Yes, provided the arrangement is structured properly. There is no specific law prohibiting it, and the local provider entity becomes the legal employer with full statutory responsibilities. The provider must be properly registered, comply with labour, tax and any outsourcing requirements, and hold the documents an inspector or court would expect. Problems arise when the provider is not genuinely operating as an employer, or when the foreign client acts in ways that make it the real employer. We review the provider and the contract terms so that the employer of record model works as intended.

A foreign company can engage individuals in Bangladesh as independent contractors, or use an employer of record provider, without its own entity. Directly employing staff without local registration is more difficult in practice, because payroll tax deduction, employment registers, bank arrangements and labour compliance assume a local employer. Long-term or larger teams often justify a subsidiary or branch, which brings more control but also more compliance work. We advise on the most suitable model for your team size, budget and plans, including when to move from contractors or an employer of record to your own registered company.

They can. If employees habitually conclude contracts on your behalf, manage core business activities or operate from a fixed place you control, Bangladeshi tax authorities may treat your company as having a permanent establishment and taxable presence. A tax treaty between Bangladesh and your home country may narrow the definition. An employer of record arrangement reduces some risks but does not remove them if staff in practice act as your representatives. We review roles, authority and treaty position, and recommend practical safeguards in job descriptions, contracts and internal approval procedures.

Many employees fall within the Bangladesh Labour Act 2006, which governs appointment letters, working hours, leave, wages, festival bonuses, termination notice, benefits and records. Employees in managerial or administrative roles may fall partly outside the Act's definition of worker, in which case the contract and general law play a larger role. Remote working does not remove these protections. We assess which rules apply to each role and make sure the employer of record or local employer meets them, avoiding common gaps such as missing appointment letters or unlawful termination clauses.

The employee's work product belongs initially to the legal employer, which is the provider, so the chain of title must be documented. The employment contract should assign rights to the provider, and the services agreement should assign them onwards to the client, with confidentiality and moral rights waivers where permitted. Source code, designs and inventions created before the contract started should be identified and excluded or licensed expressly. We draft both documents together so that there is no gap, and advise on Bangladeshi copyright, patent and trade secret protection for remote teams.

The Act regulates the processing of personal data, including employee data and customer data that remote staff handle. Employers and clients must consider lawful bases for processing, transparency, security, data subject rights and conditions for transferring data abroad, with detail expected in implementing rules. Monitoring of employees through software or cameras also needs a lawful and proportionate basis. We review data flows between the employee, the employer of record and the client, and prepare privacy notices, data processing terms and monitoring policies that fit the new law and your global privacy programme.

Yes, many freelancers and contractors receive foreign currency through banks and approved payment channels, supported by contracts and invoices. Problems arise when a contractor is in reality an employee, working full-time under the client's control with fixed hours and benefits. That creates misclassification risk, possible claims for statutory benefits and tax questions. Documentation for remittances must also match the services provided. We review contractor arrangements and advise whether to keep them, restructure them or move workers to an employer of record or local entity, and prepare the documents for whichever option you choose.

Employees do not transfer automatically between unrelated employers in Bangladesh as they might under some foreign transfer regulations. A move normally involves termination or resignation from the old employer and a new appointment, or a negotiated tripartite transfer that recognises service and accrued benefits. Handled badly, it can trigger termination benefit claims, complaints and the loss of key staff. We plan the timing, settlements, consents and communication, and coordinate with the outgoing employer of record so that payroll, records and benefits pass cleanly to the new employer.