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An assignment on:Analysis of the Wage Fixation Structure under the Bangladesh Labor Act, 2006

Course Title: Labor Law Course Code: 401

Submitted to: Dr. Mohammad Nazmuzzaman BhuianAssociate ProfessorDepartment of LawUniversity of Dhaka Submitted by: Group- 6 Roll No -76 to 90 4th Year, LL.B. (Honors) Department of Law University of Dhaka

Submitted on: March 21, 2013

List of Contributors

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Name Roll

1. Assaduzzaman……………………………………762. Md. Moinuddin Kadir……………………………773. Akramul Islam……………………………………794. Mousumi Haque………………………………….80

5. Afsana Nusrat Sultana…………………………...836. Abu Salman Prodhan…………………………….847. Md. Tariq Hasan………………………………….85

8. Mohiuddin Shams Reefat………………………..869. Avijit Kumar Das…………………………………87

10. Al Sadik…………………………………………...8811. Md. Abdullah…………………………………….8912. Nurun Nazin……………………………………..90

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Contents

1. Introduction……………………………………………………………… ….….…...……32. Legal Framework for Wage and Minimum Wages………………………………….…....33. Payment of Wages…………………………………………………….………………….4

3.1 Mode of Payment of Wages.…………………………………………………………..5a. Undisbursed wages……………………………………………………………………5

4. Structure of Determining Minimum Wages…..…………………………………………..5 4.1. Establishment of Minimum Wages Board……………………………………………6 4.2. Fixation of Minimum Rates of Wages….…………………………………………….7

4.3 Wages Board for Newspaper Workers…...……………………………………………74.4 Fixation of Minimum Rates of Wages for Newspaper Workers…...……………….…74.5 Factors to be Considered in Wage Fixing……...……………………………………...84.6 Scheduled Frequency of Adjustment…………………………………………………..9

5. Role of Trade Union, Collective Bargaining Agent andEmployers Organization in Determining Minimum Wages..………………………………....96. Deductions from the Wage…..…...……………………………………………………….9

6.1 Deduction Which may be Made from Wages………………………………………..106.2 Remedy for Undue Deduction or Non-Payment of Wages……….…………………11

7. Minimum Wages and Socio Economic Condition: The Existing Gap……………….....118. Wage Fixing Systems in Practice: Examples from Selected Asian Countries…........…..12

8.1 Indonesia………………………………………………………………….…………138.2 Malaysia………………………………………………………………………….….138.3 Singapore……………………………………………………………………………148.4 Sri Lanka…………………………………………………………………….………14

9. Conclusion by way of Recommendation………………………………..……………….15

Bibliography ……………………………………………………………………..16

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1. Introduction

Earnings by way of work are the chief source of income and influence the quality of livelihood and life structure of a worker. In terminology, this earning is called the salary, remuneration or wages, whatever name, which is monetary in nature calculated on hourly, daily, weekly or monthly basis. In every country the government set forth the mechanism of fixing the minimum wage for workers of various sectors according to the various objectives, criteria and procedure simultaneous to that sector for providing social safety net as protection against unduly low wages. Bangladesh where over 56.7 million people accounted for labor forces, according to the labor force survey-20071, in line with the other countries also formulated its own wage structure to provide wage for workers by which they can meet their needs. The mechanism is generated from the fundamental principle of state policy as encompasses in second part of the Constitution which enshrined the right to guaranteed employment at reasonable wage having regard to the quantity and quality of work. Keeping this in mind, laws and policy has been taken in various times to ensure the minimum wages for the workers. But unfortunately there is no uniform minimum wages declared for workers across the country yet also different wage structure prevails in different industries that are relevant to the job pattern of the workers. Several Wage Boards have been also set up at different times with aim to fix minimum wages for workers employed in various enterprises- public and private. At last, in 2006, repealing the previous law a consolidated new law namely ‘Bangladesh Labor Act-2006’ has been enacted which guide the wage structure with the constitution of a minimum wage board; however the employer is free to pay more wages than minimum if they wish. This paper aims to make a discussion on the prevailing wage structure in Bangladesh, the existing legal mechanism, also the justification of minimum wages with the socio economic condition and others relevant issues.

