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Bangladesh Labour Law & Employment Regulations

A Quick Reference to Bangladesh’s Labour Law and Employment Standards

This is an excellent and comprehensive document outlining Bangladesh Labour Law and Employment Regulations, including important aspects such as employment contracts, minimum wage, working hours, leave types, public holidays, statutory contributions, and termination policies. Below is a summary of the key points for quick reference:

Key Highlights of Bangladesh Labour Law & Employment Regulations

Overview

  • GDP: $431 billion (Nominal, 2023); Growth rate: 5.8% in FY 2023.
  • Key Sectors: Textiles, garments, pharmaceuticals, shipbuilding, IT.
  • Population: ~174.3 million (2021 census).

1. Employment Contract

  • Appointment letters are mandatory and must include detailed worker information (e.g., wages, designation, allowances).
  • Employers must provide workers with identity cards at their cost.
  • Confidentiality of business strategies is essential.

2. Minimum Wage

  • As of 2024, the minimum monthly wage is 8,000 BDT.
  • Wage revisions are conducted every 1-3 years based on economic factors.
  • Paying less than the minimum wage is prohibited.

3. Working Hours

  • Regular Hours: 8 hours/day, 48 hours/week.
  • Overtime: Up to 10 hours/day, 60 hours/week (with specific conditions).
  • Overtime Allowance: Workers receive twice their basic wage for overtime.

4. Leave Types

  • Annual Leave: 1 day for every 18 days of work.
  • Sick Leave: 14 days/year (medical certification required).
  • Casual Leave: 10 days/year.
  • Festival Holidays: 11 days/year.
  • Maternity Leave: 8 weeks before and after delivery, with prior notice.

5. Public Holidays (2024)

  • Key Dates: Includes Independence Day (March 26), Eid-ul-Fitr (April 10–12), and Victory Day (December 16).
  • Total: 18 public holidays (some vary by sector).

6. Statutory Contributions

  • Workers' Profit Participation Fund: 5% of company profits (for qualifying companies).
  • Group Insurance: Mandatory for establishments with 100+ permanent workers.

7. Termination & Severance

  • Employer-Initiated Termination:
    • Permanent Workers: Notice of 120 days (monthly rated) or compensation (30 days’ wages per completed year).
    • Temporary Workers: 30–60 days' notice depending on employment terms.
  • Employee-Initiated Resignation: 60 days' notice required for permanent workers.

This document is essential for understanding employer and employee obligations, ensuring compliance, and fostering a fair workplace.

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