Compensation and Benefits Package of BTD

Compensation and Benefits Package of BTD

INTRODUCTORY PARTS OF THE REPORT

1.0 Introduction

Ms. Nahneen Sultana, Course Instructor of Human Resources Management

(HRM 340) has assigned us to prepare a report on the Compensation and

Benefits Package of an organization as a partial fulfillment of the course.

1.1 Definition of the problem

Our problem statement is “Compensation and Benefits Package of Beximco

Textiles Division”. BTD is a group of Textiles Composite where more than

14,000 people work. Since BTD considers its people as the main strength of

the business, it conducts a well defined Compensation and Benefits Package

for all the employees of this organization.

1.2 Objective of the study

The aim of our study was to know the Compensation and Benefits Package

of any organization as a partial requirement of the course Human Resources

Management (HRM 340). Therefore, to obtain this aim we set the following

objectives of studies.

Study the salary structure followed by the organization

Identify the different kind of incentives that organization giving

Identify the competitiveness of the Total pay structure of the

organization.

Identify the qualified students attractiveness towards the

organization

Identify the problems behind switching from the organization

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1.3 Scope of the report

The report was prepared concerning the following areas:

□ Concepts of compensation and benefits package as per the

management theory

□ Focusing on organizational people’s opinion about the

incentives, they have been provided.

1.4 Methodology

At first, we studied about the Compensation and benefits packages.

Secondly, we studied the practical process of this system and its impact to

the employees. Finally, we analyze the collected information revealed the

findings.

1.5 Limitations

Our study was mainly limited by the following factors.

Shortage of time.

Difficulties to disclose the data.

Lack of coordination due to communication problems.

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Body Part of the Report

2.0 Profile of the organization

2.1 Introduction

Beximco Textiles Division (BTD) is the most diversified and largest industrial

conglomerate of Textiles Composite of the Bangladesh having “The sate of Art

Technology”.

2.2 Brief History

During the last decade of “Investment Era” BEXIMCO Group has been

transformed from a local Business House to an International Business House of

export-dominated manufacturer of international standard products, especially for

textiles.

2.3 Location

Both the Head Office & Factory of Beximco Textiles Division (BTD) are located

at its own industrial park known as “Beximco Industrial Park”, Kashimpur, and

Gazipur. Besides this, BTD has five trading offices around the world located in

UK, USA, Hong Kong, Singapore and Pakistan.

2.4 Establishment

BTD started its incorporation in 1985 by its garment section. Sequentially, it

established it’s spinning units on 1990 and fabric units in 1996. Still is on its

expansion works with the aim of completion by 2005.

2.5 Board of Directors

A S F Rahman –Chairman & Managing Director

Salman F Rahman –Vice Chairman

Iqbal Ahmed –Director nominated by BEXIMCO Holdings Ltd.

A B Siddiqur Rahman–Director nominated by New Dhaka Industries Lid.

Md. Asad Ullah, FCS-Secretary

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2.6 Vision

To achieve global recognition, through consistency of product quality and

customer satisfaction, as a world textile supplier.

2.7 Mission

To achieve vision the mission stated by the Beximco Textiles Division (BTD) is

each of the activity must benefit and add value to the common wealth of the

society. The management of BTD firmly believes on to be accountable,

shareholders and citizens in final analysis.

2.8 Objective

Beximco Textiles Division plans for long-term Perspective and designs its Policy

for clarity, responsibility and accountability.

2.9 Philosophy

The business Philosophy of BTD is to add value to each of the parties they are

connected with.

2.10 Strategy

To secure a strong market position as a 100% export oriented supplier of textiles

product BTD has set up its business strategy in high quality through continuous

improvement and differentiation in products through Research & Development.

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2.11 People of the organization

BTD has near about 13000 workers staffs for its smooth operation among which

2900 people work in spinning units, 2900 work in fabric units and remaining 7000

belongs to garments units.

