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Regulations address workers’ concerns

15 November 2009

The Ministry of Labour and Human Resources on Tuesday released a set of 14 regulations on employment conditions.
The regulations are aimed at implementing the provisions of Labour and Employment Act effectively.
The regulations for private and corporate enterprises prescribe minimum standards for internal service rules, employment conditions, provident fund accounts, and gratuity, among others. The regulations were drafted after consultations with employers and employees of private and corporate enterprises in almost all the 20 dzongkhags over two years. Some more regulations on occupational, health and safety and national minimum wage will be released soon.
A cceptable forms of child labour
Although employment below 18 years of age is prohibited, the Labour and Employment Act 2007 authorizes employment of children between 13 and 17 years under strict terms and conditions. The act prohibits working environments that are likely to harm the health, safety, education or morals of the children besides engaging children in overtime work between 10 pm and 8 am.
Sexual harassment policy
Registered companies and enterprises with a capital investment of more than Nu 1 million are required to prepare and implement a sexual harassment policy and written complaints procedures to help lodge complaints against a harasser.
Gratuity
A private or a corporate employee will be entitled to gratuity of minimum of one month’s pay for every year of service provided that he or she has served the employer continuously for a minimum of 10 years. It is obligatory for an employer to operate a gratuity account with an authorized financial institution.
P rovident fund
All small, medium and large scale enterprises must open provident fund accounts with an authorized financial institution for the employees. A minimum of five percent each of the employee’s basic pay must be contributed by both the employer and the employee.
Minimum wage
An employer shall not pay an employee less than the national minimum wage set or adjusted by order of the minister.
A penalty amounting to 365 times the daily minimum wage for the national workforce will be liable for each contravention.
Worker’s compensation
Employers have the choice of ensuring their employees for work accidents or sickness, disability or death but cannot deduct the premium from the employees. A disabled employee not being able to perform any work will be entitled to minimum of 70 percent of his or her last monthly basic wage for a period of five years until he or she is able to return to work. If he or she is unable to join work after five years, the employer or the insurer must make a lump sum payment equivalent to 365 days of the daily minimum wage for the national workforce.
If an employee dies of work accident or occupational disease, a lump sum amount equivalent to 1,080 days of the daily minimum wage for the national workforce should be paid to his or her dependants.
The dependants must also be compensated for loss with earning equivalent to 70 percent of the employee’s last basic pay for one year.
Working hours
Working hours must not exceed eight hours a day and 48 hours a week. Overtime work is permitted but it should not exceed two hours a day except for those working on shifts. An employee must be paid an additional 50 percent of normal pay for the number of overtime hours worked between 10 pm and 8 am. Overtime work is considered voluntary and the worker must not be disciplined, punished or penalized by the employer for refusing to do overtime work.
Leave
Employees are entitled to a minimum of 18 days of annual leave, 5 working days of casual leave and 5 working days of sick leave.
Female employees, who have served an employer for 12 months continuously, are entitled to a minimum of eight weeks of paid maternity leave for a maximum of three times during her service.
However, a male employee under the same condition having his legal wife give birth, is entitled to a paid paternity leave of five working days for a maximum of three times.
Workers’ association
To protect and further the interest of members and bargain collectively, an enterprise of 12 or more workers employed for more than a year can form a workers’ association.
However, a minimum of seven workers not holding any managerial or supervisory positions are required to form an association.
The workers should collectively bargain in good faith and with justifiable reasons. They should not bargain for better wages or other benefits if the enterprise is in red. The enterprises are, therefore, required to make their annual profit and loss accounts transparent to the employees.
Internal service rules
Internal service rules should be prepared by an employer in consultation with the enterprise workers’ association or, where there is none, with the employees. Terms and conditions in the service rules that are less than the minimum standards set in the labour act will be considered null and void and of no legal effect.
Foreign workers recruitment agents
The agents are responsible to recruit and repatriate foreign workers in accordance with the immigration regulations and guidelines issued to agents by the labour department.
A fee of 20 percent of the foreign worker’s first month’s pay that an agent is entitled should be negotiated between the employer and the agent.
Labour inspection
Labour inspectors are empowered to undertake both announced and unannounced inspections and issue improvement or prohibition notices based on the gravity of occupational health and safety hazards at work places.
Grievance procedure
The employer should not retaliate in any form whatsoever against an employee who lodges a complaint. Such an employee should enjoy the same benefits as other employees.
P enalties under the labour act
The labour act and the 14 regulations prescribe penalties ranging from monetary fine of Nu 9,000 to imprisonment for five to nine years. The purpose is to indicate the forms and levels of penalties to be applied to the employers, employees, labour inspectors and advisors who fail to comply with the act and the regulations.

The Ministry of Labour and Human Resources on Tuesday released a set of 14 regulations on employment conditions.

The regulations are aimed at implementing the provisions of Labour and Employment Act effectively.

