Hiring and Firing Laws in Bangladesh 2026: Appointment, Probation, Termination and Dismissal

Hiring and firing laws Bangladesh employers must apply in 2026

The hiring and firing laws Bangladesh employers must apply in 2026 are stricter, more procedural and more expensive to get wrong than at any time since the Bangladesh Labour Act 2006 was passed. The Act still sets the rules for every stage of the employment relationship, from the appointment letter to the final settlement. But Parliament's Bangladesh Labour (Amendment) Act 2026, Act No 43 of 2026, dated 10 April 2026, changed the definition of worker, the way continuous service and wages are calculated, the compensation due on dismissal and resignation, provident fund duties and the dispute machinery.[1] [2]

This guide follows the employment life cycle as an employer experiences it: classification, the appointment letter, probation and confirmation, and then each lawful exit route, from termination simpliciter under section 26 and dismissal for misconduct under sections 23 and 24 to retrenchment, discharge, resignation and retirement. It ends with the final settlement, the section 33 grievance procedure and the Labour Court. The wider compliance picture is in our labour law in Bangladesh hub.

Summary: Hiring and firing laws Bangladesh employers must follow come from the Bangladesh Labour Act 2006, the Bangladesh Labour Rules 2015 and Act No 43 of 2026. Every worker needs an appointment letter and identity card; probation lasts three or six months and confirmation is automatic at the end of it. A permanent worker can be terminated without cause only on 120 or 60 days' notice with 30 days' wages per completed year, while dismissal for misconduct requires a written charge, a hearing and an inquiry completed within 60 days. Disputes go first to the employer under section 33, then to the Labour Court.

Key point: Since Act No 43 of 2026, a worker dismissed for misconduct with at least one year's continuous service is entitled to 15 days' wages for each completed year, unless the misconduct was theft, embezzlement, fraud or dishonesty, or disorderly conduct, rioting, arson or vandalism. Before the amendment, that compensation was limited to workers who were removed rather than dismissed.[2] [5]

At a glance

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Table of Contents

The legal framework for hiring and firing laws Bangladesh employers face

Chapter II of the Bangladesh Labour Act 2006 governs employment and conditions of service. It runs from section 3, on conditions of service, to section 33, on the grievance procedure, and contains every statutory rule on classification, appointment, lay-off, retrenchment, discharge, dismissal, termination, resignation, retirement and final payment.[1] The Bangladesh Labour Rules 2015 supply the forms and procedural detail, including the content of the appointment letter, the service book, the retrenchment notice and the misconduct inquiry.[11]

Act No 43 of 2026 repealed the interim government's Bangladesh Labour (Amendment) Ordinance 2025 (Ordinance No 65 of 2025) and provides that anything done under the Ordinance is treated as done under the Act.[2] It took effect immediately.[2] Parliament passed the Bill by voice vote on 9 April 2026, after the Labour and Employment Minister, Ariful Haque Chowdhury, moved it to convert the Ordinance into law with amendments.[14]

What Act No 43 of 2026 changed in the employment life cycle

For hiring and exits, the important changes are concentrated in a handful of sections. Section 2(65) now defines a worker to include contractor-supplied staff and business development work. Section 4(2) applies the apprenticeship chapter to apprentices. Section 14 has a new test of continuous service and a new definition of the wage used to calculate exit payments. Section 16 widens lay-off compensation, section 19 reduces the qualifying service for death benefit, section 23(3) extends compensation to dismissed workers, section 27(4) replaces the resignation scale and section 264 rewrites the provident fund obligation.[2] Each is discussed below at the point in the life cycle where it bites.

