The Labor Act and Labor Rules in Bangladesh do not impose restrictions or prohibitions on conducting background checks. Employers have the flexibility to perform these checks independently or engage a third party for this purpose.

Probation periods differ across industries:

• Clerical work: Six months
• Permanent workers/Indefinite contracts: Three months, with the possibility of extension for an additional three months if the quality of work cannot be adequately assessed within the initial three months.
• Temporary workers/Fixed-Term Contract: No probation period.

Upon completion of the probationary period, a worker is considered permanent, even if a confirmation letter has not been issued.

The standard working week is capped at 48 hours, typically distributed across six eight-hour days. In Bangladesh, where the majority of the population follows Islam, the customary weekly day of rest is Friday. The weekend is characterized by 1.5 leaves in a week for commercial establishments and 1 leave in a week for factories, encompassing a full day off on Friday and a half day on Saturday.

Full-time employees have the right to a one-hour break each day, which can be divided into two half-hour breaks or taken as a single continuous break.

Adult workers are limited to a maximum of eight hours per day and 48 hours per week. Overtime work is permissible up to 12 additional hours per week, totaling a maximum of 60 hours. However, the annual average should not surpass 56 hours per week, and overtime hours in a day should not exceed two hours, maintaining a daily maximum of 10 working hours.

Overtime pay is calculated at twice the ordinary rate of the basic wage.

In the event of working on festival leave, the employer must grant the worker one substitute holiday and two days’ pay. If a worker works on the weekend, one compensatory leave should be provided for each day worked, to be availed within the next three working days.

Workers who have completed at least one year of service with a company are entitled to receive two festival bonuses each year. While there is no compulsory minimum amount specified, unless outlined in the employment contract, each festival bonus should not exceed the basic salary, where the basic salary constitutes 50% of the Gross Salary.

In the event that a worker is convicted of a criminal offense or found guilty of misconduct, the employer has the authority to terminate their employment without providing notice or making a payment in lieu of notice.

Additionally, termination without any specific cause is permissible by providing the mandated notice or offering compensation in lieu of notice.

For permanent employees, resignation requires a written notice of 120 days to be given to the employer. In the case of temporary workers, resignation involves a written notice of 30 days (for monthly rated workers). Alternatively, if a worker chooses to resign without notice, they may compensate the employer with an amount equivalent to the wages for the period of notice, in lieu of providing notice.

Termination without cause

The termination of an employee with a permanent contract can be initiated by the employer through a written notice given 120 days in advance, specifically applicable to monthly rated employees.

In the event of a resignation by a permanent worker, the gratuity payment is determined based on the years of service:

• – For more than 5 but less than 10 years – 14 days’ wages for each completed year of service.
• – For 10 or more years – 30 days’ wages for each completed year of service.

Resignation by employee

A permanent employee has the option to submit a written resignation notice of 120 days to the employer. On the other hand, a temporary worker, particularly those on a monthly rating, can resign by providing a 30-day notice.

In circumstances where an employee opts to resign without issuing any notice, they have the alternative of compensating the employer with an amount equivalent to the wages for the stipulated notice period.

• For less than 10 years of continuous service: 30 days of wages for each year of service.
• For more than 10 years of continuous service: 45 days of wages for each year of service.

If an employee is terminated due to misconduct, no compensation is entitled.

In the case of a permanent worker’s resignation, gratuity is granted based on their years of service:
 

• For more than five but less than 10 years: 14 days of wages for each completed year of service.
• For 10 or more years: 30 days of wages for each completed year of service.

The validity and enforceability of a non-compete clause are governed by Section 27 of the Contract Act 1872 in Bangladesh. This section explicitly declares, ‘Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.’ Consequently, agreements that seek to restrict trade, profession, or business are deemed invalid.

Nevertheless, employers may endeavor to establish enforceable restrictive covenants by incorporating a meticulously drafted, transparent, and precise ‘non-compete’ clause with the consent of the employee. The employer is required to delineate provisions for liquidated damages and specify a limited timeframe. Moreover, the employer must substantiate the existence of confidential information or trade secrets warranting protection.

Fixed-term contracts fall within the scope of temporary employment arrangements. Such contracts are permitted for a maximum duration of 2 years, and subsequently, an indefinite contract must be provided.

Employees are entitled to annual leave based on the number of days worked, with different criteria for various sectors:

• One day for every 18 days worked (applicable to shop, commercial, industrial, factory, or road transport establishment workers).
• One day for every 22 days worked (pertaining to tea plantation workers).
• One day for every 11 days worked (relevant to newspaper workers).

Unused overtime in a year can be carried forward by the employee, subject to specific limitations:

• Up to 40 days for factory or road transport workers.
• Up to 60 days for shop, industrial, commercial, or tea plantation workers.

If an employee requests earned leave, and the employer refuses for any reason, the denied leave is added to the employee’s leave credit and may exceed the aforementioned limits.

In the event of an employee’s dismissal, they are entitled to compensation equivalent to the unused annual leave.

All employees in Bangladesh, excluding newspaper workers, are eligible for 14 days of paid sick leave within a calendar year. The provision of sick leave requires employees to furnish a medical certificate.

It’s important to note that sick leave cannot be carried over to the subsequent year.

• Employees with a tenure of at least six months under the same employer qualify for eight weeks of maternity leave before delivery and an additional eight weeks after delivery.
• For those with less than six months of service or having two or more surviving children, maternity leave is only available as unpaid leave.
• There is a mandatory eight-week post-delivery period during which women are not allowed to work.

Even if a female employee notifies the employer of maternity leave after giving birth, she remains entitled to the full eight weeks of maternity benefits following the date of the child’s delivery.

Paternity Leave
 

• Bangladesh does not have a legally mandated paternity leave.

• Casual leave is designated for instances of sudden illness, minor accidents, and urgent matters. Advance application is necessary for this leave, unless circumstances prevent the submission of such an application.
• Employees are granted 10 days of paid casual leave annually, and any unused days cannot be carried forward to the following year.

There are a total of 15 significant public holidays annually, with 11 of them being paid days recognized as festival leave.

Employees are eligible for payment on optional holidays if their employment contract specifies such compensation or if they are members of a union actively advocating for their wages and salaries.