Remote’s guide to employing in

Bangladesh
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Services available in this country:
Employer of Record ProductContractor Management
  • Capital City

    Dhaka

  • Currency

    Bangladeshi taka (৳, BDT)

  • Languages

    Bengali

  • Population size

    161,376,708

Services available in this country:
Employer of Record ProductContractor Management

Employment termination in Bangladesh

Termination process

Employee contracts can either be terminated at will or with just cause established, such as dishonesty, negligence, fraud, or any other work-related offenses.

Notice period

Employers are only required to provide prior notice to employees who’re being let go without any justification. This mandatory period ranges from 60 days for general workers to 120 days for employees who’re compensated monthly.

In case of termination by the employer: 30 days notice is required for monthly rated workers and 14 days in the case of other workers (payment in lieu is also an alternative).

In case of termination by the employee: A temporary worker may resign from service by giving the employer in writing with 30 days notice in the case of a monthly rated worker or 14 days for other workers (payment in lieu is also an alternative).

Severance pay

Gratuity is a discretionary monetary benefit scheme offered by an employer upon completion of service of an employee. For every type of separation, the employee becomes entitled to an amount as either 'compensation' or 'gratuity' (if any), whichever is higher as stated in the relevant provisions under the Bangladesh Labour Act, 2006 (hereinafter referred to as BLA).

In case, if an organisation does not have any gratuity scheme, then the employer is liable to pay compensation, as per the BLA at the time of separation. Gratuity or compensation payment shall be in addition to any payment of wage/salary in lieu of notice due to separation of service of an employee on different grounds.

An employee will be entitled to gratuity only when he has been in uninterrupted service for more than 1 year with the organization. Completion of more than 6 months of service will be deemed as 1 year from the second year.