HR Outsourcing Services in Bangladesh for Employers
Payrollbangladesh runs the HR function for companies employing staff in Bangladesh. That covers HR administration and personnel files; appointment letters, ID cards and service books; HR policies and service rules aligned with the Labour Act 2006 as amended in 2026; recruitment and onboarding coordination; leave and attendance; payroll inputs and benefits; grievance and disciplinary procedure; performance reviews; exits and final settlement; and the workplace committees the law now requires. You keep the people decisions. We run the process, the paperwork and the compliance.
HR Outsourcing Services Built for Companies Employing Staff in Bangladesh
Most employers in Bangladesh do not need a full HR department. They need the work an HR department does, done correctly and on time. We take over that work end to end, from the appointment letter to the final settlement, while hiring, pay and termination decisions stay with you. Three kinds of employers use this service:
Foreign companies with a Bangladesh entity
A subsidiary, branch or liaison office with a small local team and no local HR manager. Head office wants Bangladesh HR run to local law and reported in English, without building a department. If you have no entity yet, our Employer of Record track employs the staff for you.
Local companies and NGOs without an HR team
An office manager or accountant has been “doing HR”. Appointment letters differ from person to person, service books are missing, leave sits in a spreadsheet, and the 2026 amendments have not been applied. We fix the base, then run it month to month.
Factories and multi-site employers
High headcount, regular joiners and leavers, and inspector visits. We run onboarding, registers, leave and the committees the amended Act requires, and keep every personnel file inspection-ready.
What Is Included in Our HR Outsourcing Services?
Our HR outsourcing services in Bangladesh cover nine service groups: HR administration and personnel files; HR policies, service rules and handbook; recruitment and onboarding coordination; leave, attendance and holidays; payroll inputs and benefits administration; grievance and discipline; workplace committees and HR compliance; performance and training; and exits and final settlement. You can take all nine or only the modules you need, for a fixed monthly fee agreed after a scoping call.
The nine service groups
HR administration & personnel files
An appointment letter and ID card for every worker (s.5), a service book (s.6), the worker register, and a personnel file holding NID, education records and reference checks. Contract changes, confirmations and transfers are recorded as they happen, so every file is current and audit-ready.
HR policies, service rules & handbook
An employee handbook aligned with the Labour Act 2006 as amended in 2026. It covers classification of workers and probation (s.4), working hours, leave, conduct, disciplinary and grievance procedure, harassment and exit. Where you adopt your own service rules, we prepare them for the Chief Inspector’s approval under s.3.
Recruitment & onboarding coordination
We write job descriptions that match actual duties, because the 2026 definition of “worker” (s.2(65)) turns on the work done, not the job title. We also coordinate interviews, issue offer letters, run background and reference checks, and handle joining formalities and day-one induction.
Leave, attendance & holidays
Casual, sick, annual and festival leave tracked for each worker under ss.115–118. That includes the 13 festival holidays now required and maternity leave of 120 days (60 before and 60 after delivery) under s.46. Attendance and overtime data go to payroll in a clean, approved format.
Payroll inputs & benefits administration
Joiners, leavers, increments, allowances and deductions go to payroll on a fixed cut-off calendar. We administer provident fund, gratuity, group insurance and WPPF, and festival bonus on basic wage under rule 111 of the Labour Rules 2015.
Employee relations, grievance & discipline
A written grievance procedure under s.33. Misconduct is handled under ss.23–24: a written charge, a fair chance to reply, and an enquiry before any penalty. We draft and file the show-cause notices, warning letters and enquiry reports.
Workplace committees & HR compliance
A complaint committee of five members, chaired by a woman with a female majority (ss.332, 332A). A safety committee where there are 50 or more workers (s.90A) and a participation committee at 50 workers (s.205). In establishments of 100 or more workers, a provident fund when two-thirds of workers ask for it in writing.
Performance, training & development
Appraisal cycle and forms, KPI templates, probation and confirmation reviews, and training records. Promotion and increment letters match your policy and the payroll change that follows them.
