Typical signs include contractors who work fixed hours set by the client, attend team meetings like employees, have company titles and email addresses, work only for one organisation for a long period and receive a fixed monthly payment regardless of output. On the employment side, warning signs are long-serving staff still labelled temporary or casual, repeated probation extensions, and junior staff described as managers to avoid worker protections. Any one of these may be explainable, but several together suggest that a worker misclassification review is worth doing before a complaint, inspection or tax enquiry forces the issue.

If a contractor is found to be an employee, the employer may owe statutory benefits for the period of service, such as leave entitlements, festival bonuses and termination payments, as well as compensation if the relationship was ended without following the law. There may also be tax consequences where salary tax should have been deducted. Misplacing employees in the wrong category can produce similar claims. For a foreign company paying people directly, worker misclassification may also support an argument that it has a permanent establishment in Bangladesh, with corporate tax consequences that can exceed the employment claims.

No. A well-drafted contract helps, but Bangladeshi courts and authorities look at the reality of the relationship. If the client controls how and when the work is done, integrates the person into its team, provides equipment and pays a fixed salary-like amount, the label in the contract will carry little weight. The contract and the day-to-day practice must both support independent status. That is why our reviews always look at how the work is actually done, including communications, schedules and payment patterns, not only at the documents. Worker misclassification is a question of substance over form.

We begin with a short scoping call to understand your team, entities and payment arrangements. We then collect contracts, invoices, payment records and organisation charts, and we interview managers and, where appropriate, the people concerned. Each relationship is assessed against the legal tests and given a risk rating with reasons. We prepare a written report that sets out exposure and recommended actions in order of priority. Where possible, the review is structured to preserve legal privilege, and we agree with you in advance how findings will be shared within the business. You then decide the next steps.

It depends on whether you have an entity in Bangladesh and how you see the team developing. If you already have a subsidiary or branch with payroll, converting contractors to employees there is often simplest. If you have no entity, TRW's employer of record service lets the people become employees quickly, with contracts, payroll and benefits handled under Bangladesh law. Some clients use the employer of record route first and transfer staff to their own entity later. We compare cost, timing and risk for each option and plan the move carefully. Either way, the worker misclassification risk ends.

Not always, but past exposure has to be considered honestly. Where the risk is significant, a negotiated settlement of past entitlements, combined with new terms going forward, can close the issue and reduce the chance of later claims. Where the risk is low, documenting the reasons and improving practice may be enough. Tax corrections follow their own rules. We help you weigh the cost of settlement against the cost and likelihood of claims, and we prepare settlement documents that are clear, fair and enforceable, with appropriate releases. Timing of payments also matters for tax.

We start by gathering the facts: the contract, payment records, communications and the way the work was organised. We assess the legal position and any procedural points, such as whether the correct grievance steps and time limits were followed. For DIFE inspections and complaints, we prepare written responses and attend meetings. In the labour court, we file the employer's case, present evidence and cross-examine witnesses. We also explore settlement where it serves the client, because a well-structured settlement can end a dispute quickly and limit precedent within the workforce. Each step is explained to management.

Yes. A freelancer in Bangladesh may bring a claim locally against a foreign company or its local entity, and the foreign company may also face tax questions in Bangladesh. Enforcement against a company with no assets in Bangladesh can be harder, but reputational harm, disruption and risks to future plans in the country remain real. Many foreign companies also find that misclassification issues surface during investor due diligence or acquisitions. We review cross-border arrangements and coordinate with advisers in the client's home country where needed, through our international network. Worker misclassification reviews also help in those situations.