Hiring guide in Bangladesh

What should I know about hiring in Bangladesh?

In Bangladesh, businesses must navigate a complex environment of employment rules and regulations to ensure compliance and avoid penalties. Adhering to local legislation is essential to maintain smooth operations and foster a productive workforce.

Key aspects include compliance with minimum salary requirements, which mandate that businesses pay employees at least the legally defined minimum wage. Additionally, companies must respect the maximum allowable workweek length to avoid overworking employees and potential legal issues. Proper management of employee benefits is also crucial. This involves providing mandatory benefits such as health insurance and paid leave, as local laws stipulate. Ensuring these benefits are correctly administered helps maintain legal compliance and employee satisfaction.

Ultimately, a thorough understanding of Bangladesh’s employment laws, including regulations on work contracts, termination procedures, and worker rights, is vital. This knowledge helps businesses stay within legal boundaries while laying the groundwork for a successful and compliant workforce.

Why is Bangladesh a good choice for finding remote employees?

The attractive mix of a large and young workforce, lower costs, excellent English proficiency, and cultural compatibility makes Bangladesh a good alternative for sourcing remote workers. Because of its progressive policies in education and technology, the country is home to an extensive and expanding labour force.

Therefore, many qualified and experienced workers in Bangladesh are looking for remote job opportunities with foreign businesses. Communication with clients and coworkers from other countries is simple due to the country’s substantial English-speaking population.

In addition, many employees in Bangladesh have received training in cutting-edge technologies, making them ideal candidates for remote work in industries like software development, information technology, and digital marketing.

How can Native Teams help you hire in Bangladesh?

With Native Teams’ Employer of Record solutions, you can get guidance and support from hiring and onboarding to paying and managing your team in Bangladesh, directly, with one provider only.

With our team by your side, you can ensure that your business always works in compliance with all the Bangladeshi laws and regulations, without any middlemen involved in the process.

Hire your first Bangladeshi employee with Native Teams.

Legal requirements for hiring in Bangladesh

Employers must follow a few essential laws and regulations to ensure a fully compliant employment process in Bangladesh.

Legal framework

Employment law in Bangladesh is primarily governed by the Bangladesh Labour Act, 2006, as subsequently amended, and the Bangladesh Labour Rules, 2015. Together, they regulate key aspects of the employment relationship, including working conditions, wages, health and safety, termination, and dispute resolution.

The Bangladesh Labour Act, 2006, as amended in 2018 and most recently in 2026, applies to most establishments, with certain exceptions such as government services, defence, and agricultural work employing fewer than five workers.

The Act covers areas including:

• Appointment, termination, disciplinary procedures, and worker classification.
• Trade union formation, collective bargaining, and non-discrimination.
• Workplace health and safety, including safety equipment and health checks.
• Minimum wages, payment periods, and payment methods.
• Working hours, including the standard limits of 8 hours per day and 48 hours per week, as well as overtime.
• Annual, casual, sick, and maternity leave.
• Termination procedures, including notice periods and severance pay.
• Industrial dispute resolution through conciliation, arbitration, and labour courts.

The Bangladesh Labour Rules, 2015 provide more detailed procedures for implementing the Labour Act. They cover requirements for employment contracts and different types of employment, termination and disciplinary procedures, workplace safety and accident reporting, as well as provisions relating to worker welfare funds, canteens, and recreational facilities.

Types of employment contracts

Employment contracts in Bangladesh may be structured according to the duration and nature of the employment relationship. The main types include:

Permanent employment contract
A permanent employment contract has no fixed end date and continues until either the employer or employee terminates it in accordance with the required notice period or contractual terms. It typically includes benefits such as paid leave, retirement benefits, and other employment entitlements.

Fixed-term employment contract
A fixed-term employment contract has a defined start and end date and is generally used for temporary or seasonal employment. The employment relationship ends when the agreed contract period expires.

If both parties wish to continue the employment relationship, they may negotiate a new contract or convert the arrangement into permanent employment.

Content of an employment contract

Employers in Bangladesh must provide employees with a formal letter of appointment confirming their employment status. Employees must also provide a photograph-bearing identity card before the employment agreement is finalised.

