Updated on: 2025/08/04 14:03 (UTC)
Overview
The main federal statute governing employment in Bangladesh is the Labor Act 2006 (as amended in 2015). Contractual agreements reached between employers and employees cannot have employment rules and benefits that are less favorable than those provided under the act.
Bangladesh has established several Export Processing Zones to promote foreign investment and create employment opportunities in the country. The zones have their own labor regulations, which in some cases are more employer-friendly.
The Ministry of Labor and Employment oversees labor issues in Bangladesh.
Hiring
Employment Contracts
In the absence of a written contract, employees must be given an appointment letter that contains the following:
- working hours,
- type of work,
- role title,
- salary, and
- procedures for dismissal.
Probationary periods are permitted for the following durations:
- six months for a clerical worker and
- three months for all other workers.
The probationary period for skilled workers can be extended by an additional three months if it has not been possible to determine the quality of the work within the first three months.
Restrictions on Hiring
Bangladesh’s labor code prohibits employers from employing children under the age of 14.
Recordkeeping
Within one month of an employee’s hiring date, the employer must create a “service book” containing information about the worker, the employer, and the role. On an ongoing basis, the book must be updated within 15 days of the following occurrences:
- change in pay,
- transfer to another branch of the same firm,
- completion of training,
- leave accrual, and
- disciplinary issues.
Employers also must keep separate registers to log further information about workers and any leave taken.
Background Checks
The Labor Act does not address background checks.
Noncompetition Agreements
The Labor Act specifies that employees must “maintain the confidentiality of the business strategy of the firm in case of performing the duties or changing the job.”
Reference Citations
Employment Contracts: Bangladesh Labor Act, 2006 (as amended in 2013), § 4; Amendments to Labor Act, 2015, § 19
Restrictions on Hiring: Bangladesh Labor Act, 2006 (as amended in 2013), Definitions (63)
Recordkeeping: Amendments to Labor Act, 2015, § 111(5)
Noncompetition Agreements: Amendments to Labor Act, 2015, § 20
Immigration and Work Permits
In General
Foreign workers intending to work in Bangladesh must obtain a work visa and work permit. Employers must perform a labor market test to ensure there are no locals available who can perform the job.
Visas and Work Permits
Foreign workers intending to work in Bangladesh must obtain a work visa at the Bangladeshi consulate in their country of citizenship. Work permits are limited to residents of countries specified by the Bangladeshi government. Employers must be registered with the appropriate labor offices to hire foreign workers.
The first step in obtaining a work permit for an employee is to file an application with the Board of Investment for an e-visa recommendation. If approved, the Bangladesh Embassy will provide the employee with an e-visa valid for three months.
Once the foreign worker arrives in Bangladesh, the employer must apply to the BOI for the work permit on behalf of the expatriate. Work permits are granted for two years and are extendable on a case-by-case basis.
Employers must perform a labor market test to ensure there are no locals available who can perform the job.
The number of expatriates cannot exceed 5 percent in the industrial sector and 20 percent in the commercial sector. Persons under age 18 are not eligible for a work permit.
Reference Citations
Visas and Work Permits: Constitution of Bangladesh, 1972, § 19
Nondiscrimination
In General
Bangladesh’s constitution prohibits discrimination on the basis of religion, race, caste, sex, or place of birth.
Reference Citations
Nondiscrimination: Constitution of Bangladesh, 1972, § 19
Employee Privacy
Employee Data
Bangladesh does not have a specific law that addresses employee data, but the constitution provides a right to privacy.
Employee Monitoring and Surveillance
The Information Communication Technology Act of 2006 prohibits unauthorized entry into any computer system. Employers also may not disclose any e-mail or text message without the permission of the employee.
Reference Citations
Employee Data: Bangladesh Constitution, 1972
Employee Monitoring and Surveillance: Information Communication Technology Act of 2006, § 63
Compensation
Hours of Work
The workday is limited to eight hours per day and 48 hours per week, but an additional two hours of overtime are permitted each day. A worker’s total hours, including overtime, cannot exceed 60 in a week or an average of 56 per week in a year.
