Practical Process of RMG Industry

Garments Labour Law Leave. Casual Leave Policy

Garments Labour Law Leave. Casual Leave Policy

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.


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.


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.


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
3.5.5 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
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: 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. 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. 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. 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.
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. . 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. 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: PL With Pay: in which case the person will continue to receive salary. 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:

·         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 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.

Engr. Kh. Mashiur Rahman

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