To control the total work environment BTD having a large number of worker

staffs has more than 800 management staffs from different backgrounds (mainly

40% Textiles Engineers, 30% BBA & MBA)

2.12 Main strength

BTD considers the following as the main strength for the organization

□ Beximco People

□ Corporate Management & Culture

□ State of the Art Technology

□ World class Product

□ Sound Communication System

2.13 Target Market

BTD targeted the following markets based on age group, income group and

geographic location

□ Child to adult

□ Male and female of all age group

□ America & Europe

2.14 Human Resources & Compliance Department

2.14.1 HRM

Recruitment, selection and relevant support services support

Organization Research & Development

Documentation & Control

Training & Development

Industrial & Public Relations

Internship

2.14.2 Compliance & Human Rights

Employees Safety, Health & Hygiene

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Employees Rights & Obligations

Work Environment

Implementation of the “Land of Law” & ILO convention

3.0 Total Compensation and Benefits

Package

3.1 Objectives

This chapter outlines the rules relating to compensation structure and

the benefit package of the company and gives detailed procedures for

exercising them in order to promote fair treatment and consistency

within the organisation.

3.2 Salary Structure

Refer to the Salary & Remuneration Package Structure for Supervisors

and Executive Staff of BTD for details regarding the structure of salary

and allowances for different units under BTD. Refer to the Salary &

Remuneration Package Structure for Workers of BTD, for details

regarding the structure of salary and allowances for different units

under BTD.

3.3 Revision of Pay Elements

The compensation structure may be revised, if necessary, with the

approval of the Director, Admin/HR, Head of the Dept., Finance and

the Chief Executive.

3.4 Employee Compensation Records

Employee Pay Records are maintained by the Personnel & Admin

Department for Workers and Supervisors and by the Human Resource

Department for the Executives. These departments maintain personal

file of all employees where all records in regards to the employee are

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kept in addition to any soft copy (in computer database) maintained by

the departments. These records are confidential and should not be

accessible to any unauthorised persons (authorisation defined by HR or

Personnel & Admin dept. head).

3.5 Basic Employee Benefits for Permanent Employees

3.5.1 Provident Fund

The Company's Provident Fund is a funded scheme. All confirmed and

permanent employees are entitled to be members of the Provident Fund.

The employee contribution, equal to 10% of the basic salary, is

deducted each month through the payroll. The Company contributes an

equal amount and both the employees' and the Company's contributions

are paid to the Fund each month. In the Provident Fund Ledger, both

the employee's and the Company's contributions are credited to the

individual employee's account.

The membership of the Trustees of the Provident Fund must include at

a minimum:

a) Representation from the HR Department

b) Representation from Finance & Accounts Department

c) Two representatives from the Workers

3.5.2 Group Term Life Insurance

The company provides coverage of life insurance to all Permanent

employees after their joining with the company effective on the date of

joining. To participate in the Group Term Life Insurance policy, all

employees are required to fill up "Group Term Life Insurance

Registration Form", and submit to HR/Personnel & Admin dept for

processing. To change the beneficiary at any time, the employee must

complete the “Beneficiary Change Form”, and submit to the Human

Resource Department or to the Personnel & Admin dept for making the

changes.

In the event of the death of an employee while in the company’s

service, other than: 1) death by suicide, 2) death by criminal

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prosecution, or 3) death by taking part in any activities subversive of

the state, the company depending on the classification of employees

shall pay benefits on normal death and accidental death from insurance

company as follows:

Employee classification Normal death benefit Accidental death

benefit

Executives 36 month last basic

salary

72 month last basic

salary

Workers & Supervisors Tk50,000.00 Tk1,00,000.00

Detail of compensation other than death (partial disability) will be

determined as per calculation within the purview of insurance coverage

policy. No recovery or adjustments of loans or salary advances etc.

shall be made from the insurance claim benefits. In addition to this

coverage of insurance benefits compensation will also be made as per

"Workman's Compensation Act 1923" in the case of death/disability of

employees.