Any worker employed in a shop, commercial establishment, or industrial establishment is entitled to one and a half days of rest per working week. Those employed in a factory are entitled to one day.
Women cannot be allowed to work between 10 p.m. and 6 a.m.
Minimum Wage
Minimum wage varies in Bangladesh based on industry and the skill level of the employees. The minimum wage for an apprentice, the lowest skilled worker, in the ready-made-garment industry is 8,000 taka per month. The minimum wage in EPZs starts at 4,480 taka per month for apprentices.
Overtime
Overtime, defined as any work beyond normal working hours of eight hours a day and 48 hours a week with at least 24 hours of rest per week, is paid at 200 percent of a worker’s normal remuneration. Overtime is generally limited to two hours per day. A worker’s total hours, including overtime, cannot exceed 60 hours in a week or an average of 56 hours per week in a year.
Wage Payment
Employers must have a fixed wage payment period for each employee, which cannot exceed one month. Wages must be paid within seven days of the wage payment period. Employers must pay wages on a working day in the current currency or by check.
Employers in EPZs must pay monthly employees by the seventh of the following month and weekly employees by the first day of the following week.
Mandatory Bonuses
Employees who have completed 12 months of service must be given two festival bonuses each year. Each festival bonus must not be more than the basic wage amount.
Reference Citations
Hours of Work: Bangladesh Labor Act, 2006 (as amended in 2013), § 116
Overtime: Bangladesh Labor Act, 2006 (as amended in 2013), § 108
Wage Payment: Bangladesh Labor Act, 2006 (as amended in 2013), §§ 121-123; Bangladesh Export Processing Zones Authority, Guidelines for Employers, 1988
Mandatory Bonuses: Amendments to Labor Act, 2015, § 111(5)
Benefits
Vacation
Employees who work in a commercial or industrial establishment and have completed one year of service are entitled to one day of annual leave for every 18 days of work.
Employees who work on a tea plantation receive one day of annual leave for every 20 days of work. Newspaper workers receive one day for every 11 days of work. Employees age 18 or younger are entitled to one day of leave for every 14 days of work.
Separate rules apply to employers in EPZs, which must grant their employees one day of leave for every 22 days worked.
Employees may carry over up to 60 days of unused annual leave.
Annual leave must be paid in advance in cases where employees will be taking at least four consecutive days off.
Holidays
All employers, except those in EPZs, must provide 11 paid holidays. Employers in EPZs must provide 10 paid holidays. Employers may select which paid holidays to give to their employees from the list below:
- New Year’s Day
- Shahid Day
- Sheikh Mujibur Rahman’s Birthday
- Independence Day
- Bengali New Year
- May Day
- Buddha Purnima
- Shab e-Barat
- Jumatul Bidah
- Laylat al-Qadr
- Eid ul-Fitr (three days)
- Shuba Janmashtami
- National Mourning Day
- Eid ul-Adha three days)
- Vijaya Dashami
- Ashura
- Eid-e-Milad un-Nabi
- Victory Day
- Christmas Day
Employees who are required to work on a public holiday as prescribed by their employer are entitled to two additional days’ pay plus a substitute day off.
Maternity Leave
Female employees who have worked for their employers for at least six months are entitled to paid maternity leave of eight weeks before and eight weeks after the delivery. Female employees who currently have two or more children are entitled to maternity leave but not maternity pay.
Employers have three options for providing maternity leave payments:
- pay the first eight weeks of salary within three days of receiving proof of pregnancy and the remaining eight weeks three days after receiving proof of delivery,
- pay the first eight weeks of salary within three days of receiving proof of pregnancy and the remaining eight weeks after submission of proof of delivery, or
- pay the whole amount (16 weeks’ salary) within three days of proof of delivery.
