The Bangladesh Labor Code covers all aspects of employment and the relationship between employers and employees. It is based on the Bangladesh Labour Act passed in 2006 (as amended) and the Bangladesh Labour Rules passed in 2015 and covers all laws related to labor and employment, including employee rights, salaries, employee benefits, accident and injury compensation, and other employment matters. In Bangladesh, the main agencies that monitor and enforce labour laws are the Ministry of Labour and the Department of Factories and Institutions Inspection under the Ministry of Labour and Employment.
This Bangladesh Labor Law Employment Guide covers the basic principles of employment in Bangladesh.
As Bangladesh has more than 1With a huge population of 600 million, it is known for its cheap labor in both the agricultural and non-agricultural sectors. Under Bangladesh's labor laws, any individual who performs skilled, physical, **skilled or unskilled work in an industry or establishment is considered an "employee," regardless of whether the terms of employment are expressly set forth in the contract.
This type of work may be temporary, contractual, or permanent, but does not include professionals in clerical or managerial positions.
An employment contract is a legal document that binds both the employer and the employee. It clearly defines the relationship between them, as well as the specific details and terms of employment. Bangladesh's labor laws stipulate that an employment contract should include all benefits, rights, privileges, compensation, working hours, job duties, salary, and termination policies.
An employment contract in Bangladesh should include the following principles:
The title of the agreement
This illustrates the nature of the employee's work, whether temporary or permanent.
Identity of the parties
The names of employers and employees should be mentioned.
Term. The duration of the contract should be clearly defined.
Place of work
This includes the exact location where the employee will be working.
Job Responsibilities
These should be elaborated according to the expectations of the workers.
Remuneration
The salary that is in sync with the minimum wage set by the Bangladeshi labor law should be clearly stated.
Benefits
This should include all mandatory benefits such as sick leave, temporary leave, maternity leave for foreigners in Bangladesh, holiday leave, and additional bonuses per year.
Termination Provisions
All the details according to Bangladesh employment regulations should be mentioned, whether notice is required for termination, the length of the notice period, severance pay, etc.
Dispute Resolution
In the event of a dispute between an employer and an employee, if one party violates the Code of Conduct, the other party should seek relief in the Bangladesh Labor Court.
According to Bangladesh's labor laws, all employers are required to follow the Federal Labor Code and Regulations, which stipulate all the conditions for employment. In addition, the country's labor laws allow employees to unite and join labor unions under the Employee Rights and Labor Law.
Here's a glimpse of the core provisions of Bangladesh's labor laws.
Type of worker
According to the country's labor laws, employees are classified as apprentices, substitutes, temporary workers, probationary workers, temporary workers, permanent workers, and seasonal workers based on the conditions and nature of the work.
Conditions of employment
According to the Bangladesh Labour Act 2006, the country's labor laws stipulate specific working conditions that every employer company must follow.
Recruitment
In Bangladesh, there is no employer who can hire an employee who does not provide a letter of appointment and an identity card with **.
Working hours
The Bangladesh Labour Law 2006 enumerated the daily and weekly working hours and overtime pay. Accordingly, the working hours are 8 hours per day, 48 hours per week, a maximum of 10 hours per day and a maximum of 60 hours per week. Women workers cannot go to work between 10 p.m. and 6 a.m. unless they have their consent. Road transport workers are entitled to 150 hours of overtime per year. The country's law states that night shift employees should have a 24-hour gap between shifts.
Salary
The law on wages under Bangladesh's labor laws covers wages, bonuses, compensation, overtime pay, etc. Therefore, each worker should be paid by the 7th day of the month, and the maximum working time is one month. In the event of termination, the employee is entitled to receive wages within seven days from the day of termination, with or without termination pay. Salary payments are always paid on weekdays. Payroll should be paid by check, fiat currency, or through the employee's bank account.
Leave of absence and holidays
Employees in Bangladesh are entitled to sick leave, sick leave, paid annual leave, and holidays.
Vacations and vacations including holidays, maternity leave, etc. Each leave category is allocated a certain number of days per year. For example, there are ten days of sick leave, 14 days of sick leave with a medical certificate, and industry-specific annual leave.
Dismissal Policy
The Labour Law of 2006 sets out the grounds or guidelines for dismissal. If an employee violates the Code of Conduct, or commits any criminal offense, or engages in acts such as stealing, bribery, forgery, or willful disobedience, termination with or without notice may be subject to the reason for termination and the terms of the contract. Employers can choose whether or not to charge a penalty.
In the case of redundancy, the employee should be terminated within a minimum one-month notice period, stating the reason for the dismissal or paying full pay during the notice period. For employees who are about to retire, employers must provide compensation for their gratuity beyond their severance pay or 30 days of annual service.
For company layoffs, employees will be appropriately compensated, which includes half of their monthly salary and half of any concessionary remuneration (e.g., living allowance, housing allowance, etc.).
Employment regulations on dismissal in Bangladesh stipulate that employers must give advance notice to employees before terminating them. The length of the notice period can vary depending on the job and industry. For example, the notice period for permanent workers is 60-120 days, while the notice period for temporary skilled workers is 30 days.
Penalties
According to Bangladesh's labor laws, if an employee is found guilty of misconduct, violation, or any crime through proper evidence, appropriate penalties are imposed depending on the nature of the crime.
According to the Labour Code of 2006, the following penalties can be imposed depending on the nature of the offence:
Dismissal occurs in multiple situations such as willful disobedience, unexcused absence from work for more than ten days, misconduct in the workplace, etc. When terminating an employee, the case should be recorded in writing. In addition, employees should be given a seven-day opportunity to be heard, and punishment can only be imposed if proven guilty by a representative of the commission of inquiry.
Suspensions must be given in writing and can be enforced if the employer believes that the offense is not sufficient for dismissal. Suspension may have additional penalties, such as garnished wages. The extent of the penalty may depend on the employee's history or the severity of their offense.
Other penalties include demotion, refusal of promotion for one year, suspension of annual salary increases, fines, suspension without pay, but provision of seven days of living expenses, etc.
To comply with Bangladesh's labor regulations, there are some compliance strategies employers can employ:
Human resource management
Having a human resource management team can streamline many business processes because the department manages your employees effectively. HR personnel are responsible for recruiting the right employees, training and evaluating them, and providing benefits that comply with Bangladesh's labor laws.
Use standard templates to draft employment contracts
One of the best ways to follow country-specific laws is to set up industry-standard templates for official documents, including appointment letters, employment contracts, termination letters, and more.
Outsourcing
Outsourcing HR needs to a global PEO-EOR company can streamline your business operations, including employee onboarding, payroll management, international employee management, legal compliance, and more.
Please note that this information is for informational purposes only and specific regulations are subject to change. It is advisable to consult with a local legal professional before taking any specific action.