Bangladesh offers a substantial manpower reserve skilled, unskilled, educated and otherwise. There is a good supply of relatively low cost labour in the country. Many of them have a working knowledge of English language and possess the basic skills required by industries of late there is an increasing supply of professionals technologists and other middle and low level skilled workers. They receive technical training from universities, colleges, technical training centers, polytechnic institutions etc. The expenditure incurred by an employer to train his employee is exempted from income tax.

Employment conditions:

The minimum age for workers in Bangladeh is 18 years in facories and establishments. Contracts are made usually in the form of a letter of offer. Workers may also be engaged on verbal agreements. In government organizations and in some private organizations as well a probation period exists for skilled or semi skilled workers varying between three months to one  year and during this period either party may serve month's notice for termination from or giving up of the job.  the private sector, the dignity of labour is ensured in accordance with the principles enunciated in the ILO convention and recommendations.

Labour laws:

In Bangladesh 47 labour laws are now in operation.

These relate to

(a) Wages and employment,
(b) Trade union & industrial disputes
(c) Working environment and
(d) Labour administration and related matters.

The main labour laws are:

i) Workmen’s Compensation Act, 1923
ii) Payment of Wages Act, 1936
iii) Maternity Benefit Act, 1936
iv) Employment of Labour (standing orders) Act, 1965
V) Shops & Establishments Act (VI), 1965 Factories Act, 1965
vii) Industrial Relations Ordinance, 1969.

Settlement of Labour disputes:

Contract or agreement is usually made between the management and the Collective Bargaining Agent (CBA) on settlement of industrial disputes as Provisions of Industrial Relations Ordinance, 1969. In case a bipartite negotiation fails, conciliation machinery of the government is requested  by the aggrieved party to in Process is undertaken. If it succeeds agreement is signed between the parties and the Conciliation Officer becomes a ,Witness. If it fails, the party raising the dispute, may go for strike or lockout as the case may be. The government may, however, prohibit the same after one month in the interest of  essential services like, (a) electricity, gas. Oil  & water supply etc. (b) Hospital & Ambulance (c) Fire brigade (d) railway & 'Bangladesh Biman and (e) ports etc. strike is prohibited.

Wages and fringe benefits

In the public sector, wages and fringe benefits of the workers are determined by the government on the recommendation of the national Wages Commission established from time to time. Such commissions were appointed in1973, 1977, 1984, 1989 & 1992. Wages & fringe benefits declared by the government, in 1977 having 20 grades of wages.

The public sector employees are however, covered by the pay commission declared by the government from time to time. In the private sector, the wages & fringe benefits of the workers and employees are determined through collective bargaining process. Sometimes private industries follow the public secure wages their workers and employees, & salary structure for respectively.

Leave & holidays:

Leave & holidays of the workers & employees are regulated by the Factories Act, 1965 and Shops & Establishment Act, 1965.

Social security:

Workmen Compensation, Maternity Benefit (Tea Estate) Act, 1950. Maternity Benefit Act, 1939, Employment of Labour. Deal with provident fund and (Standing Orders) Act, 1965 etc gratuity.

Labour union:

Industrial Relations Ordinance 1969 deals with trade union. In Industrial Relations ordinance, Bangladesh. In any industrial and commercial establishment, a trade union may be formed with 30% of the total number of workers employed. If there is more than one union in any establishment, Collective Bargaining Agent is determined by the Registrar of Trade Unions through secret ballot for a term of two years. Only the collective Bargaining Agent is authorized to raise industrial disputes and negotiate with the management. The Director of labour of the government acts as the Registrar of Trade Unions in Bangladesh. Till December 1997; 5451 trade unions (worker's union-4445 & employers association- 879 and federations -127) exist Bangladesh having 1793074 members.

Industrial Relations Ordinance, 1969 provides that any worker or employer/has the right to form a union/association without previous authorization. But such a union/association can not function as a trade union without being registered under the law.

Working hours:

Workers in the public or private sector remain at their job for eight and a half-hours daily (including half an hour for meal or rest) with Friday as weekly holiday making 48 working hours a week. Work in excess of these, is paid as overtime. The rate of overtime is 2 hours pay for 1-hour job.

Wage rate

The government in principle believes in giving fair wages to the workers in the interest of increased production. Wages may be fixed through collective bargaining process. In case of inadequacy of the collective bargaining procedure, wages would, however, be fixed by the Minimum 'wages Board. Due emphasis is given so that the interests of the management and the workers are properly safeguarded.

The following examples indicate the average monthly basic in US$ per worker in private sector wages and fringe benefits organization.