Leave policies in Bangladesh help employers meet compliance as outlined in the Bangladesh Labor Act 2006. There are different types of leaves in Bangladesh e.g., annual leaves, sick leaves, casual leaves, maternity leaves, etc. These leaves fall under the legal framework of the Bangladesh Labor Act 2006.
Government organizations do not fall under the BLA 2006, thus their leave policies are different. Also, there are times when disputes arise in approving leave policies. However, there are ways to resolve the issues as well. And there are strategies like incorporating HR software for leave management to avoid complications.
It is best to comply with the laws and set favorable leave policies to help keep employees engaged and motivated.
What Is The Legal Framework Behind Leave Policies In Bangladesh?
The Bangladesh Labour Act (BLA), 2006. It is the main employment legislation in the country. It has provisions on matters related to leaves including:
- Minimum number of leaves: The BLA specifies minimum entitlements for sick leave , annual/earned leave, and casual leave under CHAPTER IX.
- Maternity Leave: You can get information on specific maternity benefits for female employees under Chapter IV. This includes the specific duration of paid leave during their maternity period stated in Clause 46.
- Accumulation and Encashment: The Act also has guidelines, as stated in Clauses 117 and 119, on how leave can be accumulated and encashed over time.
Amendments to the BLA have updated leave entitlements throughout the years. Compliance with the BLA leave provisions is mandatory for all private-sector employers operating within Bangladesh. Whether they are operating in manufacturing, services, or any other sector.
Government vs. Private Sector Regulations
The BLA 2006 leave policies do not apply to workers or employees in the public sectors. The government employee enjoys leaves as per rules of the Constitution and public office practices.
Government employees enjoy more generous leave entitlements, especially when it comes to maternity leave. As of now, female workers can avail up to six months of leave for the first two children. They also receive advantages from additional types of leave under various service rules and circulars issued by the government.
Private-sector organizations must comply with the minimum requirements set out by the BLA. However, the organizations may offer more favorable or flexible leave policies. Many multinational and local companies provide extra paid sick leave, parental leave and so on. This helps them stay competitive in the market for hiring talents. It also improves employee retention.
What Are The Types Of Employee Leave In Bangladesh?
The categories of leave advised in Bangladesh are based on both the labor law requirements and common workplace practices.
Annual Leave
Employees can earn a specific number of paid annual leave days per year. They need to complete at least one year of service with the organization to avail of this leave.
In factories or commercial establishments, though, an adult worker can enjoy up to 14 days of leave for every completed year of service as per labor law.
Some organizations allow proportional, or pro-rate, annual leave usage before completing the full year.
Employees submit leave applications to their HR department or managers. As an HR person, you must ensure the submission must meet a pre-leave notice period as per company policy. If you are a generous HR person, you may allow a three-day notice before taking leave. But usually, the notice has to be given 7 days or earlier.
Earned Leave
Earned leave often refers to the same statutory annual leave mentioned in labor law. Some employers often classify it separately. Typically, the BLA allows one day of earned leave for every 18 working days (or a similar ratio). It is calculated by 360 days (one full year as per BLA) divided by 20.
Unused earned leave can be “encashed”. This means employees can receive money for accrued leaves. This could be either at the end of the year or upon resignation/retirement.
Employers must maintain accurate leave records to ensure this encashment.
Maternity Leave
The BLA 2006 entitled female employees a total of 16 weeks of paid maternity leave This is if they have worked for at least six months with the same employer.
In November 2023, the Bangladesh Labour Act, 2006, amended the maternity leave policy. The Bangladesh Labour Act (Amendment) 2023 extended maternity leave from 112 to 120 days. Also, female workers can now take leave for the entire 120 days before or after birth. Unlike before, when it was divided 8 weeks before and 8 weeks after delivery.
Employers cannot dismiss or terminate a female employee during maternity leave. They must pay her salary throughout this period.
Many organizations also offer extended job security clauses and flexible return-to-work arrangements for new mothers.
