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Undoubtedly, payroll is a critical process for any organization. Pay cycle in Bangladesh refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

In Bangladesh, the payroll cycle can be daily, weekly, bi-weekly and monthly. Employees’ salaries must be paid by the end of the seventh day after the final day on which the payment is due, according to Bangladesh’s Employee Rights and Labor Law. The same rules are applied to those employees whose employment has been ended by the employer.

There is no statutory requirement to provide a 13th month salary.

Minimum Wages in Bangladesh is expected to reach 10000.00 BDT/Month by the end of 2022.

However, as per the regulation of Section 108, the workers can be made to work for a maximum of 10 hours on the condition of giving remuneration for overtime hours. In addition, in that case, the worker’s consent has to be gained, and they have to be informed a minimum of two hours before the commencement of overtime work.  

The period of work of an adult worker in an establishment shall be so arranged that inclusive of his interval for rest or meal under section 101, shall not spread over for more than ten hours, but on the basis of the permission given by the Government either generally or specially for any establishment, and subject to such conditions as may be imposed by it, an exception may be made to the said provision. 

The data protection laws of Bangladesh do not expressly impose any obligation on data retention. Tax records generally are to be kept for a minimum of five years.

Employers must keep records of employees' personal data, wages, working hours, breaks, leave, and days of rest, with no time limit specified for retention. The EPZ Labour Act also requires covered employers to keep a register of employees for inspection.

There are no legal requirements in the private sector to give preference in hiring to, or not to discriminate against, particular people or groups of people. According to section 5 of the Labour Act, an appointment letter shall be issued by an employer upon hiring an employee. Further, under Rule 19 of the Labour Rules, the appointment letter should contain the following information:

• the name of the worker;
• the name of the worker’s parents;
• the name of the worker’s spouse, if applicable;
• the present and permanent addresses of the worker;
• the designation of the worker;
• the type of work to be undertaken by the worker;
• the date on which the worker will join the establishment;
• the class of the worker;
• the wages or pay scale (wages or salary and the rate of the increase of annual salary, if any);
• other payable financial benefits (house rent, medical expenses, education, food, conveyance, festival and attendance allowances and gratuity, if any); and
• a statement that the conditions of appointment will be governed by the establishment’s existing service rules, if any, and the existing Labour Act.

No employer shall employ any worker without giving such worker a letter of appointment, and every such employed worker shall be provided with an identity card with a photograph. Every employer shall, at his own cost, provide a service book for every worker employed by him.  

The service book shall be of such size and in such form as may be prescribed, and a photograph of the worker shall be affixed to it. The service book shall contain the following particulars, namely: 

• name of the worker, name of mother and father and address of the worker, (In appropriate case name of husband/ wife shall be written) 

• date of birth, 

• particulars necessary for identification, 

• name and address of the employer under whom previously employed, if any, 

The employer shall, at the commencement of the employment and during the continuance of the same, make such entries therein from time to this service book. 

The period of probation for a worker whose function is of a clerical nature shall be six months, and for other workers such period shall be three months. In the case of a skilled worker, the probation period may be extended for a further period of three months if it is not possible to ascertain the quality of work within the first three months of probation.

Further, a worker shall be deemed to be a permanent worker after completion of his or her probationary period or extended period of three months even if a confirmation letter has not been issued. Therefore, apart from extending the probation period of a skilled worker for a period of three months if it has not been possible to ascertain the quality of his or her work during the initial three months, the employer may not extend the probationary period at his or her discretion.

January 21: Shaheed Day
March 8: Shab-e-barat
March 17: Sheikh Mujibar Rahman's birthday
March 26: Independence Day
April 14: Bengali New year
April 24: Eid -al-fitr
May 1: Labour Day
July 1: Eid-al-adha
July 28: Ashura
August 15: National Mourning Day
September 27: Eid-e-milad-un-Nabi
December 16: Victory Day
December 25: Christmas Day

Paid leave is granted to workers who have completed at least six months of service with the same employer for over 12 months. Its length depends on the worker's seniority. It is 14 calendar days when the worker has less than five years of service, 21 calendar days from 5 to 10 years of service, 28 calendar days from 10 to 20 years of service, and 35 calendar days when the worker's length of service is 20 years or more.

An employee completing three consecutive months in the employer's service, whose sickness and entitlement to sick leave by providing a certificate issued by any of the Government Medical Centers or any of the clinics retained by the employer, shall be entitled to the following sick leaves during the same year:

• Fifteen days on full pay
• Twenty days on half-pay
• Twenty days without payment

Employees expecting a child are entitled to 75 days of maternity leave. The first 60 days are paid in full, with the last 15 days remaining unpaid.

Fathers are entitled to one day of paid leave when a child is born.

Child Care Leave: Female employees are entitled to unpaid leave for taking care of her child not exceeding six years of age, of a maximum of six months each time, and for three times throughout their service.

