TRW & Co · Employment and labour law
Disciplinary Procedure and Dismissal for Misconduct Under the Labour Act
The disciplinary procedure Bangladesh labour law requires is set by sections 23 and 24 of the Labour Act 2006: a written charge, at least seven days to reply, a hearing, an inquiry by a balanced committee concluded within sixty days, and a written order approved by management. Skipping any step exposes a dismissal to reinstatement orders in Chattogram's Labour Courts.
Key pointMost dismissals overturned in the Labour Court fail on paperwork, not on the facts: proof that the charge sheet was delivered, a balanced inquiry committee and signed minutes usually decide the case.
At a glance
Written charge
Section 24(1) requires the allegation in writing, a copy to the worker and at least seven days to explain before any punishment can be imposed.
Inquiry committee
Guilt must be found by an inquiry committee with an equal number of employer and worker representatives, and the inquiry must conclude within sixty days.
Suspension limits
Suspension pending inquiry is capped at sixty days unless a court case is pending, with subsistence allowance of half the basic wage and allowances paid.
Lesser penalties
Removal, demotion, stoppage of promotion or increment for up to a year, a capped fine, short suspension, or censure may replace dismissal.
Challenge route
A worker raises a section 33 grievance within thirty days, then complains to the Labour Court, which can reinstate or reduce the penalty.
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The disciplinary procedure Bangladesh labour law requires before a worker is dismissed for misconduct is short but strict: a written charge, at least seven days to reply, a hearing, an inquiry by a committee with equal employer and worker representation finished within sixty days, and a written order. Sections 23 and 24 of the Labour Act 2006 set the rules, and Chattogram's Labour Courts regularly set aside dismissals that skip a step.
The short answer
Under the Bangladesh Labour Act 2006, an employer may dismiss a worker without notice or pay in lieu only if the worker is convicted of a criminal offence or is found guilty of misconduct under section 24. Section 24(1) says no punishment may be imposed unless the allegation is recorded in writing, the worker receives a copy and at least seven days to explain, the worker is given an opportunity to be heard, an inquiry committee with an equal number of employer and worker representatives finds the worker guilty, and the employer or manager approves the dismissal order. The inquiry must be concluded within sixty days.
A dismissal that follows this disciplinary procedure Bangladesh labour law lays down is hard to overturn. One that skips the written charge, the reply period or the inquiry is vulnerable in the Labour Court, which may order reinstatement with or without back wages or convert the dismissal into a lesser penalty.
The legal framework: sections 23, 24 and 25
Misconduct under section 23(4)
Section 23(4) lists the acts treated as misconduct. They include wilful disobedience of a lawful or reasonable order; theft, misappropriation, fraud or dishonesty in connection with the employer's business or property; taking or giving bribes in connection with employment; habitual absence without leave, or absence without leave for more than ten days at a time; habitual late attendance; habitual breach of laws or rules applicable to the establishment; disorderliness, riot, arson or breakage; habitual negligence; habitual breach of employment rules approved by the Inspector General; and altering, forging or damaging the employer's official records.
Note how many items require a habit. The disciplinary procedure Bangladesh labour law sets out is designed to test evidence of a pattern, not to punish a single lapse. A single late arrival or a single act of negligence is rarely enough; the file should show earlier warnings or a pattern.
Penalties under section 23(2)
Dismissal is not the only outcome. Where there are extenuating circumstances, section 23(2) allows lesser punishments: removal; reduction to a lower post, grade or scale for up to one year; stoppage of promotion for up to one year; withholding of an increment for up to one year; a fine; suspension without wages or subsistence allowance for up to seven days; or censure and warning. Section 24(10) requires the employer to consider the worker's previous record, the seriousness of the offence, the worker's contribution and any special circumstances when choosing the penalty.
Compensation after the 2025 amendment
Section 23(3) provides fifteen days' wages for every completed year of service to a qualifying worker with at least one year's continuous service, except where the misconduct is theft, fraud or dishonesty, or disorderliness, riot, arson or breakage. The Bangladesh Labour (Amendment) Ordinance 2025, published in the extraordinary Gazette of 17 November 2025 and converted into the Bangladesh Labour (Amendment) Act 2026, added dismissed workers to that sub-section, so the compensation is no longer limited to removal. Other lawful dues remain payable in every case.
