Bangladesh Labor Law Overview
Employment relationships in Bangladesh are governed by the Bangladesh Labour Act (BLA) 2006, its 2013 and 2018 amendments, and the Bangladesh Labour Rules (BLR) 2015. With approximately 4 million workers in the RMG (garments) industry, strengthening social compliance demands from global buyers has elevated labor law compliance from a mere legal obligation to a core component of export competitiveness.
For Korean companies establishing operations in Bangladesh, a precise understanding and adherence to local labor law—from employment contract execution through to retirement and termination—is essential. This guide provides a practice-oriented summary of the key employment provisions under BLA 2006/2018.
Employment Contract Types & Probation
Section 4 of BLA 2006 classifies workers into seven categories. The types most commonly used by Korean companies are permanent, probationer, temporary, and contractual. Employment contracts must be executed in writing, with bilingual documentation in Bengali and English recommended.
| Type | English Term | Duration | Key Characteristics |
|---|---|---|---|
| Probationer | Probationer | 3–6 months | Evaluation period before permanent status. Clerical: 6 months, Production: 3 months |
| Permanent | Permanent | Indefinite | Automatic conversion after probation. Termination protection applies |
| Temporary | Temporary | Short-term | For temporary tasks. Exceeding 6 months triggers reclassification as permanent |
| Contractual | Contractual | Fixed-term | Introduced by 2018 BLA amendment. Auto-terminates upon contract expiry |
| Seasonal | Seasonal | Seasonal | For seasonal work in agriculture, food processing, etc. |
| Casual | Casual | Daily | For intermittent needs. Note: social insurance may not apply |
| Apprentice | Apprentice | Training period | For skills acquisition. Governed by separate Apprenticeship Act |
Working Hours & Overtime Regulations
Under Sections 100–102 of BLA 2006, daily working hours are limited to 8 hours and weekly hours to 48. Overtime must not exceed 12 hours per week (60 total weekly hours), and overtime compensation must be paid at twice the basic wage rate. This is the most frequently audited item in international compliance inspections for the RMG industry.
| Item | Regulation | BLA Section | Notes |
|---|---|---|---|
| Daily Working Hours | 8 hours | Section 100 | Excluding meal break |
| Weekly Working Hours | 48 hours | Section 100 | Based on 6-day week |
| Overtime Limit | 12 hours/week | Section 102 | 60 hours/week total |
| Overtime Premium | Basic wage × 2 | Section 108 | Calculated per hour |
| Night Work (Women) | 22:00–06:00 | Section 109 | 2018 amendment allows with consent |
| Meal & Rest Break | 1 hour | Section 101 | Required for shifts of 6+ hours |
| Weekly Rest Day | 1 day (Friday) | Section 103 | Paid weekly rest |
Leave & Holiday Entitlements
Bangladesh labor law explicitly guarantees annual paid leave, sick leave, and Festival Holidays. Compared to Korea, annual leave days are fewer, but there are more festival holidays and relatively longer maternity leave.
Termination Procedures & Severance Pay
Termination, retrenchment, and discharge provisions under Bangladesh labor law are among the most complex areas for Korean companies. The BLA distinguishes termination types by cause, with different notice periods, compensation amounts, and procedural requirements for each. Since workers can file for reinstatement and back-pay at the Labour Court for unfair dismissal, ensuring procedural compliance is imperative.
| Termination Type | Advance Notice | Gratuity | Additional Compensation | BLA Section |
|---|---|---|---|---|
| Termination | 120 days (monthly) / 60 days (other) | Service years × 30 days | None | Section 26 |
| Retrenchment | 30 days | Service years × 30 days | Service years × 15 days | Section 20 |
| Dismissal | Not required | No obligation | None | Section 23 |
| Resignation | 60 days (monthly) / 30 days (other) | Payable if 5+ years service | None | Section 27 |
| Retirement | N/A | Service years × 30 days | None | Section 28 |
HR & Labor Compliance Checklist
Below are the essential items Korean companies operating in Bangladesh must verify to minimize labor law violation risks. For export-oriented manufacturers (especially RMG), failure to pass global buyer social audits (BSCI, WRAP, SMETA, etc.) can effectively bar exports, making proactive compliance system development critical.
Bangladesh labor law undergoes frequent amendments, and application may vary by industry and region. It is strongly recommended to consult local labor law specialists (such as A.S. & Associates, DFDL) or leverage KOTRA Dhaka Trade Office legal advisory services to stay current with the latest regulations. Part 2 of this series covers the minimum wage structure and employee benefits system.