With the deepening of globalization, when enterprises expand their business in multiple countries, cross-border labor compliance has become one of the most complex and severe challenges. To help enterprises systematically address this issue, we have collaborated with top labor lawyers from over 50 major jurisdictions worldwide (all recommended by Chambers, Legal 500, or equivalent institutions) to jointly compile a Chinese-English labor & employment compliance guide exceeding 1 million words, and we will continuously update relevant key points.

his article publishes the key points of labor & employment compliance in Bangladesh.

01 Overview of the Labor Law System

1.Legal System

The legal system of Bangladesh is founded on the British common law framework, a structure inherited from British India that includes codified law and judicial precedent.

2.Resources and Agencies

Labour laws in Bangladesh are governed by the BLA, 2006, and the BLR, 2015.

Bangladesh EPZ Labour Act, 2019 and Bangladesh EPZ Labour Rules, 2022 sets out a different set out of laws for workers in Export-Processing Zones.

02 Employment Qualifications and Classification

1.Employment Age

In Bangladesh, the minimum age for employment is 18 years. However, adolescents between the ages of 14 and 18 are allowed to work, however, they must obtain a certificate of fitness.

2.Qualifications for Foreign Employers

Foreign employers can outsource work to Bangladesh. However, they must ensure compliance with local labour laws, which generally requires registration with the Directorate of Labour if they are directly engaging workers.

3.Classification of Employment

In Bangladesh, employment can take several forms, including apprentice, substitute, casual, temporary, probationer, permanent and seasonal worker.

4.Foreign Workers

In Bangladesh, the employment of foreign workers is carefully regulated, requiring both a visa recommendation and a valid work permit, primarily issued by the Bangladesh Investment Development Authority (BIDA) in coordination with other relevant agencies.

Employers must prioritize local recruitment and advertise vacancies in national newspapers and job portals before seeking foreign candidates.

03 Recruitment and Employment Contracts

1.Background Examination

Bangladesh’s labour laws do not specifically list which types of background checks are permissible or prohibited. In practice, employers commonly verify employment history, educational qualifications, and criminal records as part of recruitment processes.

2.Contract Types

While Bangladeshi labour law does not always mandate a formal written contract for every employee, it recognizes the employment relationship and regulates its terms, and written contracts are often used to comply with statutory obligations.

3.Probationary Period

An apprentice worker undergoes a probationary period during which they are temporarily employed in a permanent post until their apprenticeship is completed. For clerical workers, this probationary period is six months, while for other workers it is three months.

04 Working Standards

1.Remuneration

In Bangladesh, the minimum wage for workers is set by the government and varies according to industry, occupation, and skill level. The wages may be prescribed in the relevant circular issued by the Ministry of Labour and Employment.

2.Statutory Benefits and Social Security

Under the BLA, 2006, employees are entitled to a range of benefits designed to safeguard their welfare and health. These benefits include maternity leave for female workers, sick leave for periods of illness, and annual leave, which allow employees to take paid leave after completing a specified period of service.

3.Working Hours

Under the BLA, 2006, no adult worker shall ordinarily be required or allowed to work for more than eight hours per day and forty-eight hours per week. However, subject to certain provisions, an adult worker may work beyond forty-eight hours, provided that the total hours of work do not exceed sixty hours in a week and an average of fifty-six hours per week in a year.

4.Rest and Leave

Under the BLA, 2006, workers are entitled to various rest periods and leave entitlements to ensure their well-being and work-life balance. Workers are entitled to weekly holidays, with shops, commercial, and industrial establishments providing one and a half days off per week, factories providing one day, and road transport establishments providing a full 24-hour day off, with no deduction from wages for these holidays.

Regarding leave entitlements, the BLA 2006 specifies several types of leave:

• Annual Leave with Wages

• Sick Leave

• Casual Leave

• Festival Holidays 

05 Occupational Health and Special Protection

1.Occupational Health and Security

Under the BLA, 2006, specifically Sections 50 to 88, employers are mandated to ensure a safe and healthy working environment for their employees.

2.Special Protection

The BLA, 2006 provides special protections for vulnerable groups, including women, children, and adolescents, to ensure their health, safety, and overall well-being at work.

06 Personal Information and Privacy

1.General Rules

Employers are obligated to protect employees’ personal data and ensure that it is collected, processed, stored, and used solely for legitimate purposes in compliance with applicable Bangladeshi laws, including the ICT Act, 2006, the Cyber Protection Ordinance, 2025.

2.Transnational Transfer

The transfer of personal information across borders must comply with applicable Bangladeshi data protection laws and any relevant international standards or agreements. Only anonymized, encrypted, or pseudonymized data that cannot identify an individual may be transferred outside Bangladesh.

07 Anti-Discrimination and Anti-Harassment

1.General Rules

Under the BLA, 2006, all workers are entitled to fair treatment with respect to employment conditions, wages, benefits, and workplace safety.

2.Protective Characters

The law provides additional safeguards for vulnerable or “protective” categories of workers, particularly women, children, and adolescents. Employers are required to provide safe working conditions, conduct risk assessments, and implement measures to protect these groups from occupational hazards and exploitation, ensuring a secure workplace environment.

08 Internal Policies

1.Applicability

Under the BLA, 2006, management is responsible for maintaining fair and lawful workplace practices. Employers are expected to implement internal policies to manage workplace conduct, handle grievances, prevent harassment, and ensure non-discriminatory treatment of employees, while complying with statutory requirements.