A written employment contract should clearly define the terms and conditions of employment, including:

• Type of employment: Whether the employment is temporary or permanent.
• Parties to the agreement: The names and details of the employer and employee.
• Contract duration: The commencement date and, where applicable, the end date of the employment.
• Place of work: The location where the employee is expected to perform their duties.
• Job responsibilities: A description of the employee’s role, duties, and responsibilities.
• Remuneration: Salary, payment schedule, allowances, and other compensation in accordance with applicable minimum wage requirements.
• Benefits: Applicable statutory benefits, including sick leave, casual leave, maternity leave, festive holidays, and any additional annual bonuses.
• Termination: The conditions and procedures for ending employment, including applicable notice periods, severance pay, and other compensation.
• Dispute resolution: The process for resolving employment disputes, including recourse to the Bangladesh Labour Courts or other applicable arbitration mechanisms.

There is no specific language requirement for the employment contract.

Download a free employment contract for Bangladesh through Native Teams.

Oral, written or electronic employment contracts

Employment contracts in Bangladesh must be documented in writing to provide clarity, transparency, and enforceability of the agreed employment terms.

The written agreement should document key conditions of employment, including wages, payment dates, working hours, leave entitlements, and termination provisions.

Employment agreements may also be concluded electronically. Where an electronic signature is used, the employment contract requires a qualified electronic signature to meet the applicable legal requirements and ensure the validity and enforceability of the agreement.

Working hours

The standard working week in Bangladesh is generally 48 hours.

Working hours refer to the time during which an employee is at the employer’s disposal, excluding prescribed breaks for rest and meals.

Employees under the age of 18 are subject to additional working time protections, with their working hours limited to a maximum of 42 hours per week.

Night work

Under the Bangladesh Labour Act, work performed between 10:00 PM and 6:00 AM is considered night work.

Employees who work during these hours are entitled to additional compensation or allowances beyond their standard remuneration.

The applicable additional payment may be determined by legal requirements or the terms of the employee’s employment contract.

Breaks and types of leaves

Employees in Bangladesh are entitled to breaks for rest and meals during the working day. These breaks are not counted as working hours.

The minimum break entitlement depends on the length of the working day:

• Employees working more than five hours are entitled to a break of at least 30 minutes.
• Employees working more than six hours are entitled to a break of at least one hour.
• Employees working more than eight hours are entitled to either one break of at least one hour or two breaks of at least 30 minutes each.

Daily rest

Working periods, including intervals for rest or meals, must generally not extend over more than 11 hours per day, subject to conditions imposed by the Government.

Weekly holidays

Weekly holiday entitlements depend on the type of establishment:

• Employees in shops, commercial establishments, or industrial establishments are entitled to one and a half days of holiday per week, while employees in factories and establishments are entitled to one day per week.
• Employees in road transport services are entitled to 24 consecutive hours of holiday per week, without any deduction from wages.

Where an employee is deprived of a weekly holiday due to an applicable exemption, they must receive an equal number of compensatory holidays as soon as circumstances permit.

Annual leave

Employees in Bangladesh are entitled to paid annual leave after completing one year of continuous service. The number of leave days is calculated according to the type of establishment and the number of days worked during the previous 12 months.

Annual leave accrues at the following rates:

• Shops, commercial or industrial establishments, factories, and road transport services: One day of paid leave for every 18 days worked.
• Tea plantations: One day of paid leave for every 22 days worked.
• Newspaper workers: One day of paid leave for every 11 days worked.

Employees are also entitled to 10 days of casual leave with full wages per calendar year.

Salary

Wages in Bangladesh are regulated by the applicable labour legislation, which establishes requirements relating to salary structures, employee entitlements, and employer obligations.

Salary levels vary depending on factors such as the industry, job role, and employee expertise. Employees working in specialised fields, including information technology, engineering, and finance, typically earn higher salaries.

Average income levels in Bangladesh have also gradually increased in recent years, influenced by economic growth, industrial development, and government reforms across different sectors.

To calculate the salary and taxes in Bangladesh, click here.

Sick leave

Employees in Bangladesh are entitled to sick leave, with the applicable entitlement depending on the category of worker.

• Employees other than newspaper workers: Entitled to 14 days of sick leave with full wages per calendar year.
• Newspaper workers: Entitled to sick leave with half wages for at least one-eighteenth of their period of service.

To use sick leave, the employee must provide proof of illness from a registered medical practitioner.

