Labour Law Leave:
To ensure that at Auto GROUP all persons are
getting leave as per local laws and following proper channel. This policy applies to all employees of the company. Reference- 1965 Shops and Establishment Act, 1965 Factories Act -78(1)(i), 78(3), 80(1) & 80(2).
1965
Employment of Labours (Standing Orders) Act, Section- 5(2) & 5(3). 1936
Payment of Wages Act. This policy is NOT subject
to periodic audit to maintain its effectiveness.
General and Casual Leave Policy:
1. The Managing Director or with his concern Admin Hr Manager is the competent authority for approval of labour law leave.
2.
After completing one year of
service, 01
day earn labour law leave will be given against 22 working days. If
some body is absent or without pay leave, that period of time will not be
counted for this purpose. If some one loses his LIEN to his appointment, this
leave will not be applicable for him, till his service is regular or attain the
entitlement.
3.
Leave form to be collected from admin department and to be filled up
with signature of all concerned. The leave application form to be deposited to
admin department at least before 03 (Three) days, prior to commencement of his
leave period.
4.
The applicant will collect his “Leave Pass”
from the admin department for confirmation of his approved leave period.
5.
If someone remains absent without the permission of the authority, that
period will be taken as “Unauthorized Absent” and will be treated negatively.
6.
In the case
of Sick Leave, recommendation of company doctor or photocopy of medical
documents from disease related doctor to be provided. In the case of hospital
attendance, photocopy of admission letter, release letter and treatment
documents to be attached with the leave application.
7.
If someone
suddenly fall in sick while in the resident or commit an accident, immediately
or before the next duty time, it has to be notified to the Administration
Manager by sending a letter through bearer or by making a telephone call. Soon
after the joining, leave permission has to be taken through as usual procedure.
8.
If someone
remains absent without information or notification, his leave application
thereafter will not be honoured.
9.
Responsible
person for Section or Line, before leave recommendation for important worker,
will find out the alternatives to continue with the smooth production process.
10.
On the next
day of leave completion, the incumbent has to join his duty in time. Absence on
the following day of the leave ending, will be taken as all cancellation of all
leave days.
11.
If extension
of leave is requires, application for extended leave to be reached to the admin
manager before the expiry of the permitted leave period. If such type of leave
is due, only then it may be granted.
12.
IF someone takes
leave adjacent to week end as suffix or prefix, that period will be counted
within the leave span and will be adjusted with leave account.
13. After
completing one year of service, 11 days festival leave, 10 days casual
leave policy with
pay and 14 days sick leave with half pay per year will be given.
Others Leave Policy
Applicable for:
This policy is applicable for all the employees of
the Company which includes staff, worker and management.
Objective:
The
objective of this policy is to encourage and motivate the entire employee of
the company and to provide them an opportunity to achieve a better work-life
balance.
Basis:
Across the world, it is the practice to allow
employees of all organizations “leave” for them to enjoy and relax as and when
they require, beyond just weekends and approved government holidays. The Labor
Law of Bangladesh also makes it compulsory for all companies to provide leaves
which are divided into several categories, detailed in the law. The Leave
policy of the company has been developed based on the law and deriving inspiration
from good practices of other companies as well as other industries.
Also an important basis for the policy is that the
Labor Law states that if a certain kind of leave or a facility is being
provided by a company, then that cannot be revoked, and even if it is, that it
can only be done so with full compensation only.
Policies:
The following kinds of leaves are made mandatory by the Labor Law of
Bangladesh for all employees and are therefore applicable for all employees of
the group.
3.5.1 Casual Leave (CL)
3.5.2 Sick Leave (SL)
3.5.3 Earned Leave
3.5.4 Maternity Leave
3.5.5 Special Leave
3.5.6 Leave Without Pay
There are some policies
which are applicable for all of the different kinds of leave that are there.