Employers may not dismiss a female employee within a period of six months before and eight weeks after her delivery without sufficient cause.
Pregnant employees in EPZs are entitled to six weeks of leave prior to the due date and six weeks of leave after the birth of the child. Maternity leave is paid as normal salary. Employers in EPZs can give the maternity benefit twice to one employee and only if there is three years in between utilization of the leave.
Paternity Leave
There are no provisions for paternity leave in the Labor Act. However, new fathers may use the casual leave provision of 10 days when their child is born.
Sick Leave
Most employees are entitled to 14 days of paid sick leave with full wages.
Newspaper workers are entitled to sick leave with half pay for not less than one-eighteenth of their period of service.
In order to receive sick leave benefits, employees must obtain a certificate from a medical professional stating that they are ill. Unused sick leave cannot be carried over.
Other Leave
All employees are also entitled to 10 days of paid casual leave each year. Unused casual leave cannot be carried over.
Pensions and Social Security
There are no government-sponsored pension schemes in Bangladesh.
Workers’ Compensation
Employees who suffer a temporary injury or illness on the job are entitled to 100 percent of their pay for the first two months, two-thirds of pay for the next two months, and 50 percent for subsequent months of disability up to one year. Employees who are permanently disabled must be paid half their wages for up to two years.
Reference Citations
Vacation: Bangladesh Labor Act, 2006 (as amended in 2013), §§ 115, 117; Bangladesh Export Processing Zones Authority, Guidelines for Employers, 1988
Holidays: Bangladesh National Holidays, Ministry of Public Administration Annoucement (Bengali); Factories Act, 1965, § 79
Maternity Leave: Bangladesh Labor Act, 2006 (as amended in 2013), §§ 45-50; Bangladesh Export Processing Zones Authority, Guidelines for Employers, 1988
Sick Leave: Bangladesh Labor Act, 2006 (as amended in 2013), § 116
Workers’ Compensation: Bangladesh Labor Act, 2006 (as amended in 2013), § 151, Schedule 5
Labor Relations
In General
Employees have the right to form unions. A union cannot be registered unless it has a minimum membership of 20 percent of the total number of employees working in the establishment in which it is formed.
If no settlement of an industrial dispute is reached through conciliation and the parties do not agree to refer the dispute to arbitration, workers may go on strike. If a strike lasts more than 30 days, the government may refer the dispute to the labor court.
Right to Organize
Bangladesh’s labor code provides for the freedom of association and the right to form unions. An application for a trade union must be made to the Registrar of Trade Unions.
A union cannot be registered unless it has a minimum membership of 20 percent of the total number of employees working in the establishment in which it is formed.
Works Councils
The Labor Act does not address works councils.
Dispute Resolution
If an employer or a collective bargaining agent finds that an industrial dispute is likely to arise, the parties can arrange a meeting aimed at reaching an agreement within 15 days from the date on which the issue was raised.
If no settlement is reached, either party may within 15 further days serve a notice of conciliation on the other party. If the conciliation fails within 30 days from the date of receipt of the dispute, the conciliator will try to persuade the parties to refer the dispute to an arbitrator.
If the parties refer the dispute to the arbitrator, the arbitrator will give his or her award within a period of 30 days or a period agreed upon by the parties. The award of the arbitrator is final and valid for a period not exceeding two years.
Strikes and Lockouts
If no settlement is reached during conciliation proceedings and the parties do not agree to refer the dispute to arbitration, workers may go on strike. If a strike is commenced, either of the parties to the dispute may make an application to the labor court for adjudication of the dispute.
A strike may last for 30 days. After 30 days, the government may prohibit the strike and refer the dispute to the labor court. The labor court, after hearing both parties, will give an award within 60 days from the date on which the dispute was referred to it. The award will be valid for not more than two years
Successorship Clauses
Bangladesh’s labor code do not address successorship clauses.