The regulations for private and corporate enterprises prescribe minimum standards for internal service rules, employment conditions, provident fund accounts, and gratuity, among others. The regulations were drafted after consultations with employers and employees of private and corporate enterprises in almost all the 20 dzongkhags over two years. Some more regulations on occupational, health and safety and national minimum wage will be released soon.

A cceptable forms of child labour

Although employment below 18 years of age is prohibited, the Labour and Employment Act 2007 authorizes employment of children between 13 and 17 years under strict terms and conditions. The act prohibits working environments that are likely to harm the health, safety, education or morals of the children besides engaging children in overtime work between 10 pm and 8 am.

Sexual harassment policy

Registered companies and enterprises with a capital investment of more than Nu 1 million are required to prepare and implement a sexual harassment policy and written complaints procedures to help lodge complaints against a harasser.

Gratuity

A private or a corporate employee will be entitled to gratuity of minimum of one month’s pay for every year of service provided that he or she has served the employer continuously for a minimum of 10 years. It is obligatory for an employer to operate a gratuity account with an authorized financial institution.

P rovident fund

All small, medium and large scale enterprises must open provident fund accounts with an authorized financial institution for the employees. A minimum of five percent each of the employee’s basic pay must be contributed by both the employer and the employee.

Minimum wage

An employer shall not pay an employee less than the national minimum wage set or adjusted by order of the minister.

A penalty amounting to 365 times the daily minimum wage for the national workforce will be liable for each contravention.

Worker’s compensation

Employers have the choice of ensuring their employees for work accidents or sickness, disability or death but cannot deduct the premium from the employees. A disabled employee not being able to perform any work will be entitled to minimum of 70 percent of his or her last monthly basic wage for a period of five years until he or she is able to return to work. If he or she is unable to join work after five years, the employer or the insurer must make a lump sum payment equivalent to 365 days of the daily minimum wage for the national workforce.

If an employee dies of work accident or occupational disease, a lump sum amount equivalent to 1,080 days of the daily minimum wage for the national workforce should be paid to his or her dependants.

The dependants must also be compensated for loss with earning equivalent to 70 percent of the employee’s last basic pay for one year.

Working hours

Working hours must not exceed eight hours a day and 48 hours a week. Overtime work is permitted but it should not exceed two hours a day except for those working on shifts. An employee must be paid an additional 50 percent of normal pay for the number of overtime hours worked between 10 pm and 8 am. Overtime work is considered voluntary and the worker must not be disciplined, punished or penalized by the employer for refusing to do overtime work.

Leave

Employees are entitled to a minimum of 18 days of annual leave, 5 working days of casual leave and 5 working days of sick leave.

Female employees, who have served an employer for 12 months continuously, are entitled to a minimum of eight weeks of paid maternity leave for a maximum of three times during her service.

However, a male employee under the same condition having his legal wife give birth, is entitled to a paid paternity leave of five working days for a maximum of three times.

Workers’ association

To protect and further the interest of members and bargain collectively, an enterprise of 12 or more workers employed for more than a year can form a workers’ association.

However, a minimum of seven workers not holding any managerial or supervisory positions are required to form an association.

The workers should collectively bargain in good faith and with justifiable reasons. They should not bargain for better wages or other benefits if the enterprise is in red. The enterprises are, therefore, required to make their annual profit and loss accounts transparent to the employees.

Internal service rules

Internal service rules should be prepared by an employer in consultation with the enterprise workers’ association or, where there is none, with the employees. Terms and conditions in the service rules that are less than the minimum standards set in the labour act will be considered null and void and of no legal effect.

Foreign workers recruitment agents

The agents are responsible to recruit and repatriate foreign workers in accordance with the immigration regulations and guidelines issued to agents by the labour department.

A fee of 20 percent of the foreign worker’s first month’s pay that an agent is entitled should be negotiated between the employer and the agent.

Labour inspection

Labour inspectors are empowered to undertake both announced and unannounced inspections and issue improvement or prohibition notices based on the gravity of occupational health and safety hazards at work places.

Grievance procedure

The employer should not retaliate in any form whatsoever against an employee who lodges a complaint. Such an employee should enjoy the same benefits as other employees.

Penalties under the labour act

The labour act and the 14 regulations prescribe penalties ranging from monetary fine of Nu 9,000 to imprisonment for five to nine years. The purpose is to indicate the forms and levels of penalties to be applied to the employers, employees, labour inspectors and advisors who fail to comply with the act and the regulations.

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Posted by Bhutan Observer · Filed Under News 

Comments

One Response to “Regulations address workers’ concerns”

  1. pala on November 15th, 2009 2:33 pm

    this seems to be gud idea for the pple working in private sectors but what will be the strategy of the government to make private sector sustainable.Most of the medium companies cant even sustain themselves financially….i think Government should look into both the sides equally rather than implementing such regulations without proper studies.Other wise there will be problem in future…

    .what do u say my frends??????????????????/

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