Overview of Bangladesh Labor Laws and Employment Policies

Employment Law Overview

• Key Legislations:
  • Bangladesh Labor Act (2006)
  • Bangladesh Factories Act (1965)
  • Bangladesh Social Security Act (2010)
• Legal Framework: These laws aim to protect employees' rights, promote a safe and healthy work environment, and regulate the relationship between employers and employees.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Terms:
  • Must include details such as job description, compensation, working hours, leave policies, and termination clauses.
• Language and Currency: Contracts must be in Bengali or English and denominated in Bangladeshi Taka (BDT).

Working Hours Regulations

• Standard Working Hours: 8 hours per day, 40 hours per week, from Sunday to Thursday.
• Rest Days and Breaks: One rest day per week, with a 30-minute break after every 5 hours of work.

Leave Policies

• Annual Leave: Full-time and part-time employees are entitled to 18 days of paid annual leave per year.
• Public Holidays: Bangladesh observes 20 statutory public holidays.
• Special Leaves:
  • Sick Leave: 14 days of paid sick leave per year.
  • Maternity Leave: 8 weeks of paid leave before and 8 weeks after childbirth.
  • Paternity Leave: No statutory provision.
  • Parental Leave: No statutory provision.
  • Casual Leave: 10 days of paid casual leave per year.

Employee Severance and Termination

• Notice Period: Up to 120 days, or payment in lieu of notice.
• Severance Pay: Employees who have worked for one year are entitled to severance pay of 30 days' wages for each year of service.
• Unfair Dismissal Protection: Employers cannot dismiss employees arbitrarily; there must be just cause for termination.

Taxation Laws

• Personal Income Tax:

  • Salary Range (BDT)	Tax Rate
    0 - 350,000	0%
    350,001 – 450,000	5%
    450,001 – 750,000	10%
    750,001 – 1,150,000	15%
    1,150,001 – 1,650,000	20%
    1,650,000 and above	25%

• Social Security Contributions: Employees and employers contribute 8.33% to social security.

Health Insurance

• Insurance Policy: Employees must participate in the National Social Security Scheme, which provides healthcare benefits.
• Coverage: Healthcare, maternity benefits, and pension.

Compensation and Benefits

• Minimum Wage: No statutory minimum wage.
• Compensation Structure: Salary, bonuses, allowances, etc.

Work Permits and Visas

• Permit Requirements: Foreign employees require work permits and visas.
• Application Process: Applicants must apply to the Bangladesh Immigration Department.

Confidentiality and Non-Compete Clauses

• Enforceability: Confidentiality and non-compete clauses are enforceable in Bangladesh, but must be reasonable and not unduly restrict employees' employment opportunities.
• Common Provisions: Restricting employees from using or disclosing the employer's confidential information and soliciting clients after leaving employment.

Training and Development

• Legal Requirements: No statutory requirements.
• Government Support: The government offers some training and development programs.

Workplace Diversity and Inclusion

• Legal Requirements: No statutory requirements.
• Implementation: Companies may voluntarily implement diversity and inclusion policies.

Remote Work Policies

• Legal Framework: No specific legal provisions.
• Tax and Insurance Implications: Tax and social security implications of remote work depend on the specific circumstances.

Authoritative Website Addresses

• Ministry of Labor, Bangladesh: https://www.mol.gov.bd/