Bangladesh's employment and labour law framework is detailed and has been substantially updated in recent years. Employers — particularly foreign-invested companies and multinationals — must navigate a complex set of obligations under the Labour Act 2006 and its supporting rules and regulations.
The Bangladesh Labour Act 2006
The Bangladesh Labour Act 2006 (BLA) is the primary employment legislation. Amended significantly in 2013 and 2018, the BLA covers: employment contracts and appointment letters; working hours (48 hours per week for industry, 60 with overtime); wages, overtime rates, and leave entitlements; provident fund and gratuity obligations; workers' welfare funds; trade union rights and collective bargaining; and termination procedures. The Bangladesh Labour Rules 2015 provide detailed implementing provisions.
Who Is Covered
The BLA applies to workers employed in commercial or industrial establishments. Persons employed in a managerial or administrative capacity and those in highly skilled technical roles are generally excluded from the worker protection provisions — though they remain subject to general contract law and applicable employment terms. Understanding the boundary between "worker" and "employee" under the BLA is essential for structuring employment arrangements correctly.
EPZ and EZ Labour Regimes
Companies in Export Processing Zones are subject to the EPZ Labour Act 2019 — a distinct regime with different trade union rules and dispute resolution mechanisms. Economic Zone companies under the BEZA Act 2010 are subject to yet another framework. LegalBD advises on the applicable regime and its specific requirements for each client's operational context.
Expatriate Employment
Employing foreign nationals requires a work permit from BIDA or the relevant sector authority. Work permits are issued for up to one year and are renewable. BIDA guidelines limit the proportion of foreign nationals in the workforce and require local replacement plans. Expatriate income is subject to withholding tax obligations under the Income Tax Act 2023.