An Employer of Record (EOR) can simplify hiring and paying talent in Bangladesh. With EOR services, you follow rules, pay your workers, and provide the right benefits, even if you don’t have a local entity in Bangladesh.

Working with Gloroots' Bangladesh EOR means you can hire people faster, no matter your company's size. You can find talented people in Bangladesh and explore business opportunities without worrying about complicated rules.

Expanding into Bangladesh presents opportunities, but navigating its labor laws and wage regulations can be complex. The country enforces strong labor protections that apply to all employees, including foreign hires. Regulations also vary by sector, for example, Export Processing Zones (EPZs) have different employment laws than the rest of the country, and industry-specific wage boards set sector-based salary requirements.

As a foreign employer, ensuring compliance with these evolving regulations can be challenging. Partnering with a Bangladesh EOR allows you to hire talent seamlessly while staying fully compliant with local labor laws, payroll policies, and industry standards. Gloroots simplifies the process, helping you navigate the complexities of expansion so you can focus on growing your business.

Expanding into Bangladesh requires navigating complex labor laws and industry, specific wage boards. A Bangladesh EOR ensures compliance, simplifying hiring and payroll. Gloroots’ fixed pricing model offers affordable, transparent costs, providing HR support, benefits management, and real-time workforce expense tracking for seamless business expansion.

‍

‍

Key Metrics For Foreign Employers

Source: The Global Talent Competitiveness Index 2023

Misclassifying employees in Bangladesh can lead to legal and financial problems for employers, including disputes and penalties. To avoid these risks, partnering with a reputable PEO/EOR in Bangladesh is crucial. EORs ensure proper employee classification, accurate payroll management, and compliance with labor laws, protecting employees' rights and benefits while allowing businesses to focus on their core objectives.

Learn More: Understanding Employee Misclassification: How to Avoid Legal and Financial Risks

The Labor Act of 2006 (revised in 2013) and the Labor Rule, 2015 inform Bangladesh's employment laws.

Employment Contract

A signed work agreement is important for both employers and employees. The terms in the contract make sure both sides are protected when someone new is hired.

The Labour Act's Section 5 says the employer needs to give a job offer letter or work agreement to the employee when they start. Rule 19 of the Labour Rules says this agreement should have:

• Employee's name
• Details about their parents and spouse (if they have one)
• Employee’s address
• Roles,  duties, and mode of work
• Start date
• Location of workplace
• What kind of worker they are (full-time, part-time, or freelancer)
• Compensation details, including bonuses, insurance
• Additional compensation (rent, medical costs, education, food, and travel)
•  A note that the Labour Act rules this agreement
• Breaks
• Termination

This is for full-time and part-time workers. Though the law treats freelancers and full-time/part-time workers the same, rules around payments, hours they work, and where they work can be different.

Gloroots’ Bangladesh PEO, can help you stay compliant by helping you prepare compliant employment contracts.

Working Hour 

The usual work week in Bangladesh is from Sunday to Thursday, with 8 hours each day, totaling 40 hours a week.  Employees cannot ask employees to work for more than 48 hours  a week.

Overtime

If mentioned in the employment contract permit, employees can work additional hours. For specific worker categories, such as blue-collar workers, overtime work is restricted to a maximum of 2 hours per day, and they are compensated at a rate of 200% of their regular salary for this extra time.

Minimum Wage

Currently, the minimum wage stands at BDT 8,000 per month. 

The National Minimum Wage Board sets the minimum wage for different sectors every five years. However, this amount can vary with each sector.

Maternity Leave and Paternity Leave

Female employees who have worked at a company for at least six months are eligible for 8 weeks of paid maternity leave before and after childbirth. Those with less than six months of service can also take maternity leave, on an unpaid basis.

During maternity leave, employees are not allowed to work for eight weeks after giving birth.

In Bangladesh, there aren't legal requirements for employers to offer paternity or parental leave. However, this can be discussed and agreed upon in writing between the employer and the employee.

Read More: What is Maternity Leave? 

Annual leave

Workers receive 1 day of annual leave for every 18 days they work in a calendar year, although specific industries might have different calculations for leave entitlement.

Sick Leave

In most cases, employees have the right to 14 days of paid sick leave each year. However, any leaves not taken cannot be carried forward for the next year. 

Do note that employees must show a medical certificate for any time they're absent.

Learn More:The Complete Guide on Remote Workforce Management

INCOME TAX 

‍Other Taxes and Social Security contribution:

Employer Payroll Contributions:

Employers don't have to make any compulsory social insurance contributions.

Employee Payroll Contributions:

Employees are not required to make any mandatory social insurance contributions.

Termination Process

When ending the employment of someone who has worked with the organization for a year or more, the employer must give a one-month notice or pay them instead.

If the employee is resigning, they need to give a written one-month notice or pay instead.

For employers in Bangladesh, to terminate an employee, they need to give 120 days' written notice for monthly workers and 60 days' notice for others.

Employees can be let go for reasons like physical or mental incapacity, ongoing poor health, major misconduct, or not being able to do the job well. If an employee has worked at least a year, they get 30 days' salary for each year of service.

Gloroots, a PEO / EOR in Bangladesh, can help make the termination process smooth and keep track of new employees' probation period while following the rules of the country.

Notice Period

The duration of the notice period can extend to 120 days, or the option of providing payment instead of notice can be considered, based on the nature of the employment.

Severance Pay

Workers who have been employed by the same employer for a minimum of one year are eligible for a severance payment equivalent to 30 days' wages for every year of service.

Read More: What is Severance Pay?

Probation Periods

Typically, probationary periods last for six months for clerical staff and three months for other employees.

Hiring employees in Bangladesh involves navigating employment laws, payroll compliance, fairness regulations, and data protection requirements. These complexities can make the process overwhelming for businesses expanding into the region.

Gloroots simplifies hiring by managing contracts, payroll, benefits, and compliance. Our experts ensure timely payments, adherence to local labor laws, and seamless onboarding, allowing you to focus on selecting top talent.

With Gloroots, global hiring becomes straightforward and stress-free, so you can expand confidently while we handle the details.

Expanding your team in Bangladesh means dealing with local work rules, paying salaries, handling taxes, and benefits, which can be tricky. Gloroots offers a complete global service called Employer of Record (EoR) to make this easier. We manage the payroll, ensure you follow tax rules, and take care of benefits according to local laws. This way, you can focus on your employees and growing your business. Let Gloroots deal with the hard paperwork, making it smooth for you to start hiring in Bangladesh.

‍