Workers vs Officers: Who the Labour Act Covers

Does the Labour Act cover officers and managers?

The Bangladesh Labour Act covers 'workers' as defined in section 2(65): anyone employed for wages in skilled, unskilled, manual, technical, business-development or clerical work. People doing managerial, administrative or supervisory work who are designated as such in writing are excluded, and their exit dues come from their contract and company rules.

Exit dues for officers and managers

Who is a worker?

Section 2(65) is broad. It covers skilled, unskilled, manual, technical, business-development and clerical work, whether you are hired directly or through a contractor, and includes apprentices. Many office and sales staff are workers in law.

Who is outside the Act?

Section 2(49) excludes people in managerial, administrative or supervisory roles, but only when they are designated as such in writing. A job title like “Executive” or “Officer” alone does not decide it; your actual role and your appointment papers do.

Where do officers’ dues come from?

From the appointment letter, the company’s service rules and any gratuity or provident fund rules. Typical terms:

a notice period of 30 to 90 days;
gratuity of one month’s basic per year after a vesting period, sometimes more after 10 years;
a cap on the leave days paid out;
provident fund: your own part, plus the employer’s part after a set number of years.

How does Pawna help officers?

Officer mode lets you enter your contract terms, or start from one of three common patterns and edit them. These patterns are not law. Pawna also shows what the Labour Act would give a worker with the same service, so you can see if your contract pays less.