2. Legal Framework for Wage and Minimum Wages

Payment and protection of wages and others related matters were previously regulated by the Payment of Wages Act, 1936 which had a wide coverage. Workers employed in factories, shops, industrial and commercial establishments like road transport, services, railways, dock, jetty, inland steam vessel, mine, oil field, plantation or any other workshop have been brought within the purview of this legislation. This Act has now been merged with the newly introduced Labor Act, 2006 with some modification.

According to section 2[45] of the Act, Wages refer all remuneration capable of being expressed in terms of money. It is payable to a worker if the terms of the contract of employment are fulfilled. The tern wages includes any other additional remuneration of the nature aforesaid which would be so payable but does not include the following-

1 Bangladesh Bureau of Statistics

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a. The value of any house accommodation, supply of light, water, medical attendance or other amenity or of any service excluded by general or special order of the government

b. Any contribution paid by the employment to any pension fund or provident fundc. Any travelling allowance or the value of any travelling concessiond. Any sum paid to the person employed to defray special expense entailed on him by the

nature of his employment.

With this section 120 the term wages shall include the following, namely-

a. Any bonus or other additional remuneration payable as per the terms of the employmentb. Any remuneration payable for holiday, stoppage or overtime worksc. Any remuneration payable for any order of the court or for any award or resolution

between the partiesd. Any money payable under any contract or the Labor Act for any removal from service-

be it under retrenchment, discharge, removal, resignation, retirement, dismissale. Money payable for lay-off or temporary dismissal.

The definition provided in this section is inclusive in its nature. It includes any bonus or other additional remuneration, remuneration in respect of overtime, any award, any amount due to lay-off, or any sum payable in the event of discharge, dismissal, retirement, retrenchment etc. within the purview of its definition.

So the term wage means any remuneration paid to the employee in respect of his service rendered to the employer including any bonus, any remuneration in respect of any overtime, any sum payable in the event of dismissed, discharge, lay-off etc.

As mentioned in ILO Convention 131, the right to minimum wages must be ensured by law and it cannot be left to anybody’s discretion. Under our law the minimum rate of wages fixed by the Government is final and cannot be questioned by any person in any manner in any court or authority. The employer is bound to pay the wage at the rate declared by the government; however, the law doesn’t preclude employers from paying more than that has been prescribed.

3. Payment of Wages

The workers are to be paid all required wages by the employer employed by. The chief executive officer, the manager or any other person responsible to the employer to supervision & control of an establishment shall also be responsible.2Here, the term "employer" denotes not only the person employed the employees directly, it also makes liable the persons, as employer, had the most important power of an employer to dispense with the services of the employees.3

2 Sec.1213 AIR 1955 Bom 431

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In case of a worker employed by a contractor only the contractor or if the contractor does not pay the wage, the employer shall be responsible for the payment and in respect of the later case the paid amount shall be adjusted from the contractor.4

3.1. Mode of Payment of Wages

Wages should be paid regularly except where the appropriate arrangements exist which ensure the payment at regular intervals.5 Labor Act, 2006 directs the mode and circumstance of payment of wage.

Wages and overtime allowance have to be paid within seven days of wage period as fixed by the employee6,

Wage period shall be 30 days7

All wages have to be paid on working days8

Wages have to be paid in the existing currency in cash taka or cheque9

But where any worker is terminated by way of retrenchment, removal, discharge, dismissal or otherwise by the employer that worker shall be paid within seven working days from the day of his so termination.10

3.2. Undisbursed Wages

In case of death or not knowing the whereabouts of a worker, his undisbursed wages, if any, shall be paid to the person nominated by him. If no such nomination is made or for any other reason the nominated person cannot be paid, the employer is to deposit the money to the Labor Court & the Labor Court then shall deal with that money. After so deposition of the money to the Labor Court or giving them to the nominated person, by the worker, the employer shall be discharged of his liability in regard of payment of those wages.11

