee are kept in addition to any soft copy (in

computer database) maintained by the departments. These records are

confidential and should not be accessible to any unauthorised persons

(authorisation defined by HR or Personnel & Admin dept. head).

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3.5 Basic Employee Benefits for Permanent Employees

3.5.1 Provident Fund

The Company's Provident Fund is a funded scheme. All confirmed and permanent

employees are entitled to be members of the Provident Fund. The employee

contribution, equal to 10% of the basic salary, is deducted each month through

the payroll. The Company contributes an equal amount and both the employees'

and the Company's contributions are paid to the Fund each month. In the

Provident Fund Ledger, both the employee's and the Company's contributions are

credited to the individual employee's account.

The membership of the Trustees of the Provident Fund must include at a

minimum:

a) Representation from the HR Department

b) Representation from Finance & Accounts Department

c) Two representatives from the Workers

3.6 Bonuses

Workers:

All confirmed Permanent employees of Beximco Textiles Division are entitled to

two Festival Bonuses each equivalent to “Basic Salary” under the following

conditions:

Attendance in the Calendar Year Bonus Entitlement

213 days + 100% of the Bonus

107 days + 50% of the Bonus

< 107 days No Bonus

3.7 Meal Facilities

The following facilities are provided in each of the organisation under Beximco

Textiles Division:

BTL,

Workers:

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Meals are provided at a subsidized rate.

Head Office:

Officers (Junior Executives to Deputy Managers):

Breakfasts are provided at a subsidized rate.

Meals are provided at a free rate.

Officers (Manager and above ):

Breakfasts and meals are provided at a subsidized rate.

3.8 Accommodation

The company on the basis of requirements and availability provides free furnished

single accommodation to selected BTL, BKL, & BDL Factory Executives at the

Officer’s Mess of the factory. Accommodation is not provided for the employees

of other organisations under Beximco Textiles Division. The workers on the same

basis are also provided with furnished single accommodation at the Workers

Mess at a minimal monthly charge of Tk. 50/- only.

Refer to Benefit Packages for Contract Employees accommodation facilities

provided to The Expatriate Employees. The rental value is different based on

designation. The distinction is in below:

Sl. Designation Amount

1 Manager 35000.00

2 Senior manager 40000.00

3 Deputy General Manager 50000.00

4 General Manager 70000.00

5 Senior General Manager 100000.00

6 Executive Director 100000.00

7 Others (CEO, CFO, COO) At Actual

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3.9 Utilities Allowances

Workers and Supervisors:

No utility allowance is paid.

Executives between grades J to M4 (Junior Executive to Deputy Manager):

No utility allowance is paid.

Executives of grades M5 and above (Manager to above):

DesignationElectricity

(Limit/Month)

Gas

(Limit/Month)

Water

(Limit/Month)

Telephone

(Local & NWD)

(Limit/Month)

Manager / Sr.

Manager / DGM2,500 At Actual At Actual At Actual

GM and above At Actual At Actual At Actual At Actual

To get reimbursed for utilities bills, complete “Expense Reimbursement Form”,

and submit to the Accounts Department. The Accounts Department will make

reimbursement payment to the employee within 45 days from the date of

submission. Telephone bill has to be forwarded to the IT department, so

payments can be made by the company, if it is in the name of the company.

3.10 Mobile Telephone

Based on the Beximco Textile Division’s business need, a mobile telephone may

be provided to a permanent or contract employee. To receive this benefit, a

written application should be forwarded to the Department Head, IT upon

approvals of the employee’s Department Head and In charge of the site/factory if

applicable.

The SIM for the mobile phone is to be used primarily for business purpose,

though can be utilised for being in contact with the family members, if necessary

with logical discretion due to the high cost of mobile phone usage.

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Credit limitation per month is varied on designation:

Sl. Designation Amount

1 Junior Executive to Senior Executive 1500.00

2 Assistant Manager to Deputy Manager 1800.00

3 Manager to Senior Manager 2200.00

4 Deputy General Manager 2500.00

5 General Manager 3000.00

6 Senior General Manager 4000.00

7 Executive Director At Actual

3.11 Medical Benefits

3.11.1 Medical Benefits for the Workers & Supervisors

Employees at BTL/BDL/BKL factory site are entitled to receive free medical

consultation from the company physician. In cases where a worker is injured

while at work, all costs of treatments are borne by the company.

