Dismissed DSE staff demand reinstatement; bourse defends layoffs

Dismissed officials and employees of the Dhaka Stock Exchange (DSE) formed a human chain in front of the bourse's old Motijheel office yesterday, demanding immediate reinstatement, an impartial investigation into the recent dismissals and protection of their legal rights, while the DSE defended the layoffs as part of a long-term restructuring carried out in compliance with the law.

The protesters alleged the dismissals were arbitrary, violated labour laws and principles of good governance, and bypassed due process. They claimed 17 officials and employees — nearly 5% of the DSE's workforce of about 350 — have been dismissed so far and feared more layoffs.

They said the Bangladesh Labour Act requires employers to issue show-cause notices, provide employees an opportunity to defend themselves and follow due process before termination. They alleged these requirements were ignored, leaving them financially, mentally and socially affected.

The protesters also argued that the Constitution and the principles of the International Labour Organization recognise every citizen's right to decent work and livelihood, and that dismissal without reasonable grounds violates those rights.

They said they had served the DSE for many years and helped ensure the smooth operation of the country's premier stock exchange, including during difficult periods. However, they alleged the authorities selectively dismissed employees without any transparent restructuring plan or cost-cutting policy, raising questions about the fairness of the decision.

"We are not against the capital market or the DSE. We are simply seeking justice and our lawful rights," they said, adding that the layoffs have created fear and uncertainty among remaining employees, which could undermine morale and the institution's overall performance.

The demonstrators demanded immediate reinstatement of all dismissed employees, an independent investigation into the termination process and accountability if any irregularities are found. They also said the controversy has raised concerns over governance, transparency and accountability at the DSE, which is closely linked to the interests of millions of investors. If the dismissals were lawful, they said, the authorities should publicly disclose the legal basis for the decisions to remove confusion.

A key case highlighted during the protest was that of former Deputy General Manager Md Abdul Latif, who recently petitioned the chairman of the Bangladesh Securities and Exchange Commission (BSEC), alleging he was unlawfully dismissed after serving the DSE for more than two decades.

According to the petition, Latif received a show-cause notice on 16 April and, after submitting his explanation, was informed in writing on 18 June that no disciplinary action would be taken. However, on 25 June he was dismissed with immediate effect without any new allegation or investigation. He said the dismissal letter stated only that his position was "no longer required", which he argued was not a valid justification for terminating a long-serving permanent employee and showed the decision was arbitrary and premeditated.

The petition also referred to a 23 July letter from the Financial Institutions Division of the Ministry of Finance, which reportedly described the DSE's termination process as "illegal and unilateral" and instructed the BSEC to take necessary action.

DSE cites restructuring

Responding to the allegations, the DSE said in a press release yesterday that the dismissals were part of a strategic organisational transformation launched in 2022 to make the bourse more dynamic and future-ready.

"This is not a sudden decision. As part of this transformation, changes have been made to certain positions, resulting in the termination of 17 out of 350 employees. No personal discrimination or bias was involved; every decision was based on the long-term effectiveness and business interests of the institution," the statement said.

The DSE said the process was carried out under Section 26 of the Bangladesh Labour Act, 2006, which allows an employer to terminate an employee by providing notice or compensation in lieu of notice without assigning any reason.

It added that it paid six months' basic salary as compensation, exceeding the statutory requirement of four months, "on humanitarian grounds" to give affected employees more time to secure new jobs.

The bourse also said all departing employees would receive their full final settlements, including provident fund, gratuity and encashment of unused leave, while ensuring their personal dignity and professional records remain unblemished.