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Written Agreements

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.

Oral Agreements

The labor law of Bangladesh does not provide regulations regarding oral employment contracts.

Implied Agreements

There are no provisions or guidance on implied contracts. Best practice in the industry is to be cautious of implied contracts by frequently utilizing or adapting written agreements.

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.

Employees are generally entitled to 11 days of festival holidays (determined by employer) with pay. If required to work on a holiday, employees may receive two compensatory paid and one substitute holiday.

Major holidays for include:

• Shaheed Day and International Mother Language Day - February 21
• Independence and National Day - March 26
• Bengali New Year’s Day - April 14
• May Day - May 1
• Buddha Purnima (Boishakhi Purnima) - date subject to change every year
• Shab-e-Qadar - date subject to change every year
• Eid-ul-Fitr (3 days' leave) - dates subject to change every year
• Eid-ul-Azha (3 days' leave) - dates subject to change every year
• National Mourning Day - August 15
• Krishna Janamashtami - date subject to change every year
• Moharrum (Ashura) - date subject to change every year
• Durga Puja (Bijoya Dashami) - date subject to change every year
• Eid-e-Miladun-Nabi - date subject to change every year
• Victory Day - December 16
• Christmas Day - December 25
• New Year's Eve - December 31

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.

Notice Period

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)

Any employee who wishes to resign must give their employer notice in writing:

• 30 days for a permanent employee
• 15 days for temporary employee or 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 Benefits

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.

In both cases, severance pay amounts to 30 days' wages for each completed year of service or for any part thereof in excess of 6 months (limited to 25 years). Additionally, workers are entitled to 45 days' wages for each completed year above 10 completed years. In case an employee is dismissed for misconduct other than theft, misappropriation, fraud, embezzlement, breaking in the establishment, 'riot' or “disorderliness“, they are entitled to a severance pay of at least 15 days' wages for each completed year of service.

Minimum Wage

The monthly minimum wage ranges from BDT 521 to BDT 16,240 (Bangladeshi takas), depending on the industry. Minimum wages for those working in Export Processing Zones (EPZs) are from BDT 6,250 to BDT 14,950, depending on the industry as well as the skill level and experience of the employee. The minimum rates of wages fixed for the employees employed in any industry are re-fixed every 5 years under the government's supervision. Minimum wage for employees in garments industry is BDT 12,500 per month.

Where there are no minimum wage requirements, the base wage of the employee cannot be less than 50% of the gross wage.

Effective April 1, 2022, the Bangladesh Central Bank set a minimum salary for bankers of:

• BDT 39,000 for general branch officers
• BDT 36,000 for cash officers
• BDT 28,000 for trainee branch officers
• BDT 26,000 for trainee cash officers

However, as of March 2022, the wage increase is being litigated in the Supreme Court, as the legality of the central bank's authority to set a minimum wage is at issue.

Wage period cannot exceed 1 month. Wages must be paid by the 7th working day following the last day of the wage period in respect of which the wages is payable.

Overtime, Holiday & Vacation Pay

Overtime is paid at twice the ordinary rate of the basic wage. Employees who have completed at least 1 year of service are entitled to 2 holiday bonuses each year at 100% of the basic salary.

While an employee, under special circumstances, may be required to work on any public holiday, in return, they will be entitled to 2 days of compensatory holidays with wages and a substitute holiday.

Visas

Citizens of most countries require a valid visa to enter Bangladesh. There are about 30 categories of visas available for Heads of State, government delegates, diplomatic officials, UN and other international organizations' officials, NGO workers, employees, consultants, business people, investors, research, athletes, journalists, students, and their family members. Stay durations vary depending on visa types:

• Single entry visa - valid for 6 months, allows staying for not more than 3 months.
• Transit visa - valid for 6 months for persons traveling to other countries via Bangladesh, allows staying for not more than 15 days.
• Multiple entry visa - valid for 6 months for multiple entries, allows for stay up to 3 months at one time

Work Permits

A work permit is mandatory for foreign nationals seeking employment. These permits are usually considered if local experts (given priority for employment) are unavailable or unable to perform.

The Board of Investment (BOI) has imposed a 5-year limit on foreign nationals employed in commercial firms and industries. This restriction does not apply to foreign nationals who work in diplomatic or other non-commercial posts.