4. Structure of Determining Minimum Wages

The Ministry of Labor and Employment is in charge of setting minimum wage in Bangladesh. The process of determining minimum wage rates involves consultation among the key stakeholders (the government, workers’ representatives and employers’ representatives). A committee offers recommendation on minimum wages and there is no national minimum wage rate in our country, instead minimum wage rates are distinguished by sectors and zones.Determinations of minimum wages are made by the Minimum Wage Board Constituted under

4 Sec.121:Bangladesh Labor Act,20065 Art.6: ILO Protection of Wages Convention,1949(no.95)6 Section-123 (1)7 Section-122 (2)8 Section-123 (3)9 Section-12410 Section-123 (2)11 Section-131

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the Labor Act 2006. The main object of Wages Board is to fix the minimum wages in certain employments to prevent economic exploitation of the workers. The present Act contains almost all the provisions of the “Minimum Wages Ordinance, 1961 as amended. Before this Ordinance, there was “Minimum Wages Act, 1957” which was repealed in 1961.12 Since the minimum wages ordinance 1961 inter alia has been consolidated with the Labor Act, the erstwhile Minimum Wage Board is now operative under the Act. Role and function of the Board are determined by the Government. Under the Act the Government shall establish a Board to be called the Minimum Wages Board under Section 138 and it may also constitute a separate Board, to be called the Newspaper Workers’ Wage Board under Section 143 for fixing rates of wages of newspaper workers.

So, there are two types of Wages Board: 1. Wages Board under Section 138, and 2. Newspaper workers’ Wage Board under Section 143.

4.1. Establishment of Minimum Wages Board:

The composition of Minimum Wages Under section 138 will be the following

1. Chairman2. One independent member3. One member to represent the employers and 4. One member to represent the workers.13

Members will be appointed by the Government. The Chairman and the independent member of the Wage Board shall be appointed on the basis of following criteria

Who have adequate knowledge of industrial labor and economic conditions of the country, and

Who are not connected with any industry or associated with any trade union of workers or employers.14

To be a representative of the employers, it is enough that such members are intimately connected and are aware of the particular scheduled employment.15

4.2. Fixation of Minimum Rates of Wages

12 Dhar, Nirmmalendu “labor and industrial law of Bangladesh”, Remisi Publication, 2007 P-21313 Sec. 138(2) ; Bangladesh labor Act,200614 Sec. 138(5); of the Bangladesh labor Act,200615 Ministry of labor and Rehabilitation and another Vs. Tiffin’s Barytes Asbestos & Paints ltd. (1985) 2 lab LJ 412(SC)

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To fix the minimum rates of wages, at first the Government directs the Wages Board to recommend the minimum rates of wages16 and then the Government declares that the minimum rates of wages recommended by the Wages Board for the various workers shall be the minimum rates of wages for such workers.

This declaration shall be final and shall not be questioned in any matter by any person in any Court or before any authority.17 The Government shall make the declaration by notification in the official Gazette and it is mandatory, otherwise persons who are likely to be affected will be deprived of opportunity to raise any objection or give any suggestions to the proposed recommendation.18

The Wages Board makes such recommendation after making equitable enquiries within a period of six months.19 The Wages Board shall periodically review its recommendations and the minimum rates of wages may be re-fixed after every five years.20

4.3. Wages Board for Newspaper Workers

The minimum wage rates procedure does not apply to the categories of workers excluded from the coverage of the Labor Act 2006. Separate provision is made in Chapter IX of the Labor Act, 2006 for a wages board and minimum wage rates process specific to newspaper workers. As per the provision of section 143, the Government may constitute a separate Board for fixing rates of wages of newspaper workers to be called the Newspaper Workers’ Wages Board. Such Board shall consists of –

a Chairman, and An equal number of members to represent the employers in relation to newspaper

establishment and newspaper workers.

4.4. Fixation of Minimum Rates of Wages for Newspaper Workers

The newspaper wage board may fix the rates of wages after considering the relevant issues and making certain enquiries.21 The Government shall examine the decision and publish it within three months by notification in the official The Newspaper Wage Board may fix the rates of wages after considering Gazette.22 If any dispute arises relating to classification or re-classification of a newspaper or a newspaper establishment out of any decision of the board, published u/s 145(2), appeal can be preferred against any such decision by any aggrieved person to the labor court.