Casual Leave
Casual leave is allowed for unexpected or urgent personal matters. Unlike annual or earned leave, this type of leave is more sudden and unplanned. It acts like a short-term, paid time off.
Employees enjoy up to 10 days of casual leave per year, as per law. This leave is not meant to be accumulated or encashed. Employees should apply as soon as they know they need the time off.
Companies may set quick-approval processes for casual leave, depending on operational needs. This is because as an HR manager, you may have to ensure the transfer of work to another team member of the leave applicant.
Sick Leave
Most employees in Bangladesh are entitled to 14 days of paid sick leave per year under the BLA. Employers often require a medical certificate if the sick leave extends beyond two or three days. But that is at the discretion of the employer.
Employers must keep a record of sick leave usage and ensure that employees’ wages are paid during these absences.
Some workplaces offer extended sick leaves or flexible working options depending on the nature of the illness and company policy.
Sandwich Leave
“Sandwich leave” is a policy or practice where non-working days sandwiched between two periods of leave are also counted as leave days.
For instance, an employee avails leave on Thursday and the upcoming Sunday. A weekend (Friday and Saturday) falls in the middle. As a result, those two days will also be deducted from their leave balance. So, instead of 2 days of leave, 4 days are deducted here.
Clear policies help avoid confusion. Companies typically mention sandwich leave rules in their HR manual, explaining how weekends, public holidays, or scheduled off days will be treated.
How Are Conflicts Between Employee Leave Entitlements And Work Requirements Resolved?
Employers might face challenges when balancing business operations with employees’ leave applications. Employers encourage advanced planning of annual and earned leave to ensure minimal disruption to ongoing work.
When immediate leave is needed—like sick leave or casual leave—the HR department discusses the matter with the supervisors to reassign tasks temporarily. And approve the leave.
Employers try to resolve any complications with leave applications by talking with the applicant. If needed, they ask for a registered doctor’s prescription or certification, in case of long sick leave. Setting appropriate leave policies in an employee handbook or code of conduct (COC) also helps reduce the chances of issues arising from leave approvals.
Maintaining transparent communication channels between management and staff is key to preventing and resolving conflicts effectively.
What Measures Are Taken If An Employee Exceeds Their Leave Entitlement?
Employees can exceed their allocated leave quotas. This can create difficulties for HR personnel to manage the proper flow of work.
In such cases, the employer may deduct the extra days taken from the employee’s future leave entitlement (annual, earned, or casual).
If there is no remaining balance of leaves, the excess days may be treated as unpaid leave. This reduces the employee’s salary for that payment period.
Repeated unauthorized absences or abuse of leave policies can lead to written warnings and sometimes, termination of employment. However, employers must follow the prescribed disciplinary procedure of the BLA 2006 and the company HR policies.
How Can HR Software Simplify Employee Leave Management?
HR software solutions help you enhance leave management processes. You can automatically track each employee’s leave balance in real-time. This will help you to reduce the chance of manual errors. You can also check an employee’s leave status and assign tasks to someone else if needed.
HR tools also help you with online applications and approval systems. Employees can apply for leave and the respective managers can approve or deny requests from any location. This function especially helps remote workers submit applications quickly, without much hassle. The HR personnel can accept or reject approvals timely, as well. Also, with HR software, you can set up your company’s separate leave policies.
In addition to all these, the HR software helps you check compliance with local and global labor laws, as needed. HR personnel and managers receive notifications and alerts when employees near or exceed their statutory leave limits. This helps ensure legal compliance.
Final Words
Setting up favorable leave policies helps create a healthy work environment. The policies should allow the right entitlements to the employees. Whether it is annual, sick, or casual leave, compliance with the labor law is a must. It protects employee rights and motivates them to stay with the organization.
Transparency is also a key here. As per reports by Manila Recruitment, if the management is transparent, they can reduce 30% of employee turnover. Thus, transparency of leave policies offers better chances of employees staying with the company.
Stay updated with legal changes, implement HRMS solutions to ensure compliance, and establish a transparent leave management system. This helps optimize employee benefits, prevent conflicts with work requirements, and create a fair policy that benefits everyone.