Company service rules

An establishment may have its own service rules, but they cannot be less favourable to workers than Chapter II, and an establishment outside the Act may not adopt a policy or house rule giving less than the Act provides.[1] Service rules must be submitted to the Chief Inspector, who now has 120 days, rather than 90, to make an order, and the rules have no effect without approval.[1] [2] A new section 3(4) lets any person apply or appeal to the government within 30 days if no order is made in time or the order is unsatisfactory, and the government must decide within 45 days.[1]

Who is protected: worker classifications

The hiring and firing laws Bangladesh applies through Chapter II protect "workers". A person who falls outside that definition is governed by the contract and the general law, not by the statutory notice, compensation and grievance rules. Classification is therefore the first question in any hiring or exit decision.

The 2026 definition of worker

Under the replaced section 2(65), a worker is any person, including an apprentice, employed in an establishment or industry directly or through a contractor, however described, for wages or money in skilled, unskilled, manual, technical, business development or clerical work, whether the terms of employment are express or implied.[1] [2] The only exclusion is a person within section 2(49)(b): a person given managerial, chief executive, administrative or supervisory responsibility for the establishment in writing.[1] Job titles do not decide the question. A sales executive or "supervisor" with no real authority over others is likely to be a worker.

The seven classes of worker

Section 4 divides workers, by the nature of the work, into seven classes: apprentice, substitute (badli), casual, temporary, probationer, permanent and seasonal.[3] An apprentice is a paid trainee, and since 2026 the apprenticeship chapter, Chapter XVIII, expressly applies. A badli covers the temporary absence of a permanent worker or probationer. A casual worker does work of a casual nature; a temporary worker does work that is essentially temporary and likely to finish within a limited period. A permanent worker is engaged permanently or has completed probation, and a seasonal worker is engaged for the season, with priority for the previous year's workers in seasonal industries such as sugar mills.[3]

Classification must follow the work, not the label. The 2022 amendment to the Labour Rules treats work that continues beyond six months as permanent work for the establishment, depending on its nature, and confines contractual engagement to work that is genuinely temporary.[12] Rolling "temporary" appointments for ongoing production or office work are one of the most common sources of exposure on exit.

Contractor-supplied staff

A contractor that supplies staff to other organisations may not operate without government registration, and workers it supplies are treated as the contractor's workers and remain within the labour law.[1] Under the 2022 Rules amendments, contractors must pay deployed staff the same wages as the principal's directly employed workers.[12] Outsourcing moves the paperwork, not the protection.

Officers and managers outside the Act

Senior staff who genuinely fall within section 2(49)(b) are not workers. Their notice, severance and restrictive covenants depend on the contract and any service rules, which is why the drafting points in our guide to employment contracts in Bangladesh matter so much for management hires. Record supervisory authority in writing; an unrecorded management role is difficult to prove in the Labour Court.

Hiring: appointment letters, identity cards and service books

Section 5 is short and absolute: no employer may appoint a worker without giving an appointment letter, and every worker must receive an identity card with a photograph.[1] These documents are the foundation of every later calculation, because notice, compensation and classification all start from what the appointment letter records.

What the appointment letter must contain

Rule 19 of the Labour Rules 2015 says the appointment letter is issued once during service in an establishment, with a duplicate on request if it is lost.[11] It must state the worker's name, father's and mother's names, spouse's name where applicable, present and permanent addresses, designation, type of work, joining date and class of worker.[11] It must also set out wages or pay scale with any annual increment, other financial benefits such as house rent, medical, transport, festival and attendance allowances and any gratuity, and a statement that all conditions follow the service rules, if any, and the Labour Act.[11]

The identity card is issued in Form 6 at the employer's cost, and the issue of appointment letters, identity cards and service books is recorded in Form 6(A).[11]

Service books and records

The employer must open a separate service book for each worker within 15 days, and record the required particulars within one month of the worker becoming permanent.[11] The service book records exits, including retrenchment, discharge, dismissal, termination, resignation and retirement, but no misconduct complaint may be entered until it is proved.[11] The date of birth in the service book is accepted as proof of age for retirement.[1]

Recruitment without discrimination or blacklisting

The 2026 Act inserted sections 345A to 345C, which prohibit direct and indirect discrimination on grounds including race, gender, religion, disability, political opinion and social status.[2] [14] Employers are also barred from blacklisting workers or trade union members.[13] [14] For recruiters, that means shared "do not hire" lists compiled after dismissals or retrenchments are now a serious legal risk, and selection criteria, interview notes and reasons for rejection should be documented.