3.6 Bonuses

Workers:

All confirmed Permanent employees of Beximco Textiles Division are

entitled to two Festival Bonuses each equivalent to “Basic Salary”

under the following conditions:

Attendance in the Calendar

Year

Bonus Entitlement

213 days + 100% of the Bonus

107 days + 50% of the Bonus

< 107 days No Bonus

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3.7 Meal Facilities

The following facilities are provided in each of the organisation under

Beximco Textiles Division:

BTL,

Workers:

Meals are provided at a subsidised rate.

Head Office:

Workers:

No meals are provided.

3.8 Accommodation

The company on the basis of requirements and availability provides

free furnished single accommodation to selected BTL, BKL, & BDL

Factory Executives at the Officer’s Mess of the factory.

Accommodation is not provided for the employees of other

organisations under Beximco Textiles Division. The workers on the

same basis are also provided with furnished single accommodation at

the Workers Mess at a minimal monthly charge of Tk. 50/- only.

Refer to Benefit Packages for Contract Employees accommodation

facilities provided to The Expatriate Employees.

3.9 Utilities Allowances

Workers and Supervisors:

No utility allowance is paid.

Executives between grades J to M4:

No utility allowance is paid.

Executives of grades M5 and above:

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Designation

Electricity

(Limit/Month)

Taka

Gas

(Limit/Month)

Taka

Water

(Limit/Month)

Taka

Telephone

(Local & NWD)

(Limit/Month)

Taka

Manager /

Sr.

Manager /

DGM

2,500 At Actual At Actual At Actual

GM and

aboveAt Actual At Actual At Actual At Actual

To get reimbursed for utilities bills, complete “Expense Reimbursement

Form”, and submit to the Accounts Department. The Accounts

Department will make reimbursement payment to the employee within

45 days from the date of submission. Telephone bill has to be

forwarded to the IT department, so payments can be made by the

company, if it is in the name of the company.

3.10 Mobile Telephone

Based on the Beximco Textile Division’s business need, a mobile

telephone may be provided to a permanent or contract employee. To

receive this benefit, a written application should be forwarded to the

Department Head, IT upon approvals of the employee’s Department

Head and In charge of the site/factory if applicable.

The mobile phone is to be used primarily for business purpose, though

can be utilised for being in contact with the family members, if

necessary with logical discretion due to the high cost of mobile phone

usage.

3.11 Medical Benefits

3.11.1 Medical Benefits for the Workers & Supervisors

Employees at BTL/BDL/BKL factory site are entitled to receive free

medical consultation from the company physician. In cases where a

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worker is injured while at work, all costs of treatments are borne by the

company.

Other organisations within Beximco Textiles Division do not provide

any medical services for the Worker & Supervisors.

3.11.2 Medical Benefits for the Executive Staff

The company will reimburse the cost of authorised medical treatments

in Bangladesh including hospitalisation, surgical and childbirth subject

to the conditions mentioned hereunder. In case of any overseas

treatment prior approval from the Chief Executive is required. The

following are the basic guidelines in regards to medical benefits

provided to the Executives:

(i) Treatment to be carried out by a registered Medical

Practitioner. The company reserves the right to approve the

Medical Practitioner consulted.

(ii) Dental treatment included as preventative measures, the

company will reimburse for ‘Upper and Lower’ dental cleaning

twice a year.

(iii) Reimbursement of the cost will be restricted to the treatment of

the executive, spouse and children.

(iv) Relevant details including names and dates of birth of spouse

and the eligible children should be sent to HRD for record.

(v) Children attaining 21 years of age or getting married,

whichever is earlier, will not be entitled to reimbursement of

the cost of medical treatment.

(vi) Expenditure on medical treatment of Executives is reimbursed

by the company as per following entitlements:

(vii) Expenses Cannot not be claimed: The company will not

reimburse the following expenses:

The supply of dentures and false caps.

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Any cosmetic dental work.

The supply of spectacle frames.