Paternity and maternity leave

Female employees in Bangladesh are entitled to 16 weeks of maternity leave, consisting of eight weeks before the expected delivery date and eight weeks after childbirth.

Employers cannot require a woman to work during the eight weeks immediately following childbirth. Restrictions also apply to arduous work, prolonged standing, or work that could adversely affect the employee’s health during specified periods before and after delivery.

To qualify for paid maternity benefits, the employee must have worked for the employer for at least six months immediately before childbirth.

Maternity benefits are generally not payable if the employee has two or more surviving children at the time of childbirth. However, she remains entitled to the applicable maternity leave.

There is no standardised statutory paternity leave policy for the private sector, and paternity leave arrangements may vary between employers.

Methods of employment termination

Employment in Bangladesh may be terminated in several ways, depending on the circumstances and reasons for ending the employment relationship.

Dismissal
An employer may dismiss an employee due to misconduct, performance issues, or serious breaches of company policies or legal obligations.

Retrenchment
Employment may be terminated through retrenchment due to economic circumstances, financial challenges, technological changes, or organisational restructuring.

Lay-off
A lay-off involves the temporary suspension of employment due to circumstances such as seasonal fluctuations, market downturns, or unexpected business disruptions. Lay-offs may include provisions for re-employment or recall.

Discharge
An employer may discharge an employee for reasons unrelated to misconduct or performance, such as organisational restructuring, redundancy, or changes in business requirements.

Termination by notice
Either party may end the employment relationship by providing advance notice in accordance with the employment agreement or applicable labour laws. This includes resignation or other forms of termination subject to the relevant notice requirements.

Ordinary dismissal by the employer

In Bangladesh, employers may terminate employment through retrenchment on the grounds of redundancy, subject to specific legal requirements.

Where an employee has completed at least one year of continuous service, the employer must:

• Provide at least one month’s written notice, stating the reasons for the retrenchment; or
• Provide payment in lieu of the notice period.

Employers must follow the applicable legal procedures when carrying out a retrenchment to ensure that the termination complies with labour law requirements.

Notice period and challenging the dismissal

Notice requirements in Bangladesh vary depending on the type of termination and the employee’s employment status.

For termination under Section 26 of the Labour Act:

• Permanent workers: At least 120 days’ notice.
• Temporary monthly-rated workers: At least 30 days’ notice.
• Other temporary workers: At least 14 days’ notice.

The notice requirements for temporary workers do not apply where employment ends because the temporary work for which they were hired has been completed, ceased, abolished, or discontinued.

An employer may terminate employment without requiring the employee to work through the notice period by providing wages in lieu of notice.

Different requirements apply in certain circumstances:

• Dismissal for misconduct or a criminal offence: No notice or wages in lieu of notice are required.
• Retrenchment: Employees with at least one year of continuous service are entitled to one month’s notice or wages in lieu of notice.
• Discharge: Prior notice is not required.

Rights and obligations of unemployed persons

Under the Bangladesh Labour Act, employees are entitled to receive any outstanding wages and compensation following the termination of employment.

The applicable entitlements depend on the type of employment and the circumstances of termination, including retirement, retrenchment, dismissal, employer-initiated termination, or resignation.

Employers must settle all outstanding amounts owed to the employee within 30 working days from the date employment ends.

Severance pay

Severance entitlements in Bangladesh depend on the reason for termination and the employee’s length of service.

• Removal under extenuating circumstances: An employee with at least one year of continuous service is entitled to 15 days’ wages for each completed year of service.
• Termination of a permanent employee under Section 26: The employee is entitled to 30 days’ wages for each completed year of service or gratuity, whichever is higher, in addition to other applicable benefits.
• Dismissal for specified misconduct: Employees dismissed for offences such as theft, fraud, dishonesty, disorderly conduct, riot, arson, or property damage are not entitled to compensation for the dismissal.

A dismissed employee may still be entitled to other applicable statutory benefits, including the provident fund, workers’ profit participation fund, and welfare fund.

Probationary period

The duration of the probationary period in Bangladesh depends on the nature of the employee’s role.

• Clerical employees: The probationary period may last up to six months.
• Other employees: The probationary period may last up to three months.

For skilled workers, if their performance cannot be adequately assessed during the initial three-month period due to unforeseen circumstances, the probationary period may be extended by an additional three months.