Other organisations within Beximco Textiles Division do not provide any medical

services for the Worker & Supervisors.

3.11.2 Medical Benefits for the Executive Staff

The company will reimburse the cost of authorised medical treatments in

Bangladesh including hospitalisation, surgical and childbirth subject to the

conditions mentioned hereunder. In case of any overseas treatment prior

approval from the Chief Executive is required. The following are the basic

guidelines in regards to medical benefits provided to the Executives:

(i) Treatment to be carried out by a registered Medical Practitioner. The

company reserves the right to approve the Medical Practitioner

consulted.

(ii) Dental treatment included as preventative measures, the company will

reimburse for ‘Upper and Lower’ dental cleaning twice a year.

(iii) Reimbursement of the cost will be restricted to the treatment of the

executive, spouse and children.

(iv) Relevant details including names and dates of birth of spouse and the

eligible children should be sent to HRD for record.

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(v) Children attaining 21 years of age or getting married, whichever is earlier,

will not be entitled to reimbursement of the cost of medical treatment.

(vi) Expenditure on medical treatment of Executives is reimbursed by the

company as per following entitlements:

(vii) Expenses Cannot not be claimed: The company will not reimburse the

following expenses:

The supply of dentures and false caps.

Any cosmetic dental work.

The supply of spectacle frames.

Special diets except in hospitals under medical advice

Treatments not covered under paragraphs (i) and (ii)

3.12 Transportation Facilities and Car Purchase Scheme

3.12.1 Transportation Facilities for Worker & Supervisors

BTL/BDL/BKL:

There are no transportation facilities provided to the Worker.

BAL:

There are no transportation facilities provided to the Worker of BAL.

BFSL:

A bus pickup and drop service from some specific location is available for a

subsidised monthly fee of Tk. 50.00.

Head Office:

There are no transportation facilities provided to the Worker.

3.12.2 Transportation Facilities for the Executives

3.12.2.1 Executives to Assistant manager

BTL/BDL/BKL:

In Dhaka City 10 Asiean A/C Bus Service provide pick and drop service in 5 routes

from some specific locations. In every route, there have 2 buses. If seat is not

available then the employee is responsible for travelling back and forth to work

on his/her own. For business purpose travel, Pool Car can be provided based on

availability.

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3.12.2.2 Manager and above:

When an employee promoted to Manager, then he/she can avail a car from the

company. Whether the car can be provided from the company pool or rental or

employee personal purchase. User can claim maintenance bill, driver salary for

their vehicles except when they will use rental vehicles. For rented vehicle,

company will provide the rent & fuel cost only.

Sr. GM and above users can avail 2 vehicles, one for their official use and another

for their personal use or their house use.

Executives of grade M6 and above, i.e. General Managers and above are entitled

to 24 hours company paid transportation. The company also pays for the fuel at

cost, Driver’s salary, and for all necessary maintenance/repair and administrative

cost of the vehicle except it is a rented vehicle.

Car Purchase Scheme:

Employees in this grade, which is Managers, Senior Managers, and Deputy

General Managers, are eligible to apply for a Car Purchase Scheme upon the

expiry of one month after the date of joining in the company. To initiate the

request for participating in this Car Purchase Scheme, the employee is required to

write a note to the HR Department. The Human Resource Department then gets

necessary approvals and then forwards the request to the Head Office Admin

department.

The objective of the scheme is to provide financial assistance to company

executives for the purchase of cars and thus to provide executives with transport

necessary for carrying out their duties.

An employee who has acquired a car under this scheme will not be eligible to

apply again for a period of five (5) years.

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The following are the approved specification of the transport and benefit given to

the employee:

Description of the car : 1300/1500 cc new or reconditioned. Four door sedan.

Car Price : Tk 500,000/= (maximum Tk 600,000)

Purchase Contributions : Employee – 50%; Company – 50%

Fuel Allowance Allowance of 350 litters per month to be paid by the

company for worker based at Head Office and also

worker who are residing at the factory site.

Allowance of 450 litres per month to be paid by the

company for worker based at the factory but residing

at least 20 Kilometre away from the factory.

Maintenance: Based on manufacturer’s year model, for up to 6 year

old car, the company will pay a maintenance

allowance of Tk 3,000/= per month.