16 Sec. 139 of The Labor Act, 200617 Sec. 14018 New Age Garments ltd. & others Vs. Govt. of Bangladesh & others; 22 BLD 2002 (HCD) 19 Sec. 139(1) , (2)20 Sec. 139(6)21 Sec. 14122 Sec. 145

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4.5. Factors to be Considered in Wage Fixing

In both public and private sectors wages are determined under rules set forth by the government. Article 3 of the ILO Convention 131 [ regarding minimum wages] states that the minimum wage fixing authorities should consider living standard of laborers and their family, their needs, social and other facilities and also the standard of living of their society. Apart from these wage are also directly associated with productivity and the employer is to consider the worker’s producing capability before fixing wages. But it is also true that, productivity does not depend on the physical and mental labor of workers alone, it is also affected by the kind management in an organization, raw materials, energy and machineries are related to it23 According to Section 141 and 144 of the Labor Act, 2006 while fixing minimum wages for general workers and newspaper workers respectively, the Board will consider the following-

1. Cost of living2. Standard of living3. Production cost4. Price of products5. Business capacity6. The prevalent rates of wages of comparable employments 7. Nature, risk and standard of work8. Socio-economic conditions of the country and 9. Others related matter

The minimum rate of wages declared by the government is binding on all employers concerned and the workers, both newspaper and others, will be entitled to such wages as declared and the said minimum wages could not be varied or reduced to the disadvantage of a worker by any agreement whatsoever between the management and collective bargaining agent.24

The workers also have the right to receive wages at a rate higher than the minimum rate declared and is entitled to enjoy such amenities and other advantages as are customary for such worker to enjoy.25

4.6. Scheduled Frequency of Adjustment

Fixation of minimum wages is subject to periodical review. The minimum rates of wages for any industry may be re-fixed after every five years as may be directed by the Government.

23 Faruque, Abdullah Al, “Current Status and Evolution of Industrial Relation System in Bangladesh”, International Labor Organization, 2009, P-4424 Kazi Giasuddin & another Vs. First labor Court, Dhaka & another (1994) DLR 359= 13 BLD, 26625 Sec. 149(2) of the Bangladesh Labor Act, 2006

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The Wages Board shall review its recommendations if a change in the factors relevant to a recommendation so demand, and recommend to the Government any amendment, modification or revision of the minimum wage rates declared by the Government. However, no recommendation shall be reviewed earlier than one year from the date on which it was made, unless the special circumstances of a case so require or any later than three years from such date26.

5. Role of Trade Union, Collective Bargaining Agent and Employers Organization in Determining Minimum Wages

Periodic review is necessary to determine minimum wage to remain in tune with the changing socio economic condition of the country. The government can dot this through consultation with the representative of employer’s and worker’s organization.27 Therefore, the representative plays a vital role to affirm the rights of the workers as they are the only via through which the workers can send their message to the authority. Although wage and related fringe benefits of workers are determined by the government through recommendation of the minimum wage board, collective barraging for wages is not generally permissible on issues which are covered by the commission recommendation. However, the wage commission takes into consideration the views of the representative, the economic viability of the industries, interest of the workers, price catalogue and others relevant factors while drafting the recommendation. Trade union representative who are part of negotiations with the wage commission and wage board also play a key role in wage fixing and usually concern about the interest of the workers. It is mentionable that, although not permitted in law, in practice, sectoral collective bargaining authority is gaining popularity among the stake holders to solve their problem. Example can be made to the fixation of minimum wages for RMG sectors, Tea, Leather, Tannery, Newspaper sectors primarily relies on sectoral bargaining.28