These generally applicable policies for all kind of leaves are –
Basic rule for all
leaves:
a)
If there is any weekend or Friday or company
approved government holiday that falls between the leave dates, then those days
will not be included in the leave calculation, meaning that the leave is for
work days and not calendar days. Exception: this rule doesn’t apply for the
maternity leave in which case the entire calendar is taken into consideration.
b)
Leaves of different categories can be taken in
succession but at no point (without special approval from MD/ concerned
Director) can it be for beyond 12 consecutive work days (that is 2 calendar
weeks) at a time.
c)
Leaves exceeding 2 work days (unless those taken
for sickness or emergencies) have to be taken with prior management approval so
that multiple people from the same department are not on leave at the same time
and there is someone to take care of the responsibility.
d)
Employees, even when on leave, are required to
remain accessible over phone, mail and sms, even when they may go out of the
country, so that they may be consulted in crisis if required.
The specific policies
related with leaves are as follows –
3.5.1 Casual Leaves (CL):
a)
All workers as well as staff and all employees are
entitled for 10 days of casual leave across the year. However all Muslim
employees are to be given 1 extra day of casual leave to equalize the fact that
non-Muslim are given an optional day of leave on either their Buddha Purnima or
Puja or Christmas. In other words a person will be allowed for 88 work hours of
casual leave.
b)
Casual leaves are to be taken for emergencies or
personal requirements. They can be taken without any prior notification.
However, if someone understands that he/she will not be able to attend work on
a particular day, he/she will have to inform his/her reporting supervisor +
division head and also HR Department (in case of staff) that the day is to be
recorded as a casual leave, and not as an absence. This information has to be
passed over phone, email or even sms will suffice. The person has to fill up
the application form and submit to HR Department within 3 working days of
returning from the leave.
c)
If someone remains absent and then does not inform
the people he/she is expected to inform, on the day of the absence, and then
returns and fills in an application form, the management will have the
authority to decline the leave application and treat the day as an absence.
However, if the person had informed on the day of the absence, then he/she must
be approved the leave, as long as there are casual leaves in that person’s
leave quota.
d)
Casual leaves can be taken in fractions of a day as
well on an hourly basis also. On any day that a person is absent for 2 hours
during the day, he/she can apply for 2 hours of casual leave and these two
hours will be deducted from the total 88 hours of reserved casual leave that a
person has. It can be considered as a casual leave, if a person leaves early or
comes in late or takes longer time outside of the company during lunch break.
All of those can be deducted from the casual leave. Unless those absences are
marked as casual leave, then those absences may result in deduction of salary
as that can be treated as absence.
e)
There is no compensation for casual leave, meaning
that, if a person does not take casual leave, then he/she will not be able to
carry these leaves over to the following calendar year, nor will they be able
to receive any cash compensation from the company in lieu of it. So everyone is
advised to utilize their casual leaves.
f)
All employees become entitled for casual leave from
the very first day of service, irrespective of being in probation period.
g)
If someone has casual leaves in reserve, and if the
person has run out of other kinds of leaves, then he/she will have the right to
convert the casual leaves into the category of leaves that he/she requires,
such as sick leave. However, Casual Leaves cannot be converted into Annual
Leaves.
h)
If an employee goes out during lunch break and
doesn’t come back then that would be considered as half day of casual leave
provided the employee notifies the authority that he/she is not coming back or
on coming back on the following day fills up the appropriate documentation.
Otherwise such absence could be recognized as leave without pay or absence.
i)
That if Casual Leave is exhausted but a person
requires Casual Leave, then if management feels that leave can be given, then
that can be adjusted from the annual leave.
3.5.2 Sick Leave (SL):
a)
All workers as well as staff and all employees are
entitled for 14 days of sick leave across the year.
b)
Sick leaves are to be taken for days that a person
is unwell to the extent that he/she is unable to attend work.
c)
A person can be allowed to take 1 day’s sick leave
without having to submit any doctor’s certificate or test results, diagnosis or
prescriptions. If at any point, someone in sick leave is found to have been
present elsewhere, without the sick leave having been converted to
casual leave within 3
days of return from the leave, the person can be penalized by the deduction of
1 day’s basic salary.
d)
All people who are sick for 2 days or longer have
to submit doctor’s certificate from a bonafide doctor, to prove the health
condition or provide the receipt of the medicine purchased or prescription or
diagnosis written by doctor on doctor’s writing pad or some kind of test
results. HR Department will have the right to investigate the authenticity of
the record if they have any reason for doubting that.