Special diets except in hospitals under medical advice

Treatments not covered under paragraphs (i) and (ii)

3.12 Transportation Facilities and Car Purchase Scheme

3.12.1 Transportation Facilities for Worker & Supervisors

BTL/BDL/BKL:

There are no transportation facilities provided to the Worker.

BAL:

There are no transportation facilities provided to the Worker of BAL.

BFSL:

A bus pickup and drop service from some specific location is available

for a subsidised monthly fee of Tk. 50.00.

Head Office:

There are no transportation facilities provided to the Worker.

3.12.2 Transportation Facilities for the Executives

Executives

BTL/BDL/BKL:

A bus pickup and drop service from some specific location (landmark)

is available based on seat availability. If seat is not available then the

employee is responsible for travelling back and forth to work on his/her

own.

BAL:

There are no transportation facilities provided for the Executives

between grade J to M4

BFSL:

A bus pickup and drop service from some specific location (landmark)

is available based on seat availability. If seat is not available then the

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employee is responsible for travelling back and forth to work on his/her

own.

Head Office:

There are no transportation facilities provided for the Executives

between grade J to M4. For business purpose travel, Pool Car can be

provided based on availability.

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Car Purchase Scheme

Employees in this grade, which is Managers, Senior Managers, and

Deputy General Managers, are eligible to apply for a Car Purchase

Scheme upon the expiry of one month after the date of joining in the

company. To initiate the request for participating in this Car Purchase

Scheme, the employee is required to write a note to the HR Department.

The Human Resource Department then gets necessary approvals and

then forwards the request to the Head Office Admin department.

The objective of the scheme is to provide financial assistance to

company executives for the purchase of cars and thus to provide

executives with transport necessary for carrying out their duties.

An employee who has acquired a car under this scheme will not be

eligible to apply again for a period of five (5) years. The following are

the approved specification of the transport and benefit given to the

employee:

Description of the

car :

1300/1500 cc new or reconditioned. Four door

sedan.

Car Price : Tk 500,000/= (maximum Tk 600,000)

Purchase

Contributions :

Employee – 50%; Company – 50%

Fuel Allowance Allowance of 350 litters per month to be paid by the

company for worker based at Head Office and also

worker who are residing at the factory site.

Allowance of 450 litres per month to be paid by the

company for worker based at the factory but residing

at least 20 Kilometre away from the factory.

Maintenance: Based on manufacturer’s year model, for up to 6

year old car, the company will pay a maintenance

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allowance of Tk 3,000/= per month.

For 8 years or older cars, the company will pay a

maintenance allowance of Tk 4,000/= per month.

For 10 years or older cars, the company will pay a

maintenance allowance of Tk 5,000/= per month.

The money will be accumulated in the employee’s

account in the accounts department and will be

utilised for repairs and maintenance when they arise.

The accounts department will be responsible to pay

the money immediately upon submission of paid in

receipt from the Workshops.

Driver : To be employed by the employee concerned. An

allowance of Tk 4,100 per month will be paid by the

company to cover the driver’s salary.

Major Accidental

Repairs

Any vehicle under this scheme will maintain a 1st

Party insurance. The Admin. Department will ensure

filing of all insurance claims considering the amount

of money required to repair and the amount of

deductible. The amount of deductible and/or the

amount of repairs will be split 50:50 between the

employer and the employee if the balance of the

maintenance fund is not adequate to cover the

expenses. The employer initially will make the full

payment to the insurance company and/or to the

repair shop, then the portion of the employee will be

deducted from the salary in equivalent 12

instalments, if not covered by the insurance. The

Admin. Department (and the employee if willing to)

will supervise all repair work and do the

administrative tasks, then forward a bill of the

employees portion, signed by the employee, to the

Accounts Department for repayment.

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Purchase of re-conditioned cars will be subject to inspection on behalf

of the company, by the Transport department or by a workshop

designated for this purpose by them. The car will be checked for engine

and body condition, suspension and safety features. The “Automobile

Inspection Report”, form F10-201-06-07 will be completed and signed

by the Administration Department for processing the request of car

purchase.

