LafargeHolcim declares layoff at Dhaka office

LafargeHolcim Bangladesh Ltd, a public listed cement multinational company, has declared layoffs at its head office in Dhaka amid the coronavirus pandemic and decreased sales during the countrywide shutdown.

According to its notice to employees and filing at the labour office of the Bangladesh government, seen by The Business Standard, the layoffs began on April 12, 2020 and will continue until April 30.

The company may extend the layoff period if the pandemic situation prolongs and it takes more time to return to normal.

However, permanent factory workers and employees have been ordered not to leave their stations and stay safe during the pandemic by taking preventive measures against the novel coronavirus.

Documents of LafargeHolcim Bangladesh read that the company employees are in fear of coronavirus. The pandemic has caused an alarming drop in cement sales that has significantly hurt the company's business.

The documents mentioned that two factors – employees' health-risk and slump in business – are beyond the company's control.

That is why the company has decided to stop work at the head office level, and as the period is more than three working days, the company has declared the layoff in line with the labour law of the country, it added.

The company also said that head office employees who have been working there for more than one year will be paid as outlined by the labour law.

During layoffs, the law allows partial payments to be made to employees who have been in the company for a year or more.

However, employees who have worked for the company for less than a year may be the hardest hit because the company is not bound to pay them during the layoff period.

The Business Standard tried to talk to a senior official of LafargeHolcim Bangladesh to learn the detailed implications of the layoff, but he refused to make any comment. 

However, equity analysts expect that the listed company is going to offset some of its losses in revenue and profit through the layoff during the Covid-19 pandemic.