For 8 years or older cars, the company will pay a

maintenance allowance of Tk 4,000/= per month.

For 10 years or older cars, the company will pay a

maintenance allowance of Tk 5,000/= per month.

The money will be accumulated in the employee’s

account in the accounts department and will be

utilised for repairs and maintenance when they arise.

The accounts department will be responsible to pay

the money immediately upon submission of paid in

receipt from the Workshops.

Driver : To be employed by the employee concerned. An

allowance of 12,500.00 to 14,500.00 per month will

be paid by the company to cover the driver’s salary.

Major Accidental Repairs Any vehicle under this scheme will maintain a 1st

Party insurance. The Admin. Department will ensure

filing of all insurance claims considering the amount

of money required to repair and the amount of

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deductible. The amount of deductible and/or the

amount of repairs will be split 50:50 between the

employer and the employee if the balance of the

maintenance fund is not adequate to cover the

expenses. The employer initially will make the full

payment to the insurance company and/or to the

repair shop, then the portion of the employee will be

deducted from the salary in equivalent 12

instalments, if not covered by the insurance. The

Admin. Department (and the employee if willing to)

will supervise all repair work and do the

administrative tasks, then forward a bill of the

employees portion, signed by the employee, to the

Accounts Department for repayment.

Purchase of re-conditioned cars will be subject to inspection on behalf of the

company, by the Transport department or by a workshop designated for this

purpose by them. The car will be checked for engine and body condition,

suspension and safety features. The “Automobile Inspection Report”, form F10-

201-06-07 will be completed and signed by the Administration Department for

processing the request of car purchase.

The company, bank or a leasing company may finance the purchase of the car.

The car will be initially registered as follows:

By the company - in the name of the company

Through a bank loan - as stipulated by the bank

Through a leasing contract - in the name of the leasing company

The employee’s 50% contribution towards the cost of the car will be paid by him

to the company in equal monthly instalments over a period of three years if the

car is financed by the company, or over a period equal to the currency of the loan

or leasing contract, as the case may be.

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If the car is acquired through a leasing contract or a bank loan, the employee will

be required to contribute 50% of the lease payments or loan instalments every

month until the expiry of the lease period.

If the price of the car exceeds Tks 600,000 the employee will pay the amount in

excess of Tks 600,000 to the company in cash.

The company’s 50% contribution to the cost of the car will be amortised over a

period of five years. After the expiry of this period, or the expiry of the leasing

contract if the car has been leased, or the repayment of the bank loan if the car

has been acquired through a bank loan, and subject to prior receipt of the final

instalment of his contribution, the ownership of the car will be transferred to the

employee. Costs incurred in connection with the transfer will be payable by the

employees.

In the event that the employee leaves the company before the expiry of five

years, he shall have the option to purchase the car from the company at the

written down value in the books of the company, plus the total of the unpaid

instalments towards, his own contribution. This option to purchase will only be

available to an employee who has been with the company for a minimum period

of two years. In case he does not choose to exercise the purchase option, the

Company will reimburse the employee 75% of the amount contributed by

him/her towards the cost of the car, and the car will then remain in or be

transferred to the ownership of the company.

The employee will be expected to use the car for the company’s business as well

as for fulfilling his private transport needs, including the transport of children to

school, etc. Employees who have availed for this scheme are expected to meet all

their transportation needs with the vehicle provided under scheme. No other

transport will be provided to an employee who has availed of this scheme.

However, if the employee is asked to travel outside Dhaka (or Savar) on Company

business, he will be reimbursed at Tks. 7.50 per km, subject to prior permission

from his department head, plus an allowance of Tks. 100.00 per day for the

driver. Tolls and other expenses will be paid at actual.

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Repairs and maintenance of the vehicle will be the responsibility of the employee.

A maintenance allowance will be paid as explained earlier in this section.

All taxes, fees, duties, registration costs, and insurance will be paid by the

company. The employee must inform the Admin Department one month prior to

the due date for Fitness/Insurance and the Admin Department will take full

responsibilities to complete the said tasks.

The company’s approval to participate into this scheme will be based on the

nature of the employee’s job and on the availability of funds with the company, at

the time when the application to join the scheme is made.

