Labour Disputes and Termination in Bangladesh
Employment termination in Bangladesh must comply strictly with the Bangladesh Labour Act, 2006. Unlawful dismissal exposes employers to compensation claims and reputational risk. The Labour Act distinguishes between termination by notice, retrenchment, discharge, dismissal for misconduct, and retirement — each with distinct procedural requirements.
Termination Requirements
- Termination by Notice — One month's notice for monthly-rated workers (or payment in lieu). Three months' notice for permanent workers with 1+ year of service.
- Retrenchment — Minimum 30 days' notice, payment of 30 days' wages per year of service as compensation, and prior notice to the Chief Inspector of Factories.
- Dismissal for Misconduct — Requires a domestic enquiry with charge sheet, opportunity to respond, and enquiry officer's findings before dismissal without compensation.
Labour Courts
Disputes not resolved through internal grievance procedures may be referred to the Labour Court. Bangladesh has district Labour Courts and a Labour Appellate Tribunal. LegalBD provides representation at all levels of the labour dispute resolution process.
Contact us about a pending labour matter.