Employment Contracts and HR Policies in Bangladesh | LegalBD

Under the Bangladesh Labour Act, 2006 , employers are required to issue appointment letters to all employees specifying the terms of employment, including designation, salary, working hours, leave entitlements, and termination notice provisions. A well-drafted employment contract protects both employer and employee…

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At a glance

Executive summary

Under the Bangladesh Labour Act, 2006 , employers are required to issue appointment letters to all employees specifying the terms of employment, including designation, salary, working hours, leave entitlements, and termination notice provisions. A well-drafted employment contract protects both employer and employee…

Practice area labour employment
Reading time About 1 min
Latest date Review pending

Employment Contracts and HR Policies in Bangladesh

Under the Bangladesh Labour Act, 2006, employers are required to issue appointment letters to all employees specifying the terms of employment, including designation, salary, working hours, leave entitlements, and termination notice provisions. A well-drafted employment contract protects both employer and employee and reduces the risk of disputes.

What a Bangladesh-Compliant Employment Contract Covers

  • Probationary period (maximum 3 months for unskilled workers, 6 months for skilled/clerical, up to 1 year for certain categories)
  • Working hours (maximum 8 hours per day, 48 hours per week under the Labour Act)
  • Leave entitlements (annual leave, sick leave, casual leave, maternity leave)
  • Salary, allowances, and statutory deductions
  • Confidentiality, non-compete (with reasonable limitations), and intellectual property assignment clauses
  • Termination notice periods and severance provisions

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