The employee may choose to select a car that is presently in the name of the

company and if made available to the employee for purchase. The administrative

department will be responsible to identify the market value of the car, get

approval from the HR Department, and make an offer to the employee. For the

purchase of the company car, the employee shall be liable to pay 50% of the

market value of the vehicle, in equal monthly instalments to the company over a

period of three (3) years. All other terms and conditions shall remain the same.

The Management reserves the right to change, modify, amend, cancel or waive

any or all of the provisions of this scheme at its absolute discretion and without

any prior notice and also to withhold or reject any application to join the scheme,

without assigning any reason whatsoever.

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3.13 Leave Entitlements

3.13.1 Basic Leave Types

All Permanent Workers and Executives of the company are entitled to various

types of Leaves that are calculated based on calendar year and prorated from the

date of joining the company's service for the first year. Leave entitlements of

expatriate (Contract) employees shall be governed by their respective terms of

employment with the company specified in the Appointment Letter.

3.13.1.1 Workers

For Workers the leave entitlements are calculated in accordance with "The Shops

and Establishment Act 1965", Factories Act 1965 and the Factory Rules 1979.

These entitlements are as follows:

Types of Leave Days Per Year

Casual Leave (with full wages) 10

Sick Leave (on ½ average wages) 14

Earned Leave (1 for every 22 days

actual work with wages)

12

Public Holidays 10 (minimum)

3.13.1.2 Executives in head office

The following are the Basic Leave entitlements for the Executives at Head Office:


Weekends (with full wages) 2 days in a week


Sick Leave (with full wages) 10

Earned Leave 15

Public Holidays

As per list of holidays

declared by the Chamber

of Commerce

3.13.1.3 Executives in factory

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The following are the Basic Leave entitlements for the Supervisors and Executives

at Factory Site:


Weekends (with full wages) 2 days in week


Sick Leave (with full wages) 10

Earned Leave 15

Public Holidays 10 (minimum)

Public Holidays for Head Office worker are governed by the policy of the Group

and is based on the list of holidays declared by the Chamber of Commerce. For

Factory Worker, the Management determines the Public Holidays (minimum 10

days) and it is announced at the beginning of the year.

3.13.2 Definitions of Basic Leave Entitlements

The following are some definitions of Basic Leaves entitlements:

3.13.2.1 Casual Leave

Entitlement to casual leave for the Worker is 10 days and for the Executive at

Head-Office and Factory Site it is 15 days based on each calendar year. The

employee is entitled to exercise Casual Leave from the very next day of joining;

though the Casual Leave is pro-rated for the balance period of the year counting

from the joining date.

Casual leave cannot be availed for more than three days at a time. Also, it cannot

be carried forward to the following year or cashed. Casual Leave can be taken

with Weekends, Public Holidays, Earned Leaves, etc. but be limited to only 3 days.

3.13.2.2 Sick Leave

Entitlement to Sick Leave for the Worker is 14 days the and for the Executives at

Head-Office and Factory Site it is 15 days on the basis of each calendar year. The

employee is eligible to exercise the Sick Leave benefit from the date of his/her

joining. The above entitlements represent the maximum number of days Sick

Leave that an employee can avail in a year. Normally medical certificates are not

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required but if the sick leave exceeds three days at a time or is being taken as an

extension of Earned Leave, then a Medical Certificate is required. Where this is

not the case an application for Sick Leave is considered enough. Sick leave cannot

be carried forward to the succeeding year and cannot be cashed. If an employee

is sick on Weekend or on a Public Holiday, that day will not be counted as a sick

day and the number of Sick Leave taken out of his/her allocated days will be

excluding those days.

3.13.2.3 Earned Leave

All permanent/contract workers are entitled for 12 days Earned Leave on the

basis of each completed year of service. Workers are not allowed to take the

Earned Leave for the current year. This leave can be taken on the following year

or can be cashed. Maximum accumulation of Earned Leave for Staffs and Worker

can be 20 days.

Entitlement to Earned Leave for the Executives at Head-Office and Factory Site is

15 days on the basis of each completed year of service. A maximum of thirty (30)

days can be accumulated. Any accumulation beyond this will automatically lapse

on the following 1st of January each year. The entitlement to Earned Leave is

exclusive of Weekends and Public Holidays i.e., Weekends and Public Holidays

falling during the annual leave taken will be considered additional to the

entitlement.

