Employment Termination in Bangladesh: Legal Requirements & Pay

The Bangladesh Labour Rules, 2015 were amended by S.R.O. No. 284-Law/2022, published in the Bangladesh Gazette on 1 September 2022 (gazette pages 14879–14902). This article is an explanatory guide, not a consolidated gazette. The 2022 amendment must be read with the Bangladesh Labour Act 2006, later amendments…

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At a glance

Executive summary

The Bangladesh Labour Rules, 2015 were amended by S.R.O. No. 284-Law/2022, published in the Bangladesh Gazette on 1 September 2022 (gazette pages 14879–14902). This article is an explanatory guide, not a consolidated gazette. The 2022 amendment must be read with the Bangladesh Labour Act 2006, later amendments…

Practice area labour employment
Reading time About 3 min
Latest date Review pending

2022 Labour Rules amendment — source and currentness checkpoint

The Bangladesh Labour Rules, 2015 were amended by S.R.O. No. 284-Law/2022, published in the Bangladesh Gazette on 1 September 2022 (gazette pages 14879–14902). This article is an explanatory guide, not a consolidated gazette. The 2022 amendment must be read with the Bangladesh Labour Act 2006, later amendments, applicable sector rules and the current official text.

Before relying on a rule number, form, fee, threshold, deadline, penalty, calculation or entitlement, verify the current official text and the worker/establishment classification. The attached scan is registered for source identity, but its legacy Bengali font is not reliable for clause-level extraction; no unreadable clause is treated as verified here. Government Press record · DIFE resource

Legal Framework for Termination

The primary legislation governing employment termination in Bangladesh is the Bangladesh Labour Act 2006 (BLA 2006), as amended in 2013 and 2018, read with the Bangladesh Labour Rules 2015. These statutes prescribe specific procedures for different modes of separation to prevent unfair labor practices.

Modes of Separation and Statutory Entitlements

Under the BLA 2006, the termination of employment is categorized into several distinct types, each carrying different legal obligations for the employer.

Mode of SeparationStatutory ProvisionNotice Period / PayCompensation / Gratuity
RetrenchmentSection 2030 Days' Notice15 days' wages per year of service
Discharge (Health)Section 22N/A30 days' wages per year of service
Dismissal (Misconduct)Section 23 & 24None requiredNone (unless specifically eligible)
Termination by EmployerSection 26120 Days (Monthly Rated)30 days' wages per year of service
Issuance of NoticeDomestic EnquiryFinal SettlementService CertificateStatutory Termination Workflow

Key Procedural Requirements

  1. Notice Period: Under Section 26, for a permanent monthly-rated worker, the employer must provide 120 days' notice or pay in lieu of notice. For piece-rated workers, the period is 60 days.
  2. Retrenchment (Section 20): If a worker is retrenched for redundancy, they must be paid compensation at the rate of 30 days' wages for every completed year of service, or gratuity, whichever is higher.
  3. Dismissal for Misconduct (Section 23): No notice or compensation is required if a worker is dismissed for proven misconduct (e.g., theft, fraud, or habitual absence). However, the procedure under Section 24 (Show Cause and Enquiry) must be strictly followed.
  4. Final Settlement: All dues, including earned leave encashment (Section 117) and provident fund contributions, must be paid within 30 working days of termination.

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Frequently Asked Questions

What is the compensation for termination by the employer under Section 26?

According to Section 26(4) of the Bangladesh Labour Act 2006, a permanent worker terminated by the employer is entitled to compensation at the rate of 30 days' wages for every completed year of service, in addition to any other benefits like gratuity.

Can an employee be dismissed immediately for misconduct?

Under Section 23 of the BLA 2006, an employee can be dismissed without notice or pay in lieu of notice for misconduct. However, Section 24 mandates a strict procedure: a written show-cause notice, a minimum of 7 days to reply, and a domestic enquiry before the final order.

What are the notice requirements for an employee resigning?

Under Section 27 of the Bangladesh Labour Act 2006, a permanent monthly-rated worker may resign by giving the employer 60 days' notice in writing. If the notice is not given, the worker must pay an amount equal to the wages for the notice period.

Does the 2022 amendment replace the Bangladesh Labour Act 2006?

No. It is an amendment to the Bangladesh Labour Rules, 2015 and must be read with the Act, later amendments and any applicable sector-specific instrument.

Can this guide replace the current official rule text?

No. It is an explanatory guide. Confirm the current official gazette, applicable worker or establishment classification and any later administrative direction before taking action.

What should a reader do when a scanned rule copy is unclear?

Do not infer the clause from an unreadable scan. Obtain a readable official copy or qualified legal review and record the source and pinpoint before relying on it.

◆ Related Statutory Guides & Practice Insights

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      <a href="/en/hiring-employees-bangladesh-labour-act-2006/" style="color:#C5A059; font-weight:600; text-decoration:none; font-size:14px; display:inline-block; transition:color 0.2s;">&bull; Hiring Employees in Bangladesh: Labour Act 2006 Requirements</a>
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Official Regulatory Authorities, Gazettes & Forms

Governing Primary Statutes: Bangladesh Labour Act 2006 (Amended), Bangladesh Labour Rules 2015, EPZ Labour Act 2019

<div style="margin-bottom:12px; padding-bottom:12px; border-bottom:1px solid #1E293B;">
  <a href="https://dife.gov.bd/" target="_blank" rel="noopener noreferrer" style="color:#C5A059; font-weight:600; font-size:14px; text-decoration:underline;">Department of Inspection for Factories and Establishments (DIFE) &nearr;</a>
  <p style="color:#94A3B8; font-size:12px; margin:4px 0 0 0; line-height:1.4;">Factory Licensing, Safety Compliance & Labour Law Enforcement</p>
</div>

<div style="margin-bottom:12px; padding-bottom:12px; border-bottom:1px solid #1E293B;">
  <a href="https://bida.gov.bd/" target="_blank" rel="noopener noreferrer" style="color:#C5A059; font-weight:600; font-size:14px; text-decoration:underline;">BIDA Foreign Work Permit Portal &nearr;</a>
  <p style="color:#94A3B8; font-size:12px; margin:4px 0 0 0; line-height:1.4;">Expatriate Visa Recommendation & Security Clearance Directives</p>
</div>

<div style="margin-bottom:12px; padding-bottom:12px; border-bottom:1px solid #1E293B;">
  <a href="https://mole.gov.bd/" target="_blank" rel="noopener noreferrer" style="color:#C5A059; font-weight:600; font-size:14px; text-decoration:underline;">Ministry of Labour and Employment &nearr;</a>
  <p style="color:#94A3B8; font-size:12px; margin:4px 0 0 0; line-height:1.4;">National Minimum Wage Gazette & Tripartite Consultative Directives</p>
</div>
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