Reference Citations
Right to Organize: Bangladesh Labor Act, 2006 (as amended in 2013), § 179
Dispute Resolution: Bangladesh Labor Act, 2006 (as amended in 2013), §§ 209-210
Strikes and Lockouts: Bangladesh Labor Act, 2006 (as amended in 2013), § 211
Safety, Health and Security
In General
Factories with 50 or more workers must have a safety committee composed of equal numbers of employee and employer representatives.
The privacy of employee communications is protected by law.
Workplace Safety and Health
Employers with more than 25 employees must maintain a safety record and a safety information board. Employers with 40 or more female workers must provide one or more rooms for the use of their children who are under the age of six.
Factories with 50 or more workers must have a safety committee to help ensure the safety of workers. The committee must be comprised of between six and 12 members depending on the number of employees in the establishment, one-half representing the employees and the other half the owners. If at least one-third of the employees in the company are female, at least one-third of the workers’ representatives must be women.
Drug and Alcohol Use
The labor code does not address drug or alcohol use.
Reference Citations
Workplace Safety and Health: Bangladesh Labor Act, 2006 (as amended in 2013), §§ 49, 80-81
Termination
Termination by Employer
Employers may terminate an employment contract without notice only in cases of criminal misconduct. Otherwise, employers must provide 120 days’ notice when dismissing permanent employees. Thirty days’ notice must be given when the employee is a temporary worker.
When dismissed for any reason other than criminal misconduct, the employee has seven days to contest the firing. If the employee is not successful, the employer must call a hearing, consisting of an equal number of representatives of the employer and the worker, to determine whether the employee should be dismissed.
Termination by Employee
Employees who wish to resign must give their employer 60 days’ notice. When less than 60 days’ notice is given, employees must compensate employers for the notice time. Thirty days’ notice must be given when the employee is a temporary worker.
Plant Closings and Mass Layoffs
Employers seeking to implement a mass layoff must give 30 days’ notice to the Chief Inspector of Factories and Establishment. Employers are obliged to terminate workers on a “last in, first out” basis.
Payment on Termination
Employees who are discharged are entitled to 30 days’ pay for each year of service with the employer. If an employer terminates the employee without following proper notice procedures, the employee must be remunerated for this notice time.
Employees who terminate the employment relationship are entitled to:
- 14 days’ pay for each year served if the employee has served more than five years but less than 10 or
- 30 days’ pay for each year served if the employee has served 10 years or more.
All termination pay must be paid by the employer within 30 days of the date of termination.
Unemployment Insurance
There are no provisions in Bangladesh’s employment laws for unemployment insurance.
Reference Citations
Termination by Employer: Bangladesh Labor Act, 2006 (as amended in 2013), §§ 23-26
Termination by Employee: Bangladesh Labor Act, 2006 (as amended in 2013), § 26
Plant Closings and Mass Layoffs: Bangladesh Labor Act, 2006 (as amended in 2013), §§ 20-22
Payment on Termination: Bangladesh Labor Act, 2006 (as amended in 2013), §§ 20-22
Personal Taxes
Residency Requirements
Individuals are considered residents if they have been in Bangladesh for 182 days during a year or for at least 90 days after being in Bangladesh for a full 365 days the previous year.
Taxable Income
Taxable income includes any pay, wages, or other remuneration provided to an employee.
Tax Rates
Foreign workers are subject to a flat rate income tax of 30 percent. For Bangladeshi citizens, tax rates vary progressively from 10 percent to 30 percent. Annual income of less than 250,000 taka is not taxable for men. For women and senior citizens of at least 65 years of age, annual income of less than 300,000 taka is not subject to taxation.
Reference Citations
Personal Taxes: Income Tax Manual
Web References
Law and Regulation
Amendments to the Labor Act
Bangladesh Export Processing Zones Authority, Guidelines for Employers
Bangladesh Labor Act, 2006 (as amended in 2013)
Constitution of Bangladesh
Government Websites and Publications
Labor Directorate (Bengali)
Ministry of Labor and Employment (Bengali)