Though Earned Leave is counted from the date of joining but it cannot be taken

until the employee passes the probationary period receiving confirmation.

3.13.2.4 Other Leave Options

The following sections explain some additional leave options that an employee

may exercise depending on the need.

3.13.2.5 Compensatory Leave

Executives and Supervisors are entitled to compensatory leave in the following

situations and the guidelines associated with them are:

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(i) Executives and Supervisors working in general shift are entitled to one

day’s Compensatory Leave if they work for at least eight hours on Public

Holidays or on Weekends, for example, Friday.

(ii) Executives and Supervisors working in shift duties are entitled to one day’s

Compensatory Leave after working for an extra shift or for working on a

scheduled off day or on a Public Holiday.

(iii) Compensatory leave either can be cashed or can be accumulated with

Annual Leave by Assistant Managers and below, while for Dy. Managers

and above can only be accumulated with Annual Leave.

(iv) Compensatory Leave shall be granted against duties not less than 8 (Eight)

hrs for which 1 (One) day leave shall be granted.

(v) Compensatory Leave Form should be sent to HR/Admin. Department within

5 working days following the day worked.

(vi) Compensatory Leave should be treated as Earned Leave, i.e. the leave

should be taken within the next calendar year or cashed; it lapses

afterwards.

3.13.2.6 Maternity Leave

Married woman employees are entitled to Maternity Leave benefit as per "The

Maternity Benefit Act, 1939". The period of Maternity Leave shall be 84 actual

days of absence which shall include the Public Holidays and Weekends (non-

working days) and including the day of delivery. The entitlement to maternity

leave is to be availed as follows:

Six weeks or 42 days immediately preceding and including the day of

delivery.

Six weeks or 42 days immediately following the day of delivery.

A woman shall not be entitled to maternity leave unless she has been

employed by the Company for a period of not less than nine months

immediately preceding the date of delivery.

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3.13.2.7 Study Leave

An Executives may be granted Study Leave, with or without pay, entirely at the

company’s discretion, once s/he has been in the company for at least one year.

Study leave is normally granted if the course of study which the employee intends

to pursue is likely to benefit the company’s operations. Study Leave can be given

for up to a maximum period of two years.

3.13.2.8 Haj Leave

A Permanent Executives who intends to perform Haj at his own expenses, upon

completion of one year of service, may be allowed for a 45 days Haj Leave with

pay at the sole discretion of the management. This leave can only be availed once

in the entire period of service.

Similar leave may be granted for employees other than Muslims, if the occasion is

a once in a life time holy event significant to the believers.

3.13.2.9 Special Leave

Special leave may be granted to the Permanent or Contract employees with or

without pay and allowances at the sole discretion of the management.

Application for special leave should be forwarded to HR/Personnel department,

through the relevant departmental head, along with appropriate reasons and

recommendations for necessary action. Some examples of such leave request

may be for marriage, death in the family, etc.

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3.13.3 Leave Encashment

Executives and workers before leaving the Company due to resignation,

retirement or termination are allowed to cash the Earned and Compensatory

Leave due to them up to a maximum of 30 days, while for workers it is 20 days

plus the prorated entitlement for the current year. The amount paid on

encashment includes only the employee's last drawn basic salary for the period.

Allowances are not included in this amount.

3.13.4 Maintenance of Leave Records

Approved leave applications received from departments are entered in a Leave

Register and the lower portion of the leave application showing the balance of

leave is sent to the employee. Leave records for all Executives and Head Office

Staffs are maintained by HR Department while for Workers & Supervisors at

factory site are maintained by the Site Personnel & Administration Department.

3.14 Financial Assistance Schemes

3.14.1 Objectives

To meet various emergency and incidental expenses, the company provides

financial assistance in the form of advance payment of salary and loan against

provident fund to its employees. The following sections give detailed procedures

for salary advances and loan sanctions under Financial Assistance Schemes.

3.14.2 Priorities for Loan against Provident Fund (PF) or Salary Advance

The following priorities will be maintained for PF loan or salary advance request

processing:

1. Medical emergencies for spouse or children

2. Death of Spouse or children

3. Medical emergencies for other dependent

4. Death of other dependent

5. Rental advance

6. Own marriage

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7. Other emergencies

8. Marriage of siblings

9. Education

10. Other requirements

3.14.3 Loan against Provident Fund (PF) or Salary Advance Eligibility and

Limits

Loan against Provident Fund

1. All Permanent employees who have contributed to atleast18 instalments in

the Contributory Provident Fund of Beximco Textiles Division and have been

in the company for less than 3 years, are eligible to take loan against the

provident fund equal and up to 75% of the employee’s own contribution.