6. Deductions from the Wages

An employer can make deduction from wage fixed for the workers. There is no indication in the present law about what we understand by deductions from wages, but under Explanation to Section7 (1) of The Payment of Wages Act 1936 (Repealed) –‘every payment made by the employed person to the employer or his agent shall, for the purposes of this Act, be deemed to be a deduction from wages.’ An employer cannot make any deductions, except those expressly authorized by law; this is a restriction of the general law for the benefit of the employee who is presumed to be less advantageously placed.’ [Manager, Hindustan Journals Pvt. Ltd., Indore vs. Govind Ram Swami Ram of Indore29 26 Section-139(6) and 14227 Faruque, Abdullah Al, “Current Status and Evolution of Industrial Relation System in Bangladesh”, International Labor Organization, 2009, P-4928 Ibid, P-5029 AIR 1963 MP 25

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6.1. Deduction Which may be Made from Wages

Section 125 to 130 of The Labour Act 2006 deals with the deductions made from the wages of the workers. Deductions from the wages of a worker shall be made only in accordance with the provisions of this Act, and may be of the following kinds only, namely-

a. Fines imposed under Section 25; however, the section restricts the imposition of fine more than one tenth of the total wages receivables by a worker in a particular wage periods and fine for the worker aged below 15.

b. Deduction for absent or refusal to attend in work, although present, in pursuance of a stay-in-strike or for any other cause not reasonable in the circumstance.30

c. Deduction for damage or loss of goods entrusted upon the worker in his custody. The principle of natural justice should be taken into consideration in proving the guilty.31

d. Deductions for house-accommodation, amenities and services supplied by the employere. Deductions for recovery of advances or loans of whatever nature or adjustment of over-

payments of wages32

f. Deductions of income-tax payable by the worker33 g. Deductions required to be made by order of a court or other authority competent to make

such order34

h. Deductions for subscriptions to, and for repayment of advances from any provident fund35

i. Deductions for payments to any co-operative societies approved by the Government or to a scheme of insurance maintained by any Government Insurance Company or Bangladesh postal Department36

j. Deductions for the contribution to any fund framed by the employer, approved by Government, for the welfare of the workers or the members of their families or both37 and

k. Deduction of subscription for the CBA union through check-off system38

But Deductions under section 125 (2) (j) (k) and (l) is subject to such conditions as the Government may impose.

6.2. Remedy for Undue Deduction or Non-Payment of WagesIn case unlawful deduction of wages or delays payment of wages or gratuity or provident application may be made either by the workers or his legal representative, in case of his death, to

30 Section-12631 Section-12732 Section-12933 Section- 125[2][g]34 Section- 125[2][h]35 Section- 125[2][i]36 Section- 125[2][j]37 Section- 125[2][k]38 Section- 125[2][l]

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the labor court for recovery of such amount. The application has to be filed within twelve month of the claim. The Court may direct the responsible person to pay twenty five percent of the wages as compensation subject to the consideration of some factors like bonafide error, emergency or exceptional circumstance.39 The application may be made either by individual worker himself or on behalf of a group of unpaid workers. Appeal can be preferred also within thirty days of the order before the appellate tribunal.When minimum wages are not paid to the workers the employee shall be punished with the imprisonment for a term of one year or a fine with up to five thousand taka or both. The employer will also be ordered to pay the affected worker(s) the difference between the remuneration due and amount paid40.

7. Minimum Wages and Socio Economic Condition: The Existing Gap

Decent wage is one of an important factor to achieve the objective of decent work. Right to receive fair minimum wage is one of a human rights for all working men and women at workplaces. It is also important to note that the UN Millennium Development Goal or poverty reduction strategy of Bangladesh would not success without having any minimum wage standard for the workers. But the reality is, in Bangladesh there is no uniform minimum wages for workers across all sectors and also any homogeneity between minimum wages fixed for different sectors and industries is also absent. The enforcement machinery has little capacity to enforce and ensure the appropriate payment of minimum wages to various industries in formal and informal sector. 

The wage structure determined by the Minimum Wages Board or Wage Commission or the Pay Commission is not based on minimum daily life requirement of a worker. For that reason, there is a huge gap between income and expenditure level of a worker and employees forced to live below the poverty line. Over 56.7 million people account for labor force in Bangladesh among over 39.5 million are male and over 17.2 million are female41. In formal sector the number of labor force is over 6.8 million and in informal sector the number is over 47.3 million. The average wages paid to both sectors are not parallel with the living condition of a worker. The following statistics will reveal the truth-

Sector by profession [formal]

Average Monthly Income [tk.]