Intellectual property rights

Intellectual property created during employment in Bangladesh may be governed by the employment contract and applicable intellectual property laws.

Employment contracts commonly include provisions specifying that IP created by an employee in the course of their employment belongs to the employer, provided these terms are clearly defined and agreed upon.

For copyright, works created during employment generally belong to the employer where the employment contract specifically provides for employer ownership. Without such a provision, the employee generally retains the copyright, although the employer may have an implied licence to use the work.

For patents, in the absence of an agreement assigning ownership to the employer, the rights generally belong to the inventor, which may be the employee. Employers may therefore include contractual provisions assigning inventions created during employment to the employer.

Prohibition of competition

Under Bangladeshi law, employees are generally free to engage in competitive activities after their employment ends.

Section 27 of the Contract Act, 1872 provides that contractual provisions restricting an individual from pursuing a lawful profession, trade, or business are generally void and unenforceable.

As a result, post-employment non-compete clauses that seek to prevent former employees from working for competitors or engaging in competing business activities are generally not enforceable under Bangladeshi law.

Remote working policy

Bangladesh does not have a specific legal framework dedicated to remote work, so remote working arrangements are generally managed under existing labour laws and agreed terms between the employer and employee.

Remote work may be arranged on a permanent, temporary, or occasional basis, subject to mutual agreement between the parties. The arrangement should be appropriate for the nature of the employee’s work and comply with applicable occupational health and safety requirements.

Employees who normally work from the employer’s premises may also propose an amendment to their employment contract to work remotely for a specified period, including to support work-life balance and personal or family responsibilities.

Responsibilities within a remote work arrangement

Remote work arrangements in Bangladesh are based on mutual agreement between the employer and employee, with both parties having responsibilities when changes to the working arrangement are proposed.

When an employee requests an amendment to their employment contract to allow remote work, the employer must consider and respond to the request within a reasonable timeframe. The employer may approve or reject the proposed arrangement.

Where remote work has been agreed for a specified period, the employee may also request to return to the employer’s premises before that period ends. The request should be made in accordance with the terms agreed when the employment contract was amended.

Health and safety at home

Employers should support health and safety for employees working remotely, including measures that promote a safe and suitable home working environment.

Employees should maintain an ergonomically appropriate workspace, including a comfortable chair, suitable desk height, and proper screen positioning to help reduce physical strain.

Employers should also consider mental health and well-being by encouraging clear boundaries between work and personal time and supporting a healthy work-life balance.

Where appropriate, employers may provide access to mental health resources, such as counselling services, and create an environment where employees feel comfortable raising well-being concerns.

What are the advantages of hiring employees from Bangladesh vs other countries?

Hiring employees from Bangladesh offers several advantages compared to hiring from other countries, which can be particularly appealing for companies looking to optimise costs, access a skilled workforce, and benefit from specific regional advantages.

One of the primary advantages is cost-effectiveness. Bangladesh is known for its relatively low labour costs compared to many other countries, which can significantly reduce business operational expenses. This is particularly beneficial for companies looking to manage their budgets while still maintaining a strong workforce.

Additionally, Bangladesh has a growing, talented workforce with many skilled professionals in various sectors, including information technology, textiles, and customer service. The country places a strong emphasis on education and vocational training, producing a pool of qualified candidates proficient in both technical and soft skills.

English proficiency is another key advantage. While English is not the native language, many Bangladeshis are fluent, especially in business and technical contexts. This facilitates smoother communication and collaboration with international clients and teams.

Furthermore, Bangladesh has a strong work ethic and a growing focus on improving workplace practices. Many employees are highly motivated and dedicated to their work, which can contribute positively to a company’s productivity and overall performance. Finally, the government offers incentives for businesses that set up operations or hire locally in Bangladesh. These incentives can include tax benefits, financial subsidies, and support for infrastructure development, which can further enhance the cost advantages of hiring from the country.

Why use Native Teams for hiring in Bangladesh?

Native Teams helps you employ and pay your team in Bangladesh directly through owned entities and infrastructure. 

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company setup: You can expand your business using our company entities.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Local expertise: We can help you navigate local regulatory environments and ensure you meet all relevant requirements.
• Dedicated support: We make sure your employees feel supported and cared for through the entire process.