Layoffs unlawful during general shutdown

Business
Layoffs unlawful during general shutdown
The Department of Inspection for Factories and Establishments (DIFE) has launched a study to find out if the garment factories that 're going for short-term closures following mass order cancellations are doing this by the book.

The trend of non permanent shuttering is a matter of concern as the federal government on March 25 announced a Tk 5,000 crore package for export-oriented factories to greatly help them pay their workers' salaries for 90 days, which usually tend to be their major overheads.

"So, we will mainly find out whether the factories let go the workers following rules of Bangladesh Labour Act or not," said Shibnath Roy, inspector general of the DIFE, which published a notice in this connection on April 17 seeking information from factory management.

The Deputy Inspector Generals of the DIFE have already been investigating the factories since April 17 and a written report is expected this week.

If any factory really wants to temporarily close it must inform the DIFE and complete a particular form, popularly referred to as form 10. But very few have informed the DIFE or filled in the proper execution so far.

The full set of factories which may have abandoned production without following rules will be delivered to the labour ministry for punitive action.

The Bangladesh Garment Manufacturers and Exporters Association the other day said the factories which may have no work as a result of the pandemic are of their rights to temporarily shutter according to provisions in the labour law.

"Laying off an employee during such a crucial moment is against the law and unjust," said Amirul Haque Amin, president of National Garment Workers Federation.

The reason being, employees will not obtain full remuneration but 53 % of their gross salary.

If the management sees their problems prolonging, they are able to choose Article 16 of the labour law which will allow 45 days of closure.

"If any factory has truly gone out of production for such a long time, the management can simply terminate the workers," Amin also said.

Nearly 50 per cent of the garment factories have temporarily shuttered, Amin said, adding that the quantity is a lot higher had the government not warned the factory management.

The finance ministry in a notice on April 19 said the factories that contain temporarily shuttered wouldn't normally be eligible to enjoy the stimulus package to pay the workers' salaries.

So, many are now forfeiting their plans, Amin said.

But an excellent portion is sticking with their plan. "It is not free money. The factory owners must repay it," he added.

The management cannot announce temporary closure during the general holiday, said Nazma Akter, president of Sammilito Garment Sramik Federation.

Jafrul Hasan Sharif, a labour law expert, supported Akter's view.

"It is not included in the law."

The constitution of Bangladesh in Section 152 said any notice of the government during any emergency is a law.

The government announced an over-all visit to the notice, therefore the workers are also beneath the general holidays.

"The factory management cannot run the production units, cannot temporarily shutter them and cannot terminate the workers," Shatif added.

Uttam Kumar Das, an advocate of the Bangladesh Supreme Court, termed the move as immoral and illogical considering the current situation.

"The factory management should not go for momentary suspension although they have the proper to do so as private property."

There is a large amount of ambiguity in the government notice on general holidays.

"All those should have been cleared and explained," he said, adding that issues like workers' payments, layoffs and positions of the factory management should have been evidently defined in the notice.
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