Bangladesh is a South Asian country marked by its beautiful natural resources. The Meghna and Jamuna rivers provide fertile plains while the Sundarban mangrove forest on the eastern side is a critical part of its ecology and also, home to the Royal Bengal tiger. The country is ethnically homogeneous with Bengalis making up 98% of its population. Islam is the main religion, accounting for 87% of the population, with Hindus and Buddhists as significant minorities. Generally, the country is identified by the folk tradition of the Bengali culture.
In 2018, Bangladesh’s per-capita income was $4,561 (PPP) and $1,754 (nominal), making it one of the poorest countries in the world. Agriculture is the main economic activity, and the increase in irrigation networks have enhanced the production of rice, maize, and jute as the main cash crops. The manufacturing industry, specifically the ready-made garment industry, has grown by double digits, providing employment to many citizens. The country’s apparel exports in 2009 stood at 2.66 billion, overtaking neighboring India at 2.27 billion.
In Bangladesh, a permanent employee is defined as someone who is employed in an establishment on a permanent basis or has completed their probationary period in the establishment.
Permanent employment contracts can be terminated by giving a notice of 120 days, as opposed to other types of employment contracts, where 60 days' notice is required. Permanent employees can terminate their contract by resignation with a 60-day notice. They are also entitled to severance pay upon termination of their contract.
In any organization where at least 100 permanent employees are employed, the employer must introduce group insurance for employees. Permanent employees must also be paid a festival bonus in the amount of 2 months' wages.
Written employment contracts or letters of appointment in the local language are legally required, spelling out the terms and conditions of compensation (in local currency), benefits, and termination. The terms of the contract are binding between the employee and employer, providing they do not contradict the provisions of the Labor Act. Typically, the letter of appointment or written contract also includes:
Working hours
Salary
Job title
Nature of work
Working time and leave provisions
Procedures for dismissal
According to the Contract Act of Bangladesh, every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, is void. Therefore, agreements prohibiting competition, solicitation, or dealing after termination are against the law and consequently deemed null and unenforceable.
In Bangladesh, a temporary employee is any person employed in an establishment for work performed within a limited period. Employers must provide inspection tickets or cards to all workers, regardless of employment status. A temporary employee shall be given a temporary ticket, which shall be surrendered upon termination or upon getting permanent employment. Temporary employees can terminate their contracts by giving a 30-day notice for an employee who is paid on a monthly-rated basis and 14 days for all other temporary employees.
Temporary employees who have worked for more than 1 year in the same organization are considered permanent. Temporary employees hired from third-party employers must be compensated the same as employees hired directly by the employer. Temporary employment agencies must open accounts in an approved bank in the name of "Worker's Social Security Fund" within 6 months of obtaining a license. The agency must contribute 15% of the monthly base salary to the account for each employee.
The maximum probationary period in Bangladesh is 6 months for clerical employees and 3 months for all others. If the quality of work has not been determined during the probationary period, it may be extended for another 3 months. Once the probationary period is over, an employee is deemed permanent whether they have been issued a confirmation letter or not, unless advised otherwise.
Employees may not be required or allowed to work in an establishment for more than 8 hours per day on a regular basis (occasionally, they may work up to 10 hours a day). Standard weekly working hours may not exceed 48 hours. The total hours of work (that includes overtime) cannot go over 60 hours in any week and, on average, 56 hours per week in a year.
All employees are entitled to an interval of 1 hour for rest or meal for work of more than 6 hours a day, an interval of half an hour for rest or meal for work of more than 5 hours a day, and an interval of 1 hour rest or 2 intervals of half an hour rest, for work of more than 8 hours a day.
The qualifying period for all employees' annual leave entitlement is 1 year of continuous service in an establishment with a minimum of 240 days of service within the previous 12 months.
1 day for every 18 days in a shop, commercial, industrial establishment, factory, or road transport
1 day for every 22 days on a tea plantation
1 day for every 11 days for newspaper employees
Unused annual leave may be carried forward up to 40 days for most workers (60 days in some cases). If an employee plans to take 4 or more days of consecutive leave, they may be paid in advance. Other than annual leave, all employees, except those employed in a tea plantation, are entitled to 10 days' paid casual leave during a calendar year. This type of leave cannot be carried forward.
Private sector employees are entitled to annual paid sick leave of 14 days with a required medical certificate and no carry forward permitted. Public sector employees are entitled to a medical leave of up to 6 months with a medical certificate.
Employees who have worked for at least 6 months (or under 6 months if unpaid) are entitled to 60 days of employer-paid maternity leave before the birth of a child and 60 days of paid leave after. Employers are prohibited from knowingly employing a woman, and women are also prohibited from working during the 60 days immediately following the delivery date. If an employee miscarries before the beginning of the maternity leave, the employee is entitled to 4 weeks of paid leave.
Every female employee who has been in service under the same employer for at least 6 months is entitled to maternity benefits unless she has 2 or more surviving children at the time of her delivery. Leave for a third or subsequent child is unpaid. The maternity benefit shall be calculated by monthly earnings divided by 26.
The employer must pay the total cost of the maternity benefit, and the benefit must be paid for 60 days before and 60 days after childbirth. If the mother dies during childbirth or up to 60 days after childbirth, the benefit is paid to the person who cares for the child.
New fathers may use the fully paid casual leave of 10 days in the absence of statutory paternity leave.
In Bangladesh, an employer who wishes to dismiss a permanent employee must provide a notice in writing of:
120 days (for permanent employees)
60 days (for all other employees)
An employer who wishes to dismiss a temporary employee must provide a notice in writing of:
30 days (for monthly rated employees)
14 days (for all other employees)
Any employee who wishes to resign must give their employer notice in writing:
60 days for a permanent employee
30 days for a temporary employee, if employed on a monthly wage
14 days for any other employee
If an employee wishes to leave work without notice, they must pay their employer an amount equal to the wages they earned for the period of notice.
Severance pay is payable to an employee who has been continuously employed for at least 1 year in the event of a:
Termination based on physical or mental incapacity or continued ill-health (referred to as 'discharge')
Termination with notice without any reason.
An employee who is discharged due to physical or mental incapacity after at least 1 year of continuous service is entitled to compensation equal to 30 days of wages per completed year of service, or gratuity if higher. Similarly, when an employer terminates a permanent employee, they must provide 30 days’ wages per completed year or the higher gratuity amount. In contrast, if an employee is dismissed for misconduct after at least one year of service, the compensation is reduced to 15 days of wages for each completed year of service.
Employees who resign are entitled to 7 days' wages for 3 years of continuous work, 15 days' wages for more than 3 years but less than 10 years of continuous work, and 30 days' wages or gratuity (whichever is higher) for 10 years of continuous work or more.
The employer must pay all dues due to the worker within a maximum of 30 working days after the termination.
An employee is regarded as in continuous service where they have worked 240 days within the preceding 12 months, or 120 days within the preceding 6 months.