2. All Permanent employees who are members of the Contributory Provident

Fund and have been in the company for more than 3 years but less than 4

years, are eligible to take loan against the provident fund equal and up to

100% of the employee’s own contribution.


Fund and have been in the company for more than 4 years but less than 5

years, are eligible to take loan against the provident fund equal and up to 70%

of the total contribution (employee’s own contribution + company’s

contribution).


Fund and have been in the company for more than 5 years are eligible to take

loan against the provident fund equal and up to 75% of the total contribution

(employee’s own contribution + company’s contribution).

Salary Advance

Salary Advance is given only in those situations where the Permanent employee

does not have enough contribution to the Provident Fund but the urgency is very

high. Usually one month’s average gross salary is given as advance but based on

the emergency, a maximum of two months salary can be given as advance.

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3.14.4 Repayment of Loan or Salary Advance

One month’s grace period is given to the employee before the repayment starts.

The employee, through automatic deductions by the Accounts Dept. from his/her

Pay-check, makes the payment. The following are some guidelines for

repayments:

1. If financial situation permits, the employee is asked to pay the money back

with 6 equal monthly payments.

2. If the financial situation does not permit, the employee is given the

opportunity to pay back with 12 equal monthly instalments.

3. If the amount of loan is large and the repayment imposes hardship on the

employee, it may be considered to extend the repayment schedule to a

maximum of 24 equal instalments. In such cases, the Department Head of the

employee must recommend the accounts department to do so.

4. If the loan or advance is related to medical payments and the employee is

eligible for medical benefit, the advance/loan will be applied towards the

eligible benefit once the treatment is received. Upon receipt of all medical

vouchers, the employee is required to submit “Medical Bills Reimbursement

Form”, F10-201-06-05 as per guidelines provided in Section 6.12.2 and apply

the advance/loan towards the refund. Any excess amount taken as

advance/loan must be paid back immediately after the treatment is over.

3.14.5 Procedures to Apply and Processing of a Loan or Salary Advance

Request

The employee completes a “Loan Application Form”, and upon receiving an

approval from the Department Head, submits to the Accounts Department. The

Accounts Dept. personnel review the application, discuss with the employee if

necessary, and let the employee know about the outcome. At the time of

processing the loan/advance request, the Accounts Dept. identifies the

repayment agreement discussing with the employee.

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The following are guidelines for loan/advance approving:

Loan Amount (Tk) Approval Authority

< or = 5,000.00 Section Head responsible for Loan/Advance

>5,000.00 < or =

20,000.00

Second level authorisation by Manager or

above.

> 20,000.00 Department Head

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4.0 Attractiveness of BTD & Impact of students

The attractiveness of the compensation package of this organization is low. Qualified fresh

graduates are always welcome in this organization. They recruits more qualified fresh

graduate but they don’t stay in this organization for their unattractiveness compensation

package. A large number of qualified student join their organization but they switch this

organization within three or four months.

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5.0 Conclusion:

Beximco textile division is one of the largest firm of the Beximco group of industries .it

contributes a much in our economy. The growth rate of the Beximco textile is very much

competitive in the present market. They run their organization with a number of qualified

employee’s .they always make their compensation packages by market analysis. The

employee of the Beximco textile limited is happy about their compensation package and

other benefits, though they are providing a very much competitive compensation package.

All though the employees are happy but they are not satisfy for their very much

competitiveness in the market. Beximco textile division is not willing to pay more to the

worker for their performance and high qualification .for that reason very much qualified

employees are switch from this organization to another organization .

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6.0 Recommendation

They need to redesign their compensation packages for the grater benefit of the

organization.

They need to give more emphasis on the qualified fresh graduate.

Add performance bonuses for the employees.

To permanent their employees in the organization they need to pay deferral

rewards.

Salary structure should be changed.

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Bibliography

References:

1. wikipedia.com

2. google.com

Data Collected From:

1. Beximco Textile Division, Dhaka

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Documents

Compensation and Benefit