e)
Someone who feels sick all of a sudden at the start
of a day or the night before, and is unable to come for work, has to inform
his/her reporting supervisor and division head and HR Department (in case of
staff) over phone, e-mail or SMS within the same day. If the person is unable
to communicate for some reason, any friend or relative or family member should
inform the HR Department, on behalf of that specific employee.
f)
If someone remains absent and then does not inform
the people he/she is expected to inform, on the day of the absence, and then
returns and fills in an application form, the management will in this case have
to approve the sick leave if there is sick leave in that person’s quota. In
case a person’s sick leave quota is used up already, casual or earned leave can
be used up as sick leave automatically without requirement for approval. So,
other leaves can be converted to sick leave, especially if the sick leave is
for 2 days or longer and is supported by doctor’s statement, but sick leaves
cannot be converted to other leaves without approval.
g)
Sick leaves can be taken in fractions of a day as
well. If a person comes in late on any particular day by any number of hours
and states the reason for the delay as sickness, then those numbers of hours
can be reduced from the total number of the sick leave hours. (14 days x 8
hours = 112 hours)
h)
There is no compensation for sick leave, meaning
that, if a person does not take sick leaves, then he/she will not be able to
carry these leaves over to the following calendar year, nor will they be able
to receive any cash compensation from the company in lieu of it.
i)
All employees become entitled for sick leave from
the very first day of service, irrespective of being in probation period. Sick
leave is to be deducted only as the 3rd option. The 1st
kind of leave from which hours will be deducted is the casual leave; the 2nd
is the earned leave, if it is available. If a person is not sick, in that case
approval has to be taken from the respective department head to convert other
leaves as sick leave.
3.5.3 Earned Leave
(Annual Leave):
a)
The labor law states that a person is entitled to
receive 1 days earned leave for every 18 days of work.
b)
So out of 365 days, the company is to be open for
365 – (52 Fridays) – 11 National holidays – 6 extra days for the 2 Eids = 296
days. Considering that of these 69 days of closure, those on an average every
year at least 4 days are found to overlap with weekends ultimately reducing
closed days by 4 days bringing the work days to 300.
c)
From these 300 work days, one is expected to be on
leave for 14 sick leave days + 10 casual leave days = 24 days, meaning 276 days
of work.
d)
Then as per the law of Bangladesh, 276/18 gives us
15.33 or 16 work days’ worth of earned leave to be rounded off to the nearest
upper integer. (16 days x 8 hours = 128 hours)
e)
Earned leave accumulated in a certain calendar
year, has to be availed in the following calendar year. That means if an
employee was in service for a full year, let’s say year 2010, and then he/she
will be able to take 16 days of earned leave in the following year that is
2011.
f)
If casual or sick leave is exhausted, then the
leave can be adjusted from available earned leave.
g)
Earned leave can be en-cashed meaning that an
employee can choose not to take earned leave and rather receive cash
compensation instead, of 1 day’s basic salary for each day of earned leave that
is forfeited. However, this cash benefit is to be provided on completion of the
year in which the leave is to be enjoyed, which in continuation of the above
example, means that the encashment for leaves earned in 2010 is to be paid
after completion of 2011,
which means in 2012. The
encashment has to be completed within the first 40 days of the year following
the year in which the leave was to be enjoyed, meaning that within the 9th
of February of 2012.
h)
If an employee joins at a certain time of the year,
then the number of days of earned leave that he/she will earn, (to be enjoyed
in the following year) will be calculated on a prorated basis for the part of
the year worked. That means the earned leave will reduce from 16 days at 0.288
days per week. Meaning that if someone joined supposedly at the 23rd
week of the year, then he/she will be entitled for: 16 - (52 weeks – 23 weeks =
29 weeks remaining x 0.288) = 8.35 days of earned leave.
i)
Those workers who wish to avail of the earned leave
have to be permitted to do so, but those who do not wish to avail the leave,
will be provided with encashment for those days of leave not enjoyed at
prevailing daily basic salary, and this will be paid as explained above.
j)
Staff of the rank of officer and above, in the Head
Office and the Office sections of the factories (that is staff who are not
directly linked to production), will be encouraged to avail the earned leave so
that the company can develop other people in every department and so that there
is adequate succession planning and also reduction of individual dependence.