Probation and confirmation

Under the hiring and firing laws Bangladesh applies, probation is where many employers assume they have more freedom than they do. Section 4(8) sets the probation period at six months for a worker in clerical work and three months for other workers.[3] For a skilled worker, probation may be extended by a further three months if, for any reason, the quality of work could not be assessed during the first three months.[3]

Deemed confirmation

The proviso to section 4(8) is the trap. If no confirmation letter is issued at the end of probation, or at the end of the three-month extension, the worker is nevertheless treated as permanent.[3] An employer that lets the date pass while "still deciding" has made the decision by default, and any later exit must follow the rules for permanent workers. Diary probation end dates and decide before them.

Ending employment during probation

Section 26, the termination simpliciter provision, addresses permanent and temporary workers expressly and does not mention probationers.[7] In practice, a decision not to confirm should be taken and communicated in writing before probation expires, with reasons kept on file and any contractual notice honoured. Where the concern is misconduct rather than performance, the section 24 procedure applies to probationers as it does to anyone else.[6]

Re-employment and internal moves

If a worker's employment ends during probation and the same employer re-employs them within three years, they are treated as a probationer, unless appointed permanently, and the earlier probation counts towards the new one.[3] A permanent worker appointed on probation to a new post may be reverted to the former permanent post at any time during that probation.[3]

Continuous service and the wage used for exit payments

Almost every exit entitlement depends on two numbers: years of continuous service and the daily wage. The 2026 Act rewrote both definitions in section 14, which makes this the most important technical change for employers calculating final settlements.[4]

The 240-day and 120-day tests

A worker who has actually worked at least 240 days in the preceding 12 calendar months, or at least 120 days in the preceding six calendar months, is treated as having worked continuously for "one year" or "six months" respectively.[4] Days of lay-off, leave with or without wages for sickness or accident, days lost to a legal strike or an illegal lock-out and, for women, up to 120 days of maternity leave all count as days worked.[4]

The wage for compensation

For compensation under sections 19, 20 or 23 and wages under sections 22, 23, 26 or 27, "wage" now means the worker's last monthly basic wage and dearness allowance, plus any ad hoc or interim wage, before retrenchment, dismissal, removal, discharge, retirement or termination.[4] Payroll systems that calculate severance on an averaged or older wage should be corrected, because the difference compounds across years of service and across a workforce.

Termination simpliciter under section 26

Section 26 is the employer's route to end employment without alleging misconduct, and the one most often misunderstood. It lets the employer terminate "otherwise than by dismissal" by giving notice, or pay in lieu, and paying statutory compensation.[7] No reason has to be stated, but every payment has to be right.

Notice periods

A permanent worker may be terminated on written notice of 120 days if monthly-rated and 60 days for any other worker.[7] A temporary worker may be terminated on 30 days' notice if monthly-rated and 14 days for others, unless the termination results from the temporary work being completed, ceasing, abolished or abandoned.[7] Instead of notice, the employer may pay wages for the notice period and end the employment immediately.[7]

Compensation and gratuity

When a permanent worker is terminated under section 26, the employer must pay 30 days' wages for every completed year of service, or gratuity if payable, whichever is higher. That compensation is in addition to every other benefit due under the Act.[7] A long-serving monthly-rated worker therefore receives four months' notice pay, a month's wages per completed year, unused annual leave, outstanding wages and any provident fund balance.