2.Validity

All workplace policies must be formally approved in accordance with the BLA, 2006 and the BLR, 2015. For example, service rules covering employee conduct, disciplinary procedures, and conditions of employment must be submitted to and certified by the Chief Inspector of Factories and Establishments before implementation.

3.Whistleblowing

There are no existing protection for whistleblowers in private sector employment in Bangladesh. However, there discussions going on in the political sphere to introduce an effective law.

09 Transactions

1.Employment Relationship

Employment contracts in Bangladesh generally continue without interruption in the event of mergers, acquisitions, or transfers of business, unless the contracts or governing agreements explicitly provide otherwise.

2.Compensation

Employees would only be entitled to compensation in case of job loss due to mergers or acquisitions.

10 Termination of Employment

1.Termination Grounds

Based on the provided excerpts from the Bangladesh Labour Act, 2006, an employer cannot dismiss an employee for any reason; the termination of an employment relationship must be based on specific grounds and procedures outlined within the Act. The different types of termination, each with its own defined cause, are detailed below.

• Termination on Grounds of Redundancy (Retrenchment)

• Termination on Grounds of Incapacity (Discharge)

• Termination for Misconduct or Criminal Conviction (Dismissal)

• Termination Otherwise (Without Stated Cause)

2.Termination Procedure

The termination procedure would be different for the different types of termination:

• Retrenchment (Redundancy): When a worker’s position becomes redundant, retrenchment may be applied. Employees with at least one year of continuous service must be given one month’s written notice stating the reason, or wages in lieu of notice.

• Discharge (Incapacity): Termination due to physical or mental incapacity, or continued ill-health, requires certification from a registered medical practitioner.

• Dismissal (Misconduct or Criminal Conviction): An employer may dismiss a worker without notice for misconduct or criminal conviction.

• Termination Without Specific Cause: Employers may terminate a worker even if it is not due to redundancy, incapacity, or misconduct.

• Resignation by Employee: Employees may resign by giving written notice, the notice period would be 60 days for permanent workers, 30 days for monthly-rated temporary workers, and 14 days for other temporary employees.

3.Termination Protection

Under the BLA, 2006, employees enjoy protection from dismissal during certain periods, ensuring job security when they are particularly vulnerable.

4.Severance and Compensation

Under the BLA, 2006, employees are entitled to severance pay upon termination, providing financial support during the transition out of employment. The amount depends on the length of service and reason for termination.

5.Wrongful Termination

Under the BLA, 2006, employers are subject to specific liabilities in cases of wrongful or unlawful termination of employees. If an employee is dismissed without valid or lawful reason, or if the termination procedures outlined in the BLA, 2006 are not followed, the employee has the right to appeal to the Labour Court.

6.Mass termination and Layoffs

Under the BLA, 2006, special procedures apply when employers intend to carry out mass terminations or layoffs, ensuring that such actions are conducted lawfully and with appropriate safeguards for affected employees.

11 Confidentiality, Non-Compete, and Non-Solicitation

1.Confidentiality

Organizations in Bangladesh commonly require employees to sign confidentiality agreements, particularly those with access to trade secrets, sensitive business information, or intellectual property.

2.Non-Compete and Non-Solicitation

Under Bangladeshi law, non-compete and non-solicitation clauses are generally permissible in employment contracts, provided they are reasonable and not contrary to public policy.

12 Work Representation and Trade Unions

1.Work Representation

Under the BLA, 2006, employees in Bangladesh are entitled to form representative bodies, such as trade unions, or participate in works councils, known as Participation Committees, to facilitate collective discussions with management.

2.Trade Unions

The BLA 2006, provides for several forms and structures for trade unions. The most fundamental is the establishment-level or grassroots union, where workers within a single establishment can form an association. To gain legal recognition, such a union requires a minimum membership of 20% of the total workforce in that establishment.

13 Dispute Resolution

1.Procedures & Enforcement

Under the BLA, 2006, labour disputes follow a structured procedure to ensure fair and timely resolution. For an individual worker with a complaint, such as one regarding termination, the process begins with the worker sending a written complaint to their employer within 30 days of the cause of the complaint.

2.Waiver & Enforcement

Under Bangladesh law, employees cannot waive their statutory rights, including entitlements such as minimum wage, maternity leave, and contributions to provident or retirement funds.

14 Others

1.Latest Development & Trends

Emerging trends in Bangladesh’s labor landscape reflect a growing emphasis on worker safety and welfare, particularly in the aftermath of the Rana Plaza tragedy, prompting both public and private sectors to strengthen protections.

2.Cultural and Religious Considerations

When operating in Bangladesh, respecting local customs and cultural practices is essential for effective workforce management. Employers should accommodate holidays, prayer breaks, and religious observances, ensuring that employees can observe their traditions without disruption.

* To avoid ambiguity, this article should not be regarded as legal advice.

Authors

Syed Afzal Hasan Uddin is the Managing Partner at Syed Ishtiaq Ahmed & Associates. His areas of expertise include advising clients in the areas of merger and acquisitions, equity investment, power and energy, telecommunications, employment, Private Public Partnership (PPP), banking and financing etc. 

Fareea Islam joined Syed Ishtiaq Ahmed & Associates in 2023 and is developing expertise in corporate and commercial law, mergers and acquisitions, banking and employment law. 

Ragib Abrar Alam joined Syed Ishtiaq Ahmed & Associates in 2025 and is developing expertise in financial regulation, telecom law, contract drafting, and corporate advisory matters.

Translator

Jin Dongjie, Doctor of Laws, associate at Anli Partners. Area of expertise: Labor Law, ESG Compliance, Dispute Resolution.