Bakery Products Machine Man/Foreman

4187

Oil Mill Labor 2474Shrimp Processing Labor 3004Rice/Wheat Mill Labor 2237

39 Section-13240 Section- 28941 Labor Force Survey-2010, Bangladesh Bureau of Statistics

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Spices Mill Labor 2019Bidi/Tobacco 2215Textile Mill 4105Leather Products 3650Wood Works 3648Textile Mill 4105Pharmaceuticals 3857RMG 3888Railway 6247Restaurant 3630Construction Labor 3466Postal Communication 3401Road Transport Labor 4219Water Transport 3909

Source- Wage Survey-2007; Bangladesh Bureau of Statistics

It is easily, therefore, understandable from the above statistics that the wages that is paid to a worker is not any way sufficient to maintain his/her livelihood. It is necessary to reaffix the wage rate from time to time considering the socio economic condition of the country but the reality is totally different. The authority hardly concern with this issue. Another thing is important to mention that wage structure in public and private sector is quite different and informal sector workers who form the largest section of the total workforce have not been brought within the legal framework of minimum wages. In some sector the workers are still being paid under the decades old wages structure. As for example, wage for agriculture workers were last determined in 1984. Again wage rate in rural area compared to the urban area is found to be less and for gender discrimination female workers paid fewer amounts compared to her male counterpart. The average monthly income of men is about to double than that of woman. Therefore, the minimum wage rate fixed by the authority dose not reflects the actual living cost requirement of a worker.

7. Wage Fixing Systems in Practice: Examples from Selected Asian Countries

Across these countries, the cost of living serves as the common foundation for determining the minimum wage. Determinants such as general economic conditions, productivity and wage levels vary by country. Across these countries, the cost of living serves as the common foundation for determining the minimum wage. Determinants such as general economic conditions, productivity and wage levels vary by country. An attempt has been made to discuss the general concept of minimum wages and fixing mechanism with reference to four Asian Countries- Indonesia, Malaysia, Singapore and Sri Lanka.

8.1 IndonesiaThere is no national minimum wage in Indonesia; instead, separate regional minimum wages are set up for the 26 provinces that take into account the regional specific conditions such as the

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different labor market situations and cost of living. In some cases, the minimum wage also differs between sectors in the province.

Specifically, determinants for setting the minimum wage in Indonesia are as following:

1. Minimum subsistence needs (or KHM)2. The cost of living based on CPI3. The capacity and sustainability of companies’4.Employment opportunities5.Existing market wage rates6. Labor market conditions to growth7. Economic and income per capita growth8. Development plans of country

8.2 Malaysia

At present, minimum wages in Malaysia is sectoral. For setting the minimum wage, the following key determinants are used.

Fixed Components:

This includes the basic wage, annual increment, and contractual bonus, where applicable. Fixed wage components should reflect the value of the job and annual increment paid in recognition of the employee’s length of service and experience.

Variable Components: This includes wage increase for the year based on productivity and profit sharing formula. The variable components of wages could be determined in relation to the productivity and performance of the individual, work group or organization. The National Labor Advisory Council (NLAC) has defined a set of guidelines on reforming the wage system. How Minimum Wages is Set

The Wages Council Act 1947 states that the government may establish Wages Councils for certain non-unionized sectors of the workforce. These Councils play a role in recommending minimum wage rates to the government for enacting a Wage Regulation Order. Presently, minimum wage rates are set for workers in the catering and hotel sector, and for stevedores, cinema workers, and shop assistants. For sectors not covered by the minimum wage, collective bargaining between the employer and trade union can be used for setting a minimum rate.

8.3 Singapore

Singapore has no minimum wage laws or regulations. Wages are set through collective bargaining based on recommendations from the National Wage Council (NWC). According to the Employment Act, the NWC recommendations are "gazetted", which are used by negotiating parties during the setting of wages.

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How Wages are SetThe NWC, established in 1972, is the principal machinery for determining wage guidelines, which is a tripartite body consisting of 10 union leaders, 10 government officials, and 10 heads of business associations.