Fines
Section 25 caps a fine at one-tenth of the wages payable in a wage period, prohibits fines on workers under fifteen, requires recovery within sixty days and not in instalments, and requires fines to be recorded and spent only on worker welfare.
The disciplinary procedure Bangladesh labour law requires, step by step
- Investigate before charging. Collect attendance records, CCTV, documents and short written statements while memories are fresh. Decide which section 23(4) clause the facts fit.
- Issue a written charge sheet. State the facts, dates and the misconduct clause, attach or describe the evidence and give at least seven days to reply in writing. Vague charges are a common reason for findings being set aside.
- Suspend only if needed, in writing. Section 24(2) allows suspension pending inquiry for up to sixty days unless the matter is before a court. The order must be in writing, takes effect on delivery, and during it the worker receives subsistence allowance (half of basic wage, dearness allowance and any ad hoc or interim wage, under section 2(9A)) and other allowances in full.
- Serve properly. If the worker refuses to accept a notice or order, section 24(9) treats it as delivered when a copy is displayed on the notice board and another is sent by registered post to the address in the employer's records.
- Constitute the inquiry committee. It must have an equal number of employer and worker representatives. The worker may be assisted by a person employed in the establishment and nominated by the worker, and may cross-examine anyone who gives oral evidence against them.
- Hold the hearing and record it. Keep minutes signed by those present, the list of documents shown and the worker's answers. Conclude the inquiry within sixty days.
- Decide and approve. The committee reports its findings; the employer or manager decides the penalty, considering the factors in section 24(10), and approves any dismissal order.
- Serve the order and settle dues. Give the worker a copy of the punishment order, as section 24(8) requires, and pay final dues within the time the Act allows. If the charge is not proved, the worker is treated as on duty during suspension and receives full wages, adjusted for subsistence allowance already paid.
Count the seven-day reply period from delivery, not from the date on the letter, and keep proof of delivery. In Chattogram disputes the first question is often whether the charge sheet was actually received.
Choosing the penalty: options compared
The table summarises the main outcomes once misconduct is proved. The disciplinary procedure Bangladesh labour law prescribes is the same for each, but the consequences differ.
| Outcome | Notice or pay in lieu | Service compensation | Points to note |
|---|---|---|---|
| Dismissal (s.23(1)) | None | 15 days' wages per completed year for qualifying workers, unless the misconduct falls within the theft, fraud or disorder exclusions | Requires full section 24 procedure; approval by employer or manager |
| Removal (s.23(2)(a)) | None | 15 days' wages per completed year for qualifying workers | Used where extenuating circumstances justify a softer exit |
| Demotion, stoppage of promotion or increment | Not applicable | Not applicable | Each limited to one year |
| Suspension as punishment | Not applicable | Not applicable | Without wages or subsistence allowance for up to seven days |
| Fine | Not applicable | Not applicable | Capped at one-tenth of wages for the wage period; recorded and spent on welfare |
| Censure and warning | Not applicable | Not applicable | Useful first step to build a record for habitual misconduct |
Termination without cause under section 26 is a separate route with long notice and full compensation; it is not a disciplinary penalty. Our article on termination benefits compares every exit route.
Illustrative scenario: absence at a Chattogram garment unit
Illustrative only; the parties are hypothetical. A sewing operator at a factory in Kalurghat is absent without leave for twelve consecutive days. The factory had issued two written warnings for absence earlier in the year. The HR team prepares a charge sheet citing section 23(4)(d), attaching the attendance register and copies of the warnings, and sends it by registered post to the address in the worker's file, with a copy on the notice board, giving seven days to reply.
Each of those steps mirrors the disciplinary procedure Bangladesh labour law requires, and each leaves a document behind.
The worker returns and replies that a parent was in hospital in Cox's Bazar, attaching a discharge certificate. The inquiry committee, with two management and two worker representatives, hears the worker with a co-worker assisting, records that leave was never sought but that a medical emergency existed, and recommends removal rather than dismissal. The manager approves removal, the order is handed over, and the worker's final dues and fifteen days' wages per completed year are paid. The file would let the factory defend a later Labour Court complaint on both procedure and proportionality.
