The Ultimate Glossary of Terms About Employer Of Record

The Employer of Record Service in Bangladesh

PayrollBangladesh enables you to engage an international workforce fast and legally without the need to establish a local legal company. In this article, you can know about the employer of record service.

Required Education For A Successful Employer of Record Service

Bangladesh is a South Asian republic in the north-eastern Indian subcontinent, in the delta of the Padma and Jamuna rivers. Bangladesh is a riverine country with a primarily Muslim population. Moreover, it is one of the world’s most densely inhabited countries.

The area once formed, along with what is now the Indian state of West Bengal, as the eastern portion of the historical region of Bengal. When India was partitioned in 1947, it became the Pakistani province of East Bengal. Finally, Bangladesh became an independent country in 1971.

With a length of 125 kilometers, Bangladesh’s Cox Bazaar is the world’s longest sea beach. The Bay of Bengal, which is located in Bangladesh, is the world’s largest bay. Bangladesh is home to the world’s largest mangrove forest.

The Sundarbans mangrove forest, a UNESCO World Heritage Site with a total size of 10,000 km2, is located on the Bay of Bengal’s Ganges, Brahmaputra, and Meghna river deltas. Textiles account for nearly all of Bangladesh’s exports (c.95 percent) (knitwear and leather). Textiles account for nearly $37 billion of the country’s total exports of $39.2 billion, despite the fact that farming employs 45 percent of the population.

Bangladesh’s Employer of Record Service Laws and Procedures

1. Employment Contract
   Employer of record service is a legal necessity in Bangladesh to have a written employment contract in Bengali. The contract must include the details of the employee’s compensation and benefits, as well as any prerequisites for termination. Salary information must be reported in Bangladeshi Taka (BDT), not in a foreign currency.
2. Period of Probation
   A maximum of 6 months may be granted.
3. Termination
   The standard termination notice is 30 or 60 days of paid notice. The employer can make a payment in lieu of notice.
4. Overtime
   All employees are entitled to work overtime under Section 108 of the Labour Act. Overtime is paid at a rate of two times the basic salary. An employee is only permitted to work a total of 60 hours per week. An employee is not permitted to work more than 56 hours per week on a yearly basis.
5. Annual Vacation
   After 12 months of service, every employee is entitled to yearly leave. For every 18 working days, one day of annual leave is taken. If an employee does not use their vacation time, it can be carried over to the following year. Employees have the option of cashing out their annual leave at full salary.
6. Sick time
   Employees are entitled to 14 days of paid sick/medical leave and must provide verification in the form of a medical certificate. Sick leave that hasn’t been used can’t be carried over to the next year.
7. Leave for Maternity
   Female employees who have worked for at least 6 months are entitled to 8 weeks of paid maternity leave before and after the birth of their child. Unpaid leave is available to female employees who have worked for less than six months. Women are not allowed to work for 8 weeks after giving birth in any instances. Paternity leave is not available.

Note: The standard VAT rate in Bangladesh is 15%.

Income Tax Table

1. Non-residents are subject to a 30 percent flat tax.
2. Tax rates may change from year to year.
3. Contributions from both the employer and the employee

There are no mandated social security or pension contributions from either the employer or the employee.

Public Holidays

Employees in Bangladesh are entitled to 11 public/festival holidays with full pay. If an employee is compelled to work on a national holiday, they will be given two full paid days off and a replacement holiday.

1. New Year’s Day
2. Language Martyrs’ Day
3. Birthday of the father of the Nation, Bangabandhu Sheikh Mujibur Rahman
4. Independence Day
5. Bengali New Year
6. May Day
7. Buddha Purnima
8. Jumatul Bidah
9. Eid-ul-Fitr
10.  National Mourning Day
11.  Shuba Janmashtami
12.  Eid-ul-Adha
13.  Durga Puja
14.   Ashura
15.   Eid-e-Miladun-Nabi
16.   Victory Day
17.   Christmas Day

Other Things Of a Employer of Record Service

1. Payout for severance
   Employees who have worked for at least 12 months are entitled to one month’s paid notice or payment in lieu of notice, as well as one month’s severance compensation for each year they have worked.
2. Bonus for Festival
   After completing a year of continuous service, employees are entitled for two festival bonuses. The total value of any bonus should not exceed the base wage.
3. Permits for Work and Residency (Expatriates)
   The Bangladeshi embassy in their country should have the following documents.

1. a filled-out visa application
2. In Bangladesh, a letter of appointment from the employer
3. An original passport with a six-month validity period.
4. A passport-sized photograph
5. Payment of the visa fee to the appropriate embassy, with proof of payment.
6. A work visa takes 3 to 4 weeks to process.

Benefit Of Employers of Record 

Employers of Record service provide a corporation with a variety of advantages. Here are a few examples:

1. The largest advantage of EOR is doing business abroad.
2. Employer of record service has a lower cost, complexity, and compliance risk.
3. There’s no need to form a local corporation.
4. Observance of Immigration Rules
5. The Payroll Process in the Host Country

Wrap Up

Choosing an EOR or PEO for your firm comes down to whether service is more important to you. Get in touch with our Global Employer Of Record service experts if you’re unsure which option is right for you. You can enlist our help in determining your company’s goals and objectives, as well as which solution is best suited to them. Please contact us if you’d like to learn more about our Bangladesh employer of record solution