Where Workers Meet Tenders: Labour and Procurement Laws Compared

International Labour Day, observed globally on May 1st, is a moment to reflect on the value, rights, and protection of labour. While labour laws ensure the welfare, safety, and dignity of workers, government procurement laws govern how public funds are spent for goods, services, and works. Though seemingly separate, these legal frameworks often intersect—particularly when labour standards become embedded in public contracts.

This report compares labour laws and procurement regulations, exploring their synergy, divergence, and how international practices are reshaping the procurement-labour nexus.

Labour Laws: Protecting the Worker

Labour laws primarily focus on:

• Wages and working conditions
• Working hours and rest periods
• Occupational health and safety
• Freedom of association and union rights
• Non-discrimination and protection against unfair dismissal

Bangladesh Context

The Bangladesh Labour Act 2006 (as amended) sets comprehensive standards on wages, working hours, health, safety, and welfare. Notably, the Labour Rules 2015 further detail compliance mechanisms.

Public Procurement Laws: Governing the Public Purse

Government procurement laws are designed to ensure:

• Transparency and competition
• Value for money
• Fair treatment of suppliers
• Accountability of public officials

Bangladesh Context

The Public Procurement Act 2006 and the Public Procurement Rules 2008 are the key legal instruments. They emphasize fairness, open competition, and efficient use of public resources.

Where Labour Meets Procurement

1. Inclusion of Labour Standards in Procurement

Modern procurement practices are increasingly recognizing labour rights as a part of contract performance clauses.

• ILO Convention 94 (labour clauses in public contracts) encourages member states to require suppliers to respect minimum labour standards. Bangladesh is not a party to this convention, but countries like France, Norway, and Finland integrate such clauses.

• In South Africa, Section 217 of its Constitution allows procurement policies to be used to promote the advancement of historically disadvantaged persons, aligning with labour equity.

2. Examples from International Jurisprudence

European Court of Justice – Rüffert Case (2008)

• A German regional government required contractors to pay workers local minimum wages on public construction projects.

• The ECJ ruled that this restriction conflicted with EU procurement law’s free movement principles.

• Takeaway: Labour clauses must not unjustifiably restrict cross-border competition.

India – National Green Tribunal on Labour Safety in Construction Tenders (2021)

• The tribunal ruled that tenders must explicitly mention compliance with labour welfare, safety protocols, and insurance.

• This ensured that social clauses are not just formalities but legally binding.

Gaps and Opportunities in Bangladesh

Despite having strong labour laws and a structured procurement framework, labour considerations are scarcely enforced in public procurement in Bangladesh.

Observed Gaps:

• No mandatory clause linking labour standards with tender evaluation or contract execution.
• Contractors bypass labour regulations, especially in informal sectors (e.g., small infrastructure projects).
• Weak enforcement and inspection capacity.

Opportunities for Integration:

• Including labour compliance checklists in tender documents.
• Making occupational health and safety (OHS) adherence a technical qualification.
• Introducing labour audits during project execution as part of monitoring.

Recommendations for Policy Makers

1. Amend the PPR 2008 to allow inclusion of labour protection clauses in procurement, especially for works and services.

2. Training for procurement officials to recognize and enforce labour-linked requirements.

3. Collaboration between BPPA and MoLE (Ministry of Labour and Employment) to align procurement practice with national labour policy.

4. Use of electronic procurement platforms (e-GP) to flag or penalize suppliers with poor labour compliance records.

Conclusion

Labour Day serves as a powerful reminder that procurement is not just about cost-efficiency—it’s also about ethical and sustainable practices. Government procurement can be a tool to uplift labour standards if the legal and regulatory frameworks are aligned.

With growing international pressure and global good practices to learn from, Bangladesh has an opportunity to make its procurement system a vehicle for decent work, safe employment, and inclusive growth.