Labour law provisions 0.03% of export value for workers’ welfare fund

The government yesterday published the gazette notification of amended Labour Act 2013, keeping a provision of depositing 0.03% of export value to the workers’ welfare fund and two festival bonuses.

“I hope the amended Act will bring an end all confusions and complexities as it has been finalised in consultation with all stakeholders,” Senior Labour and Employment Secretary Mikail Shipar told the Dhaka Tribune. “It will make the process easier and workers’ rights will be ensured,” he said.

Under the rules, every worker will be entitled to two festival bonuses after completion of one year job. The festival bonus will be equivalent to one month basic wage.

It said the government has made formation of a safety committee compulsory in a factory with at least 50 workers. The committee will be comprised of at least six members and maximum 12 members having representatives from both owners and workers.

The owners of export-oriented garment industries will contribute 0.03% of export value to the workers’ welfare fund and of which, 50% will be kept for the welfare fund and 50% for tackling the troubled situation, according to it. 

The owners’ contribution to the welfare fund would be Tk72 crore in line with the current export value of $24.5bn and this contribution would be reached to Tk150 crore in 2021 when the export value is expected to stand at $50bn.

The parliament had passed the amended law on July 15, 2013. The labour law amendment issue came under spotlight following the suspension of Generalised System of Preference (GSP) by the US government in the wake of a factory collapse that killed over 1,135 workers in 2013 – the biggest industrial accident in Bangladesh.

Amendment of labour law is one of 16 conditions imposed by the US to restore the GSP facilities for Bangladesh.