Exits & final settlement
Resignation (s.27); termination with 120 or 60 days’ notice, or pay in lieu (s.26); retirement at 60 (s.28). The final settlement covers notice pay, leave encashment, gratuity or service benefit, provident fund and tax. We issue the experience and release letters.
Legal frame: Bangladesh Labour Act 2006 ss.2(65), 3–6, 16, 23–28, 33, 46, 90A, 115–118, 205, 264, 307, 332 and 332A, and Labour Rules 2015 rule 111 (official text, Act No. 42 of 2006, bdlaws.minlaw.gov.bd). 2026 amendments: the Labour (Amendment) Bill passed by Parliament on 9 April 2026, converting the Ordinance of 17 November 2025 (Business in Bangladesh report), with section-by-section summaries from MiHCM and Mondaq. Notice periods: S. Hossain & Associates. Several 2026 figures are reported in commentary ahead of a consolidated official text, so we confirm each against the gazette before applying it to your file.
What Are the HR Rules for Employers in Bangladesh? Key Facts at a Glance
Every HR file we run is checked against these rules, and each rule is tied to its source. Where a line is a Payrollbangladesh term rather than law, the table says so.
| Item | Position | Source |
|---|---|---|
| Appointment letter & ID card | Issued to every worker on joining | Labour Act 2006, s.5 |
| Service book | Kept for every worker | Labour Act 2006, s.6 |
| Probation | Up to 6 months for clerical work and 3 months for other work; may be extended by 3 months for a skilled worker whose quality of work cannot yet be judged | Labour Act 2006, s.4 |
| Termination by employer (permanent) | 120 days’ written notice for monthly-rated workers, 60 days for others, or pay in lieu; plus 30 days’ wages per completed year or gratuity, whichever is higher | Labour Act 2006, s.26 (unchanged by the 2026 amendment) |
| Termination of temporary workers | 30 days’ notice for monthly-rated workers, 14 days for others, or pay in lieu | Labour Act 2006, s.26 |
| Resignation (permanent) | 60 days’ written notice or pay in lieu; service benefit graded by length of service, scale revised in 2025–26 | Labour Act 2006, s.27 as amended (confirm the current scale with the gazette) |
| Retirement | Age 60 | Labour Act 2006, s.28 |
| Maternity leave | 120 days: 60 before and 60 after delivery (previously 112) | Labour Act 2006, s.46 as amended 2026 |
| Festival holidays | 13 days a year (previously 11) | Labour Act 2006, s.118(1) as amended |
| Lay-off compensation eligibility | 3 months’ continuous service (previously 1 year) | Labour Act 2006, s.16 as amended |
| Complaint committee | 5 members, woman chair, female majority, in every establishment | Labour Act 2006, ss.332, 332A as amended |
| Safety committee | Establishments with 50 or more workers | Labour Act 2006, s.90A (MiHCM summary; confirm threshold wording in the gazette) |
| Participation committee | Establishments with 50 or more workers | Labour Act 2006, s.205 |
| Provident fund | In establishments of 100+ workers, set up on written request of two-thirds of workers, or workers join the National Pension Authority’s Pragati scheme | Labour Act 2006, s.264 as amended 2026 (Business in Bangladesh report) |
| Blacklisting | Prohibited; treated as an unfair labour practice | Labour Act 2006, ss.195, 196A as amended |
| General penalty | Fine of BDT 25,000–50,000, imprisonment up to 3 months, or both | Labour Act 2006, s.307 as amended 2026 |
| Our contract term | Either party may end the service on 30 days’ written notice | Payrollbangladesh service terms |
Why Do Employers Choose Payrollbangladesh for HR Outsourcing?
Because HR problems in Bangladesh rarely start with a big decision. They start with a missing appointment letter, a termination with the wrong notice, or leave rules that were never updated, and they surface at an inspection, in a labour court or during a buyer audit. We run HR from the same desk that runs payroll, so the record and the payment always match.
