Employment / Appointment Letter Agreement

A permanent employment contract sets the terms between a Bangladeshi employer and a worker classified as "permanent" under Section 4 of the Bangladesh Labour Act, 2006 — a worker retained after satisfactory completion of the probationary period (six months for clerical, three months for others). The written appointment letter and service rules together form the enforceable contract. Statutory rights that cannot be contracted out include gratuity (Sections 2(10) & 26), festival bonus, weekly holiday, casual and sick leave, and maternity benefit (Sections 45-50). The contract fixes the negotiable terms: designation, workstation, salary breakdown, allowances, provident-fund enrolment, working hours within the 48-hour weekly cap, and notice period (Section 26 requires 120 days for permanent workers).

Stamp & registrationIndividual employment contracts do not require stamp duty or registration to be enforceable — Section 4 of the Bangladesh Labour Act treats the appointment letter itself as the contract. Companies commonly execute appointment letters on plain company letterhead. If the contract contains a large restrictive-covenant deed (post-employment non-compete for senior executives), that specific instrument may warrant a Tk. 300 non-judicial stamp for evidentiary weight, but the underlying employment relationship remains statutorily regulated regardless of stamping.

What this agreement typically contains

Employer full legal name, registration number, registered address
Employee full name, NID, permanent and present address, contact
Designation, department, reporting manager, workstation
Effective date of joining and confirmation date after probation
Gross salary breakdown — basic, house rent, medical, conveyance, other allowances
Working hours, weekly off, leave entitlement referencing the 2006 Act
Notice period (120 days for permanent worker per Section 26)
Provident fund, gratuity, festival bonus, and other statutory benefits
Confidentiality, IP assignment, and (if applicable) restrictive covenant
Signatures of employer authorised signatory and employee

Create this agreement now

Frequently asked questions

What notice period is required to terminate a permanent employee in Bangladesh?: Section 26 of the Bangladesh Labour Act, 2006 requires 120 days notice (or wages in lieu) for a permanent worker terminated without misconduct. For monthly-paid workers this is often expressed as four months. Termination for proven misconduct follows Section 24 procedure with a domestic enquiry — no notice is then required but the enquiry must comply. Any contractual notice shorter than the statutory 120-day floor is unenforceable to the extent it undercuts the Act.
Is a restrictive non-compete clause after employment enforceable?: Section 27 of the Contract Act, 1872 makes any agreement in restraint of trade void — this is a strong bar. Bangladeshi courts generally strike down post-employment non-competes as unenforceable unless narrowly tailored around genuinely protectable trade secrets, limited in duration (a few months) and geographic scope, and supported by separate consideration. Non-solicitation of customers or employees during employment is enforceable; a blanket "cannot work in this industry for 2 years" clause is not.
What must the salary breakdown contain?: The Bangladesh Labour Act does not fix a specific split but statutory calculations (gratuity, overtime, festival bonus) run on "basic wage." Employers typically set basic at 40-60% of gross with the balance in house rent (usually 40-50% of basic), medical (fixed), conveyance (fixed), and other allowances. Provident-fund contribution (where applicable) is a percentage of basic. Structure the breakdown carefully — an artificially low basic reduces gratuity/PF but can trigger labour-court challenges.

Other contracts in this category

What this agreement typically contains

Employer full legal name, registration number, registered address

Employee full name, NID, permanent and present address, contact

Designation, department, reporting manager, workstation

Effective date of joining and confirmation date after probation

Gross salary breakdown — basic, house rent, medical, conveyance, other allowances

Working hours, weekly off, leave entitlement referencing the 2006 Act

Notice period (120 days for permanent worker per Section 26)

Provident fund, gratuity, festival bonus, and other statutory benefits

Confidentiality, IP assignment, and (if applicable) restrictive covenant

Signatures of employer authorised signatory and employee

Frequently asked questions

What notice period is required to terminate a permanent employee in Bangladesh?

Section 26 of the Bangladesh Labour Act, 2006 requires 120 days notice (or wages in lieu) for a permanent worker terminated without misconduct. For monthly-paid workers this is often expressed as four months. Termination for proven misconduct follows Section 24 procedure with a domestic enquiry — no notice is then required but the enquiry must comply. Any contractual notice shorter than the statutory 120-day floor is unenforceable to the extent it undercuts the Act.

Is a restrictive non-compete clause after employment enforceable?

Section 27 of the Contract Act, 1872 makes any agreement in restraint of trade void — this is a strong bar. Bangladeshi courts generally strike down post-employment non-competes as unenforceable unless narrowly tailored around genuinely protectable trade secrets, limited in duration (a few months) and geographic scope, and supported by separate consideration. Non-solicitation of customers or employees during employment is enforceable; a blanket "cannot work in this industry for 2 years" clause is not.

What must the salary breakdown contain?

The Bangladesh Labour Act does not fix a specific split but statutory calculations (gratuity, overtime, festival bonus) run on "basic wage." Employers typically set basic at 40-60% of gross with the balance in house rent (usually 40-50% of basic), medical (fixed), conveyance (fixed), and other allowances. Provident-fund contribution (where applicable) is a percentage of basic. Structure the breakdown carefully — an artificially low basic reduces gratuity/PF but can trigger labour-court challenges.