WORKFORCE DOWNSIZING COMPLIANCE REPORT
Fast Value Global (BD) Ltd.
Prepared by: Tokyo Consulting Firm Limited
Date: 25 March 2025
1. Executive Summary
1.1 Purpose of the Report
• Outline the reasons for workforce downsizing.
• Summarize key activities needed for compliance and execution.
• Provide an overview of legal adherence and risk mitigation.
• Recommending the best applicable law reference based on the current
situation and client’s preferences.
1.2 Scope of Work
• Compensation and benefits calculation.
• Preparation of legal and compliance documents.
2. Background & Information Gathering
2.1 Reason for Downsizing
• Business downturn due to the loss of a major buyer.
• Financial constraints and the need for operational restructuring.
2.2 Legal and Regulatory Considerations
• Bangladesh Labor Act, 2006 (Amended in 2018).
2.3 Selection Criteria
• Selection methodology: Performance-based, selected by the Company.
3. Risk Assessment & Mitigation
• Legal Risks: Non-compliance with labor laws, wrongful termination claims.
• Reputational Risks: Employee dissatisfaction, public perception.
• Operational Risks: Workforce morale, productivity impact.
Mitigation Measures Obtained: Asking legal opinion by professional, fair
compensation calculation, transparent communication.
4. Compensation & Benefits Calculation
4.1 Compensation & Final Settlement Calculation Methodology
• Compensation (Retrenchment) Pay: As per Section 20(2)(C) of Bangladesh
Labor Act, 2006 .
• Compensation (lieu of Notice) Pay: As per Section 20(2)(a) of Bangladesh
Labor Act, 2006 .
• Gratuity Payment: Not Applicable
• Provident Fund Contribution: Not Applicable
• Leave Encashment: [No Information]
• Other Benefits: [No Information]
4.2 Compensation Calculation Summary
Employee
ID Name Designation Years of
Service
Severance
Pay (BDT)
- Tarikul Hasan
Chowdhury
Manager (Production,
Sourcing & Supply chain
Control)
4.84 342,000
000006 Md. Imam
Hossain
Executive (Accounting &
General Affairs) 8.03 206,400
(Full list in Annexure A)
*** Notice of 1 (One) month should be provided each employee. Failure to
provide such notice or in case of immediate termination, the employee will
receive 1 month’s latest basic salary as compensation in lieu of notice.
5. Documentation & Legal Compliance
• Termination Notices: As per Section 20 of Bangladesh Labor Act, 2006 .
• Settlement Agreements: Signed/Acknowledged by employees upon final
payment.
• Regulatory Filings: Submission the copy of the notices of retrenchment to the
Chief Inspector, Ministry of Labor. Another copy is to be submitted to the
collective bargaining agent of the establishment (if any).
6. Execution & Employee Communication Plan
Date Activity Responsible
Party Remarks
[DD/MM/YYYY] Termination Notice
Issuance HR Department Should be signed by
employees
[DD/MM/YYYY] Individual Employee
Meetings HR or Legal Should address employee
concerns
[DD/MM/YYYY] Settlement Payment
Processing Finance Team Getting bank transfer
confirmation
[DD/MM/YYYY] Exit Documentation
& Clearance HR or Admin Ensure handing over
company assets
7. Conclusion with Recommendation:
We acknowledge the post termination/retrenchment concerns of the company.
Sometimes, employees feel exploited by the employer and sue against the employer
in the labor court and ask for more compensation. In such a scenario, the employer
must face court hassle and additional expenditures (court fees, lawyer or professional
fees, compensation if case lost etc.).
Although, Section 20 is the relevant reference of law which exactly matches with the
termination background of Fast Value Global (BD) Ltd. However, if the company wants
to reduce/avoid the possibility of being sued or avoid any future hassle, expenditure
or compensation then it is recommended to follow Section 26 of the Labor Act 2006.
Mr. Shaleh Akram Somrat (The Lawyer) has also recommended following Section 26
for the same reasons. We hereby attach the lawyer’s professional opinion in this regard
in Annexure C . We hereby also calculate full compensation under Section 26 of the
Labor Act 2006 in Annexure B.
Disclaimer:
Whichever law reference, Fast Value Global (BD) Ltd. chooses (Section 20 or Section
26 of the Labor Act 2006) Tokyo Consulting Firm Limited doesn’t bear any
responsibility.