The company, bank or a leasing company may finance the purchase of

the car. The car will be initially registered as follows:

By the company - in the name of the company

Through a bank loan - as stipulated by the bank

Through a leasing contract - in the name of the leasing

company

The employee’s 50% contribution towards the cost of the car will be

paid by him to the company in equal monthly instalments over a period

of three years if the car is financed by the company, or over a period

equal to the currency of the loan or leasing contract, as the case may be.

If the car is acquired through a leasing contract or a bank loan, the

employee will be required to contribute 50% of the lease payments or

loan instalments every month until the expiry of the lease period.

If the price of the car exceeds Tks 600,000 the employee will pay the

amount in excess of Tks 600,000 to the company in cash.

The company’s 50% contribution to the cost of the car will be

amortised over a period of five years. After the expiry of this period, or

the expiry of the leasing contract if the car has been leased, or the

repayment of the bank loan if the car has been acquired through a bank

loan, and subject to prior receipt of the final instalment of his

contribution, the ownership of the car will be transferred to the

employee. Costs incurred in connection with the transfer will be

payable by the employees.

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In the event that the employee leaves the company before the expiry of

five years, he shall have the option to purchase the car from the

company at the written down value in the books of the company, plus

the total of the unpaid instalments towards, his own contribution. This

option to purchase will only be available to an employee who has been

with the company for a minimum period of two years. In case he does

not choose to exercise the purchase option, the Company will reimburse

the employee 75% of the amount contributed by him/her towards the

cost of the car, and the car will then remain in or be transferred to the

ownership of the company.

The employee will be expected to use the car for the company’s

business as well as for fulfilling his private transport needs, including

the transport of children to school, etc. Employees who have availed for

this scheme are expected to meet all their transportation needs with the

vehicle provided under scheme. No other transport will be provided to

an employee who has availed of this scheme. However, if the employee

is asked to travel outside Dhaka (or Savar) on Company business, he

will be reimbursed at Tks. 6/- per km, subject to prior permission from

his department head, plus an allowance of Tks. 100/- per day for the

driver. Tolls and other expenses will be paid at actual.

Repairs and maintenance of the vehicle will be the responsibility of the

employee. A maintenance allowance will be paid as explained earlier in

this section.

All taxes, fees, duties, registration costs, and insurance will be paid by

the company. The employee must inform the Admin Department one

month prior to the due date for Fitness/Insurance and the Admin

Department will take full responsibilities to complete the said tasks.

The company’s approval to participate into this scheme will be based

on the nature of the employee’s job and on the availability of funds with

the company, at the time when the application to join the scheme is

made.

The employee may choose to select a car that is presently in the name

of the company and if made available to the employee for purchase.

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The administrative department will be responsible to identify the

market value of the car, get approval from the HR Department, and

make an offer to the employee. For the purchase of the company car,

the employee shall be liable to pay 50% of the market value of the

vehicle, in equal monthly instalments to the company over a period of

three (3) years. All other terms and conditions shall remain the same.

The Management reserves the right to change, modify, amend, cancel

or waive any or all of the provisions of this scheme at its absolute

discretion and without any prior notice and also to withhold or reject

any application to join the scheme, without assigning any reason

whatsoever.

Executives

Executives of grade M6 and above, i.e. General Managers and above

are entitled to 24 hours company paid transportation. The company also

pays for the fuel at cost, Driver’s salary, and for all necessary

maintenance/repair and administrative cost of the vehicle.

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3.13 Leave Entitlements

3.13.1 Basic Leave Types

All Permanent Workers and Executives of the company are entitled to

various types of Leaves that are calculated based on calendar year and

prorated from the date of joining the company's service for the first

year. Leave entitlements of expatriate (Contract) employees shall be

governed by their respective terms of employment with the company

specified in the Appointment Letter.

