Employ Candidates Compliantly in Bangladesh

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  1. Overview: Bangladesh
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Contractor vs. employee: which is better?
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Global HR Compliance in Bangladesh

If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Bangladesh Guide below will help you understand the nuances of labor legislation in the country.

There are two main reasons for companies hiring foreign workforce:

  • Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
  • Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.

After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.

If you need to hire foreign workforce in Bangladesh so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.

With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.

We are experts in global workforce employment in Bangladesh, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Bangladesh.

Hiring and Firing Workforce in Bangladesh Guide

# Employment Contracts

In Bangladesh, people may be employed as trainees, as casual workers, on temporary basis to cover for absent employees, for an unlimited term or for an indefinite period. Employees shall be provided with letter of appointment, service book and ID card at the establishment of an employment relationship.

# Minimum statutory employment rights

# Hours of work
Normal working time comprise an 8-hour workday and a 48-hour workweek. Employees are entitled to 30 minutes rest for more than 5-hour workday, 60 minutes rest for more than 6-hour workday and two 30 minutes (or one 60 minutes) rest for more than 8-hour workday. Female employees are not allowed to work between 10 pm and 6 am, except with their consent. Young employees are prohibited to work between 7 pm and 7 am.

# Probation period
Employers have the right to put their employees on probation, provided the total period does not exceed the legal limit. Probation period is set at 6 months for clerical workers and at 3 months for others. In the case of a skilled worker, the period of probation may be extended for a further period of three months if, for any reason, the quality of his or her work cannot be determined within the first three months of probation.

# Annual leave
Having completed one year of employment in a shop, road, factory, commercial or industrial establishment, employees shall be granted paid annual leave calculated at one day for every 18 days worked. Employees who work on tea plantations shall be granted one day of paid leave for every 22 days worked, while those in newspaper industry shall be given one day for every 11 days they worked.

Factory and road transport workers may accumulate and carry over up to 40 days leave. Shop, road, factory, commercial, industrial and tea plantation workers are entitled to carry forward up to 60 days leave.
Employees are entitled to receive annual leave benefit prior to the start of their leave if they intend to take at last 4 days consecutively. Employees, save those who work on tea plantations, have the right to 10 days of paid casual leave each year of service.

# Parental leave
Female employees are eligible for paid maternity leave only after completing at least 6 months of service in a company. Such employees are entitled to 8 weeks of paid leave prior childbirth and another 8 weeks after delivery. Employees who have less than 6 months of service with the employer and working mothers with at least 2 surviving children are entitled to unpaid maternity leave.

# Sick leave
All employees are entitled to 14 days of paid sick leave every year. Sick leave entitlement cannot be carried over to the following year.

# Overtime
The normal working hours plus overtime must not exceed 60 hours a week and on average, 56 hours per week in a year. Employees are not allowed to work more than 2 hours overtime in any workday. Employees shall be paid two times their normal wage for every overtime worked.

# State minimum salary
1,500 taka ($19) per month for all economic sectors not covered by industry-specific wages; in the garment industry the minimum wage is 5,300 taka ($68) per month. The minimum wage is set nationally every five years by the National Minimum Wage Board in a tripartite forum industry by industry.

# Employment termination
Probationary employees may terminate their contracts with a notice period of 14 days to their employers. Permanent employees may terminate their contracts of employment with 60 days’ written notice to the employers.
Employers who wish to terminate their employees’ contracts of employment may do that with 120 days’ written notice (if they are on monthly pay rate) or 60 days’ written notice (if they are not) and 30 days of pay for every year served.

Employees may be terminated without notice if they are terminated for reasons of misconduct or criminal offense.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Bangladesh by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.

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