Kaya Group has retrenched 627 workers and employees from its four factories in Gazipur due to banking complications and disconnections of gas supply over unpaid bills.
Gazipur Industrial Police Superintendent Mohammad Amzad Hossain confirmed the matter on Tuesday morning.
On Monday evening, the factory authorities put up a list of the retrenched workers at the main gate. Workers gathered there to check the list, with visible frustration among them. The factories, including Knit Composite Division, Spinning Division, Cotton Division and Kaya Yarn Mills Ltd, are located in Konabari area.
According to a notice signed by the company's managing director and chairman, the decision to reduce production and administrative costs was taken due to banking complications, disconnection of gas supply over unpaid bills and an excess workforce.
The notice said some positions in various sections, departments and divisions had been abolished. Under Section 20 of the Bangladesh Labour Act, 2006, excess workers and employees would be retrenched from September 8, with all legal dues to be paid.
It also said that if new workers are needed in the future, skilled workers who have been retrenched would receive priority in recruitment in accordance with Section 21 of the labour law.
Workers whose jobs remain intact will continue under the lay-off arrangement and receive benefits as stipulated by law.
Kaya Group Manager (Human Resources) Sabina Yasmin said the retrenched workers would receive all their dues under the labour law within 30 working days.
Amzad Hossain said the company issued lay-off notices to 627 workers. Industrial Police and Gazipur Metropolitan Police have been deployed near the factory's main gate to maintain law and order.
According to the company, the factories have remained under lay-off since June 6 due to banking complications and unpaid gas bills. The lay-off period has been extended several times. The factories were earlier declared laid off under Section 12 from June 6 to September 9. The period has now been extended until September 18.