Limits on challenge under section 33(9)

A worker cannot bring a section 33 grievance against a section 26 termination unless they allege that it was made because of trade union activity, that it was made with an ulterior motive (mala fide), or that they were denied the benefits section 26 provides.[9] Those three exceptions define the risk. An employer that uses section 26 to remove a union organiser, to avoid running a misconduct inquiry or to end employment after a complaint invites exactly the challenge the Act allows.

Termination simpliciter is not a shortcut to dismissal

A section 26 letter that recites allegations of misconduct signals a punitive motive and undermines the protection of section 33(9). If the real reason is misconduct, use sections 23 and 24; if it is restructuring, consider retrenchment. Our guide to termination of employees in Bangladesh sets out how to structure each route.

Dismissal for misconduct under sections 23 and 24

Dismissal is the harshest outcome the hiring and firing laws Bangladesh recognises. Under section 23(1), a worker may be dismissed without notice and without wages in lieu if convicted of a criminal offence, or if found guilty of misconduct under section 24.[5]

What counts as misconduct

Section 23(4) contains a closed list:[5]

• wilful insubordination or disobedience, alone or with others, of a lawful or reasonable order of a superior;
• theft, embezzlement, fraud or dishonesty in connection with the employer's business or property;
• taking or giving a bribe in connection with the worker's or another worker's employment;
• habitual absence without leave, or absence without leave for more than ten days at a time;
• habitual late attendance;
• habitual breach of any law, rule or regulation applicable to the establishment;
• disorderly behaviour, rioting, arson or vandalism in the establishment;
• habitual negligence in work;
• habitual breach of service rules, including discipline and conduct rules, approved by the Chief Inspector;
• altering, forging, wrongfully changing, damaging or losing the employer's official records.

The Labour Rules add an important qualification: disciplined activity to claim lawful dues that does not hamper production or daily work and does not destroy property is not disorderly behaviour under section 23(4)(g).[11]

Penalties short of dismissal

Instead of dismissal, and having regard to special circumstances, the employer may impose removal; reduction to a lower post, grade or pay scale for up to one year; stoppage of promotion or of increments for up to one year; a fine; suspension without wages or subsistence allowance for up to seven days; or censure and warning.[5] In deciding the penalty, the employer must consider the worker's previous record, the gravity of the offence, service achievements and contribution, and any other special circumstances.[6]

The inquiry procedure

Section 24(1) prohibits any punishment under section 23 unless each of five conditions is met: the allegation is made in writing; a copy is given to the worker with at least seven days to reply; the worker is given a hearing; the worker is found guilty after an inquiry by a committee of equal numbers of employer and worker representatives, completed within 60 days; and the employer or manager approves the dismissal order.[6] Under the 2022 Rules amendments, the 60 days run from service of the show-cause notice to the committee's decision.[12]

Under rule 29, the inquiry committee has no more than six members, and the worker representatives are nominated from the establishment on the accused worker's written proposal and may not be junior to the accused.[11] The accused may be assisted by a co-worker, may cross-examine witnesses and must receive a copy of any punishment order. A worker who refuses a charge sheet is treated as served if a copy is displayed on the notice board and another sent by registered post.[6]

Suspension pending inquiry

A worker charged with misconduct may be suspended pending inquiry. The order must be in writing, takes effect on delivery and, unless the matter is pending in court, the total suspension may not exceed 60 days.[6] During suspension the employer pays a subsistence allowance and other allowances in full.[6] If the worker is found guilty and dismissed, no wages are due for the suspension period beyond the subsistence allowance; if the charge is not proved, the worker is treated as on duty and paid full wages, adjusted for the allowance.[6]

Compensation after dismissal or removal

A worker who is removed or, since 2026, dismissed under section 23, with at least one year's continuous service, receives 15 days' wages for each completed year of service.[2] [5] No compensation is due where the dismissal is for theft, embezzlement, fraud or dishonesty, or for disorderly behaviour, rioting, arson or vandalism, though the worker still receives other lawful dues.[5] Employers should therefore record precisely which limb of section 23(4) the finding rests on.

