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Social Insurance

Overview of Labor Act in Bangladesh

In the year of 2006, Bangladesh Labor Act (2006) was promulgated. It includes the contents as follows.

・  The relationship between employees and employers

・  The minimum wages

・  The compensation for damage and salary for labors

・  The formation for labor union

・  The solving of labor conflicts

・  Labor conditions, health, security, and related laws. i.e.

However, the following organizations are not applied for the Act.

・  Officers and factories managed by government

・  Non-profits organizations

・  Open shops or stands, exhibition and sale

・  Charities

・  Educations, training and research insinuations

Employment Contract:

When companies employ labors, they have to issue employment contact mentioned employment conditions. The employees have to submit resident certifications, pictures and other documents required by different corporations. The contracts are regulated by Labor Act 2006 Chapter Ⅱ Conditions of Service and Employment.

The office regulations in Bangladesh are for all of the labors in companies. The employers for all of industries have the obligation to obey the Employment Act and it is necessary to make office regulations based on Labor Act.

In Bangladesh, all of the corporations should form a system to make service book, registration card and ticket card for employees. Registration card includes the name, birthday, and the date of entry, contents of work, office time and other basic information. Ticket card is classified into full-time employment and part time employment. During the contract period, employees should hold the card and return to company after finishing the employment contract.

Overview of Employment Contract:

There is no obligation to make employment contract in Bangladesh, but it is generally made and made in English or Bengali. It is necessary to base on the Employment Act. The trail period is different between different industries. In general, it is 6 months for the officers and 3 months for other kinds of labors.

In the case of dismissing the labors that work period is less than one year, the employers must pay the compensation for the period from the date of dismissal to the finish date of contract. For the labors that work period is more than five years and less than ten years, the retirement allowance is the basic salary for 14 days every year. For the labors that work period is more that ten years, the retirement allowance is the basic salary for 30 days every year.

To learn more about our incorporation assistance and a range of services of social insurance in Bangladesh, send us a message or call us at +81-3-5369-2930.