The People’s Republic of Bangladesh is located in Southern Asia. The official language is Bengali, which is also known as Bangla. Bangladesh is in the top 40 global economies. Political and economic stability combined with a diversified economy make Bangladesh an ideal destination for expansion into Asian markets.
Employment contracts should be written and include the names of the parties, dates, job title, job description, salary, working hours, bonuses, annual leave, sick leave, casual leave and any termination clauses. It is also required to outline in any employment contract the process for filing an employment related grievance. Many employment contracts include provisions about performance reviews if relevant for the employer.
The standard work week is capped at 48 hours with an eight-hour workday. However, adult employees may work up to 60 hours in a week. The additional hours are considered overtime, which is paid at double an employer’s normal wage rate.
Employees receive 14 days of sick leave per year after a year of service, except for newspaper employees. The employee must present a medical certificate to receive sick leave and employees cannot carry over the remaining sick leave to the following year. Sick leave is paid at the equivalent of the employee’s normal wages.
Female employees receive eight weeks of fully paid maternity leave before and after the birth. A medical certificate affirming pregnancy must be provided to an employer to be eligible. Unpaid maternity leave will be provided for expectant mothers employed with their company for fewer than six months, or for expectant mothers who already have two years. There are no provisions in the law for paternity leave.
Employees in Bangladesh receive a festival bonus after a year of service. The bonus is paid twice a year and which should not be less than the basic salary.
Employees receive one day of paid leave for every 18 days of work after a year of service if they work in a commercial establishment, factory, shop or transport. If they work for a newspaper, they receive one day of vacation for every 11 days worked. If they work on a tea plantation, they receive one day off every 22 workdays. Any unused leave can be carried over, up to a maximum of 60 days unless the employee works for a factory, then they can carry over 40 days.
The following public Holidays are observed in Bangladesh:
Private healthcare insurance is recommended. Due to the complications in funding public healthcare, private health coverage is often offered as a benefit.
Employees can be terminated for misconduct without notice or severance pay, or alternatively, demoted, blocked from a promotion for a year, fined or warned. Otherwise, employers must provide employees with advance notice of termination. The notice period is 120 days for monthly paid workers or 60 days for other workers. The employer also can pay compensation in lieu of notice. Employees receive 30 days of severance pay for each year of service, and then 45 days for each year of service above ten years. If an employee is dismissed for misconduct, they are entitled to severance pay of a minimum of 15 days for each completed year of service.
We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.
Our team of regional experts are here to support you with your global expansion plans. If you have any questions, just get in touch and we will be delighted to help.
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