Updated for the 2026 amendment
120-day maternity leave, 13 festival holidays, the complaint committee, graded resignation benefits and the higher penalties are already built into our templates and leave rules.
HR and payroll from one desk
The joiner, leaver, leave and increment data we record is the data payroll pays on. Finance, HR and the payslip don’t disagree.
You keep the decisions
Hiring, pay, promotion and termination decisions stay with your management. We advise, document and execute, and every letter with legal effect goes out under your authority.
Statute-cited documents
Every letter, notice and policy clause is tied to the section that requires it (s.5, s.6, s.24, s.26, s.27, s.46), so it holds up at inspection and in a labour court.
Modular, fixed monthly fee
Take all nine service groups or only the ones you need. One monthly price scoped by headcount and modules, and either side can end the service on 30 days’ written notice.
Single point of accountability
One HR lead per client, plus a reviewer who signs off every document with legal effect — show-cause, termination and final settlement — before it is issued.
How Does Our HR Outsourcing Process Work?
Our HR outsourcing process in Bangladesh runs in six steps: HR diagnostic, design and documents, transition, monthly run, cases and exits, and review and update. How long the transition takes depends on your headcount and how complete your existing records are. We give you a written timeline after the diagnostic.
- 01HR diagnostic. We review contracts, appointment letters, service books, policies, leave records, committees and recent exits against the Labour Act as amended in 2026. You receive a gap list with the legal basis for each item and the order to fix them in.
- 02Design & documents. We update the handbook or service rules, letter templates, leave policy, grievance and disciplinary procedure, and committee constitutions for 2026, then agree them with your management before use.
- 03Transition. We rebuild personnel files, move HR data into our records, brief your managers on who approves what, and send employees a short notice explaining how HR now works and who to contact.
- 04Monthly run. Onboarding, records, leave and attendance, payroll inputs by cut-off, letters, employee queries, and a monthly HR report covering headcount, joiners, leavers, leave and open cases.
- 05Cases & exits. We document grievance and disciplinary cases step by step, calculate and issue resignations, terminations and final settlements, and file every signed document.
- 06Review & update. Each year we review the policies and run the appraisal cycle. When a labour-law amendment lands, we map it into your templates and leave rules before it takes effect for you.
Which HR Checks Do We Own for Every Employer in Bangladesh?
We check every client file against this list at onboarding and every quarter after that. If any item fails, our reviewer flags it in the monthly HR report with the fix and its deadline.
Nine checks on every HR file
- ✓Every worker documented: appointment letter and ID card under s.5 and a current service book under s.6, all matching the payroll record.
- ✓Job descriptions match actual duties. The 2026 definition of “worker” in s.2(65) looks at the work done, not the job title.
- ✓Leave rules updated for 2026: 120-day maternity leave (60 + 60) under s.46 and 13 festival holidays under s.118, applied in the leave system, not just in the policy text.
- ✓Complaint committee in place: five members, a woman chair and a female majority under ss.332 and 332A, with the members’ names displayed.
- ✓Safety and participation committees set up where headcount reaches 50 (ss.90A, 205), and the provident fund trigger watched at 100 workers.
- ✓Probation tracked within the s.4 limits, with confirmation letters issued so that no worker stays on indefinite probation.
- ✓Discipline done by the book: a written charge, a fair chance to reply and an enquiry record before any penalty under ss.23–24.
- ✓Exits closed cleanly: notice or pay in lieu under ss.26–27, a final settlement calculated and signed, and a release letter issued.
- ✓No blacklisting. References and HR records stay factual, because blacklisting is now an unfair labour practice under ss.195 and 196A.
Primary sources: official text, Act No. 42 of 2006, bdlaws.minlaw.gov.bd; MiHCM — Labour (Amendment) Act 2026: what HR must do; Mondaq — Bangladesh’s 2025–2026 labour law reforms; Business in Bangladesh — Labour (Amendment) Bill 2026 passed.
