Bangladesh PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Bangladesh to companies willing to enter the Bangladesh market or hire local/expat employees in this country.

The traditional approach claims to establish a subsidiary in Bangladesh.  But our solution permits you to start the operations in Bangladesh within days subsequently save time and charges.  WeHG would keep candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Bangladesh fast facts

Population, million: 164
Land area:  148,460 km²
Capital: Dhaka
Local currency: Bangladeshi taka (৳) (BDT)

GDP per capita:$ 5,138
GDP in currency:$ 864.883

Bangladesh, country of South Asia, located in the delta of the Padma (Ganges [Ganga]) and Jamuna (Brahmaputra) rivers in the northeastern part of the Indian subcontinent.

The riverine country of Bangladesh (“Land of the Bengals”) is one of the most densely populated countries in the world, and its people are predominantly Muslim. As the eastern portion of the historical region of Bengal, the area once formed, along with what is now the Indian state of West Bengal, the province of Bengal in British India. With the partition of India in 1947, it became the Pakistani province of East Bengal (later renamed East Pakistan), one of five provinces of Pakistan, separated from the other four by 1,100 miles (1,800 km) of Indian territory. In 1971 it became the independent country of Bangladesh, with its capital at Dhaka.

Hiring, Negotiating and Doing Business in Bangladesh

Necessity of written employment contract

An Employment Agreement is used when an employee is hired or re-hired, and states the compensation the employee will receive, and any other terms and conditions of employment that may exist. Typically, employment agreements cover such topics as rate and frequency of payment, vacation time, confidential obligations (if any), benefits or stock options, termination period, and several related details.

Different forms of engagement: employment, contracting, work with private entrepreneur

Types of workers in Bangladesh:

• Apprentice: As a trainee + Paid allowance only
• Substitute/ Badli: In the post of a permanent Worker or of a probation worker
• Casual: Casual in nature
• Temporary: Temporary in nature + finished within a limited period
• Probationer: In a permanent post + the period of his probation
• Permanent: He has completed the period of his probation
• Seasonal: Any work season and remain in employment up to the end of the season

Bangladesh Employment Contract

Types of employment agreements

There’re no specific types of employment contracts in Bangladesh. Meanwhile, employee contract in Bangladesh includes:

• Title of the Agreement: A title of an agreement is mandatory. It is necessary to specify whether the employee agreement is for temporary workers or for permanent employees and it is must be titles likewise. 
• Identify the parties: Both Parties must be named. The agreement must include the name of the company and also the name of the employee. 
• Term of the Agreement: The validity of the agreement must be inserted in the agreement in order for it to be effective since as per the laws of Bangladesh an agreement cannot remain valid for an indefinite period of time. 
• Position/ Place of work: Please insert his/her designation and the place of employment. 
• Responsibilities of an employee: Please lay out the roles and responsibilities of the respective employee. 
• Remuneration The remuneration of the respective employee must be inserted in the agreement. 
• Mandatory Benefits: As per the laws of Bangladesh, an employee is entitled to compulsory annual leave, sick leave, casual leave, festival leave and Maternity leave. He/she is also entitled to two festival bonuses in a year. If the employer wishes to grant any other benefits to the employees, then he must ensure that the company maintains a policy for such benefit. 
• Termination Procedure: Please insert the provisions for termination with notice or without notice, dismissal, retrenchment and redundancy. 
• Dispute Resolution: The dispute resolution clause is a mandatory term of an employee agreement which suggests that if the employee or the employer breaches any clause of the agreement the, the employer shall seek redress at the Labour Courts of Bangladesh.

Bangladesh working hours

• Daily Working Hour: Up to 8 hours per day.
• Interval for Rest or Meal:
• Shift exceeding 6 hours: 1-hour break
• Shift of 5 hours: 30 minutes
• Shift of 8 hours: i) Two 30 minutes break, or ii) One 1-hour break
• Weekly Working Hour: Up to 48 hours per week.

Overtime

• Up to 10 hours per day and 60 hours per week
• On average 56 hours per week.
• For road transport workers, 150 hours of overtime per year.
• Night Shift: A holiday for a whole day which means 24 hours break between each night shift has to be given.
• Limitation for Women Workers: No shift from 10.00pm to 06.00am without the woman worker’s consent.
• Restriction on Double Employment: Double employment is not allowed for any worker.

