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.

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Bangladesh’s economy has expanded quickly, supported by a skilled workforce. 

To protect the rights of its valuable workforce,  Bangladesh has strong labor laws that protect employees' rights These laws apply to all companies and employees, regardless of citizenship.

While understanding these laws is relatively simple, ensuring compliance, especially as a foreign employer, can be complex in Bangladesh. For example, labor laws for employees and employers within Export Processing Zones are different to that in the rest of the nation. Moreover, Bangladesh has industry-specific wage boards which regulate wages for each sector. Thus, if you're starting a business or looking to hire talent, it is best to employ an EOR to help you stay in compliance with local labor laws.

Gloroots can guide you through these processes and help you navigate the complexities of expanding your business in Bangladesh.

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PEOs usually have two ways of charging – fixed and variable. In the fixed model, you pay a clear fee for each employee per month.

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Gloroots is one of these PEOs. For Bangladesh, our costs start at an affordable rate per employee each month. The final price depends on how complicated the laws are in the employee's location.

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Our prices make sure you get the best value for what you spend on your employees. With Gloroots, every employee you hire gets HR support, benefits management, and a live dashboard to track workforce expenses in real-time.

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Key Metrics For Foreign Employers

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Source: The Global Talent Competitiveness Index 2023

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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.

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

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Employment Contract

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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.

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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:

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• 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

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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.

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Working Hour 

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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.

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Overtime

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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.

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Minimum Wage

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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.

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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.

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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.

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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.

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INCOME TAX 

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‍Other Taxes and Social Security contribution:

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Employer Payroll Contributions:

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

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Employee Payroll Contributions:

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

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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.

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

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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.

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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.

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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.

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Notice Period

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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.

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Severance Pay

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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.

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Probation Periods

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

Hiring employees in Bangladesh can be complex due to various rules to remember. You must understand employment laws, ensure correct payment to employees, follow fairness and data protection regulations, and more. All these factors can make the hiring process seem complicated.

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But there's good news – Gloroots can simplify things for you. Our comprehensive solutions provide an easy way to handle all aspects of hiring in Bangladesh. Our experts assist with hiring from different countries and following payment and work rules. We help with employment contracts, timely payments, and benefits, so you can focus on selecting the best candidates.

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Count on Gloroots to make hiring from around the world straightforward and stress-free.

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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.

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