Mandatory Notification Before Starting a Factory Operation in Bangladesh

A crucial, yet often overlooked, first step for any business in Bangladesh is the legal requirement to notify the labor authorities before commencing operations. This mandatory notification, enshrined in the Bangladesh Labour Act, 2006, and the Bangladesh Labour Rules, 2015, is a cornerstone of regulatory compliance, ensuring the Department of Inspection for Factories and Establishments (DIFE) is formally aware of the new enterprise from its inception.

This guide, prepared by LegalSeba LLP, provides a comprehensive, rearranged, and more detailed overview of this critical process, incorporating details from the governing legislation.

I. The Regulatory Authority: Department of Inspection for Factories and Establishments (DIFE)

The primary government body responsible for receiving and processing these notifications is the Department of Inspection for Factories and Establishments (DIFE), which operates under the Ministry of Labour and Employment.

• Name: Department of Inspection for Factories and Establishments (DIFE)
• Address: 23-24, Kawran Bazar (2nd & 3rd Floor), BFDC Commercial Complex, Dhaka-1215
• Website: www.dife.gov.bd

DIFE plays a pivotal role in ensuring the welfare, safety, and health of workers across all sectors of the Bangladeshi economy. This notification process serves as the initial point of contact between a new business and this key regulatory agency.

II. Notification Requirements: A Step-by-Step Breakdown

A. Timing: When to Notify

The law is unequivocal about the timeline. Employers are required to submit the notification to the Chief Inspector (Inspector General of DIFE) at least fifteen (15) days before starting work or commencing business operations. This advance notice allows the authorities to duly register the new establishment and plan any necessary initial inspections.

B. The Required Form and Information: Form 75

The notification must be submitted in duplicate using Form 75, as stipulated by the Bangladesh Labour Rules, 2015. This form requires the following essential information:

(a) Name and location of the establishment: The full registered name and physical address of the business. (b) Name and address of the owner: The details of the proprietor, partners, or the registered office address of the company. (c) Address for correspondence: The designated mailing address for all official communications. (d) Nature of the work or business: A clear and concise description of the business activities to be carried on. (e) Nature and amount of power to be used (if any): Details of any electricity, gas, or other forms of power to be used in the operations. (f) Name of the manager: The name of the individual responsible for the management of the establishment. (g) Probable number of workers to be employed: An estimate of the initial workforce size. (h) Any other prescribed information: Any additional details as required by Form 75.

C. The Submission Process

1. Complete Form 75: Fill out two copies of Form 75 with accurate and up-to-date information.
2. Submit to DIFE: The completed forms must be submitted to the office of the Inspector General of DIFE or the relevant Deputy Inspector General (DIG) office that has jurisdiction over the establishment’s location.
3. Receive Acknowledgement: The receiving DIFE office will examine the submitted forms, sign one copy, and return it to the employer as an official acknowledgement. This signed copy is a crucial document that should be retained securely as proof of compliance.

III. Additional and Ongoing Responsibilities

The initial notification is not the end of the compliance journey. Employers have a continuing obligation to keep DIFE informed of any significant changes.

• Changes to Submitted Information: Should any of the information provided in Form 75 change after submission, the employer must immediately inform the relevant DIG office in writing.
• New Manager Appointment: If a new manager is appointed, the owner is legally required to notify the Chief Inspector in writing within seven (7) days of the manager’s joining date.
• Further Information Requests: DIFE is empowered to request additional information beyond the scope of Form 75 if it is deemed necessary for regulatory oversight.
• Universal Applicability: It is important to note that this notification requirement applies to all establishments, regardless of size or the number of employees. Even a business operated solely by family members without any paid workers must comply with this legal mandate.

By adhering to these procedures, businesses can ensure they are in full compliance with the Bangladesh Labour Act, 2006, from the very beginning, thereby establishing a solid foundation for a safe, legal, and successful enterprise.