Dismissal after conviction

If a worker dismissed after a criminal conviction is acquitted on appeal, the employer must reinstate them in their former post or appoint them to another suitable post. If neither is possible, the employer must pay compensation at the rate due to a discharged worker, less any compensation already paid on dismissal.[5]

Retrenchment, lay-off and closure

Retrenchment means termination by the employer on the ground of redundancy.[1] It is the right route when a role or a group of roles is no longer needed, and it carries its own notice, consultation and selection rules.

Retrenchment under section 20

For a worker with at least one year's continuous service, the employer must give one month's written notice stating the reasons, or wages in lieu; send a copy of the notice to the Chief Inspector or an officer the Chief Inspector designates and another to the collective bargaining agent, if any; and pay compensation of 30 days' wages for each year of service, or gratuity if payable, whichever is higher.[1] Rule 27 requires the notice to state the establishment, the worker's name, designation and card number, the reason, the effective date, total service, each entitlement and the payment date.[11]

Selection and re-employment

Where a particular category of workers is to be retrenched, the employer must, absent an agreement with the workers, retrench the worker last employed in that category first.[1] If the employer wants to recruit again within one year of a retrenchment, it must send notice to the retrenched worker's last known address inviting an application, give priority to that worker and, among several retrenched applicants, give priority by seniority.[1]

From lay-off to retrenchment

Since 2026, a laid-off worker on the workers' register with at least three months' service, other than a badli or casual worker, is entitled to lay-off compensation for every day of lay-off except weekly holidays, at half of basic wage and dearness allowance plus the full housing allowance.[1] [2] Where lay-off exceeds 45 days in a calendar year and a further continuous lay-off of 15 days or more is needed, the employer may retrench instead, without notice but with 15 days' extra wages on top of the retrenchment compensation.[1]

Closure after disaster

Where production is permanently closed because of a sudden natural disaster, a disaster beyond human control or urgent necessity, section 28A allows the government to prescribe the employer and worker relationship by rules.[1] Rule 32 requires the employer to inform the Inspector General within three working days in Form 10 and to retrench workers with payment of their legal dues, or declare a lay-off if production may resume.[11]

Discharge, resignation, retirement and death

Not every exit is initiated for business or disciplinary reasons. The hiring and firing laws Bangladesh employers apply also regulate exits for incapacity, the worker's own choice, age and death, and each carries a payment.

Discharge for incapacity

A worker may be discharged for physical or mental incapacity or continued ill-health certified by a registered medical practitioner.[1] The certificate is issued in Form 11 with a copy to the worker, and either side may seek re-examination by a specialist not below the rank of assistant professor at a government medical college within ten days, at the applicant's cost.[11] A discharged worker with at least one year's continuous service receives 30 days' wages for each year of service, or gratuity if payable, whichever is higher.[1] Discharge is not a disguised dismissal; it needs genuine medical evidence.

Resignation and the 2026 compensation scale

A permanent worker may resign on 60 days' written notice; a temporary worker on 30 days if monthly-rated and 14 days otherwise. A worker who leaves without notice must pay the employer wages for the notice period instead.[8] When a permanent worker resigns, the employer pays compensation for each completed year of service: seven days' wages for up to three years' continuous service, 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] [8]

Absence treated as resignation

If a worker is absent without notice or permission for more than ten days, the employer must give the worker ten days to explain and rejoin. If the worker neither explains nor returns, the employer must give a further seven days for the worker to defend themselves. Only if that also passes without response is the worker treated as having resigned from the first day of absence.[8] Skipping either notice converts a lawful deemed resignation into an unlawful termination.