If a worker is dismissed for misconduct on account of theft, misappropriation, fraud or dishonesty in connection with the business or property of the employer, or disorderliness, riot, arson or breakage in the establishment, he or she is not entitled to any compensation for the dismissal. If a worker who has been in continuous service for at least one year, under extenuating circumstances, is removed, instead of being dismissed for criminal conduct or misconduct, he or she will be entitled to compensation of 15 days’ wages for every completed year of service, under section 23(3) of the Labour Act. However, a dismissed worker shall be entitled to other benefits under the Labour Act, as applicable (such as provident fund, workers’ profit participation fund and welfare fund).

If a permanent worker’s employment is terminated under section 26 of the Labour Act, he or she will be entitled to compensation of 30 days’ wages for every completed year of service or gratuity (if any), whichever is higher, in addition to any other benefit payable under the Labour Act, as applicable (such as provident fund, etc), under section 26(4) of the Labour Act.

If a worker who has been in continuous service for at least one year is retrenched from his or her service, he or she will be entitled to 30 days’ wages for every year of service or gratuity (if any), whichever is higher, under section 20(2)(c) of the Labour Act. Further, he or she will also be entitled to other benefits payable under the Labour Act, as applicable (such as provident fund, etc).

If a worker who has been in continuous service for at least one year is discharged from service, he or she will be entitled to 30 days’ wages for every year of service or gratuity (if any), whichever is higher, under section 22(2) of the Labour Act. He or she will also be entitled to other benefits payable under the Labour Act, as applicable (such as provident fund, etc).

A permanent worker must be given 120 days’ notice, and a temporary worker, whose termination is not owing to the completion, cessation, abolition or discontinuance of the temporary work for which he or she was appointed, must be given 30 days’ notice (if he or she is a monthly rated worker) and 14 days’ notice (for other workers). However, the employer may terminate any worker without notice by paying wages in lieu of notice. For retrenchment, if the worker has been in continuous service for at least one year, they must be given one month’s notice or wages in lieu of notice. For discharge, prior notice is not required.

Section 24 of the Labour Act prescribes the procedure for dismissing a worker, which requires providing the allegation to him or her in writing and giving the opportunity for a hearing. However, no prior approval from a government agency is required by law.

If a worker is dismissed for misconduct on account of theft, misappropriation, fraud or dishonesty in connection with the business or property of the employer, or disorderliness, riot, arson or breakage in the establishment, he or she is not entitled to any compensation for the dismissal. If a worker who has been in continuous service for at least one year, under extenuating circumstances, is removed, instead of being dismissed for criminal conduct or misconduct, he or she will be entitled to compensation of 15 days’ wages for every completed year of service, under section 23(3) of the Labour Act. However, a dismissed worker shall be entitled to other benefits under the Labour Act, as applicable (such as provident fund, workers’ profit participation fund and welfare fund).

• If a permanent worker’s employment is terminated under section 26 of the Labour Act, he or she will be entitled to compensation of 30 days’ wages for every completed year of service or gratuity (if any), whichever is higher, in addition to any other benefit payable under the Labour Act, as applicable (such as provident fund, etc), under section 26(4) of the Labour Act.
• If a worker who has been in continuous service for at least one year is retrenched from his or her service, he or she will be entitled to 30 days’ wages for every year of service or gratuity (if any), whichever is higher, under section 20(2)(c) of the Labour Act. Further, he or she will also be entitled to other benefits payable under the Labour Act, as applicable (such as provident fund, etc).
• If a worker who has been in continuous service for at least one year is discharged from service, he or she will be entitled to 30 days’ wages for every year of service or gratuity (if any), whichever is higher, under section 22(2) of the Labour Act. He or she will also be entitled to other benefits payable under the Labour Act, as applicable (such as provident fund, etc).

Long-term Employment Visa

Professionals of Bangladesh appointed by the Government of India as expatriate consultants or experts under an agreement between the two Governments will be issued long-term employment. 

An employment visa may be extended up to five years from the date of issue of the initial employment visa, on a year-to-year basis. Multiple-entry employment visa valid for one year may be granted to Bangladeshi nationals who visit India on regular assignment for reputed organizations of both countries (such as Biman Bangladesh Airlines, International Bus Service, Sonali Bank, Air India, etc., or Government to Government projects or where a government organization has awarded a contract to a private firm or are inter-corporate transferees of a multi-national company).  

Spouses, dependent children, and parents of such visa holders shall be granted multiple entry dependent visas of appropriate sub-category co-terminus with the visa of the principal Visa holder. Visa may be extended on a year-to-year basis for up to a period of three years. 

(i) A copy of the Citizenship/domicile certificate along with an English translation clearly indicating the address. 

(ii) A letter from the company/ firm/ organization in Bangladesh giving details of the applicant, his/her designation, and the purpose of the visit. 

(iii) A copy of the registration of the company/ firm/ organization in Bangladesh or Membership certificate of any Chamber of Commerce of repute of Bangladesh. 

Neither the Labour Act nor the Labour Rules restrict or prohibit carrying out background checks on applicants; thus, an employer can conduct its own checks or hire a third party to do so.

Neither the Labour Act nor the Labour Rules restrict or prohibit requiring a medical examination as a condition of employment; therefore, an employer can refuse to hire an applicant who does not submit to an examination.

There are no restrictions or prohibitions against drug and alcohol testing of applicants in the Labour Act or the Labour Rules; therefore, an employer can refuse to hire an applicant who does not submit to a test.