8. Annexures & Attachment
Annexure A: Employee Compensation Details
(Detailed Compensation Calculation per employee as per Section 20)
Annexure B: Employee Compensation Details
(Detailed Compensation Calculation per employee as per Section 26)
Annexure C: Lawyer’s Opinion
(Detailed Compensation Calculation and opinion by Mr. Shaleh Akram Somrat,
Barrister-at-Law)
Attachment: Copies of Drafted Retrenchment Notices
Yours sincerely
_________________________
Fumihiro Abe
Director
Tokyo Consulting Firm Limited.
Gross Basic
1 Tarikul Hasan Chowdhury Office Manager (Production, Sourcing & Supply chain Control) 7/6/2020 4/15/2025 4.84 5.00 114,000 68,400 342,000 68,400 410,400
2 Md. Imam Hossain Office Executive -Accounting & Genaral Affairs 5/16/2017 4/15/2025 8.03 8.00 43,000 25,800 206,400 25,800 232,200
3 Md. Bahar QC Senior QC 12/16/2015 4/15/2025 9.47 9.00 16,785 9,557 86,013 9,557 95,570
4 Monir Hossein QC QC and Dispatching 4/16/2017 4/15/2025 8.11 8.00 15,420 8,647 69,176 8,647 77,823
5 Billal Hossain QC QC and Dispatching 11/16/2017 4/15/2025 7.52 8.00 14,273 7,882 63,056 7,882 70,938
6 Md. Monir Hossen (2) QC QC and Dispatching 2/16/2018 4/15/2025 7.26 7.00 14,273 7,882 55,174 7,882 63,056
7 Md. Salim QC QC and Dispatching 3/16/2018 4/15/2025 7.19 7.00 14,273 7,882 55,174 7,882 63,056
8 Md. Rafiqul Islam QC QC assistant 7/16/2024 4/15/2025 0.76 1.00 12,500 6,700 6,700 6,700 13,400
9 Md. Jamear Loader Direct labour 7/16/2024 4/15/2025 0.76 1.00 12,800 6,900 6,900 6,900 13,800
Notice Pay (if
sufficient notice
not given)
Total
Amount
Annexure A
Compensation
Amount
Fast Value Global (BD) Ltd.
Schedule of Compensation for Retrenched Employees
Sl.
No.
Current Wages
Name Deparment Position Joining Date
(MM/DD/YYYY) Cut Off Date Duration of
Service (in Years)
Eligible to
Receive
Compensation
Gross Basic
1 Tarikul Hasan Chowdhury Office Manager (Production, Sourcing & Supply chain Control) 7/6/2020 4/15/2025 4.84 5.00 114,000 68,400 342,000 273,600 615,600
2 Md. Imam Hossain Office Executive -Accounting & Genaral Affairs 5/16/2017 4/15/2025 8.03 8.00 43,000 25,800 206,400 103,200 309,600
3 Md. Bahar QC Senior QC 12/16/2015 4/15/2025 9.47 9.00 16,785 9,557 86,013 38,228 124,241
4 Monir Hossein QC QC and Dispatching 4/16/2017 4/15/2025 8.11 8.00 15,420 8,647 69,176 34,588 103,764
5 Billal Hossain QC QC and Dispatching 11/16/2017 4/15/2025 7.52 8.00 14,273 7,882 63,056 31,528 94,584
6 Md. Monir Hossen (2) QC QC and Dispatching 2/16/2018 4/15/2025 7.26 7.00 14,273 7,882 55,174 31,528 86,702
7 Md. Salim QC QC and Dispatching 3/16/2018 4/15/2025 7.19 7.00 14,273 7,882 55,174 31,528 86,702
8 Md. Rafiqul Islam QC QC assistant 7/16/2024 4/15/2025 0.76 1.00 12,500 6,700 6,700 26,800 33,500
9 Md. Jamear Loader Direct labour 7/16/2024 4/15/2025 0.76 1.00 12,800 6,900 6,900 27,600 34,500
Sl.
No. Name Deparment Position Joining Date
(MM/DD/YYYY)
Total
Amount
Annexure B
Fast Value Global (BD) Ltd.
Schedule of Compensation for Retrenched Employees
Cut Off Date Duration of
Service (in Years)
Eligible to
Receive
Compensation
Current Wages Compensation
Amount
Notice Pay (if
sufficient notice
not given)
Page 1 of 3
Ref: FVG/Termination Procedure Date: 24.03.2025
To
Fast Value Global (BD) Limited
Rupayan Battala, Zamgora, Zirabo,
Ashulia, Savar, Dhaka-1341
Ref: Termination Procedure of Manager, Executive Officer, Senior QC, QC, QC Assistant
and Direct Labor in accordance to Bangladesh Labor Act, 2006.