Retirement

A worker retires on reaching 60. Dues are paid under section 26(4) or the establishment's service rules, and the employer may re-engage a retired worker on contract if it considers this appropriate.[1]

Death in service

Where a worker dies after more than one year's continuous service, reduced from two years by the 2026 Act, the employer must pay the nominee or, failing a nominee, a dependant 30 days' wages for each completed year or part exceeding six months. The figure is 45 days' wages where the worker dies at work or later from a work accident, or gratuity if higher, in addition to any retirement benefit.[1] [2]

Final settlement: notice, compensation, gratuity and provident fund

Under the hiring and firing laws Bangladesh employers follow, a lawful exit can still become a Labour Court claim if the final settlement is late or incomplete. Section 30 requires all dues to be paid within 30 working days after the employment ends for any reason, including retirement, discharge, retrenchment, dismissal and termination.[1]

Gratuity

Section 2(10) defines gratuity as at least 30 days' wages at the last wage rate for each completed year of service or part exceeding six months, or 45 days' wages for service of more than ten years, payable on termination of service.[1] The exit provisions compare statutory compensation with gratuity "if payable" and pay whichever is higher, and the Labour Rules list gratuity among the benefits an appointment letter should state "if any".[7] [11] Where an employer operates a gratuity scheme, the comparison must be run for every exit.

Provident fund

A worker who is a member of a provident fund cannot be deprived of benefits due under its rules, including the employer's contribution, because of retrenchment, discharge, dismissal, retirement, removal, termination or death.[1] Where a fund exists, each permanent worker contributes at least 7 and no more than 8 per cent of monthly basic wage after one year's service, and the employer contributes at the same rate, unless otherwise agreed; the fund is run by a board of trustees with equal employer and worker representation and a government-nominated chair.[10]

The 2026 Act made the fund compulsory in one situation. An establishment with at least 100 permanent workers must form a provident fund if at least two-thirds of the workers apply in writing. The employer is relieved of that duty if it ensures that interested workers join the universal pension scheme "Progoti", run by the National Pension Authority, with contributions split 50:50, and it need not pay the employer share for a worker who declines membership in writing.[10]

Certificate of service

Every worker other than a casual or badli worker is entitled on exit to a certificate of service, which the Labour Rules require to be issued in Form 13 within 15 days of the worker's application.[1] [11]

Comparing the exit routes

The table summarises how each route works for a worker under the Act. On a phone, scroll it sideways.

Grievance under section 33 and the Labour Court

Section 33 is where the hiring and firing laws Bangladesh enforces meet the courts: it is the gateway to the Labour Court for individual employment disputes. Any worker, including one who has been laid off, retrenched, discharged, dismissed, removed or otherwise terminated, may use it for a grievance about any matter in Chapter II.[9]

The three 30-day stages

The worker must send a written grievance to the employer by registered post within 30 days of learning of the cause, unless the employer accepts it directly and acknowledges receipt in writing.[9] The employer must inquire into it within 30 days, give the worker a hearing and communicate a written decision.[9] If the employer fails to decide, or the worker is dissatisfied, the worker may file a written complaint in the Labour Court within 30 days of the end of that period or of the decision.[9] The court complaint is filed in Form 14.[11]

What the Labour Court can order

After hearing both sides, the Labour Court may make any order it considers just. Among other relief, it may direct reinstatement, with or without back wages, and may convert a dismissal, removal or discharge into one of the lesser penalties in section 23(2).[9] A party aggrieved by the order may appeal to the Labour Appellate Tribunal within 30 days, and the Tribunal's decision is final.[9] No court fee is payable for a complaint or appeal under section 33, and the complaint is not treated as a criminal complaint.[9]

The Labour Court and the new ADR authority

A Labour Court is chaired by a serving District Judge or Additional District Judge, with two members, one representing employers and one representing workers, who advise the chair; for offences and certain other matters the chair sits alone.[1] Separately, new section 348C requires an Alternative Dispute Resolution Authority for individual and collective labour disputes, chaired by a retired District Judge or another experienced person appointed under rules, with panels of conciliators and arbitrators and a tripartite governing body.[2] Its rules were still awaited when this guide was updated. For mediation in general, see our guide to alternative dispute resolution in Bangladesh.

