BRPD Circular No. 21: Arbitrary Termination of Bank Employees

Subject: Banking Policy and Regulation Department, Bangladesh Bank, Head Office, Dhaka.

16 September 2021

BRPD Circular No. 21 Date: ----------------- 1 Ashwin 1428

To, Managing Director/Chief Executive Officer, All Scheduled Banks operating in Bangladesh.

Dear Sir,

Regarding the illegal termination of bank employees.

Reference is invited to BRPD Circular Letter No. 07 dated 28 May 2015 and BRPD Circular Letter No. 32 dated 18 June 2020 on the subject matter.

2. Through BRPD Circular Letter No. 07/2015, instructions were issued to banks to stop the arbitrary dismissal of employees. On the other hand, through BRPD Circular Letter No. 32/2020, in the situation created by the outbreak of COVID-19, you were instructed to take all necessary measures to ensure the proper implementation of the stimulus packages announced by the government and to achieve the desired GDP growth, so that bank employees can play a proactive role with greater enthusiasm. However, recently complaints have been received from a few banks' employees that despite the absence of any specific and proven allegations, employees are being terminated from service or forced to resign under the pretext of merely not achieving targets or inefficiency during the COVID period, and in some cases, financial benefits due to employees after resignation are not being provided, which is contrary to the purpose and instructions of the aforementioned circulars.

3. To revive the national economy from the economic loss caused by COVID-19, the Government of the People's Republic of Bangladesh and Bangladesh Bank have announced huge financial stimulus packages through their own resources, which are being implemented through scheduled banks. Bank employees, as frontline workers, have been continuously providing necessary banking services by taking maximum risk to keep the wheels of the national economy moving, along with the implementation of these stimulus packages. A notable number of bank employees have contracted COVID-19 and many have died while providing banking services. It is feared that terminating bank employees in the crisis situation created by COVID-19 will create fear among the remaining employees, reduce their morale and enthusiasm, and cause reluctance among talented and experienced individuals to join banks in the future, which will be detrimental to the banking sector in the long run.

4. In this context, considering the important role of bank employees in the distribution of stimulus packages in the situation created by the outbreak of COVID-19 and to maintain the enthusiasm of bank employees in this crisis situation, you are instructed to follow the following matters:

(a) Do not terminate employees in the absence of any specific and proven allegations;

(b) Do not terminate employees or force them to resign citing merely not achieving targets or inefficiency during the COVID period;

(c) Take necessary measures to reinstate employees who were dismissed or forced to resign from service between 01 April 2020 and 15 September 2021 despite the absence of any specific and proven allegations (subject to receipt of application) in accordance with rules;

(d) The details of all employees who were dismissed or who resigned from service between 01 April 2020 and 15 September 2021 must be sent to the Banking Policy and Regulation Department according to 'Annex-A' by 30 September 2021 (soft copy to the email address brpd@brb.org.bd).

5. These instructions will be implemented immediately.

This circular is issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

Yours faithfully,

(Md. Ali Akbar Farazi) General Manager Phone: 9530252

Annex-A Name of the Bank:

Table-1: Year-wise data of employees who resigned (Number) 2017 2018 2019 2020 2021 (up to 15 September 2021)

Table-2: Data regarding termination of employees and resignation from service (from 01 April 2020 to 15 September 2021)

Serial No. Name and Designation of Employees Date of Termination or Resignation from Service Reasons Stated for Termination or Resignation Current Status of Concerned Employees *

• If employed in another bank/organization, the name and address of the concerned bank/organization must be mentioned. If not employed or if information is not available with the bank, the current and permanent address must be mentioned according to the information retained by the bank.

For Contact: Name of the Responsible Officer: Designation: ----------Office Phone No:-----, Mobile Phone No:---------, E-mail: