HCM205 Labour Laws & Workplace

Happiness
 Module Learning Objectives

On completion of the module, students will be able to:

1. Rationalize significance of labor/employment laws
2. Demonstrate the understanding of the International Labour Standards
3. Identify evolution and recent changes or updates in the labour laws
4. Analyse regulations related to prohibitions of forced labour, sexual harassment, and
discrimination at workplace.
5. Draft sample employment contract
6. Express clearly the roles and functions of relevant institutions, especially of
International Labour Organization (ILO) and Department of Labour, Ministry of
Industry, Commerce & Employment
7. Discuss laws, rules and regulations pertaining to Occupational Health and Safety
8. Examine relevant laws and regulations concerning employee Social Security and
Benefits
9. Evaluate workplace happiness and employee wellbeing.
 Unit 1: Introduction

1. Labour and employment laws

• Concepts
• History and institutions of employment law
• Scope and significance
2. International Labour Standards
• Conventions/protocol
• Recommendation
3. Adoption of International Labour Standards
4. Fundamental Principles and Rights at work
 The Concept of Employment

What defines employment?

Ø Age
• To be in the age range chosen to define the active population, usually 15
years and older.
Ø Duration of the activity
• All persons who have worked at least one hour during a specified brief
period (in general, one week) including all those who have a job, but are on
leave for various reasons.
Ø Nature of the activity
• Must be an activity of production of goods and services according to the
national accounting system (International Conference of Labour
Statisticians, 1982).

Source: cited in National Statistical Bureau, Labour force Survey Quarterly Report-12, 2024
According to International Labour Organization (ILO):
Ø Persons in employment or the employed population comprise all those of
working age who, in a short reference period, were engaged in any activity
to produce goods or provide services for pay or profit.
Ø The notion of pay or profit refers to work carried out in exchange for
remuneration payable in cash or in kind.
Ø It includes remuneration in the form of wages or salaries for time worked or
for work done or in the form of profits derived from the goods and services
produced for sale or barter.
Ø In accordance with the international guidelines on employment-related
income, this includes remuneration, whether actually received or not,
payable directly to the person performing the work or indirectly to a
household or family member.
Ø The employed population comprises two main groups:
i. persons employed, at work —i.e. who worked for at least one hour for pay
or profit in the short reference period.
ii. persons employed, not at work —i.e. who had a job but did not work in the
short reference period due to temporary absence from the job, for
example due to sick leave, annual leave, maternity leave, etcetera, or due
the nature of their working time arrangement, such as shift work,
compensatory leave for over time, flextime.
Ø For operational reasons, to identify persons employed, at work in the short
reference period, a criterion of “one hour” of work for pay or profit is used.
Ø This “one-hour criterion” ensures that all types of jobs, including part-time,
temporary or casual, are taken into account in employment statistics so as
to support the monitoring of working conditions of all employed persons.
Ø It is also essential in order to fully measure the contribution of employment
to production, and thus to national accounts.
Ø Also, it enables employment and unemployment statistics to refer to
mutually exclusive groups of the population, which when added together
comprise the labour force.
 Test of employment

Ø Control
ü whether the master controlled, or had the right to control, not only what the worker did, but also the
manner in which he did it?
ü nurses were not employees of a hospital when carrying out duties in the operating theatre because
they took their orders from the operating surgeon and not from the hospital authorities. SO?
Ø Integration
A ship’s master, a chauffeur, and a reporter on the staff of a newspaper were thus all employed under a
contract of service and were therefore employees, but a ship’s pilot, a taxi driver, and a newspaper
contributor were hired under a contract for services and were therefore independent contractors. IS THIS
RIGHT?
Ø Economic relaity & multiple test
Example: The case concerned the appellant company’s liability for social security contributions of their
workers, which arose only if they had contracts of service. The workers transported ready mixed
concrete in lorries that they were buying on hire purchase agreement from the appellant company, which
required, in a detailed contract of 30 pages that they must, inter alia, use the lorries only on company
business, maintain them in accordance with the company’s instructions, and obey all reasonable orders.

Source: Honeyball, S. (2014). Honeyball and Bowers' Textbook on Employment Law. Oxford University Press, USA
 The Concept of unemployment

The three criteria used to define unemployment

1. Without Work: A person of working age who did not work at all during the
reference period (not even for one hour), nor was temporarily absent from
work.
2. Seeking Work: The person is actively seeking for work in past four weeks.
3. Currently available for work: The person is available for employment in the
next two weeks
National Statistical Bureau, Labour force Survey Quarterly Report-12, 2024

Underemployment: This term describes workers who, when asked, say they
are willing and able to work more than they are currently working, according to
a defined threshold of working time.
 ACTIVITY: Topics of Discussion

History: Early legislation

1. Ordinance of labourers 1349
2. The Combination Act 1799/1800/1824/1825/Combination of Workmen Act
1859
3. The Master & Servant Act 1823
4. Civil Law and the Trade Disputes Act 1906
5. Trade Union and Labour Relations Act
6. The Social Contract: (Trade Union and Labour Relations Act 1974 and the
Employment Protection Act 1975)
 Labour & employment laws

Recap from the class activity

Ø Ordinance of labourers, 1349
Ø Black death and labour demand
Ø Wage rate fixing
Ø The statute of artificiers, 1562, prohibition of price rising
Ø The Combination Act 1799
Ø The Master & Servant Act 1823
Ø Civil Law and the Trade Disputes Act 1906
Ø The ‘social contract’: the Trade Union and Labour Relations Act 1974 and
the Employment Protection Act 1975

Source: Honeyball, S. (2014). Honeyball and Bowers' Textbook on Employment Law. Oxford University Press, USA
 SCOPE & coverage

v What are the aims of labour/employment Law? Important field of study?

Ø Universal Declaration of Human Rights, adopted by the United Nations in
1948.
Universal Declaration of Human Rights, Article 23
1.Everyone has the right to work, to free choice of employment, to just and
favorable conditions of work and to protection against unemployment.
2.Everyone, without any discrimination, has the right to equal pay for equal
work.
3.Everyone who works has the right to just and favorable remuneration
ensuring for himself and his family an existence worthy of human dignity, and
supplemented, if necessary, by other means of social protection.
4.Everyone has the right to form and to join trade unions for the protection of
his/her interests
Collins, H., Ewing, K. D., & McColgan, A. (2012). Labour Law. Cambridge University Press.
Thus, the followig are the characteristics aims:
ü to secure fair access to labour markets under conditions of equal
opportunity;
ü to ensure that the conditions under which people work are just, safe,
healthy, and respectful of human dignity;
ü to require pay to be fair and sufficient for a decent standard of living;
ü to protect job security and fair treatment at work;
ü To permit workers to form trade unions and other representative
organisations to protect their interests at work.

Collins, H., Ewing, K. D., & McColgan, A. (2012). Labour Law. Cambridge University Press.
 Importance of Employment Status

Importance of employment Status:

v Determining viccarious liability
Ø Qualify/entitle for:
• Benefits
• Employment protection rights
• Protection of wages on employer’s insolvency
• Protection under health and safety legislation
Ø The role of policy
.

Source: Honeyball, S. (2014). Honeyball and Bowers' Textbook on Employment Law. Oxford University Press, USA
 International labour Standards (ILS)

v Types of ILO Standards

Ø Conventions/protocol
• Convention: Instrument which on ratification create legal obligation
ü Can be ratified by government
ü and become legally binding & the country is required to provide required
information
ü Once ratified, under obligation for the application of the standard
ü Application will be monitored by ILO
• Protocol partially revise conventions; open to ratification only by states
already bound by conventions
• Recommendation: not open to ratification, but give guidance as to policy,
legislation and practice.
ü introduced "to meet circumstances where the subject, or aspect of it, dealt with
is not considered suitable or appropriate at that time for a Convention" (ILO
Constitution, Article 19,1)
ü Used to supplement conventions
ü More technical in nature
ü Adopted in areas where diversity in national institutions is large
Ø Both kinds of instrument are adopted by the International Labour
Conference, as per article 19 of the [ILO] Constitution which states:
When the Conference has decided on the adoption of proposals with regard to
an item on the agenda, it will rest with the Conference to determine whether
these proposals should take the form: (a) of an international Convention, or (b)
of a Recommendation to meet circumstances where the subject, or aspect of
it, dealt with is not considered suitable or appropriate at that time for a
Convention.
Ø In either case a majority of two-thirds of the votes cast by the delegates
present shall be necessary on the final vote for the adoption of the
Convention or Recommendation, as the case may be, by the Conference
 Process how International Labour Standards are adopted
1. As a first step, the Governing Body agrees to put an issue on the agenda
of a future International Labour Conference.
2. The International Labour Office prepares a report that analyses the law
and practice of member States with regard to the issue at stake.
3. The report is communicated to member States and to workers’ and
employers’ organizations for comments and is then submitted to the
International Labour Conference for a first discussion.
4. A second report is then prepared by the Office with a draft instrument,
which is also sent for comments and submitted for discussion at the
following session of the Conference, where the draft instrument is
discussed, amended as necessary and proposed for adoption. This
“double discussion” procedure gives Conference participants sufficient time
to examine the draft instrument and make comments on it.
5. A two-thirds majority of votes is required for a standard to be adopted
Source: International Labour Office. International Labour Standards Department. (2019). Handbook of Procedures Relating to
International Labour Conventions and Recommendations. Geneva: International labour Organization.
Ø What is Single & Double discussion? Reports: White, Yellow, Brown, Blue?
Ø White Report?
[Nov-Dec Year 2] The white report on law and practice, with the questionnaire on the content of the possible
instrument, is made available on the ILO website in the page of the relevant session of the International Labour
Conference

Ø Yellow Report?
[Jan-Feb, Year 4] The yellow report, with the responses to the questionnaire and the proposed conclusions, is made
available on the ILO website in the page of the relevant session of the International Labour Conference.

Ø Brown Report
[Aug-Sept Year 4] The brown report with the text of the proposed instrument, drafted on the basis of the first
discussion at the International Labour Conference, is made available on the ILO website in the page of the relevant
session of the International Labour Conference.

Ø Blue Report
[Feb-March, Year 5] The blue report with the revised text, in light of the comments received, is made available on the
ILO website in the page of the relevant session of the International Labour Conference.
Review of International Labour standards
• The Standards Review Mechanism Tripartite Working Group (SRM TWG)
was established in 2015
• SRM TWG Mandate: review standards with a view to making
recommendations to the Governing Body on:
a. the status of the standards examined, including up-to-date standards,
standards in need of revision, outdated standards, and possible other
classifications;
b. the identification of gaps in coverage, including those requiring new
standards;
c. practical and time-bound follow-up action, as appropriate.
 Abrogation or withdrawal of Conventions
and Recommendations

Ø At its 85th Session (June 1997), the Conference adopted amendments to

the Constitution of the Organization adding a ninth paragraph to article 19
and to the Standing Orders of the Conference (a new article 11 and a new
article 45b is of the Standing Orders).
Ø A Convention is considered as being obsolete “if it appears that the
Convention has lost its purpose or that it no longer makes a useful
contribution to attaining the objectives of the Organisation” (article 19,
paragraph 9, of the Constitution).
Ø The abrogation procedure applies to Conventions that are in force.
Withdrawal applies to Conventions that are not in force and to
Recommendations.
Ø Abrogation and withdrawal are covered by the same procedural
guarantees and have the same legal effect of removing the standard in
question from the body of international labour standards.
 Fundamentals Principles and rights at work

ILO 1998 Declaration on fundamental principles & rights at work

Ø Adopted by ILC (International Labour Conference) in 18 June 1998
Ø Key international bench mark of labour standards
Ø Coverage:
ü Freedom of association and effective right to collective bargaining
ü Eliminataion of all forms of forced compulsary labour
ü The effective abolition of child labour
ü Elimination of discrimination in respect of employment and occupation
Ø By 11 June 2022, added ‘safe and healthy working environment’ as a
fifth principle & right
Ø ILO members even if not ratified have obligation to respect with good
faith concerning the fundamental righst
The consequent fundamental conventions:
Ø Freedom of Association and Protection of the Right to Organise (No87) and Right
to Organise and Collective Bargaining (No98)
Ø Forced Labour (No29) and Abolition of Forced Labour (No105)
Ø Minimum Age (No138) and Worst Forms of Child Labour (No182)
Ø Equal Remuneration (No100) and Discrimination (Employment and Occupation)
(No111).
Ø So is ILO declaration and conventions different?
The follow up of the declaration:
• Its promotional tools
• Not about passing judgements, condemnations, sanctions
• Identifying specific needs of member states and working together to find solutions
• ILO undertakes technical co-operation projects to help members promotoe and
respect principles & rights
 Two measures involved in followup of the declaration

The Annual Review The Global Report

• composed of reports from those member • submit to the annual International
States that have not ratified one or more of Labour Conference for discussion
the fundamental ILO Conventions. • This will cover, in turn, each of the
• Governments report on how they are four categories of fundamental
promoting each of the four Principles and principles and rights for all member
Rights States
• The Review (with an introduction prepared by
• The aim of this report is to provide a
a group of seven independent experts) will
dynamic global picture of global and
be discussed by the ILO Governing Body
each March - the aim is to gain a picture of regional trends for each category of
the situation, note where progress could, and the fundamental principles and
should, be made and offer tailor-made rights.
assistance.

The practical outcome of these reports and discussions will be that the ILO (in co-operation with the member State concerned) will establish a plan of action
for technical co-operation where necessary. As time progresses, both the annual review and global report will provide a basis for assessing the effectiveness
of ILO assistance and the political will being shown by member States to improve.
 The role of employers and Worker organizations

While government of member states are responsible for the ensuring

principles and rights within their jurisdictions, employers' and workers'
organisations play an important active role in the Follow-Up procedures by:

Ø Participating in the national debates on the domestic response to the

Declaration
Ø Reviewing and commenting on the Annual Reports submitted by national
governments
Ø Participating in the tripartite discussions in the Governing Body on the
Annual Review and at the annual Conference on the Global Report.
 Unit 2: Understanding Relevant Institutions

1. Department of Labour [in Bhutan]

• Vision and mission
• Core Values
• Mandates
2. Guiding Principles for Labour administration
3. International Labour Organization (ILO)
• Objectives
• Mandates
• Structure
• Procedure for admission and withdrawal of membership
 ACTIVITY

1. Ministry of Indusctry, Commerce and Employment

(About & VMO)
2. Department of labour (About, Vision & Mission)
3. Department of Labour (Mandates)
4. Department of Labour (Core Values) & Labour
Administration Guding Principles
5. Department of employment & entrepreneurship (About,
VMO, organogram)
6. Roles and Responsibilities of DoEE divisions
 Ministry of Industry, Commerce & Employment
• Established on December 30, 2022.
• The new Ministry was formed as a part of the structural reforms undertaken
by the Royal Civil Service Commission (RCSC).
• The Ministry is the amalgamation of the departments under the three former
ministries: Ministry of Labour and Human Resources (MoLHR), Ministry of
Information and Communication (MoIC), and Ministry of Economic Affairs
(MoEA).
• The Department of Labour and Department of Employment and
Entrepreneurship under former MoLHR have been clubbed with MoICE.
• Three departments under the MoEA namely, Department of Trade,
Department of Industry, and Office of the Consumer Protection (renamed
Competition and Consumer Affairs Authority) were also moved under the
MoICE.
• The erstwhile Tourism Council of Bhutan has been subsumed under the
MoICE as the Department of Tourism and will function as the secretariat to
the Tourism Commission of Bhutan.
• The new Department of Media, Creative Industry and Intellectual Property
under MoICE is formed by consolidating the Department of Information and
Media and Department of Intellectual Property which were under former
ministries of MoIC and MoEA respectively.
• The Media Council of Bhutan and the National Film Commission are
merged with Bhutan InfoComm and Media Authority (BICMA), and it shall
be administratively under the MoICE, and shall serve as secretariat to the
Authority.
• The Bhutan Standards Bureau has been folded under the MoICE and will
function as the secretariat to the Bureau.
Ø MoICE Vision:
“To promote quality and sustained economic growth with decent and productive
employment through creative and innovative interventions to promote the private
sectors.”
Ø Mission:
ü “Improving the ease of doing business by establishing a responsive and
coordinated regulatory framework, and integrating all business licensing systems
and sectoral clearances.
ü Promotion of FDI and integration of local industries with global value chain.
ü Diversification of exports in the regional and international markets through
promotion of Brand Bhutan, Intellectual Property, Trade Agreements, and Mutual
Recognition Instruments.
ü Diversification of economy through promotion of digital jobs, creativity and
innovation.
ü Create backward and forward linkages between CSIs and medium/large
industries. ”
 Histroy: Ministry of labour & Human Resource (MoLHR)

• The MoLHR established on June 13, 2003, vide Cabinet Order no. LZ
02/03/933 upon merging of the erstwhile National Technical Training
Authority (NTTA) and the Department of Employment and Labour.
• The NTTA was established in May 1999 with the mandate to develop a
vocational education and training (VET) system in order to produce skilled
and productive workforce for the kingdom.
• To achieve its objectives, the NTTA was required to plan, coordinate,
regulate, support, and where needed, implement vocational education and
training.
• Prior to the formation of the NTTA, all TVET related activities were
administered by the TVET Section under the then Ministry of Health and
Education.
• The emerging problem of youth unemployment in the late 1990s led to the
formation of National Employment Board in March 2000, which evolved
into Department of Employment and Labour (DEL) under the then Ministry
of Health and Education in August 2001.
• The DEL was primarily responsible for functions related to employment
promotion, labor market information, human resource development for the
private and corporate sectors, labor protection, and labor relations.
• The Ministry of Industry, Commerce and Employment works towards the
vision for a nation where all its citizens have the opportunity for a gainful
and quality employment characterized by harmonious and productive
relationships in the workplace and the broader community. The vision is
promoted through its engagement in the formulation and implementation of
policies related to employment, human resources development, and
labour, which are directed towards improving the working and living
standards for all people engaged in the world of work.
Ministry (MoICE) organogram
 Department of Labour (DoL): vision

The Department of Labour envisions a decade-long strategy to empower the

workforce, ensure equitable labour practices, and foster a safe and conducive work
environment. This strategy is founded on the principle of creating a thriving labour
ecosystem that safeguards the rights and well-being of workers while promoting
sustainable economic growth.
Vision: Fostering National Transformation: Enabling Workforce; Improving
Workplace.
• The Department of Labour is committed to making significant contributions to the
nation’s transformation towards ‘Developed Bhutan’.
• This commitment involves advocating and enforcing the Labour and Employment
Act with focus on fostering decent employment and workforce development by
improving workplace conditions, safeguarding workers’ rights, promoting
harmonious work environment and welfare, promoting equity and inclusivity in the
workplaces, and improving the management of foreign workers. Additionally, the
department’s approach encompasses regular policy reviews, the amendment of
regulations, and proactive collaboration with stakeholders, ensuring a dynamic and
responsive strategy in advancing Bhutan’s labour administration system.
 Department of Labour: Mission

Mission: Promote a fair, inclusive and responsive labour administration

system for decent employment and transformative socio-economic
growth.
The department plans to realize its mission through a strategic and holistic
approach that involves improving labour standards and application, fostering
and promoting conducive working conditions for workers, ensuring decent
employment practices, enhancing the responsiveness of the labour market,
and contributing to transformative socio-economic growth through improved
management of the national workforce and foreign workers. These objectives
will be pursued through targeted initiatives, strict enforcement of labour laws
and regulations, policy implementations, stakeholder collaboration, innovation
and technological advancement and continuous adaptability to emerging
challenges, ensuring the fulfillment of the department’s mission.
 Mandates of DOL

The following are the mandates of DoL:

1. Policy Formulation and Implementation: Develop and implement progressive labour policies and regulations that is
adaptive to evolving labour market, ensuring balance between economic growth and workers protection.
2. Enforcement and Compliance: Strictly enforce labour policies, laws and regulations and ensure compliance by
employers and employees.
3. Public Awareness and Education: Promote awareness on rights and duties of employers and employees through
campaigns and access to information.
4. Social Dialogues and Labour relations: Foster open communication and collaboration among employers, employees
and government.
5. Social Protection and Inclusiveness: Initiate and implement activities that promotes equity, diversity and inclusiveness
to ensure social wellbeing, worker’s welfare and security.
6. Management of Foreign Workers: Improve the management of foreign workers including recruitment, deployment and
transfer within the country.
7. Strengthening Occupational Health and Safety: Promote workplace health and safety through effective regulation,
education and compliance.
8. Building Labour Market Information: Data-driven labour market information to improve labour policies, decision making
and addressing challenges in the labour market.
9. Adopting Digital Technology: Leverage and embrace technology to streamline labour administration process and
improve public services.
10. Improving Labour standards: Align labour practices with the international standards to integrate with changing global
labour market.
11. Ensuring Capacity building: Improve the capabilities of the labour staffs to carry out the labour functions through
training, adoption of modern tools and professional development.
 Department of Labour: Core values
“WE-CARE: Welfare, Empathy, Collaboration, Accountability, Response, and Equity”
Welfare is the well-being and prosperity of individuals within the labour force. This value emphasizes the
department’s commitment to safeguard the financial, mental and physical, well-being of workers. It involves ensuring
safe working conditions, fair compensation, and policies that prioritize the overall welfare of both employees and
employers.
Empathy involves understanding and showing compassion towards the experiences and challenges faced by
individuals in the labour market. The Department values empathy to establish a human-centric approach, addressing
concerns with sensitivity, and creating an environment where the voices and needs of workers and employers are
heard and understood.
Collaboration is the act of working together with various stakeholders including employers and employees. This
value underscores the importance of collective efforts to achieve common goals. The Department fosters
collaboration to create a harmonious labour ecosystem, where diverse perspectives contribute to well-informed
decisions and effective policies.
Accountability is taking responsibility for actions, decisions, and their consequences. This value ensures that the
department remains transparent and trustworthy in its operations. It involves making informed choices, admitting
mistakes when they occur, and learning from them to improve processes and maintain public confidence.
Responsiveness is reacting promptly and effectively to the needs and concerns of stakeholders. This value reflects
the Department’s dedication to being attentive and adaptable to the ever-changing labour market. Being responsive,
the Department can provide timely assistance, address emerging challenges and maintain relevant strategies.
Equity signifies fairness and equal treatment for all individuals while considering their different backgrounds and
requirements. The Department upholds this value by advocating for equal opportunities in employment, promoting
diversity and inclusion, and addressing systemic inequalities that may exist within the labour market.
 Principles Guiding the Labour Administratin Systems

1. Gainful Employment and Economic Output: The workforce influences economic production. More
jobs lead to increased production of goods and services which in turn brings higher economic output
and GDP.
2. Labour Productivity: Labour productivity impacts economic growth. Healthy, skilled and motivated
workers enhance productivity, improving economic performance.
3. Economic Policies and Labour Regulation: Labour Regulations covering minimum wage, working
hours, safety standards, etc shape business costs and influence economic choices.
4. Attraction to FDI: Strong and fair labour laws attract foreign investors due to the appearance of a
stable and ethical business environment resulting in higher investments and growth.
5. Industry and Sector Growth: Labour availability, cost and ease of availing labour will positively
shape the growth of different industries and sectors.
6. Business Reputation: Strong labour regulations contribute to a positive business reputation,
attracting partners, creating responsible investors and trading partners.
7. Healthy Workforce: Regulations ensuring workplace safety and health contribute to a healthier
productive workforce, reducing absenteeism and health-related costs for both workers and
employers.
8. Stable Industrial Relations: Clear and balanced labour regulations reduce labour disputes and
disruptions, fostering a stable industrial environment that supports economic growth.
7. Income Distribution: Fair labour laws ensure decent wages and stable economic productivity which in
turn boosts disposable income and consumer spending, driving demand for goods and services.
10. Social Welfare and Stability: A robust labour market with fair labour practices contributes to social
inclusion and stability, reducing social tensions and supporting sustainable economic growth.
11. Reduced Labour Exploitation: Labour laws that can prevent unfair practices such as child labour and
forced labour, contribute to a more ethical workforce and a healthier economy.
12. Improved Worker Well-being: Fair labour laws create better working conditions, enhancing employee
morale, job satisfaction, and overall well-being, which positively impact productivity.
13. Innovation and Technological Progress: A supportive labour environment encourages innovation and
adoption of new technologies, driving economic diversification and growth.
14. Economic Resilience: A well-functioning labour market can contribute to economic resilience during times
of crisis by supporting worker adaptation and innovation.
15. Sustainable Economic Development: Labour laws promoting ethical practices and sustainable working
conditions align with responsible economic growth that considers long-term environmental and social
impacts.
16. Entrepreneurial Culture: Labour regulations that provide a supportive framework for businesses can
encourage entrepreneurship, enabling new businesses, job creation, and economic growth.
17. Trade and Globalization: A well-regulated labour market with a skilled workforce enhances a country’s
trade competitiveness by ensuring quality and efficiency in production and engagement in global trade.
 Department of Employment & Entrpreneurship

Ø The Department of Employment and Entrepreneurship is dedicated to

promoting meaningful employment and entrepreneurship.
Ø The Department plays a crucial role in job creation, especially for the
youth, guided by the National Employment Policy (NEP) of 2013.
Ø The NEP outlines strategies for accelerating employment growth,
improving working conditions, and ensuring equal opportunities, all while
addressing the need for a skilled workforce.
Ø The Department focuses on providing services to match job demand and
supply in the labor market.
Ø This includes offering quality job and talent-matching services using data
from our labor market information system.
Ø The goal is to help new job seekers enhance their employability through
engagement programs.
Ø Additionally, the Department promotes entrepreneurship as an alternative
way to create jobs.
Vision:
“A nation where its citizens have the opportunity for gainful and quality employment.”
Mission:
Promote and facilitate gainful employment through the provision of effective employment, entrepreneurship, career
guidance and labour market information support and services.
Value: “PULSE”
“PULSE” sets the rhythm of our department’s work!
With professionalism as our cornerstone, unwavering service delivery, empathy weaving our connections,
camaraderie strengthening our bond, and endless passion, we’re a team dedicated to excellence in all we do.
Our values are:
P: Professionalism at its Core
U: Unwavering Service Delivery
L: Linked by Empathy
S: Strong Camaraderie
E: Endless Passion
DoEE Organogram
DoEE Departments
 International Labour Organization (ILO)

Ø ILO is an international organization aimed at promoting

labour rights worldwide and, fighting poverty and social
inequality
ØILO has been a trendsetter in standard-setting, creating
labour standards by means of conventions and
recommendations
Ø Extends technical cooperation and international
expertise on labour matters
ØUnique lies in its tripartite structure (ILO brings together
governments, employers and trade unions/workers’
representatives)
ØFounded in 1919, the oldest international organization of the
twentieth century
ØThe organization was established as the first specialized agency
within the League of Nations
ØILO survived World War II and became part of the succeeding
United Nations (UN) system
Ø ILO historiography can be understood in relation to:
i. the historical development of the ILO as an institution;
ii. the international political, economic, and social context; and
iii. The developments within the scientific discipline, especially the
fields of (a globalizing) labour history and international
relations/organization
Source: Van Daele, J. (2008). The International Labour Organization (ILO) in past and present research. International Review of Social History, 53(3), 485-
511
 Objectives of ILO

ILO Preamble:
Ø Whereas universal and lasting peace can be established only if it is based upon social
justice;
Ø And whereas conditions of labour exist involving such injustice, hardship and privation to
large numbers of people as to produce unrest so great that the peace and harmony of the
world are imperilled; and an improvement of those conditions is urgently required; as, for
example, by the regulation of the hours of work, including the establishment of a maximum
working day and week, the regulation of the labour supply, the prevention of unemployment,
the provision of an adequate living wage, the protection of the worker against sickness,
disease and injury arising out of his employment, the protection of children, young persons
and women, provision for old age and injury, protection of the interests of workers when
employed in countries other than their own, recognition of the principle of equal
remuneration for work of equal value, recognition of the principle of freedom of association,
the organization of vocational and technical education and other measures;
Ø Whereas also the failure of any nation to adopt humane conditions of labour is an obstacle
in the way of other nations which desire to improve the conditions in their own countries;
Ø The High Contracting Parties, moved by sentiments of justice and humanity as well as by
the desire to secure the permanent peace of the world, and with a view to attaining the
objectives set forth in this Preamble, agree to the [following]Constitution of the International
Labour Organization.
Read: https://www.ilo.org/about-ilo/mission-and-impact-ilo

ØThe ILO's Decent Work agenda helps advance the economic and
working conditions that give all workers, employers and
governments a stake in lasting peace, prosperity and progress
Four strategic objectives at the heart of the Decent Work agenda
1. Set and promote standards and fundamental principles and rights
at work
2. Create greater opportunities for women and men to decent
employment and income
3. Enhance the coverage and effectiveness of social protection for all
4. Strengthen tripartism and social dialogue
Broad ILO Objectives:
ØSocial Justice
ØAvoid mass injustice, deprivation, and exploitation of labour
ØImprove working conditions

ILO objectives defined in 1944 Philadelphia convention

vThe declaration of Philadelphia (General Conference of ILO,
26th session, May 10 1944) adopts declaration of aims &
purposes of ILO and its principles which inspire policy of the
members
The conference recognizes the the following obligation of ILO to further among the
nations of the world programmes which will achieve:

(a) full employment and the raising of standards of living;

(b) the employment of workers in the occupations in which they can have the satisfaction of
giving the fullest measure of their skill and attainments and make their greatest contribution to
the common well-being;

(c) the provision, as a means to the attainment of this end and under adequate guarantees for
all concerned, of facilities for training and the transfer of labour, including migration for
employment and settlement;

(d) policies in regard to wages and earnings, hours and other conditions of work calculated to
ensure a just share of the fruits of progress to all, and a minimum living wage to all employed
and in need of such protection;
(e) the effective recognition of the right of collective bargaining, the cooperation of
management and labour in the continuous improvement of productive efficiency, and the
collaboration of workers and employers in the preparation and application of social and
economic measures

(f) the extension of social security measures to provide a basic income to all in need of such
protection and comprehensive medical care;

(g) adequate protection for the life and health of workers in all occupations;

(h) provision for child welfare and maternity protection;

(i) the provision of adequate nutrition, housing and facilities for recreation and culture;

(j) the assurance of equality of educational and vocational opportunity.

 Activity

1. Fundamental principles on which ILO is based

2. International Labour Conference and its roles/functions
3. Governing Body and its roles/functions
4. International Labour Office and its roles/functions
5. Membership, withdrawal and re-admission
Fundamental Principles:
Ø The fundamental principles on which the Organization is based and, in particular,
that:
(a)labour is not a commodity;

(a)freedom of expression and of association are essential to sustained progress;

(c) poverty anywhere constitutes a danger to prosperity everywhere;

(d) the war against want requires to be carried on with unrelenting vigour within each
nation, and by continuous and concerted international effort in which the
representatives of workers and employers, enjoying equal status with those of
governments, join with them in free discussion and democratic decision with a view to
the promotion of the common welfare.
The conference affirms:
(a)all human beings, irrespective of race, creed or sex, have the right
to pursue both their material well-being and their spiritual
development in conditions of freedom and dignity, of economic
security and equal opportunity;

(b) the attainment of the conditions in which this shall be possible

must constitute the central aim of national and international policy;

(c) all national and international policies and measures, in particular

those of an economic and financial character, should be judged in this
light and accepted only in so far as they may be held to promote and
not to hinder the achievement of this fundamental objective;
(d) it is a responsibility of the International Labour
Organization to examine and consider all international
economic and financial policies and measures in the light
of this fundamental objective;

(e) in discharging the tasks entrusted to it the International

Labour Organization, having considered all relevant
economic and financial factors, may include in its
decisions and recommendations any provisions which it
considers appropriate.
 Structure of ILO

Article 2 of the ILO Constitution states that:

The permanent organization shall consist of:
a. a General Conference of representatives of the Members (International Labour
Conference);
b. a Governing Body composed as described in article 7; and
c. an International Labour Office controlled by the Governing Body.

International Labour Conference (ILC):

• General conference meeting to be held at least once a year & as occasion may arise
• Composed of four representatives from each member state-2 govt delegates and each from
employer and work
• Voting rights: every delegate
• Empowered to appoint committees such as selection committee and finance committee to
deal with matters concerning labor
Functions of ILC:
üFormulation of standard labour standards
üSet contribution amount to be paid by the member states
üSet and decide budget, and submit to the governing
body
üStudy and assist in finding solutions to labour issues
submitted by Director General
üCommittee appointments
üElecting president
üSelecting governing body members
The Governing Body
Ø Also has the tripartite character
Ø Implements decision of ILC
Ø The Governing Body shall consist of fifty-six persons (ratio of 2:1:1, as in ILC):
ü Twenty-eight representing governments,
ü Fourteen representing the employers, and
ü Fourteen representing the workers.

Ø Of the twenty-eight persons representing governments, ten shall be appointed by

the Members of chief industrial importance, and eighteen shall be appointed by the
Members selected for that purpose by the Government delegates to the
Conference, excluding the delegates of the ten Members mentioned above.
Ø The Governing Body shall as occasion requires determine which are the Members
of the Organization of chief industrial importance and shall make rules to ensure
that all questions relating to the selection of the Members of chief industrial
importance are considered by an impartial committee before being decided by the
Governing Body.
Ø Member from the declaration of the Governing Body as to which are the Members
of chief industrial importance shall be decided by the Conference, but an appeal to
the Conference shall not suspend the application of the declaration until such time
as the Conference decides the appeal.
Ø The persons representing the employers and the persons representing the workers
shall be elected respectively by the Employers' delegates and the Workers'
delegates to the Conference
Ø The period of office of the Governing Body shall be three years. If for any reason
the Governing Body elections do not take place on the expiry of this period, the
Governing Body shall remain in office until such elections are held
Functions of Governing Body:
üCoordinate the work of ILC and ILO
üPrepare agenda for ILC
üAppoint Director General
üEvaluate the budget
üFollow up and monitor the implementation conventions and
recommendations adopted by ILC
üFix date/duration/schedule/agenda for regional conference
üSeek advise and suggestions (advisory opinion) from International
Court of Justice (ICJ) when required, with the consent of ILC
üPrepare and develop policies and procedures
üConfirm powers, functions and procedure of regional conference
International labour Office:
ü Secretariat of ILO, Geneva
ü Director General (DG) of ILO function as CEO of the secretariat
ü DG also serve as the Secretary General of ILC
ü DG tenure=10 years, extendable (by governing body)
ü DG is assisted by two Deputy DGs ,
ü Six Assistant DGs
ü Directors of:
a. International Institute of Labour Studies
b. International Centre for Advanced technical and Vocational Training
ü Advisors
ü Chiefs of Division
Functions of International labour Office:
ØPrepare briefs and documents for agenda for ILC
ØHelp member states to form labour legislations
ØPublishes documents relating to Industrial labour
problems of international nature and of universal interest
ØFunctions related to the observance of conventions
ØCollect, evaluate, analyze and distribute information on
international labour and social problems
 Membership

Ø The Members of the International Labour Organization shall be the States which were
Members of the Organization on 1 November 1945 and such other States as may become
Members in pursuance of the provisions of paragraphs 3 and 4 of this article
Ø Any original member of the United Nations and any State admitted to membership of the
United Nations by a decision of the General Assembly in accordance with the provisions of
the Charter may become a Member of the International Labour Organization by
communicating to the Director-General of the International Labour Office its formal
acceptance of the obligations of the Constitution of the International Labour Organization.
Ø The General Conference of the International Labour Organization may also admit Members
to the Organization by a vote concurred in by two-thirds of the delegates attending the
session, including two-thirds of the Government delegates present and voting. Such
admission shall take effect on the communication to the Director-General of the
International Labour Office by the government of the new Member of its formal acceptance
of the obligations of the Constitution of the Organization
 Withdrawal and re-admission

ØNo Member of the International Labour Organization may withdraw

from the Organization without giving notice of its intention so to do to
the Director-General of the International Labour Office.
ØSuch notice shall take effect two years after the date of its reception
by the Director- General, subject to the Member having at that time
fulfilled all financial obligations arising out of its membership.
ØWhen a Member has ratified any international labour Convention,
such withdrawal shall not affect the continued validity for the period
provided for in the Convention of all obligations arising thereunder or
relating thereto
ØIn the event of any State having ceased to be a Member of the
Organization, its readmission to membership shall be governed by the
provisions of paragraph 3 or paragraph 4 of this article as the case
may be
 Unit 3: Employment Contract

1. Understanding employment contract

• Concepts of employment and employment contract
• Types of [employment] contracts
• Terms and conditions
üDrafting contracts: What needs to be specified?
üExpressed Contract: when to be in writing?
üWhat can be implied in the Contract?
üEmployee handbook
2. Termination of employment relationship
• Basis for termination
• Process of termination
• Summary dismissal and constructive dismissal
• The good and bad about ‘at-will employment’
• Wrongful dismissal and remedies
3. Employment Contract and Bhutanese labour law
 Some important concepts

1. At-Will employment?
2. Mutual Accent
3. Statute of Fraud
4. Mutuality of Obligation
5. Promissory Estoppel
 At Will Employment

Ø the employee can leave the employer or the employer can discharge the
employee for any reason.
Ø Either party may terminate an employment relationship with or without
cause unless the right to do so is limited by a statute, other law or public
policy, or an agreement between the parties, a binding employer promise,
or a binding employer policy statement.
Ø the idea is, the relationship is terminal at-will, can be ended at will by either
party unless they have said otherwise.
Ø couple of things to know about this rule:
• The first is that at-will employment is a default rule, which means that if
the contract doesn't specify otherwise, the employment is at will.
• At-will also means that an employer can change the terms of the
employment relationship with no notice and no consequences
 • If parties want to draft their contracts to say something different, they can.
• For example, an employer can alter wages, terminate benefits, or reduce paid
time off.
• In its unadulterated form, the U.S. at-will rule leaves employees vulnerable to
arbitrary and sudden dismissal, a limited or on-call work schedule depending
on the employer’s needs, and unannounced cuts in pay and benefits.
• A one-year employment contract, for example, wouldn't be unusual, but a court
is not going to assume a specific duration unless it is really explicitly in the
contract
Ø The second thing to know about the at-will employment rule is that it is mutual.
• It applies to both the employee who can leave anytime and the employer, who
can let an employee go at any time.
• Overall, this rule is not very controversial on the employee side, most people
don't find it controversial that we should assume employees can quit without a
legal penalty
Ø The at-will rule is controversial on the other side though, the fact that
employers can let their workers go anytime without having to justify their
decision is something that gets a lot of attention from unions, from courts,
from advocates, and activists.
Ø Most employees do not prefer at-will employment.
Ø Indeed, survey research suggests that actually most employees incorrectly
believe that they have more protection than they do.
Ø Employees believe that there has to be some kind of cause or procedure
before they can be fired, but this is not the case.
Ø It is the case that employees are protected from being fired for reasons that
would touch on things like civil rights laws.
Ø So you can't be fired on the basis of race or on the basis of sex, or for other
reasons that are in violation of public policy.
Ø You can't be fired because you refuse to do something illegal.
Ø To be accurate, at-will means that an employer can terminate an employee
at any time for any reason, except an illegal one, or for no reason without
incurring legal liability. Likewise, an employee is free to leave a job at any
time for any or no reason with no adverse legal consequences.
Ø This employment is but baseline legal rule in 49 out of 50 states of
United States and a few countries only!!!.
Ø Most countries throughout the world allow employers to dismiss employees
only for cause
Ø Some reasons given for at-will presumption include respect for freedom of
contract, employer deference, and the belief that both employers and
employees favor an at-will employment relationship over job security.

Source: https://www.ncsl.org/labor-and-employment/at-will-employment-overview
 Requirement for an employment Contract

Ø Mutual Accent
• Ability to define mutual assent is important for both parties entering into a
contract
• is an important facet of contractual obligation because it encompasses
the consent of both parties and their wish to enter into an agreement.
• a contractual agreement is the mutual assent of two or more parties put
in writing.
• Mutual assent is referred to as a “meeting of the minds” that both
parties come together to lay out the particulars of the contract, including
the terms of both the offer and the acceptance.
• The offer is the promise to deliver a product or service for a specified
form of compensation, and the acceptance is when the other party
agrees to accept the product or service as determined by the terms of
the exchange.
• Both the offer and acceptance cannot be implied but need to be explicitly
stated in the contract.
vWhen Will Courts Not Enforce a Contract?
Ø mutual assent becomes most important when a contract is questioned in a
court of law
Ø It might be considered that one party had made a mistake and agreed to an
offer in a belief that was not consistent with the facts.
Ø These are mistakes that caused them to enter into the agreement, not
mistakes that occurred during the execution of the agreement.
Ø There is the possibility that the mistakes can be mutual, where both parties
made a false assumption, or it could be considered unilateral, such that only
one person that was mistaken.
Ø A mutual mistake will involve four specific characteristics. These characteristics
include the following:
• The mistake was made by both parties at the time the contract was signed.
• The mistake involves one of the basic assumptions on which the contract was
based. • The mistake can have a material effect on the agreed exchange.
• The contract can only be voidable by the party who was affected by the
mistake.
Ø A unilateral mistake occurs when only one party in the agreement is mistaken. The
same requirements for mutual mistakes apply
Ø Additionally, any of the following may be true:
• The effect of the mistake is such that the enforcement of the contract would be
unconscionable.
• The non-mistaken party had reason to know of the other party's mistake.
• The mistake was the fault of the other party.
 Basic Assumption

Ø an assumption that relates directly to a material fact included in the agreement.

Ø In the event of a mistaken belief, the mistake must involve a basic assumption that will
affect the contract to the degree that the contract would become unfair to one side.
Ø In a situation where there are mistakes in which no contract arises, neither party will be
bound.
Ø If one of the parties is mistaken about a fact that is material to the contract, even though the
other party can hold the mistaken party to the contract, they should not hold the other party
responsible.
Ø the adversely affected party is only allowed to void the contract if they did not assume the
risk of making the mistake.
Ø If one party knew of a risk and went ahead with the agreement anyway, they cannot void
the contract just because anticipated problem happened.
Ø Additionally, if parties enter into a contract knowing they do not have all of the information
relevant to their decision, they cannot void the agreement just because the unknown
information turns out to favor or disfavor one party.

Source: https://www.upcounsel.com/define-mutual-assent
Ø Is Assent same as Consent?
Ø According to the Contract Act of the Kingdom of Bhutan 2013:
• “Two or more persons shall be said to consent when they agree upon the
same thing in the same sense” (s 30)
• “Consent of the parties shall be a necessary ingredient of a valid contract
and an agreement without consent shall be void.” (s 31)
 ACTIVITY

Read the given Link Read and discuss based on the given
link:
1. https://www.aihr.com/blog/employment-contract/
2. https://www.aihr.com/blog/types-of-employment-
contracts/#Permanent

DISCUSS TYPES OF EMPLOYMENT CONTRACT!!!

 Types of employment Contract

ØGenerally, employment contract can be categorised as:

1. Written employment contract
2. Oral employment Conract
3. Implied employment contract
4. Temporary employment contract
5. At-will employment contract
6. Fixed Term Employment Contract
Ø Types of employment contract can also be based on the nature of
employment as follows:
1. Permanent employment Contract
2. Part-time employment Contract
3. Fixed-term employment Contract
4. Temporary employment contract
5. Casual employment Contract
6. Internship contract & Apprenticeship agreement
7. Remote Work Agreement
Ø Bhuatan Civil Service Rules and Regulations (BCSRR 2023) recruits fours
types of employment:
Ø Regular
Ø Contract
Ø General and Elementary Services
Ø International Volunteers
 Contracts of Employment-Labour and Employment Act of Kingdom
of Bhutan 2007

ØChapter V applies to employment for a duration of one

year or more except for employment arrangements
between members of a family unless a contract of
employment specifies otherwise (section 51).
ØIf an employer assigns the same or similar work for the
same wages to an employee employed for one year or
more, the employee shall be deemed to have been
employed under a contract of employment as set out in
chapter V. (section 52)
Note: The following are based on the Chapter V of the Labour and Employment Act of the
Kingdom of Bhutan 2027
 Implied terms in the contract
ØAn employer shall provide an employee with work during the contracted period that is the
same or of a similar nature to the primary duties in the contract. (section 55)
ØIf the employer fails to provide work, the employer shall pay the employee wages at the
same rate as if the employee had performed the day’s work unless (section 56) :
(a) the employee has broken the contract of employment; or
(b) it is impossible to uphold the contract of employment due to circumstances beyond
either party’s control.
ØAn employee shall be willing and available to work in accordance with the terms of the
contract of employment unless (section 57):
a) the employer has broken the contract of employment; or
b) it is impossible to uphold the contract of employment due to circumstances beyond
either party’s control.
According to the section 58 of the labour Act of Bhutan 2007, A contract of employment is
deemed to be broken if-
a) the employer fails to pay wages (in accordance with Chapter VIII); or
b) the employee is continuously absent from work for more than three consecutive work
days without the prior leave of the employer, unless the employee has a reasonable
excuse for such an absence and has informed or attempted to inform the employer of
the excuse prior to or at the earliest opportunity during such absence.
 Terms and conditions of a contract of employment

ØAn employer shall ensure that a contract of employment specifies (as per
section 64):
a) the duration;
b) a specific task to be performed;
c) notice period for termination of the contract; and
d) wages, working hours, probation period and leave provisions.
ØUnless there is proof to the contrary, if a contract of employment (whether
written or unwritten) fails to specify a term of duration, it is presumed that the
contract of employment is for an indefinite period and shall continue in force
until it is terminated in accordance with this Chapter (section 65).
ØAn employer who contravenes sections 64 and 65 shall be guilty of
violation. In addition to, the Ministry may direct the employer for payment of
appropriate damages or compensatory damages. (section 66)
 Classification of Crime based on Penal Code of Bhutan

Classes of Crime Conviction Consequence/outcome

Ø A minimum term of imprisonment of 3 years for convicted defendent

First Degree felony: imprisonment of a minimum of which shall be fifteen years and a maximum of which
1. FELONY shall be life imprisonment;
Second Degree felony: imprisonment of a minimum of which shall be nine years and a maximum of which
shall be less than fifteen years;
Third Degree felony: imprisonment of a minimum of which shall be five years and a maximum of which
shall be less than nine years;
Fourth Degree felony: imprisonment of a minimum of which shall be three years and a maximum of which
shall be less than five years.

2. MISDEEMEANOUR Ø A maximum term of imprisonment of less than three years and a minimum term
of one year for the convicted defendant
3. PETTY Ø for a maximum term of imprisonment of less than one year and a minimum term
MISDEMEANOUR of one month for the convicted defendant
4. VIOLATION Ø convicted defendant shall not be imprisoned but shall be fined the daily minimum
national wage rate up to a maximum of ninety days
 Should Contracts to be writing?

Ø An employer shall ensure that a contract of employment with an employee

is in writing and that a copy of it is provided to the employee. (section 61)
Ø If a contract of employment is not in writing, the contract is deemed to be an
unwritten contract of employment and the minimum standards set out in the
Act shall apply (section 62)
Ø An employer who contravenes sections 61 and 62 shall be guilty of an
offence of violation (section 63)
 When a contract of employment is enforceable?

Ø As per section 67 of the Labour Act, contract is enforceable, if:

a) it has been signed or personally marked by the employer or the employer’s
representative and the employee or, in the case of an unwritten contract,
there is evidence of an oral agreement between the parties;
b) clearly defines the rights and obligations of the employer and employee;
c) is for lawful purposes; and
d) was freely entered into without threat or undue influence.
 Can employment contract can be transferred to another?

Ø Can employment contract be transferred [in the context of Bhutan]?

Ø YES. If:
• an employer sells or otherwise transfers to another person a business in
which an employee works under a contract of employment
• However, the transfer of the contract of employment to the other person
should be based only if the employee has freely consented to the transfer.
Ø According to section 60 of the Labour Act of Bhutan,
Ø If a contract of employment is transferred from one employer to another:
a) the terms and conditions of the contract are preserved on that transfer;
and
b) any rights the employee may have had against the transferring
employer are preserved against the new employer.
 Provision of Probation as per Labour Act of Bhutan

Ø A contract of employment of one year or more may contain a period of

probation of a maximum of 180 days within which period either party may
terminate the contract by giving the other party notice of 7 days. (section
72)
Ø An employer shall not require an employee to repeat a probationary period
in relation to the same work or materially similar work. (section 73)
Ø Sections 72 and 73 do not apply to training agreement. (section 74)
Ø An employer who contravenes sections 72 to 74 shall be guilty of an
offence which shall be petty misdemeanour. (section 75)
 Internal Service Rules and Employee Handbook

Ø Who should have internal service rules?

ü a registered company under the Companies Act of the Kingdom of Bhutan
(2000); or
ü a small, medium or large scale industry - shall prepare and implement
internal service rules in consultation with the Workers’ Association or, if there
is no such Association, with the employees at the enterprise.
ü The internal service rules are not enforceable until they have been approved
by the Chief Labour Administrator as being in compliance with this Act.
Ø What if the the internal service rule provision is not followed?
ü The employer shall be liable to pay a fine at the rate of the Daily Minimum
National Wage Rate to a maximum 3 years of the Daily Minimum National
Wage Rate.
Note: These are based on the Labour and Employment Act of Bhutan 2007
 ACTIVITY

FIND OUT
Ø What is Employee Handbook?
Ø Benefits of Employee Hanbook?
Ø Contents/what are included in employee Handbook?
 Employee Handbook

Ø What is it?
ü An employee handbook, also called an employee manual, serves as a
comprehensive guide to your organization’s mission, vision, values,
employee and workplace policies, HR-related procedures, employee
benefits, and code of conduct in the workplace, among other things. In
short, it sets clear employee expectations, defines their rights, and
communicates your company’s legal obligations.
-[Academy to Innovate HR, AIHR]
ü An employee handbook is a document that introduces employees to the
company and familiarizes them with the guidelines and benefits that
affect the employment relationship.The subjects covered in an employee
handbook are typically selective and the information provided is more
general. Employee handbooks are distributed to all employees, typically
at the beginning of employment
Ø According to Forbes, employee handbook:
• not only provide details about specific procedures and guidelines, but also
codify your company’s values, history and mission
• include HR forms policies, information about company programs (such as
sick leave and paid time off) and procedures to be followed in certain
situations
• is not an employment agreement, and as such, it should include a brief
statement confirming that the handbook does not create an employment
contract.
• should not use legal jargon, but instead should be written so it is easily
understandable for employees.
• should be amended and updated as and when necessary
 Benefits of an employee handbook

Ø Sets Clear Expectations

Ø Reduces Uncertainty
Ø Welcomes New Employees and Affirms Company Values
Ø save you and your company from future legal battles and headaches
Ø valuable tool for providing clarity and structure to both employees and
management
Ø It sets out policies and expectations, such as dress code and emergency
procedures, and outlines disciplinary procedures for those who break the rules.
Ø makes it easier to manage employee behavior
Ø provide managers with a reference for starting disciplinary procedures, which
helps maintain consistency throughout the business
Ø effective tool for employee engagement and motivation
 What are included in employee handbook

Ø Company Information
Ø Company VMO (Vision, Mission, Objectives) and Values
Ø Employment Policies
Ø Equal Employment Opportunity
Ø Anti-Harrasment policy provision
Ø Employee conduct and discipline
Ø Work hours and work schedule
Ø Leave Policy
Ø Employee Benifits
 Summary dismissal and constrcutive dismissal?

Ø Summary dismissal occurs when an employee is terminated without notice

or pay in lieu of notice (PILON) due to gross misconduct
Ø In summary dismissal, the employer immediately severs all ties with the
employee, bypassing the standard procedures typically involved with
terminating an employee, such as notice periods or severance pay.
Ø The reason for this is usually a profound breach of trust or violation of
appropriate conduct, where a continued connection with the employee may
cause harm to the employer. However, this decision should follow after
conducting a thorough investigation.
Ø Understanding the summary dismissal meaning is crucial for both
employers and employees, as it highlights the immediate consequences of
severe misconduct in the workplace.
Source: https://www.aihr.com/hr-glossary/summary-dismissal/
 Termination of employment Contract

Ø As per the section 81 of the Labour Act of Bhutan, a contract of employment shall be terminated:
a) by mutual agreement;
b) if either party is unable to fulfill the contract due to circumstances outside the control of the parties;
c) if the employee dies;
d) the employee retires; or
e) at the end of the agreed term of the contract or on the completion of the task specified in the contract of
employment.
Also,
Ø According to section 90 of Labour Act of Bhutan, an employer may terminate a contract of employment if
the employer no longer requires (case of redundancy):
a) the work which is carried out by an employee or a number of employees; or
b) the skills and ability of an employee or employees.
Ø A party to a contract of employment may at any time give to the other party notice in writing of his or her
intention to terminate the contract. (section 82)
Ø Either party may terminate the contract without waiting for the end of the notice period, by the terminating
party paying to the other party a sum equal to the basic rate of pay which the employee would have earned
during the notice period. (section 83)
Ø So, what about notce period of termination of employment contract?
Ø As per labour Act of Bhutan,
ü An employer shall ensure that a contract of employment with an employee
specifies a notice period for the termination of the contract of not less than
30 days. (section 68)
ü If a contract of employment fails to specify a notice period or if the contract
of employment is an unwritten contract, the notice period is deemed to be
the relevant notice period specified in section 68. (section 69)
ü The length of notice period shall be same for the employer and the
employee. (section 70)
 Unlawful reasons for termination?
Ø As per section 85 of the labour Act of Bhutan, an employer can not
terminate the contract of employment simply because:
a. the employee is or has acted in the capacity as a health and safety
representative or as a member of a Workers’ Association;
b. the employee has filed a complaint or participated in proceedings against
an employer involving an alleged violation of laws;
c. of the employee’s race, colour, sex, marital status, pregnancy, religion,
political opinion or social origin;
d. the employee is absent from work on maternity leave or paternity leave;
e. the employee has exercised his or her right to remove himself or herself
from dangerous work [under sections 162];
f. the employee has been temporarily absent from work because of illness or
injury, as certified by a medical practitioner; or
g. the employee has absented himself from work for a long duration with prior
permission of the employer.
Ø However, An employer may terminate a contract of employment by
dismissing an employee without notice or payment in lieu of notice if the
employee has been guilty of serious misconduct that makes it unreasonable
for the employer to continue to employ that employee if (section 87 of the
Labour Act of Bhutan):
a) the employer has first taken all reasonable steps to ascertain whether or
not the employee’s conduct amounts to serious misconduct; and
b) the employee has been given a reasonable opportunity to defend himself or
herself against the allegations.
Ø MISCONDUCT includes (as per section 88 of the Labour Act of Bhutan):
a) fraud, theft or misuse of the employer’s property, including the employer’s
intellectual property;
b) assault and other serious crimes;
c) wilful insubordination or disobedience of a repeated or serious character;
d) habitual irregular attendance;
e) sabotage;
f) wilful damage;
g) sexual harassment
h) abandonment of the employee’s post;
i) persistent absence from the workplace without good excuse; or
j) wilfully offending the Tsa Wa Sum.
 Wrongful dismissal and remedies

ACITIVTY: Wrongful dismissal and remedies?

 Unit 4: Prohibitions

1. Forced Labour
2. Discrimination at the workplace
• Commonly reported discrimination
• Legal interventions Equality Act (United Kingdom)
üEuropean Union Employment Equality Directive
üCanadian Human Rights Act
üIndustrial Dispute Act (India)
3. Sexual Harassment in Workplace
• Definition and Concepts
• Sexual harassment trends
• Solving sexual harassment issues
ü Management Approach
ü Legal Approach in general
ü Bhutanese legal framework
 Unit 5: Occupational Health and Safety [OHS]

1. Why Occupational health and safety

2. The three parts (Occupational Health, Safety, and Industrial Hygiene)
3. The three elements (Policy Development; Planning and
Implementation; and Evaluation)
4. OHS laws and policies [International and Contextual]
• Statutory duties and requirement of employer
• Statutory duties of employees
• OHS Administration
üSafety procedures
üReporting and investigation of incidents
üCompliance and auditing
 Unit 6: Laws for Social Security and Benefits

1. Social Security systems

• Pension plans
• Health care benefits
• Unemployment Benefits
2. Compensation
• Wage and salary
• Working hours and overtime pay
• Public Holiday entitlement
• Entitlement of Leave
 Unit 7: Workplace Happiness

1. Employee Wellbeing
• Career Wellbeing
• Social Wellbeing
• Financial Wellbeing
• Physical Wellbeing
• Community Wellbeing
2. Mental Health and Well-being
3. Mental Health Problems (Stress; Depression; Anxiety; Burnout; Trauma)
4. Work-Life Balance
5. Creative practices for Wellbeing in Organizations