The main role of the NWC is to recommend wage adjustments that are consistent with long-term economic development plans. Annual recommendations are based on the prevailing state of the economy. Collective bargaining in Singapore is conducted directly between employers and employees within a framework that allows the Singaporean Government to set guidelines with respect to the determination of wages. The Government also plays a role in the conciliation of disputes between employers and employees through the Commissioner of Labor, an office within the Department of Manpower.

8.4. Sri Lanka

Minimum wages are sectoral in Sri Lanka. Wage Boards must take into account the cost of living index when determining minimum wage levels and in adjusting rates. There are usually time lags in the adjustments of the minimum wage levels. The Sri Lankan government established a wage fixing mechanism in the early 1970s, when wages were increased across the board.

How Minimum Wages is Set

Minimum wage is set through Wage Boards. At present, there are 37 Wage Boards. Procedures are tripartite, and include representatives of employees, the employers, and the government. In practice, decisions are usually made on based on the budget requirement or government directives.There are two laws addressing minimum wage in Sri Lanka. One is the Wages Boards Ordinance, which regulates wages and working conditions for specific trades. The ordinance allows for the establishment of "Wage Boards", which have the authority to make regulations on wages and other labor terms and conditions with respects to particular trades. The Wage Boards also have the power to set minimum wages. Two, the Shop and Office Employees’ Act of 1954 sets regulation of employment, hours of work and remuneration of persons employed in shops and offices, overtime rates, holidays, and also covers matters such as leave, maternity benefits, working condition and manner of payment of remuneration etc. Generally, wages are determined irrespective of the country’s international competitiveness.

9. Conclusion by Way Recommendation

The wage system of Bangladesh under the prevailing law can be marked by the nature of confrontational rather than cooperative to the beneficiary. Labor law of Bangladesh lays down some distinctive provisions for the wage system for employees and workers of installments and industries but there are some shortcomings which might cause injustice to the workers. To eradicate such chances of injustice, some new initiative can be introduced for the betterment.

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Moreover, some new rules might have to be produced by the government. By the way of detailed study of the provisions of national and international laws on wages, we found some recommendation for the concerned authority in this regard.

The current wage system in Bangladesh is not a uniform wage system. For better justice to both the employer and employee, it is necessary to establish a uniform minimum wage system for the whole of Bangladesh rather than sectoral difference..

New provision for partial payment of wages in a wage period can be introduced. It would be more practical if wages can be redeemed by the employee through two or three installments within a wage period. This provision might be introduced in our Act subject to conditions like urgent need, family situation, disasters etc.

The reviews of the wage system of installments are needed to be held with more seriousness and irregularities must to be controlled in strict manner. A strong wage board is a precondition in this regard. Periodical review needs to be regular.

Discriminations between the formal and informal wages of the workers must be removed. To establish complete justice the informal wages should be included in the area of action of our law.

The process for paying wages is currency notes, bank transfer and cheques. But it would be a flexible process if it could be extended to some more modes of money transfers

Provision for challenging the minimum wage fixed by the government should be introduced and the opinion of the representative of workers must be taken into consideration with more importance.

Trade union activism must be enhanced for keeping important role in settling dispute between workers and management by way of collective barraging.

The last not least the improvement of implementation mechanism of minimum wages fixed by the government should be ensured.

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Bibliography

1. The Bangladesh Labor Act-2006

2. Dhar, Nirmalendu; "Labor and Industrial Laws of Bangladesh" [2007], Remisi Publication .3. Halim,Md. Abdul; “Labor and Industrial Law of Bangladesh” [2011] CCB Foundation.4. Faruque, Abdullah Al, “Current Status and Evolution of Industrial Relation System in

Bangladesh”, International Labor Organization, 20095. Labor Force Survey-2010, Bangladesh Bureau of Statistics.6. Minimum Wage Fixing Convention, 1970 [No-131], International Labor Organization7. Saget, Catherine and Eyraud, Francois, “The Fundamental of Minimum Wage

Fixing” ,International Labor Organization,2005