LEGAL OPINION
We have been instructed to give our opinion on :
Legal Procedure to terminate the employees holding the ranks of Manager, Executive
(Accounting & General Affairs), Senior QC, QC, QC Assistant and Direct Labor who joined
your company from 07.06.2020 to 16.07.2024 in accordance with the sections of the
Bangladesh Labor Act, 2006.
We are furnishing our opinion on the following documents, as provided by you to us :
a) E-mail dated 16.02.2025.
b) Bangladesh Labor Act, 2006.
Below is our opinion (categorically and very briefly):
We were only provided with the E-mail. However, we have made our observations after
perusing the E-mail and the sections of the Bangladesh Labor Act, 2006.
Case Scenario- [Manager, Executive (Accounting & General Affairs), Senior QC, QC,
QC Assistant and Direct Labor]-
1. According to the Section- 26 (1) (a) of the Bangladesh Labor Act, 2006 the employees
will receive benefit of 120 days or 4 month's basic salary for termination within
immediate effect. According to your information, the last basic salary of the employees
will be preferred before the termination in this regard.
2. The said employees will also receive termination benefit in accordance section-26 (4) of
the Bangladesh Labor Act, 2006 along with earn leave where the said employees had
been working in your company for last 1 year to 9 years.
3. The Company shall issue a simple termination letter to the employees by stating that the
service of the employees has been terminated with an immediate effect and the employees
have received all their salary and benefits from the company. Moreover, the Company
must not mention any reasons and grounds in the termination letter where the termination
letter would be very precise and short.
Annexure C
Page 2 of 3
4. The Company must ensure that the employees have received all their salaries and benefits
from the company with the signatures of the employees in the termination letters.
5. The employees shall receive the mentioned salary and service benefits from your
company according to the laws mentioned in the Bangladesh Labor Act, 2006 which is
given below-
Names 4 Months'
Notice Pay-
120 days/ 4
months (Basic
Salary X 4)
Termination
Benefit-
(Basic Salary X
Service Years)
Earn Leave-
As per Company's
Record-
(Gross X Days of
Earn Leave
divided by Thirty)
Calculation
and Amount
Tarikul
Hasan
Chowdhury
(68,400 X 4)
=2,73,600
(68,400 X 5 )
= 3 , 42 , 0 00
As per Company's
Record
BDT- 6 , 15 , 6 00
Md. Imam
Hossain
(25,800 X 4)
=1,03,200
(25,800 X 8 )
= 2 ,0 6 , 4 00
As per Company's
Record
BDT- 3 , 09 , 6 00
Md. Bahar (9557 X 4)
=38,228
(9557 X 9)
=86,013
As per Company's
Record
BDT-1,24,241
Monir
Hossein
(8647 X 4)
=34,588
(8647 X 8)
=69,176
As per Company's
Record
BDT-1,03,764
Billal
Hossain
(7882 X 4)
=31,528
(7882 X 8 )
= 63 , 056
As per Company's
Record
BDT- 94,584
MD. Monir
Hossen (2)
(7882 X 4)
=31,528
(7882 X 7)
=55,174
As per Company's
Record
BDT-86,702
MD. Salim (7882 X 4)
=31,528
(7882 X 7)
=55,174
As per Company's
Record
BDT-86,702
Md. Rafiul
Islam
(6,700 X 4)
=26,800
(6,700 X 1)
=6,700
N/A (Less than 1
year)
BDT-33,500
Md. Jamear (6,900 X 4)
=27,600
(6,900 X 1)
=6,900
N/A (Less than 1
year)
BDT-34,500
Total [Except-
Earn Leave]
BDT
1, 489 ,1 93
6. The employees named Md. Rafiul Islam and Md. Jamear will not receive any Earn Leave
as they have served under your company less than 1 year and in according to section 117
of Bangladesh Labor Act, 2006 the said employees will not receive any payment
regarding Earn Leave and other employees will receive Earn Leave which is mandatory
for your company to provide such Earn Leave by checking the records that the leaves
Page 3 of 3
taken by the said employees from your Company's Registry Book. Generally, the Earn
Leave is counted as-
Gross Salary X Days of Earn Leave
30
** For 1 year – No employee shall receive more than 40 Day's Earn Leave.
7. The Company will execute the abovementioned procedure under the Bangladesh Labor
Act, 2006 to terminate the said employee.
Apart from the above observations, the rest of the administrative decision will be taken from
your company.
Thanks for seeking our opinion. We would be glad to assist you in any other matter. Should
you have any further queries, please revert back to us.
Yours truly,