What should an employment contract in Bangladesh include?
An employment contract in Bangladesh should include the following information:
- The names and contact information of both the employer and employee.
- The position and duties of the employee.
- The designated working hours and days for the employee.
- The agreed salary or wages and any extra benefits or bonuses.
- Termination conditions, including the notice period expected from either party.
- Expectations concerning non-disclosure and confidentiality are mutually agreed upon.
Both the employer and employee should carefully review the terms of the employment agreement before they sign it.
What types of employment contracts exist in Bangladesh?
Employment contracts in Bangladesh can be broken down into several categories:
1. Employee contract
This is the most common type of employment contract in Bangladesh. There are two distinct types of employment contracts in Bangladesh’s labor market.
- Permanent employment contract: This type of contract does not have a fixed end date and continues until either the employer or the employee decides to terminate it, following the legal notice period required by labor laws or the terms mentioned in the contract. It typically provides job security and comes with benefits such as paid leave, retirement benefits, and other entitlements.
- Fixed-Term Employment Contract: A fixed-term contract has a specific start and end date. It is used when employment is required for a temporary or seasonal period. Once the contract period ends, the employment automatically terminates. If both parties wish to continue the employment beyond the fixed term, they can negotiate a new contract or convert it into a permanent contract.
2. Project-Based Employment Contract
A project-based employment contract is a specific type of temporary employment agreement used when hiring employees to work on a particular project or assignment. Unlike fixed-term contracts, project-based contracts have a clear start date and end date and are contingent upon the completion of a specific project or task. They clearly define the scope of work, the compensation structure, and project expectations.
3. Part-Time Employment Contract
A part-time employment contract is a type of employment agreement where an employee works fewer hours per week than a full-time employee. The number of hours worked and the scheduling of those hours are typically agreed upon in the contract. Part-time employees enjoy certain benefits, but they usually receive them on a pro-rata basis relative to their full-time counterparts.
How to hire employees in Bangladesh?
When employing new employees in Bangladesh, you’ll have to establish a legal entity in the country. It’s a time-consuming process that involves registering the business with local authorities and getting a business registration number. Moreover, following the local labor laws and regulations in Bangladesh is also essential.
Native Teams provides an Employer of Record service that takes care of diverse responsibilities like payroll, human resources, and tax preparations. At the same time, maintaining full compliance with Bangladesh’s employment laws. In this way, you’ll be able to focus on growing and expanding your business while we take care of administrative tasks.