Notice Period in Bangladesh: Termination, Resignation and Pay in Lieu (2026)

Notice period in Bangladesh: the 2026 rules at a glance

The notice period in Bangladesh depends on who ends the job, why it ends and what kind of worker is involved. A monthly-rated permanent worker terminated without cause is owed 120 days' written notice, but a worker retrenched for redundancy gets one month, a worker dismissed for proven misconduct gets none, and a resigning worker owes the employer 60 days.[1] [2] [3] Pick the wrong exit route and the employer pays the wrong sum, or ends up defending a claim in the Labour Court.

This guide covers termination under section 26 of the Bangladesh Labour Act 2006, resignation, pay in lieu, managers outside the definition of worker, retrenchment and discharge, as amended in 2026, plus the separate rules for export processing zones.

Summary: An employer may end a permanent worker's employment without cause on 120 days' written notice if the worker is monthly-rated and 60 days for other workers, or pay wages instead of notice, and must also pay 30 days' wages for each completed year of service. A permanent worker resigns on 60 days' notice. Retrenchment needs one month's notice, discharge on medical grounds needs a certificate rather than a notice period, and dismissal for misconduct needs no notice. Managers outside the definition of worker depend on their contract.

Key point: The 2026 amendments did not change the section 26 notice periods. They changed the wage on which notice pay is calculated, which is now the last monthly basic wage and dearness allowance plus any ad hoc or interim wage. They also narrowed the class of staff who fall outside the Act.[8] [10] [9]

At a glance

Swipe or scroll →

Table of Contents

How the notice period in Bangladesh is set

For "workers" under the Labour Act, Chapter II sets every notice rule. The answer starts with three questions: is the person a worker or a manager, are they permanent, temporary or on probation, and which exit route is being used? Each route has its own notice, payment and procedure, and an employer cannot borrow the shorter notice of one route while relying on the grounds of another.

Two further variables matter: whether the worker is monthly-rated or paid daily, weekly or by the piece, and whether the workplace sits inside an export processing zone, which follows the Bangladesh EPZ Labour Act 2019.[11] Our overview of hiring and firing laws in Bangladesh covers the wider life cycle.

Employer termination of permanent workers under section 26

Section 26 allows an employer to end employment "otherwise than by dismissal" without giving a reason. The statutory notice period in Bangladesh for this route depends on how the worker is paid.[1]

Monthly-rated versus other permanent workers

A monthly-rated employee is entitled to 120 days' written notice; anyone else, such as staff paid daily or weekly, to 60 days.[1] Most office staff are monthly-rated, so 120 days is the usual figure. Notice must be in writing.

Temporary workers and probationers

A temporary worker may be terminated on 30 days' written notice if monthly-rated and 14 days otherwise. No notice is needed where the employment ends because the temporary work for which the worker was hired is completed, ceases, is abolished or is abandoned.[1] Section 26 speaks of permanent and temporary workers and does not mention probationers, so a decision not to confirm should be made and communicated in writing before probation expires, with any contractual notice honoured.

Compensation on top of notice

The employer must also pay 30 days' wages for every completed year of service, or gratuity if payable, whichever is higher. This sum is in addition to every other benefit due under the Act.[1] Our guide to severance pay in Bangladesh sets out the full calculation.

Limits on challenge

A worker cannot bring a grievance against a section 26 termination unless they allege it was made for trade union activity, that it was made with ulterior motive, or that they were denied the benefits section 26 provides.[7] A letter that recites misconduct invites exactly that challenge.

Resignation notice owed by the employee

A permanent worker may resign by giving the employer 60 days' written notice. A temporary worker gives 30 days if monthly-rated and 14 days otherwise.[2] A worker who wants to leave immediately may do so by paying the employer an amount equal to wages for the notice period.[2] An employer that agrees to an early release should record any waiver in writing.

Resignation compensation since 2026

The 2026 Act replaced section 27(4). A permanent worker who resigns now receives, for each completed year of service, 7 days' wages if they have served up to three years, 15 days' wages for more than three but less than ten years, and 30 days' wages or gratuity, whichever is higher, for ten years or more.[2]

Absence treated as resignation

Where a worker is absent for more than ten days without notice or permission, the employer must give ten days to explain and rejoin, then a further seven days to defend themselves. Only then is the worker treated as having resigned from the first day of absence.[2]

Pay in lieu of notice

An employer that wants a worker to leave at once may pay wages for the notice period instead of giving notice.[1] Pay in lieu buys out the notice period; it does not replace the section 26 compensation, unused leave wages, provident fund dues or any other final settlement item.

Which wage to use

Since the 2026 Act, "wages" for the purposes of sections 22, 23, 26 and 27 means the worker's last monthly basic wage and dearness allowance, plus any ad hoc or interim wage, immediately before the exit.[10] House rent, medical and conveyance allowances fall outside that statutory base. A contract may promise pay in lieu on gross salary, but the statute requires only the narrower figure.