For Workers the leave entitlements are calculated in accordance with

"The Shops and Establishment Act 1965", Factories Act 1965 and the

Factory Rules 1979. These entitlements are as follows:

Types of Leave Days Per Year

Casual Leave (with full wages) 10

Sick Leave (on ½ average wages) 14

Earned Leave (1 for every 22 days

actual work with wages)

12

Public Holidays 10 (minimum)

The following are the Basic Leave entitlements for the Executives at

Head Office:


Weekends (with full wages) As per Section 5.5


Sick Leave (with full wages) 10

Earned Leave 15

Public Holidays

As per list of holidays

declared by the Chamber

of Commerce

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The following are the Basic Leave entitlements for the Supervisors and

Executives at Factory Site:


Weekends (with full wages) As per Section 5.5


Sick Leave (with full wages) 10

Earned Leave 15

Public Holidays 10 (minimum)

Public Holidays for Head Office worker are governed by the policy of

the Group and is based on the list of holidays declared by the Chamber

of Commerce. For Factory Worker, the Management determines the

Public Holidays (minimum 10 days) and it is announced at the

beginning of the year.

3.13.2 Definitions of Basic Leave Entitlements

The following are some definitions of Basic Leaves entitlements:

Casual Leave

Entitlement to casual leave for the Worker is 10 days and for the

Executive at Head-Office and Factory Site it is 15 days based on each

calendar year. The employee is entitled to exercise Casual Leave from

the very next day of joining; though the Casual Leave is pro-rated for

the balance period of the year counting from the joining date.

Casual leave cannot be availed for more than three days at a time. Also,

it cannot be carried forward to the following year or cashed. Casual

Leave can be taken with Weekends, Public Holidays, Earned Leaves,

etc. but be limited to only 3 days.

Sick Leave

Entitlement to Sick Leave for the Worker is 14 days the and for the

Executives at Head-Office and Factory Site it is 15 days on the basis of

each calendar year. The employee is eligible to exercise the Sick Leave

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benefit from the date of his/her joining. The above entitlements

represent the maximum number of days Sick Leave that an employee

can avail in a year. Normally medical certificates are not required but if

the sick leave exceeds three days at a time or is being taken as an

extension of Earned Leave, then a Medical Certificate is required.

Where this is not the case an application for Sick Leave is considered

enough. Sick leave cannot be carried forward to the succeeding year

and cannot be cashed. If an employee is sick on Weekend or on a Public

Holiday, that day will not be counted as a sick day and the number of

Sick Leave taken out of his/her allocated days will be excluding those

days.

Earned Leave

All permanent/contract workers are entitled for 12 days Earned Leave

on the basis of each completed year of service. Workers are not allowed

to take the Earned Leave for the current year. This leave can be taken

on the following year or can be cashed. Maximum accumulation of

Earned Leave for Staffs and Worker can be 20 days.

Entitlement to Earned Leave for the Executives at Head-Office and

Factory Site is 15 days on the basis of each completed year of service.

A maximum of thirty (30) days can be accumulated. Any accumulation

beyond this will automatically lapse on the following 1st of January

each year. The entitlement to Earned Leave is exclusive of Weekends

and Public Holidays i.e., Weekends and Public Holidays falling during

the annual leave taken will be considered additional to the entitlement.

Though Earned Leave is counted from the date of joining but it cannot

be taken until the employee passes the probationary period receiving

confirmation.

3.14 Other Leave Options

The following sections explain some additional leave options that an

employee may exercise depending on the need.

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3.14.1 Compensatory Leave

Executives and Supervisors are entitled to compensatory leave in the

following situations and the guidelines associated with them are:

(i) Executives and Supervisors working in general shift are entitled

to one day’s Compensatory Leave if they work for at least eight

hours on Public Holidays or on Weekends, for example, Friday.

(ii) Executives and Supervisors working in shift duties are entitled

to one day’s Compensatory Leave after working for an extra

shift or for working on a scheduled off day or on a Public

Holiday.

