What is closure of establishment under Section 13 of the Bangladesh Labor Act?

Closure of establishment under Section 13 of the Bangladesh Labor Act 2006 refers to the permanent shutdown of a workplace by an employer for lawful reasons, following proper legal procedures.

When can an employer close an establishment under Section 13?

An employer may close an establishment due to business losses, economic reasons, or other lawful grounds, provided notice and legal obligations are fulfilled.

What rights do workers have when an establishment is closed?

Workers are entitled to notice, compensation, and other benefits as prescribed under the Bangladesh Labor Act 2006 when an establishment is closed.

Is prior notice required for closure of establishment?

Yes, Section 13 requires employers to provide prior notice to workers and comply with legal procedures before closing an establishment.

Is closure of establishment the same as retrenchment?

No, closure of establishment means permanent shutdown of the business, while retrenchment refers to termination of workers while the business continues.

Closure of establishment under Section 13

Closure of establishment under Section 13 | Bangladesh Labor Act -2006:

As per section-13(BLA-2006),

(1) The employer may close down any branch or department of an establishment, either partially or wholly, due to an illegal strike in that branch or department; and in the event of such closure, the workers participating in the strike shall not receive any wages.

(2) If, due to the closure of any branch or department under sub-section (1), any other branch or department of the establishment is so adversely affected that it is not possible to keep it open, then that branch or department may also be closed down; however, in such a case, the affected workers (who are not on strike) must be paid wages equal to the compensation payable for lay-off for a period of up to three days. For any period exceeding this duration, they shall not be entitled to any further wages.

(3) The employer shall inform all concerned of such closure as soon as possible by posting a notice on the notice board or in a prominent place within the relevant branch or department of the establishment, and shall similarly notify the date of resumption of work in the same manner.

Closure of establishment under Section 13 | Bangladesh Labor Act -2006

Closure of establishment under Section 13 | Bangladesh Labor Act -2006:

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Closure of establishment under Section 13 | Bangladesh Labor Act -2006

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