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: 2016-10-24
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Employment Relations of Bangladesh ()
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Word Doc
BA 402 - Comparative Industrial Relations

Instructor: Lyman A. Hussey

March 2007

Employment Relations of 



Roman Walker



Labour and Unions.3


Education System...5

Legal System6

Labour Laws.7

Tax Structure8

Treatment of Foreign Nationals.9

Grameen Bank10


Bangladesh is a small country, located North-East of India, which
surrounds it. Bangladesh borders India in the West, North, and East. It
also borders to Burma in the South-East and its South coast is located
at the Indian Ocean. Bangladesh is 130,200 km big and has a population
of 123,633 million people (2000). The capital of Bangladesh is Dhaka. 

The majority of Bangladeshs countryside is lowland at the bottom end of
the Ganga and Brahmputra. Mountains can only be found in the East and
South-East of the country. The climate is subtropical to tropical

98% of the population are Bengals. The other minorities are Bihari and
some mountain tribes. Bangladesh is one of the thickest populated
countries in the world which can hardly cope with the annual economical
and social growth of 3%. The state religion is Islam.        


Labour and Unions:

The labour force in 1998 was estimated at about 64 million workers. 11%
of the civilian labour force was employed in the industrial sector, 63%
in agriculture, 26% in the service industry in 1996. It is not possible
to rely on statistics because of a huge unreported black market. The
unemployment rate in 2001 was at about 35%.

The structure of the labour market and the role of unions in Bangladesh
are can be compared to those in other South Asia countries. Bangladesh
has three types of labour markets: formal, rural informal, and urban
informal. The formal labour market is characterized by a contractual
relationship between the employer and the employee and supported by
labour laws and regulations that protect workers, such as minimum wages,
allowances, and limitations on the employers ability to fire his
workers. The other types of labour markets are not covered by any labour
regulations. The informal sector dominates the labour market surface. In
1991, 47,2 % of the labour force were classified as unpaid family
workers, 15,4% were self-employed, 13,9% were classified as casual
workers (day labourers), and only 11,7% had regular full time wage

Joining unions is granted by the Bangladeshs constitution, as well as
the formation of a union only after a government approval. Still in some
cases people are harassed and fired who tried to organize a union.
People working in the government civil servants, military, and police
are not allowed to join unions with the exception of railway, postal,
and telegraph workers. Instead they are allowed to join associations
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