Risks and common mistakes
Dismissing on the spot
Supervisors sometimes tell a worker to leave immediately after an incident and treat that as dismissal. Without a written charge, a reply period, a hearing and an inquiry, the dismissal does not meet section 24, however serious the conduct. The worker can raise a grievance under section 33 within thirty days and then complain to the Labour Court, which can order reinstatement with back wages. If the situation needs the worker off the premises, use a written suspension order pending inquiry instead, and start the charge process the same day.
A one-sided inquiry committee
Section 24(1)(d) requires an inquiry committee made up of an equal number of employer and worker representatives. Inquiries run solely by HR or the line manager, or by a committee with token worker participation, are open to challenge. Choose worker representatives in a way the establishment can explain, such as from the participation committee where one exists, and record who sat and how they were chosen. Allow the accused worker's nominated co-worker to assist and to cross-examine witnesses.
Overrunning suspension or the sixty-day inquiry
Suspension pending inquiry may not exceed sixty days unless the matter is pending before a court, and the inquiry itself should be concluded within sixty days. Employers who let suspensions drift while waiting for a police case or an internal audit risk paying full wages for the period and having the eventual finding attacked as unfair. Plan the timetable on day one, and if a criminal case is filed, take advice on how the court proceedings affect the internal process.
Disproportionate penalties and blacklisting
Section 24(10) requires the employer to weigh the worker's record and contribution, and the Labour Court can convert a dismissal into a lesser penalty under section 33(5). The 2025 ordinance also added blacklisting of terminated workers, and retaliation against workers who complain or give evidence, to the unfair labour practices in section 195. Circulating names of dismissed workers to other factories in the zone, or disciplining a worker shortly after a complaint to the inspectorate, now carries real legal risk.
How dismissals are challenged in Chattogram
A dismissed worker usually starts with a written grievance under section 33, sent by registered post within thirty days of learning of the dismissal. The employer must decide within thirty days after a hearing; if it does not, or the worker is dissatisfied, the worker may complain to the Labour Court within the next thirty days. No court fee is payable. Chattogram has a First and a Second Labour Court, and appeals lie to the Labour Appellate Tribunal within thirty days of the order.
The Labour Court can order reinstatement with or without arrears of wages, or convert the dismissal into a minor penalty under section 23(2). The judge will usually begin by asking whether the employer followed the disciplinary procedure Bangladesh labour law requires, and only then turn to whether the misconduct was proved and the penalty proportionate. In practice the employer's file, especially proof of delivery, minutes and the inquiry report, decides most cases. Our guides to the section 33 grievance and the Labour Court case procedure follow the process, and our Labour Court practice represents employers and workers.
Units inside the Chattogram and Karnaphuli export processing zones follow the EPZ Labour Act 2019 and the EPZ Labour Courts instead; see our EPZ labour practice. Managers who fall outside the Act's definition of worker are governed by their contracts and service rules, so their disputes usually go to the civil courts rather than the Labour Court.
Service rules and multinational policies
Section 3 allows an establishment to have its own service rules, but they cannot be less favourable than the Act and must be approved by the Inspector General of the Department of Inspection for Factories and Establishments (DIFE). The 2025 ordinance extended the time for the Inspector General to decide from ninety to one hundred and twenty days. Global codes of conduct, investigation protocols and "zero tolerance" policies used by multinational groups must be adapted to fit section 24: the inquiry committee, the seven-day reply period and the sixty-day limits cannot be contracted out of for workers.
A practical approach is to keep a single Bangladesh annex to the group policy that maps each global step onto the disciplinary procedure Bangladesh labour law requires, with Bangla templates for the charge sheet, suspension order, notice of inquiry, minutes and final order. Line managers then follow one document rather than reconciling two. Foreign parents and buyers often require an investigation report in English. Prepare it alongside the Bangla charge sheet, inquiry minutes and order, so that the local record is complete and consistent. TRW & Co's offices in Dhaka, Singapore, Dubai and London can coordinate group policies with Bangladeshi procedure.
Checklist for HR and management
- Identify the precise section 23(4) clause and gather evidence before writing the charge.
- Serve a written charge giving at least seven days to reply, and keep proof of delivery.
- Use written suspension orders only where needed, pay subsistence allowance and diarise the sixty-day limit.
