The Social Islami Bank Ltd. (SIBL) has curtailed end-service benefits of large number of its employees through a recent decision of the Board of Directors, bank sources said.
According to a memo of the bank’s Board (Memo No 2022/-133, dated February 6, 2022), the gratuity and privilege leave encashment rules have been modified adversely affecting all the existing employees of SIBL.
The memo signed by its Managing Director Zafar Alam halved the leave encashment allowance entitlement from 360 days to 180 days for a maximum period of services.
The gratuity period has also been revised affecting the interest of the employees. Previously, any employee, who rendered five years of continuous service, was entitled to one month’s basic salary for each year of service, while someone completing seven years of continuous service was entitled to two basic salaries for each year.
But the new rules provide for one month’s basic salary for each year after completion of seven years of continuous service, 1.5 months’ basic salary for each year after completion of 12 years of continuous service and two months’ basic salaries for each year after completion of 20 years of continuous service.
An aggrieved SIBL employee, voicing displeasure over the recent Board decision, told The News Times that the bank has taken deceptive measures against its large number of employees.
The new rules could be made effective for the new employees only, as someone who already rendered services for seven years is entitled to two gratuities for each year under the previous rules, he said.
“How can the bank slash financial benefit that has already been given to me?” the employee asked, requesting anonymity.
He also said, “I have been working here taking into consideration the existing pay package and other benefits, including the end-service benefits. You can’t take away anything from what you have given me already.”
On the leave encashment entitlement rules, another SIBL employee said the bank should have allowed old employees to encash the unused leaves of up to 360 days before enforcing the new rule that allows encashment of leaves of up to 180 days only.
“We have already earned the encashment right by saving leaves and the bank has no right to take it away from me,” he noted with anger.
Asked, a senior Bangladesh Bank (BB) official said the banks have the discretion to make changes to their service rules, but the central bank may interfere if any of these changes affects the basic rights of an employee or goes against the existing laws of the country.