A defensible exit, step by step

Whichever route applies, the sequence below reflects how we prepare employers to apply the hiring and firing laws Bangladesh enforces through the Labour Court.

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Two disciplines apply throughout. Keep every notice, reply, minute and payment record in one file from the first day, and never let a statutory clock, whether the 60-day inquiry limit, the 30-day settlement period or the 30-day grievance reply, run out unnoticed.

Mistakes to avoid under hiring and firing laws Bangladesh employers apply

Most lost cases are not lost on the merits. They are lost on documents and deadlines. The errors below recur.

• No appointment letter: section 5 is mandatory, and without the letter the employer cannot prove classification, wage or start date.[1]
• Letting probation lapse: without a confirmation decision, the worker becomes permanent automatically.[3]
• Using section 26 as punishment: a termination motivated by union activity or made mala fide can be challenged despite section 33(9).[9]
• Skipping inquiry steps: each of the five section 24(1) conditions is a precondition to any punishment.[6]
• Old wage figures: exit payments use the last monthly basic wage and dearness allowance as redefined in 2026.[4]
• Late settlement: final dues are due within 30 working days, whatever the reason for exit.[1]

When to take advice

Take advice before any group retrenchment or closure, any dismissal of a long-serving worker or union office-bearer, any exit following a harassment complaint, and whenever classification is uncertain. Foreign-invested businesses building a first Bangladesh workforce should also settle appointment letters, service rules and contractor arrangements early; expatriate hires are covered in our guide to Bangladesh work visa requirements.

TRW's workforce terminations and dismissals practice advises on exit routes, inquiries and settlements, our employment law compliance practice builds appointment letters and service rules, and our employment litigation practice acts in the Labour Court and Labour Appellate Tribunal.

Frequently asked questions

Which law governs hiring and firing in Bangladesh?

Chapter II of the Bangladesh Labour Act 2006, as amended by the Bangladesh Labour (Amendment) Act 2026 (Act No 43 of 2026), supported by the Bangladesh Labour Rules 2015.[1] [2] [11]

Is an appointment letter mandatory in Bangladesh?

Yes. Section 5 prohibits appointing a worker without an appointment letter and requires a photographic identity card, and rule 19 lists the letter's contents.[1] [11]

How long is probation under the Labour Act?

Six months for clerical work and three months for other work, extendable by three months for a skilled worker. The worker is treated as permanent at the end even if no confirmation letter is issued.[3]

What notice is needed to terminate a permanent worker without cause?

Under section 26, 120 days for a monthly-rated worker and 60 days for others, or wages in lieu, plus 30 days' wages per completed year or gratuity, whichever is higher.[7]

Can a worker challenge a section 26 termination?

Only if they allege it was made for trade union activity or mala fide, or that they were denied the section 26 benefits.[9]

What procedure applies before dismissing a worker for misconduct?

A written charge, at least seven days to reply, a hearing, an inquiry by a committee with equal employer and worker representation completed within 60 days, and approval of the order by the employer or manager.[6]

Does a dismissed worker get any compensation?

Since 2026, yes, if they have one year's continuous service: 15 days' wages per completed year, except where dismissal is for theft, fraud or dishonesty, or rioting, arson or vandalism.[2] [5]

What compensation is due on retrenchment?

For a worker with one year's continuous service, one month's notice or pay in lieu and 30 days' wages for each year of service, or gratuity if higher, with copies of the notice to the Chief Inspector and the collective bargaining agent.[1]

How soon must final dues be paid?

Within 30 working days after employment ends, whatever the reason.[1]

How long does a worker have to file a grievance?

Thirty days to complain to the employer, who has 30 days to decide; the worker then has 30 days to file in the Labour Court, with a 30-day appeal to the Labour Appellate Tribunal.[9]