(iii) Compensatory leave either can be cashed or can be accumulated

with Annual Leave by Assistant Managers and below, while for

Dy. Managers and above can only be accumulated with Annual

Leave.

(iv) Compensatory Leave shall be granted against duties not less

than 8(Eight) hrs for which 1(One) day leave shall be granted.

(v) Compensatory Leave Form should be sent to HR/Admin.

Department within 5 working days following the day worked.

(vi) Compensatory Leave should be treated as Earned Leave, i.e. the

leave should be taken within the next calendar year or cashed; it

lapses afterwards.

3.14.2 Maternity Leave

Married woman employees are entitled to Maternity Leave benefit as

per "The Maternity Benefit Act, 1939". The period of Maternity Leave

shall be 84 actual days of absence which shall include the Public

Holidays and Weekends (non-working days) and including the day of

delivery. The entitlement to maternity leave is to be availed as follows:

Six weeks or 42 days immediately preceding and including

the day of delivery.

Six weeks or 42 days immediately following the day of

delivery.

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A woman shall not be entitled to maternity leave unless she

has been employed by the Company for a period of not less than

nine months immediately preceding the date of delivery.

3.14.3 Study Leave

An Executives may be granted Study Leave, with or without pay,

entirely at the company’s discretion, once s/he has been in the company

for at least one year. Study leave is normally granted if the course of

study which the employee intends to pursue is likely to benefit the

company’s operations. Study Leave can be given for up to a maximum

period of two years.

3.14.4 Haj Leave

A Permanent Executives who intends to perform Haj at his own

expenses, upon completion of one year of service, may be allowed for a

45 days Haj Leave with pay at the sole discretion of the management.

This leave can only be availed once in the entire period of service.

Similar leave may be granted for employees other than Muslims, if the

occasion is a once in a life time holy event significant to the believers.

3.14.5 Special Leave

Special leave may be granted to the Permanent or Contract employees

with or without pay and allowances at the sole discretion of the

management. Application for special leave should be forwarded to

HR/Personnel department, through the relevant departmental head,

along with appropriate reasons and recommendations for necessary

action. Some examples of such leave request may be for marriage,

death in the family, etc.

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3.14.6 Leave Encashment

Executives and workers before leaving the Company due to resignation,

retirement or termination are allowed to cash the Earned and

Compensatory Leave due to them up to a maximum of 30 days, while

for workers it is 20 days plus the prorated entitlement for the current

year. The amount paid on encashment includes only the employee's last

drawn basic salary for the period. Allowances are not included in this

amount.

3.14.7 Maintenance of Leave Records

Approved leave applications received from departments are entered in a

Leave Register and the lower portion of the leave application showing

the balance of leave is sent to the employee. Leave records for all

Executives and Head Office Staffs are maintained by HR Department

while for Workers & Supervisors at factory site are maintained by the

Site Personnel & Administration Department.

3.15 Financial Assistance Schemes

3.15.1 Objectives

To meet various emergency and incidental expenses, the company

provides financial assistance in the form of advance payment of salary

and loan against provident fund to its employees. The following

sections give detailed procedures for salary advances and loan

sanctions under Financial Assistance Schemes.

3.15.2 Priorities for Loan Against Provident Fund (PF) or Salary

Advance

The following priorities will be maintained for PF loan or salary

advance request processing:

1. Medical emergencies for spouse or children

2. Death of Spouse or children

3. Medical emergencies for other dependent

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4. Death of other dependent

5. Rental advance

6. Own marriage

7. Other emergencies

8. Marriage of siblings

9. Education

10. Other requirements

3.15.3 Loan against Provident Fund (PF) or Salary Advance Eligibility

and Limits

Loan Against Provident Fund

1. All Permanent employees who have contributed to atleast18

instalments in the Contributory Provident Fund of Beximco Textiles

Division and have been in the company for less than 3 years, are

eligible to take loan against the provident fund equal and up to

75% of the employee’s own contribution.

