WORKFORCE DOWNSIZING COMPLIANCE REPORT

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.