k)
If a staff as defined in the point above, has
earned at least 6 earned leave days for a year, or any number below that, then
he/she will have to avail all of those leave days at a time, so that the
company has the benefit of the absence of the person for a continuous work week
to train up the people in the department to be able to function independent of
him/her and also it would ensure the person has at least 1 continuous week of
rest.
l)
Beyond 6 days, the remaining 9 days of earned
leave, if applicable for a staff can be taken scattered across the year.
m)
If anyone leaves the company at any point in a
year, and has earned leaves in his/her account, which he/she has not yet
availed, then he/she will have to be paid the compensation of that earned leave
at the rate of basic daily salary for the number of days saved. This amount
will be added to any other pending settlement payments that may be due to
him/her at the time of departure, irrespective of the cause of departure, even
if that be dismissal for misconduct (as per the Labor Law of Bangladesh). If
the company has a receivable from a departing employee, then that amount can be
realized out of any earned leave accrued.
3.5.4 Maternity Leave:
a) All female employees, of all rank and designation, whether married or not, are eligible for maternity leave after completing 6 months of service for up to 2 living children only. That means that if a worker already has 2 children at the time of joining the company, she will not receive the financial benefit pertaining to this leave but they will have to be granted the permission to remain absent for the same period without taking their name off the employee list.
b) The entitlement for maternity leave is a total of 16 working weeks or 112 work days in a calendar year between January to December.
c) An employee who is pregnant will have to
commence the leave 8 weeks before the stipulated date of child birth and will
have to return from the leave after completion of 8 weeks after the date of
child birth. However, with special written permission of the doctor, an
employee can continue working till up to 4 weeks remaining to date of child
birth, in which case, she will resume work 12 weeks after the date of
childbirth. However, no pregnant employee can be forced to work beyond 2 months
remaining to childbirth, if she is not willing to do so.
d) An employee has to be paid 2 month’s gross
salary calculated at the rate of the average of previous 3 month’s gross salary
inclusive of any allowance or overtime (minus any commissions or performance
incentives) on the day that she is going for her leave, and will also have to
be paid the salary of the ongoing month, up to that day calculated at the rate
of gross daily salary. The employee will also have to be paid the remaining 2
months gross salary within 7 days of joining back. An employee is also entitled to receive the
festival bonus that is due to the person, after return from the leave, if any
festival has fallen in-between Labour Law
e) While Fridays are to be included in the
counting of the 112 days, company approved government or festival holidays that
fall in-between these days cannot be counted into these 112 days.
f) An employee can be permitted to add her annual
leaves and sick leaves with this leave as well in order to extend this leave if
needed, but the maternity benefit payment will be applicable only for the 4
months of maternity leave, and the other leaves will be treated as separate
leaves as per policies that govern those leaves.
3.5.5 Special Leaves:
All
special leaves are on the discretion of the company and are not enforced by
law, but can be provided by the company to whoever the company chooses, for
motivational purposes. The company may provide this benefit to one person and
not to the other and no employee would have the right to challenge the decision.
These are leaves which can be granted (without any salary deduction,
except for Privilege Leave without pay) to an employee by special approval from
Director HR &/or MD, and can be given for following situations and will be
called the following, accordingly:
3.5.5.1 Compassionate
Leave:
This is an additional leave of up to 3 working days that the company
can grant an employee beyond any casual leave that he/she may have taken, in
the event of the demise of an immediate family member, defined as: parent,
child, own sibling, spouse’s parent and spouse’s own sibling or spouse. This
can be given in addition to whatever leaves a person may have in the leave
quota.
All employees would be eligible for this from the date of joining.
3.5.5.2 Marriage
Leave:
This is an additional leave of up to 3 working days that the company can
grant an employee beyond any casual leave that he/she may have taken, in the
event of one’s own marriage and this will be applicable for the 1st
marriage of that person.
Only those employees who have served for at least 1
year may be given this privilege.
3.5.5.3 Paternity Leave:
This is an additional leave of up to 3 working days
that the company can grant a male employee beyond any casual leave that he may
have taken, in the event of the birth of a child to his spouse, for him to take
care of her and for him to be able to provide the immediate logistic support
required of him by his family at the time.