Vacation leave in Bangladesh

Casual leave eligibility is created by circumstances such as sudden illness, minor accidents, urgent purposes. It should be obtained on prior application, unless the urgency prevents such application from being made. Section 115 of the Labor Act, 2006, allows for casual leave. It is given for ten days in a year with maximum wages and will not be carried forward into the next year.

Bangladesh Maternity Leave

The main purpose of having 16 weeks maternity leave was to combat hunger and to ensure that the new generation grows to be physically and mentally much healthier. It was also expected to help increase the productivity and motivation of working women. Nevertheless, the reality is that many women working in the private sector are unaware of their maternity-related rights, especially those in the garment industry and in low-paid labor-intensive jobs. In fact, most non-governmental organizations and ready-made textile companies don’t even give their female employees four months of leave.

Bangladesh Severance Laws

The written notice must be given on:

120 (one hundred and twenty) days, if he is a respected worker every month;

In the case of other workers 60 (sixty) days.

Upon paying the fee an job of a permanent worker can be terminated by notice. The employer’s rate of compensation shall be at the rate of 30 (thirty) days’ wages for each completed year of service or gratuity, where payable, whichever is higher. The salary shall be in addition to any other benefit payable to such employee.

Permanent Employees terminating their employment: 

• A permanent worker can terminate his service by giving written notice of 60 (sixty) days to the employer. Where a permanent worker withdraws his job by presenting the warning, compensation to the employer shall be paid.

Temporary Employees terminating their employment:

• A temporary worker can terminate his job by notifying the employer in writing of:
• 30 (Thirty) days, if he is a skilled worker per month;
• 14 (14) days, in the case of other jobs.

Employee resigning without notice in Bangladesh:

• A worker may resign without notice from his / her job. The worker can only do so by paying the employer for the notice period a sum equal to the salaries.

Bangladesh Tax

Personal income taxes are progressive from 10%-30%. There is no social security tax.

Health Insurance Benefits in Bangladesh

With lieu of a medical certificate sick leave is usually used. Under Section 116 of the Labor Act, 2006 No such leave shall be allowed unless a registered medical practitioner appointed by the employer or, unless such medical practitioner is appointed by the employer, after review, any other registered medical practitioner certifies that the worker is ill and needs sick leave for cure or care for such time as may be specified by the employer. This leave shall not accumulate and be carried forward into the next year. Over fourteen days in a calendar year, any worker other than a newspaper worker shall be entitled to sick leave with full wages.

The Factories Act, 1965 Sub-Section (2) of Sections 80 Provides as follows:

Every worker shall be entitled to fourteen days ‘sick leave on half-average wages in a year.

Again, Section 16 of the Shops and Establishments Act, 1965 says that Every worker shall be entitled to sick leave with full wages for a total period of fourteen days in a year; if such leave not availed of by any worker during a calendar year may be carried forward, but the total accumulation of such leave shall not exceed twenty-eight days at any one time.

Additional Benefits in Bangladesh

Employees who have completed at least one year of service are entitled to two festival bonuses each year. Each bonus should not be more than the basic salary.

General market practice benefits/additional allowances

• The EU is Bangladesh’s main trading partner, accounting for around 24% of Bangladesh’s total trade in 2015.
• In 2015, Bangladesh was the EU’s 35th largest trading partner in goods.
• EU imports from Bangladesh are dominated by clothing, accounting for over 90% of the EU’s total imports from Bangladesh.
• EU exports to Bangladesh are dominated by machinery and transport equipment (49%).
• From 2008 to 2015, EU28 imports from Bangladesh have almost trebled from €5,464 million to €15,145 million, which represents nearly half of Bangladesh’s total exports.

Bangladesh Holidays

Major holidays in Bangladesh include:

• New Year’s Day
• Language Martyrs’ Day
• Birthday of the father of the Nation, Bangabandhu Sheikh Mujibur Rahman
• Independence Day
• Bengali New Year
• May Day
• Buddha Purnima
• Jumatul Bidah
• Eid-ul-Fitr
• National Mourning Day
• Shuba Janmashtami
• Eid-ul-Adha
• Durga Puja
• Ashura
• Eid-e-Miladun-Nabi
• Victory Day
• Christmas Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.