A worked example

Take a monthly-rated permanent worker with a basic wage of Tk 30,000, no dearness allowance and six years and four months of service, terminated under section 26 with no gratuity scheme. Using a 30-day divisor, pay in lieu of 120 days is Tk 1,20,000 and compensation of 30 days for each of six completed years is Tk 1,80,000, a statutory total of Tk 3,00,000 before leave wages and other dues. All dues must be paid within 30 working days of the end of employment.[6]

Retrenchment, discharge and dismissal compared

The notice period in Bangladesh changes sharply between routes, so the label on the termination letter matters.

Retrenchment for redundancy

A worker may be retrenched on the ground of redundancy. If the worker has at least one year of continuous service, the employer must give one month's written notice stating the reasons, or wages in lieu, send a copy to the Chief Inspector or a designated officer and another to the collective bargaining agent, if any, and pay 30 days' wages for every year of service or gratuity, whichever is higher.[3]

Discharge for ill health

Discharge is available for physical or mental incapacity or continued ill health certified by a registered medical practitioner. Section 22 sets no notice period; a worker with at least one year's continuous service receives 30 days' wages for every year of service or gratuity, whichever is higher.[4] Without genuine medical evidence, a discharge risks being treated as a section 26 termination.

Dismissal for misconduct

A worker convicted of a criminal offence, or found guilty of misconduct under section 24, may be dismissed without notice or wages in lieu.[5] If the inquiry is flawed, the dismissal usually fails. Our guide on terminating employees in Bangladesh explains the inquiry steps.

Managers outside the definition of worker

The 2026 Act rewrote section 2(65). A "worker" now includes any person, including an apprentice, employed directly or through a contractor to do skilled, unskilled, manual, technical, business development or clerical work for wages, and expressly includes everyone except a person appointed under section 2(49)(b): a manager or other person responsible for the management or control of the establishment.[9] The old exclusion for supervisory staff is gone, so many supervisors are now inside the Act.

What governs a manager's notice

For genuine managers, the notice period is a matter of contract. There is no statutory 120-day floor, no section 26 compensation and no section 33 grievance route. A manager's contract should state notice for each side, an express right to pay in lieu and its salary base, a garden leave option and the treatment of bonuses during notice. A silent contract invites arguments that reasonable notice was owed.

Classify by function, not title

A job title does not take anyone outside the Act; actual responsibility for management or control does. Our guide to employment contracts in Bangladesh covers drafting for both groups.

Notice period in Bangladesh compared with other jurisdictions

Statutory notice in Bangladesh is long by international standards and does not grow with service.

In the UK, the statutory minimum is one week's notice after one month's service, one week per year from two to twelve years, and twelve weeks after twelve years.[13] In Singapore, notice follows the contract; where it is silent, it ranges from one day to four weeks depending on service.[14]

Export processing zones

Inside the zones, section 22 of the EPZ Labour Act 2019 sets 120 days' notice for any permanent worker, without the monthly-rated distinction, and 60 days for other workers, with wages in lieu permitted and 30 days' wages per completed year as compensation. Terminating ten or more workers at once requires consultation with the zone's Additional Inspector General.[11] A permanent worker resigns on 30 days' notice and other workers on 15 days.[12]

Practical steps before serving notice

A notice period in Bangladesh is only as safe as the paperwork behind it.

Swipe or scroll →

Where TRW employs staff on a client's behalf through our employer of record service, we run notice, payroll and final settlement under Bangladesh law, and our employment and labour team reviews settlement computations. For foreign nationals, the exit also has to be coordinated with the work permit, now handled through Invest Bangladesh; see our guide to employment law for expatriates.

Frequently asked questions

What is the notice period in Bangladesh for terminating a permanent employee?

Under section 26 of the Labour Act, 120 days' written notice for monthly-rated staff and 60 days for others, or wages for the notice period instead, plus 30 days' wages per completed year of service or gratuity, whichever is higher.[1]

How much notice must an employee give to resign?

A permanent worker gives 60 days' written notice. A temporary worker gives 30 days if monthly-rated and 14 days otherwise.[2]

Can an employee leave without serving notice?

Yes, by paying the employer an amount equal to wages for the notice period.[2]

Is pay in lieu of notice allowed?

Yes. An employer may end employment immediately by paying wages for the notice period. It does not replace section 26 compensation or other final dues.[1]

Is pay in lieu calculated on basic or gross salary?

The statutory base is the last monthly basic wage and dearness allowance plus any ad hoc or interim wage. A contract or policy can promise more, for example gross salary.[10]

What notice applies to retrenchment?

One month's written notice stating the reasons, or wages in lieu, for a worker with at least one year's continuous service, with copies to the inspectorate and any collective bargaining agent, plus 30 days' wages per year of service or gratuity.[3]

Is notice required for discharge on medical grounds?

Section 22 sets no notice period. It requires a registered medical practitioner's certificate and, after one year's service, 30 days' wages per year of service or gratuity.[4]

Does a dismissed employee get notice?

No. A worker convicted of a criminal offence or found guilty of misconduct after a section 24 inquiry may be dismissed without notice or wages in lieu.[5]

Do managers get the statutory notice period?

Not if they are responsible for the management or control of the establishment, because they fall outside the definition of worker. Their contract sets notice, so it should be drafted precisely.[9]

Are notice periods different in export processing zones?

Yes. The EPZ Labour Act 2019 sets 120 days for permanent workers and 60 days for others on employer termination, and 30 or 15 days on resignation.[11] [12]