Which HR Outsourcing Model Fits Your Company in Bangladesh?
The right model depends on two things: whether you have a Bangladesh entity, and how much of HR you want to keep in-house. The table shows the four ways employers work with us.
| Model | Legal employer | Best for | What we do |
|---|---|---|---|
| Full HR outsourcing | Your company | Entities with no HR team | All nine service groups, run monthly, with an HR lead and a reviewer |
| Co-sourced HR | Your company | Companies with an HR officer who needs specialist back-up | Policies, letters with legal effect, disciplinary cases, exits and compliance; your officer runs daily administration |
| Project HR | Your company | One-off needs | HR diagnostic, handbook rewrite, 2026 amendment update, restructuring or retrenchment support |
| Employer of Record | Payrollbangladesh | Companies with no Bangladesh entity | Contracts, payroll and HR run under our own registrations |
Related: Employer of Record if you have no entity, and Expatriate Management for foreign staff on your payroll.
Should You Run HR In-House or Use Payrollbangladesh? Direct Comparison
An in-house HR officer suits some companies. For many employers in Bangladesh, though, one person cannot keep up with policy, documents, cases and the 2026 changes all at once. The rows below show where the difference shows up.
| Dimension | In-house / ad hoc | Payrollbangladesh (outsourced) |
|---|---|---|
| Cost | Salary, benefits, training and HR software for one or more staff | One fixed monthly fee for the modules you use |
| Legal currency | 2026 changes (maternity, festival holidays, complaint committee) applied late or not at all | Amendments mapped into templates and leave rules before they take effect |
| Documents | Letters differ from person to person; service books incomplete | Standard, statute-cited templates; every file complete and current |
| Disciplinary & exit risk | Procedure steps skipped; wrong notice or settlement; claims in the labour court | ss.23–27 procedure followed and documented; settlements reviewed before issue |
| Continuity | HR stops when the officer is on leave or resigns | A team behind every client file |
| Link to payroll | HR and payroll data kept separately; mismatches every month | HR records feed payroll directly from the same desk |
| Reporting | Little or none | Monthly HR report: headcount, joiners, leavers, leave, open cases |
| Accountability | Split between office manager, accountant and lawyer | One HR lead and one reviewer |
Need payroll or filings as well? See Corporate Payroll Service and Statutory Compliance.
What Determines the Price of HR Outsourcing in Bangladesh?
Three things set the price of HR outsourcing in Bangladesh: headcount, the modules you choose, and the number of sites. We charge a fixed monthly fee on that basis, with no hourly billing. One-off work, such as a handbook rewrite or a backlog of missing documents, is quoted once and separately. You get a written quote after a scoping call.
| Tier | Typical fit | What’s included |
|---|---|---|
| Essentials | Small teams without an HR person | Personnel files, appointment letters, ID cards and service books, leave and attendance, payroll inputs, standard letters, monthly HR report |
| Complete | Growing employers with regular joiners, leavers and cases | Essentials + handbook and policies, grievance and disciplinary cases, workplace committees, performance cycle, exits and final settlement |
| Enterprise / multi-site | Factories and employers with several premises | Complete + on-site HR days, committee meetings, inspection-readiness reviews each quarter, per-site reporting |
All tiers include the HR diagnostic at onboarding and a reviewer sign-off on every document with legal effect. Either party may end the service on 30 days’ written notice.
Frequently Asked Questions — HR Outsourcing in Bangladesh
Eleven questions employers ask us
What do HR outsourcing services in Bangladesh include?
HR outsourcing services in Bangladesh run an employer’s HR administration under the Labour Act 2006 as amended in 2026. That covers personnel files and appointment letters, policies and handbook, onboarding, leave and attendance, payroll inputs and benefits, grievance and discipline, workplace committees, performance reviews, exits and final settlement.
Payrollbangladesh offers this as Essentials, Complete or Enterprise for a fixed monthly fee, with an HR diagnostic at onboarding.
What is the difference between HR outsourcing and Employer of Record?