2. All Permanent employees who are members of the Contributory

Provident Fund and have been in the company for more than 3 years

but less than 4 years, are eligible to take loan against the provident

fund equal and up to 100% of the employee’s own contribution.



but less than 5 years, are eligible to take loan against the provident

fund equal and up to 70% of the total contribution (employee’s

own contribution + company’s contribution).



are eligible to take loan against the provident fund equal and up to

75% of the total contribution (employee’s own contribution +

company’s contribution).

Salary Advance

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Salary Advance is given only in those situations where the Permanent

employee does not have enough contribution to the Provident Fund but

the urgency is very high. Usually one month’s average gross salary is

given as advance but based on the emergency, a maximum of two

months salary can be given as advance.

3.15.4 Repayment of Loan or Salary Advance

One month’s grace period is given to the employee before the

repayment starts. The employee, through automatic deductions by the

Accounts Dept. from his/her Pay-check, makes the payment. The

following are some guidelines for repayments:

1. If financial situation permits, the employee is asked to pay the

money back with 6 equal monthly payments.

2. If the financial situation does not permit, the employee is given the

opportunity to pay back with 12 equal monthly instalments.

3. If the amount of loan is large and the repayment imposes hardship

on the employee, it may be considered to extend the repayment

schedule to a maximum of 24 equal instalments. In such cases, the

Department Head of the employee must recommend the accounts

department to do so.

4. If the loan or advance is related to medical payments and the

employee is eligible for medical benefit, the advance/loan will be

applied towards the eligible benefit once the treatment is received.

Upon receipt of all medical vouchers, the employee is required to

submit “Medical Bills Reimbursement Form”, F10-201-06-05 as

per guidelines provided in Section 6.12.2 and apply the

advance/loan towards the refund. Any excess amount taken as

advance/loan must be paid back immediately after the treatment is

over.

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3.15.5 Procedures to Apply and Processing of a Loan or Salary Advance

Request

The employee completes a “Loan Application Form”, and upon

receiving an approval from the Department Head, submits to the

Accounts Department. The Accounts Dept. personnel review the

application, discuss with the employee if necessary, and let the

employee know about the outcome. At the time of processing the

loan/advance request, the Accounts Dept. identifies the repayment

agreement discussing with the employee.

The following are guidelines for loan/advance approving:

Loan Amount (Tk) Approval Authority

< or = 5,000.00 Section Head responsible for

Loan/Advance

>5,000.00 < or =

20,000.00

Second level authorisation by

Manager or above.

> 20,000.00 Department Head

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4.0 Attractiveness of BTD & Impact of students

The attractiveness of the compensation package of this organization is low.

Qualified fresh graduates are always welcome in this organization. They

recruits more qualified fresh graduate but they don’t stay in this

organization for their unattractiveness compensation package. A large

number of qualified student join their organization but they switch this

organization within three or four months. For that reason those who

5.0 Conclusion:

Beximco textile division is one of the largest firm of the Beximco group of

industries .it contributes a much in our economy. The growth rate of the

Beximco textile is very much competitive in the present market. They run

their organization with a number of qualified employee’s .they always

make their compensation packages by market analysis. The employee of

the Beximco textile limited is happy about their compensation package and

other benefits, though they are providing a very much competitive

compensation package.

All though the employees are happy but they are not satisfy for their very

much competitiveness in the market. Beximco textile division is not

willing to pay more to the worker for their performance and high

qualification .for that reason very much qualified employees are switch

from this organization to another organization .

6.0 Recommendation

They need to redesign their compensation packages for the grater

benefit of the organization.

They need to give more emphasis on the qualified fresh graduate.

Add performance bonuses for the employees.

To permanent their employees in the organization they need to pay

deferral rewards.

Salary structure should be changed.

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BibliographyReferences:

1. wikipedia.com2. google.com

Data Collected From:1. Beximco Textile Division, Dhaka

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Date post:	18-Nov-2014
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Compensation and Benefits Package of BTD

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