All male employees will be eligible for this from
the date of joining but granting of this is an company discretion.
3.5.5.4 Pilgrimage Leave:
This is a very special leave of 15 work days
granted to someone going for performance of Hajj / Omrah, which can be added to
other casual and earned leaves that he/she may have taken to cover the total
absence.
Only such persons who have worked for at least 2
years for the company will be eligible for this leave, and also for the 1st
Hajj or 1st Omrah of their life under Labour Law
If this leave is availed once for Omrah then it
cannot be availed again for the Hajj and vice versa. Basically this leave can
be availed for only once in the duration of employment of the person. On
special approval if someone has completed Omrah once and then again wants to
use this facility for Hajj, then by taking special permission from the MD the
person can be given this leave, but it would be recommended to make it a leave
without pay. .
3.5.5.5 Academic Leave:
An employee having completed at least 6 months of
service can be granted a special leave of up to 3 work days in a year for the
purpose of some major examination. This will depend solely on the decision of
Associate Director HR and/or MD to decide on the seriousness of the exam.
3.5.5.6
Privilege Leave:
This
can be given for such persons who require leave for a genuine cause but who
does not have any leaves left in their quota. This could be for a special case
of illness which may require prolonged case
of
hospitalization or a special situation that may require an employee to be
abroad for an extended period of time which can’t be covered within the
existing system of leaves.
This can be of 2
kinds: 3.5.5.6.A PL With Pay: in which case the person
will continue to receive salary.
3.5.5.6.B PL
Without pay: in which case the person will not be taken out from the
employee register and will be continued to be regarded as an employee, but will
not receive any salary for that period.
3.5.6 Leave
without pay:
a)
This
is a situation where an employee is absent without approval for which the
person will suffer deduction of 1 days basic salary for each such day or such
hours of unauthorized leave.
b)
Any
employee who is absent without permission or information for more than 10
consecutive work days may be automatically dismissed from the company and be
paid salaries and dues up to that point only and allowances only for those 10
absent days.
Regulations & Procedures of Labour Law:
·
Anybody
who is going for leave has to apply for leave by informing the respective
department head and filling out the leave form. Leave approval form will have
to be approved by the department head and that person’s respective supervisor
and eventually will have to be approved by Director HR for the leave to be
adjusted in software.
·
HR
Department will regularly check and keep track of the people who are absent
throughout the previous week and will make enquiries with them to see if they
would like to get those absent days converted in to leave. If they are not
willing to do so or not giving the proper documents for doing so, then those
days of absences can be converted into leave without pay.
·
Anybody
who is going for leave has to submit the necessary documents within 3 working
days after the leave. Delay beyond this can be penalized by deduction of 1 day
for a leave of 1 to 3 days, 2 days for a leave of 4 to 6 days and 3 days for a
leave of 7 days or longer.
·
Before
approving somebody any kind of leave HR department will make necessary
calculation of number of leaves that are pending from each category. If there
is an application for special leave, then HR Department will take the
application to the HR Director and the Director will take it to the MD for the
approval in special cases.
Responsible Parties:
HR, Admin and
Accounts Departments will make the leave calculation and calculate the
salaries. Welfare department will be responsible for following up the cases of
maternity leave, especially for the workers.
Communication
& Implementation:
- This total policy is going to be published in the policy book and the policy book also will be available in online which can only be seen by the employees of Auto Group.
- Leave policies will be communicated with the employees through meeting, notices, circulars, announcements and memos from HR Director/ MD.
- Leaves will be also explained through microphone to the workers and also will be explained in the worker handbook and also will be explained in the orientation time of the new employees.
Exceptions:
Exceptions
to this policy require endorsement by Director HR & MD.
Feedback & Control:
·
Any person, who experiences deduction of salary due
to absence, can always come and challenge the HR Department, if that person has
actually provided the necessary documents, in that case if any mistakes or
error is found which have been made by Accounts or HR department then it can be
rectified by payment of the deducted salary.
·
There are paper records of all leaves and also
record in the software, so one is the feedback and control mechanism for the
other.
·
Accounts department will make the proper calculation
of individual’s earned leave calculation, and will cross check with the HR
Department for Labour Law
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