Often they can, but not automatically. Because acquiring shares or options in a foreign company is a capital account transaction for a Bangladeshi resident, participation in foreign share incentive plans generally requires Bangladesh Bank approval or must fit within a permitted framework. The approach also depends on whether employees will pay to acquire shares, whether awards are cash-settled, and how sale proceeds and dividends will be repatriated. We review the plan rules, advise on the realistic approval route, prepare the application, and suggest local alternatives such as phantom or cash-settled awards where approval is unlikely or slow.

No. Festival bonuses for workers are a statutory entitlement under the Bangladesh Labour Rules 2015, linked to religious festivals and calculated according to the rules, subject to qualifying service. Performance bonuses and other incentive plans are contractual or discretionary, depending on how they are documented. Employers sometimes merge the two or describe all bonuses as discretionary, which creates disputes and potential non-compliance. We review bonus documents, separate statutory and discretionary elements clearly, and draft plan terms that preserve flexibility where it is lawful while giving employees a fair understanding of what they can expect.

It depends on whether the benefit is contractual, statutory or genuinely discretionary, and on how long and consistently it has been paid. Benefits that have become part of the terms of employment, through contracts, policies or established practice, cannot usually be removed unilaterally without risk of claims or industrial action. Statutory benefits cannot be reduced below the legal minimum. We review the history and documents, advise on lawful options such as consent, replacement benefits or prospective changes, and plan communication and consultation so that changes to incentive plans are accepted rather than contested.

Tax treatment depends on the type of award, when the employee obtains a benefit, whether shares are listed and how the plan is structured. A benefit received by reason of employment is generally taxable as employment income, and later gains on sale may raise separate questions. Employers also have withholding and reporting obligations for salary and perquisites. Because the Income Tax Act 2023 and annual Finance Acts change the details, we work with tax advisers to confirm the current treatment and document the plan so that both employer and employee comply with their obligations and avoid penalties.

For many establishments, the Bangladesh Labour Act 2006 requires a provident fund for workers in defined circumstances, and other employers set up funds voluntarily as a valued benefit. A recognised provident fund requires a trust deed, rules, trustees and approval from the tax authorities to obtain tax benefits, and contributions must be paid into the fund and invested according to the rules. Poor administration exposes trustees and the employer to claims. We advise on whether a fund is required, draft the documents, assist with recognition and review existing funds for compliance and governance, including investment practice.

The Workers' Participation Fund and Welfare Fund regime under the Bangladesh Labour Act 2006 requires qualifying companies to allocate a percentage of net profit to funds for the benefit of eligible workers, administered by a board of trustees, with a portion transferred to a government welfare foundation. Whether it applies depends on the company's size, paid-up capital or fixed assets and status, and some sectors have specific arrangements. Non-compliance has led to many disputes. We assess applicability, set up or review governance, and advise on calculation, distribution and settlement of historic shortfalls, which buyers often raise during due diligence.

Leaver provisions are one of the most disputed parts of incentive plans. Plans should state clearly what happens to unpaid bonuses, unvested awards and deferred amounts when an employee resigns, is dismissed, retires, dies or leaves through redundancy, and whether good and bad leaver categories apply. These terms must work alongside statutory termination benefits under the Bangladesh Labour Act 2006, which cannot be excluded. We draft leaver rules that are clear and defensible, and advise on individual departures where significant sums, unvested awards or restrictive covenants are involved, including settlement agreements and releases.

Foreign nationals working in Bangladesh with proper work permits can generally remit a portion of their salary abroad through banks, subject to foreign exchange rules, tax compliance and documentation requirements. Paying salary offshore from a foreign group company for work performed in Bangladesh can raise tax, permanent establishment and foreign exchange issues. Tax equalisation and split payroll arrangements need careful design. We review the proposed arrangement with tax advisers, confirm the documents banks will need, and draft contract terms so that the expatriate's package can be delivered lawfully and reliably throughout the assignment.