With HR outsourcing, your Bangladesh company stays the legal employer: it holds the contracts, the registrations and the liability, and we run HR on its behalf. With an Employer of Record, Payrollbangladesh becomes the legal employer and hires the staff under its own registrations.
HR outsourcing suits companies with a Bangladesh entity. Employer of Record suits companies that don’t have one yet.
Do I stay in control of hiring and firing if I outsource HR?
Yes. Hiring, pay, promotion and termination decisions stay with your management. We advise on the legal position, prepare the documents and run the procedure, and every letter with legal effect is issued under your authority.
That keeps the decision where the accountability sits, while the process is done correctly.
Which 2026 Labour Act changes affect HR in Bangladesh?
The main ones come from the Labour (Amendment) Act passed in April 2026, which converted the Ordinance of 17 November 2025. Maternity leave rose to 120 days (60 before and 60 after delivery). Festival holidays rose to 13 days. Every establishment needs a five-member complaint committee. Lay-off compensation now applies after 3 months’ service. Resignation benefits are graded by length of service. Blacklisting is banned, and general penalties rose to BDT 25,000–50,000.
In establishments of 100 or more workers, a provident fund must also be set up when two-thirds of workers ask for it. We confirm each figure against the gazetted text before applying it.
How much notice is needed to end employment in Bangladesh?
Under s.26 of the Labour Act 2006, an employer ending a permanent worker’s employment (other than for misconduct) gives 120 days’ written notice to a monthly-rated worker and 60 days to others, or pays wages in lieu. It also pays 30 days’ wages for each completed year of service, or gratuity if that is higher.
A permanent worker who resigns gives 60 days’ notice under s.27. Temporary workers have shorter notice periods.
How should a disciplinary case be handled under Bangladesh labour law?
Under ss.23–24 of the Labour Act 2006, the worker must receive the charge in writing, have a fair opportunity to reply, and an enquiry must be held and recorded before any penalty is imposed. Skipping a step is the most common reason dismissals are overturned in the labour court.
We draft the show-cause notice, organise the enquiry, write the report and the decision letter, and keep the complete file.
Which HR documents must every employee have in Bangladesh?
At minimum: an appointment letter and an ID card under s.5 and a service book under s.6. The worker must also appear in the worker register and the leave register.
Good practice adds a personnel file with NID, education and reference checks, signed policy acknowledgements, and every later letter such as confirmation, increment, warning or transfer.
Can I outsource only part of HR?
Yes. You can contract only the service groups you need. For example, you could take policies, disciplinary cases and exits while your own officer handles daily administration (co-sourced HR), or commission a one-off project such as a handbook rewrite.
You can add modules later as the company grows.
Will I be locked into a long contract?
No. Either party may end the service on 30 days’ written notice. When the service ends, we hand back every personnel file, template and record in an organised form, so your next HR officer or provider can take over without gaps.
How long does it take to move HR to Payrollbangladesh?
It depends on headcount and how complete your current records are. A small office with clean files moves faster than a multi-site employer with missing service books.
We give you a written timeline after the HR diagnostic, and we run the old and new arrangements side by side until the first monthly cycle closes cleanly.
Which other Payrollbangladesh services pair with HR outsourcing?
The most common pairings are the Corporate Payroll Service, which pays on the HR records we keep, and Statutory Compliance for tax and labour filings. Hiring is covered by Remote Employee Recruitment and Vetting and Compliance.
Foreign employers add Expatriate Management and, where no entity exists yet, the Employer of Record track.
Want Your HR Run to the 2026 Labour Act — Without Building an HR Department?
Get a fixed monthly quote for HR outsourcing in Bangladesh and a free HR diagnostic of your contracts, letters, leave rules and committees against the Labour Act 2006 as amended in 2026 — no obligation.
Payrollbangladesh · Rupayan Shopping Square, Suite 610, Bashundhara R/A, Dhaka 1229 · +880-1711-990010 · info@payrollbangladesh.com