Bangladesh PEO & Employer of Record Services
Global PEO Services (GPS) helps companies hire employees in Bangladesh without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in Bangladesh, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Bangladesh labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Bangladesh. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Bangladesh - Country Overview
Bangladesh is the 32nd largest economy in the world by purchasing power parity (PPP). The country’s economy has grown steadily at around 6% annually since the mid-1990s and grew at 7.28% in 2017. The major industries that drive growth include export of readymade garments, shipbuilding, jute, seafood, fish, and leather goods. Garment exports account for 80% of total exports, which along with overseas remittances provide sustainability to the country’s economy.
Other Major Cities
Chittagong, Khulna, Rajshahi, Barisal, Sylhet, Comilla
Employment Contracts in Bangladesh
In Bangladesh, employers must issue a letter of appointment if there is no written contract. The terms of the contract are binding between the employee and employer, and must comply with the Labour Act’s provisions.The maximum permissible probationary period for employees in a clerical role in Bangladesh is 6 months and 3 months for other workers. The probation period for skilled workers can be extended by an additional 3 months if it was not possible to ascertain the quality of work within the first 3 months.
Working Hours in Bangladesh
The Bangladesh Labour Act, 2006 restricts working time in any establishment to 8 hours during a day and 48 hours during a week. Women cannot be made to work between 10.00 pm and 6.00 am in any establishment without their consent.
Any worker of a shop, industrial establishment or commercial establishment must be allowed a resting period of 1½ days per working week. Factory workers are entitled to 1 day of rest. Employees of a road transport service are entitled to a resting period of 24 consecutive hours per working week.
Overtime is payable at double the regular rate of basic wage plus dearness allowance, including interim or ad-hoc pay. Limitations on overtime hours are as follows:
- The normal or regular working hours in any establishment cannot be more than 48 hours in a week.
- An adult worker is allowed to work more than 48 hours in a week provided the total number of hours does not exceed 60 in a week, and an average weekly work time of 56 hours during a year.
Employee Leave in Bangladesh
Employees in Bangladesh get 15 national holidays. These are spread over 19 days in the Hijri, Bengali, and Gregorian calendars.
- Eid e-Milad-un Nabi
- Feb. 21: Shaheed Dibosh and International Mother Language Day
- March 17: Sheikh Mujibur Rahman’s birthday
- March 26: Independence Day
- Bangla New Year
- Buddha Purnima
- Shab- e-Barat
- Jumatul Bidah
- Aug. 15: National Mourning Day
- Vijaya Dashami
- Laylat al-Qadr
- May Day
- Shahid Day
- New Year’s Day
- Shuba Janmashtami
- Ashura (Muharram)
- Dec. 16: Victory Day
- Dec. 25: Christmas Day
The law mandates a minimum of 11 days’ leave for festivals every year. When a worker is made to work on such a date, he or she receives double the wages for work done during the day and as well as a day off on an alternate day.
Employees who have completed 1 year of service in any organization are entitled to fully paid annual leave calculated as follows:
- 1 day of leave for every 18 work days for industrial or commercial establishments, factory or road transport service providers
- 1 day of leave per 20 days of work for tea plantation workers
- 1 day of leave for every 11 days of work for newspaper workers
Women employees are eligible for maternity leave of 8 weeks before and 8 weeks after the childbirth provided they have completed at least 6 months of employment before the delivery. Women employees who have worked less than 6 months, or already have 2 or more surviving children, are eligible only for unpaid leave in most cases.
14 days of sick leave is granted to all workers other than newspaper workers. Employees need to submit a medical certificate to receive sick leave.
Employee Benefits in Bangladesh
Pension and Social Security
It is not mandatory for employees in Bangladesh to contribute towards any social security fund. Companies that satisfy the criteria set out in the Bangladesh Labour Act 2006 need to pay 5% of their profits into a Workers Profit Participation Fund which provides benefits to all employees except the owners, partners or a director of the company employed for at least 9 months.
Healthcare and Benefits
Large local and multinational companies typically provide employees with private health care, car facilities, subsidized meals, and other fringe benefits. Employers must also pay compensation to employees who suffer a personal injury arising out of and in the course of his employment. Most of the companies in Bangladesh provide provident and gratuity benefits to permanent employees. Provident funds are generally built through the contribution of both the employees and employers. Provident funds for ‘workers’ within the meaning of the Bangladesh Labour Act 2006 have to be as per the requirements set out in the said Act.
Welfare and Social Protection
The setting up of provident fund is not compulsory. It is based on the demand of a specific number of workers. Providing for Group insurance is also based on the number of the workers and the required number is high in most industries. The amount of compensation that workers receive due to disability, work-related injury, and death is not sufficient for the worker and his/her family. The provision of compensation varies according to the age of the workers, with an adult worker getting Tk.1,25,000 for complete permanent injury whereas the benefit payable to a child/adolescent/young worker is Tk.10,000 only. Other aspects of social protection have remained untouched in the labor law of Bangladesh such as provisions on pension and medical and life insurance for the workers. There are no pension schemes sponsored by the government in Bangladesh.