Employer Of Record In Bangladesh
Bangladesh Employer of Record gives you an upper hand at growing your business in Bangladesh independently. Skuad’s international undivided HR platform helps you accelerate the hiring of your local team, administer their salaries, and handle a range of HR responsibilities on your behalf. Skuad will also assist you in expanding your business internationally with the help of our global networks.
Bangladesh At A Glance
Population: 164.7 Million.
Currency: Bangladeshi Taka (BDT)
Capital city: Dhaka
Languages spoken: Bengali
GDP: 8.2% (2020)
Employment In Bangladesh
Bangladesh's employment laws are governed by the 2006 Labor act and the 2015 Labor Rules Control. These laws apply to all the employees working in commercial and industrial companies, and specify the working hours, weekly holidays, medical leaves and yearly leaves.
Setting up a local business entity in Bangladesh can be expensive, cryptic and a tedious task.
Bangladesh’s labor rules and laws protect the employees, which requires more dedication on the part of the employer to specific sectors and broad knowledge about the prevalent local practices. Skuad’s Bangladesh EOR solution can be the perfect local payroll provider and give you peace of mind while expanding your business, thanks to the extensive knowledge about the Bangladesh labor rules.
Contractors vs. Full-Time Employees
In Bangladesh, workers who function based on different contracts independently are known as contractors. Contractual workers pay their own taxes and manage their work independently. On the other hand, full-time employees take orders and instructions from the employer and receive many employment perks from their company for working full time.
Before hiring either full-time employees or contractors, it’s vital to know how either of the positions is suitable for your business structure if the project duration is long or short, depending on the nature of the tasks. For example, accounting and promoting employees are critical tasks in any organization, and these separate departments also require close supervision. In such cases, it is better to employ full-time workers for these tasks.
Similarly, it’s cheaper to employ contractors as they are more spontaneous, and the work is done according to the contract. However, employers generally have less control over contractual workers. These workers schedule their own routine and are sometimes less interested in working for a single company as they’re bound to their contracts with multiple employers. Given the temporary nature of the employment, such workers have a lesser chance of bringing forth lawsuits with the employer.
Book a demo with us for more information about hiring contractors and full-time employees.
Hiring In Bangladesh
According to Bangladeshi laws, the employer must draft a contract of employment that covers all the details ranging from the employee’s salaries, compensation rates to benefits. These details must be listed in Bangladeshi Taka as different currencies might not be accepted. There is no one way of hiring employees in Bangladesh.
Whether contractual or fixed-term, hiring workers depends largely on the organization’s priorities and business strategy, and each has a different set of requirements to be covered in the contracts. Skuad's EOR solution helps organizations hire both types of workers in Bangladesh seamlessly. Skuad’s team of experts can take over the responsibilities of drafting a proper employment contract that covers employment terms, benefits, additional perks and all other details in accordance with the local laws.
For ensuring that your hiring process is compliant with the obligatory laws, speak to Skuad’s experts today.
Probation & Termination
Section 4(8) of the Labour Act dictates that the duration of the probation time depends on the employee’s line of work. If the employee is from an administrative background, the probation period is 6 months, and for other employees, it’s generally 3 months. The probation duration can be increased if the type of service within the first three months of probation is unsatisfactory. However, the employee is entitled to a permanent place at work after completing the probation period.
Termination of service
The employee or the employer both hold power to terminate the contract according to the Labor Act of 2006. The Act provides 5 different procedures to terminate employment:
- Termination with notice
The employer is responsible for putting out a notice 120 days before termination for rated monthly employees and 60 days for other employees. The worker is also entitled to one month’s pay upon termination for every year of service.
EOR Solution In Bangladesh
Bangladesh Employer of Record simplifies and fastens the process of business expansion into the very heart of Bangladesh. Working with an EOR such as Skuad helps you by establishing swift management of employee earnings, contracts of agreement, tax details and work permits. Skuad can offer the perfect pool of candidates that are suitable for business owners and CEOs without them having to do the difficult work.
General Employer of Record Service Terms
Outsourcing employment through an Employer of Record
It is important to choose what path you want to take when expanding your business in Bangladesh. You can opt to grow a team from scratch and manage them or leave them to an EOR partner such as Skuad to handle the responsibilities of regulating the employees’ salaries and their growth
Types Of Visas In Bangladesh
Payroll & Taxation In Bangladesh
To regulate earnings and oversee tax collection in Bangladesh, you must have a clear understanding of the rules and regulations. As an international organization, it is important to know and follow the country's laws like taxes on income, taxes on business, security taxes and more. There are two ways of regulating this:
- You can establish and make your own team to manage the salaries and taxes.
- You can take our help with our local contacts in Bangladesh who will make sure that everything is in accordance with the Bangladesh laws and make management of payroll and employment easier.
Taxes In Bangladesh
Businesses planning to expand into the Bangladesh market will need the assistance of local HR professionals to manage the complex taxation, compliance, and payroll procedures in the country. For this, it is advantageous to partner with a local EOR such as Skuad’s Bangladesh EOR solution to handle this on your behalf.
Business enterprises often face difficulty while operating with the banking institutions in Belarus and their rules and regulations vastly differ from the structure and rules of international business transactions. Currently, Bangladesh is revising its banking structure which simplifies the expanding process for companies.
It’s also very important to understand the rules and regulations of Bangladesh. If you don’t plan on taking any global EORs help like Skuad, you should take assistance from a lawyer who's well-informed about the Bangladesh subsidiary laws. You can also choose to groom your own team to look after the hiring and payroll process.
Types of company structures in Bangladesh:
- Most of the companies operating in Bangladesh today are PLLC Private Limited Liability Company. It’s a different legal entity, and generally, shareholders are not held accountable for the company’s dues more than the number of share capitals they have invested.
- The LLC structure has its own legal framework, and you need at least two directors and two shareholders. Bangladesh has a minimum requirement of share capital, which costs just $1. You’ll also have to provide the annual financial records to the Income Tax Authority of Bangladesh.
If you’re determined to take the next step and open up a subsidiary in Bangladesh, you might be in need of some help. Skuad’s EOR, Bangladesh, can be your perfect partner who can let you rest as they streamline the process.
Skuad offers EOR(Employer of Records) services for organizations who want to employ employees and run payroll without opening a subsidiary in Bangladesh. Employees will be employed in days through Skuad’s local contacts in accordance with the labor laws.
Book a demo here.