- Constitute a balanced inquiry committee, allow a nominated co-worker and cross-examination, and keep signed minutes.
- Choose a proportionate penalty and record the section 24(10) factors.
- Serve the order, pay final dues on time and never blacklist or retaliate.
- Have service rules approved by DIFE and align group policies with the Act.
For advice on a live disciplinary matter or a review of your service rules, contact our Chattogram office at Room 4022, Annex 2, District and Sessions Judge Court Building, Court Hill (Porir Pahar), Kotwali, Chattogram 4000, email info@trw.co or call +880 1779 127165. Our labour practice page sets out our wider employment work.
Frequently asked questions
01Can an employer in Bangladesh dismiss a worker without notice?
Yes, but only in two situations under section 23(1) of the Labour Act 2006: where the worker is convicted of a criminal offence, or where the worker is found guilty of misconduct after the procedure in section 24. That procedure requires a written charge, at least seven days to reply, a hearing, an inquiry by a committee with equal employer and worker representatives concluded within sixty days, and approval of the order by the employer or manager. Without it, the dismissal can be overturned by the Labour Court.
02How long can a worker be suspended during a disciplinary inquiry?
Section 24(2) allows suspension pending inquiry for up to sixty days, unless the matter is pending before a court. The order must be in writing and takes effect when delivered. During suspension the worker receives subsistence allowance, defined as half of basic wage, dearness allowance and any ad hoc or interim wage, plus other allowances in full. If the charge is not proved, the worker is treated as on duty and receives full wages for the period, adjusted for allowance already paid.
03What counts as misconduct under the Bangladesh Labour Act?
Section 23(4) lists the acts: wilful disobedience of lawful or reasonable orders; theft, fraud or dishonesty concerning the employer's business or property; bribery connected with employment; habitual absence, or absence without leave for more than ten days at a time; habitual lateness; habitual breach of applicable laws or approved rules; disorderliness, riot, arson or breakage; habitual negligence; and forging or damaging official records. Several grounds require a habit, so earlier warnings matter.
04Is a worker dismissed for misconduct entitled to any compensation?
A qualifying worker with at least one year's continuous service receives fifteen days' wages for each completed year under section 23(3). The 2025 amendment ordinance, now the Labour (Amendment) Act 2026, extended this to dismissed as well as removed workers. No compensation is payable where the misconduct is theft, misappropriation, fraud or dishonesty, or disorderliness, riot, arson or breakage, but other lawful dues such as unpaid wages and leave encashment remain payable.
05Who sits on the inquiry committee?
Section 24(1)(d) requires an inquiry committee consisting of an equal number of representatives of the employer and of the workers. The accused worker may be assisted by a person employed in the establishment whom the worker nominates, and may cross-examine anyone who gives oral evidence against them. Employers should record how worker representatives were chosen, for example from the participation committee, and keep signed minutes of every sitting, because the committee's composition is a frequent ground of challenge.
06How can a dismissed worker challenge the decision in Chattogram?
The worker sends a written grievance to the employer by registered post within thirty days under section 33. The employer must decide within thirty days after hearing the worker. If it does not, or the worker is dissatisfied, the worker may complain to the Labour Court within the following thirty days, without court fees. Chattogram has a First and a Second Labour Court, and appeals go to the Labour Appellate Tribunal. EPZ workers use the EPZ Labour Act 2019 instead.
Sources and official materials
- Bangladesh Labour Act 2006 — Sections 23 to 25 on misconduct, procedure and fines; section 33 grievances
- Bangladesh Labour (Amendment) Act 2026 — Act converting the 2025 amendment ordinance into law
- Bangladesh Gazette (extraordinary), 17 November 2025 — Labour (Amendment) Ordinance 2025, including section 23(3) and section 195 changes
- Department of Inspection for Factories and Establishments — Approval of service rules and labour inspection
- Divisional Labour Office, Chattogram — Department of Labour office for the Chattogram division
- Supreme Court of Bangladesh — High Court Division writ and revisional jurisdiction
General information only, current as at 2 November 2026. It is not legal advice and does not create an advocate–client relationship. It reflects the law of Bangladesh unless stated otherwise, and the law, court practice and official fees change frequently. Check current official sources and take advice on the facts of your matter.
