The Labour Act protects workers, a term that generally excludes people employed mainly in managerial or administrative capacities. Senior managers and executives are therefore governed mainly by their contracts, company policies and general law, and disputes usually go to the civil courts or arbitration rather than the labour courts. The label in the contract is not decisive; the courts look at the actual duties. We review job descriptions and contracts to confirm status and draft executive agreements with clear notice, confidentiality and severance terms that will hold up if challenged. Titles alone do not decide status.

The Labour Act and Rules set default terms, but establishments may adopt their own service rules covering matters such as leave, conduct, discipline and benefits, provided they are no less favourable than the statute. Service rules are generally submitted to the inspection authority for approval. Well-drafted rules give managers a clear framework and reduce disputes, while outdated or unapproved rules can undermine disciplinary decisions. We review existing rules against current law, update them for recent amendments, and handle the approval process with the inspection authority on your behalf. Rules are a living document.

Costs depend on the route used and the worker's length of service. Termination by notice, retrenchment, discharge, resignation and dismissal each carry different notice periods and payments, such as compensation or gratuity for each completed year of service, plus unused leave, provident fund balances and any contractual benefits. Dismissal for proven misconduct carries the lowest statutory cost but the highest procedural risk. We calculate entitlements for each employee, identify the safest route and prepare the documents, so the final settlement is accurate and properly recorded before payment is made. Employment ends best with clarity.

Start by preserving evidence and, if necessary, suspending the worker on the terms the law allows. The worker should receive a written charge describing the alleged misconduct and a fair opportunity to reply. If the reply is unsatisfactory, a properly constituted inquiry should hear the evidence and allow the worker to defend himself, and the decision and penalty should follow from the findings. Each step must be documented. We prepare show cause notices, inquiry procedures and decisions, and can sit with management to keep the process fair and defensible. Fair process makes the outcome harder to challenge.

Informal arrangements, such as paying local staff directly from abroad as contractors, create tax, labour and foreign exchange risks and can make the foreign company liable in Bangladesh. Options include a liaison or branch office, a subsidiary, or an employer-of-record provider that employs staff locally on the company's behalf. Each has different registration, tax and employment consequences. We compare the options against your business plan and help structure the relationship so that staff are properly employed and the company's exposure is controlled from the start. Employment law applies regardless of where pay comes from.

Workers may form trade unions, which register with the Department of Labour, subject to membership thresholds and procedures. A registered union, or a collective bargaining agent where there are several unions, can negotiate with the employer and raise industrial disputes. Separately, larger establishments must have a participation committee with worker and management representatives to discuss welfare, safety and productivity. Employers must not interfere with lawful union activity. We advise on recognition, bargaining, the content of settlements and how to respond to charters of demands or industrial action. Managers should know what counts as lawful union activity.

Factories inside export processing zones are governed by the Bangladesh EPZ Labour Act 2019 and its rules rather than the general Labour Act, and BEPZA administers labour matters in the zones. The EPZ regime has its own rules on workers' welfare associations, wages, disputes and inspections, and its own tribunals. Many principles are similar, but the detail differs. Investors moving between zones and ordinary industrial areas, or acquiring businesses in both, should check which regime applies. We advise on both regimes and on transitions between them. Check which statute governs benefits and disputes after any move.

The Personal Data Protection Act 2026 applies to personal data that employers collect about applicants, workers and former staff, including identity documents, health information, biometrics, payroll and disciplinary records. Employers need a lawful basis for processing, clear notices to staff, appropriate security, sensible retention periods and safeguards for transfers outside Bangladesh, for example to group HR systems. We review HR processes and contracts, prepare employee privacy notices and policies, and align monitoring, CCTV and biometric attendance systems with both data protection and labour law requirements. Limit access to HR files and record retention periods.