Bangladesh Employer of Record

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Bangladesh, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Bangladesh ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Bangladesh and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Bangladesh's major federal statute governing employment 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 (EPZs) to promote foreign investment and create employment opportunities. The zones have labor regulations, which are sometimes more employer-friendly.

The Ministry of Labor and Employment oversees labor issues in Bangladesh.

As you look to hire employees in Bangladesh, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

The Bangladesh Labor Act, 2006 restricts working time in any establishment to 8 hours during a day and 48 hours during a week. 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.

As you consider the appropriate salary to offer new employees, keep in mind:

As your employer of record in Bangladesh, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Employees who have completed 12 months of service must be given two festival bonuses each year which is the same as the basic wage amount.

Probationary periods are permitted for the following durations:

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.

Employers must provide 120 days’ notice when dismissing permanent employees and 30 days’ notice for temporary workers.

Employees who wish to resign must give their employer 60 days’ notice and if less than 60 days’ notice is given, employers must be compensated for the notice time. Thirty days’ notice must be given when the employee is a temporary worker.

Employees who terminate the employment relationship are entitled to:

All termination pay must be paid by the employer within 30 days of the date of termination.

When negotiating terms of an employment contract with a candidate in Bangladesh, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Female employees are eligible for maternity leave of 8 weeks before and 8 weeks after the childbirth provided, they have completed at least 6 months of employment before the delivery. Additionally, if they have two or more children are entitled to maternity leave but not maternity pay.

Pregnant employees in EPZs are entitled to six weeks of leave before the due date and six weeks of leave after the birth of the child. Maternity leave is paid as a normal salary. Employers in EPZs can give the maternity benefit twice to one employee and only if there are three years in between utilization of the leave.

Employees who have completed 1 year of service in any organization are entitled to fully paid annual leave calculated as follows:

Separate rules apply to employers in EPZs, which must grant their employees one day of leave for every 22 days worked.

Employees may carry forward up to 60 days of unused annual leave.

Employers may select which paid holidays to give to their employees from the list below:

14 days of sick leave is granted to all workers with full wages, other than newspaper workers. Employees need to submit a medical certificate to receive sick leave.

Newspaper employees are entitled to half-paid sick leave for one-eighteenth of their working hours.

There are no government-sponsored pension schemes in Bangladesh.

In addition to healthcare benefits, employees in Bangladesh are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Bangladesh, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: January 22, 2024

We write and validate all local employment contracts, streamlining the onboarding process for you and your Bangladesh employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Bangladesh, we will:

The entire onboarding process for the employee is often completed in as little as two weeks.

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Bangladesh. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.