How EOR Services Work in Bangladesh

Onboarding: The EOR recruits or transitions employees on behalf of your company, ensuring legal compliance from the start.
Payroll and Benefits: The EOR processes payroll, manages benefits, and ensures statutory deductions are paid on time.
Employee Management: You retain control over day-to-day tasks and employee performance, while the EOR handles the administrative and legal aspects.
Compliance Support: The EOR keeps you updated on changes in employment laws and ensures compliance.
Offboarding: If an employee is terminated, the EOR manages severance and other legal requirements.

Advantages of Using Global EOR Services in Bangladesh

Deep understanding of Bangladeshi labor laws.
Proven expertise in managing international employment challenges.
Transparent pricing with no hidden costs.
End-to-end support for onboarding, payroll, compliance, and offboarding.

Employment Law and Considerations for EOR Services in Bangladesh

When hiring employees in Bangladesh through Employer of Record (EOR) services, understanding the local employment laws and regulations is essential to ensure compliance and avoid legal complications. Below is an overview of key employment law aspects and considerations for using EOR services in Bangladesh.

Key Employment Laws in Bangladesh

The Bangladesh Labour Act, 2006: This is the primary legislation governing employment practices in Bangladesh. It outlines rules for working hours, leave, benefits, wages, and termination.
The Minimum Wages Act, 2013: Establishes the minimum wage rates for different industries and job categories. The minimum wage varies by sector and is periodically updated.
The Payment of Wages Act, 1936:
Regulates the timely payment of wages and deductions.
The Maternity Benefit Act, 1939:
Provides female employees with paid maternity leave and other related benefits.
The Provident Fund and Gratuity Act:
Governs employee retirement benefits and long-term savings.

Employment Contracts in Bangladesh

Written Contracts: While written contracts are not mandatory for all employees, they are strongly recommended to outline the terms of employment clearly.
Contract Types:
Permanent contracts
Fixed-term contracts
Probationary contracts
Mandatory Inclusions:
Job title and description
Salary and payment frequency
Working hours
Leave entitlements
Termination clauses
Languages: Contracts should be in Bangla or English, with clear terms to avoid misunderstandings.

Working Hours and Overtime

Standard Working Hours: 8 hours per day, 6 days a week (48 hours per week).
Overtime Regulations: Employees are entitled to 2x their regular hourly wage for overtime hours.
Overtime cannot exceed 10 hours per week.
Rest Periods: 1-hour break after 5 hours of continuous work.

Leave Entitlements

Annual Leave: Employees are entitled to 10 days of paid annual leave after completing one year of service.
Sick Leave: 14 days of paid sick leave per year.
Casual Leave: 10 days of casual leave for personal emergencies.
Maternity Leave: Female employees are entitled to 16 weeks of paid maternity leave (8 weeks before and 8 weeks after childbirth).
Public Holidays: Approximately 11 public holidays are observed annually in Bangladesh.

Employee Benefits and Contributions

Provident Fund:
Employers contribute a specified percentage of the employee’s salary to a provident fund for retirement.
Gratuity:
Employees are eligible for a gratuity payment after completing at least 5 years of continuous service.
Healthcare Benefits:
Employers may offer private health insurance as an added benefit.
Other Perks:
Bonuses, transportation allowances, and meal subsidies are common in Bangladesh.

Termination and Severance

Notice Period: One month’s notice is required for termination or payment in lieu of notice.
Severance Pay: Employees with at least one year of service are entitled to severance pay, typically one month’s salary for each year of service.
Grounds for Termination:
Misconduct
Redundancy
Mutual agreement
Legal Protections: Terminations must comply with the Labour Act to avoid disputes or legal action.

Get Started with EOR Services in Bangladesh

If you’re ready to hire employees in Bangladesh and expand your operations, our EOR services can help you navigate the complexities of employment laws and compliance.
Contact us today to learn more about how we can support your growth in Bangladesh!