Is a written appointment letter enough, or do I need a full employment contract?

An appointment letter that captures the essentials — position, salary, working hours, leave, notice period, and reference to any employee handbook — is legally sufficient for most SME hires and is what the Labour Act, 2006 largely expects. A longer employment contract adds value when the role involves confidentiality obligations, intellectual property assignment, a non-compete, or a bespoke bonus / equity arrangement. If in doubt, start with a proper appointment letter that at least mentions the handbook and the standard notice period, then add a fuller contract for senior or specialised hires.

How long can a non-compete clause bind an ex-employee for?

Only for a period that a court would find reasonable in scope, geography and duration — anything that effectively prevents the ex-employee from earning a living in their trade is likely to be struck down as an unlawful restraint of trade under the Contract Act, 1872. Typical enforceable ranges are six months to two years, narrowly scoped to genuine competitive concerns; take specific advice on the exact wording before you rely on it in court.

Employment & Work

Bangladesh's SME employers, freelance clients, domestic households and factories all use employment agreements — a written appointment letter or a full employment contract — to fix salary, working hours, leave, notice periods, confidentiality, and the grounds and consequences of termination. A written contract turns the classic 'we agreed' disputes over unpaid salary, wrongful termination, or overreaching non-compete clauses into questions that can be settled on paper rather than at the labour tribunal. Whether it is a permanent staff appointment, a fixed-term consultant engagement, a freelance / gig contract, a domestic-worker arrangement, or a security-guard / driver contract, getting the essentials in writing at the start is what protects both sides later.

Stamp & registrationFormal permanent employment in Bangladesh is largely governed by the Labour Act, 2006 and the Labour Rules, 2015 — those set minimum standards for working hours, leave entitlements, gratuity and termination procedure that a private contract cannot lawfully undercut. Fixed-term and freelance engagements sit outside the Labour Act's core protections and are governed primarily by the Contract Act, 1872 — that is exactly why the written contract matters more, not less, for those engagements. Non-compete and confidentiality clauses are enforceable only if they are reasonable in scope and duration. Consult a lawyer if any specific figure — probation length, gratuity, notice, non-compete duration — is business-critical.

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Frequently asked questions

Is a written appointment letter enough, or do I need a full employment contract?: An appointment letter that captures the essentials — position, salary, working hours, leave, notice period, and reference to any employee handbook — is legally sufficient for most SME hires and is what the Labour Act, 2006 largely expects. A longer employment contract adds value when the role involves confidentiality obligations, intellectual property assignment, a non-compete, or a bespoke bonus / equity arrangement. If in doubt, start with a proper appointment letter that at least mentions the handbook and the standard notice period, then add a fuller contract for senior or specialised hires.
How long can a non-compete clause bind an ex-employee for?: Only for a period that a court would find reasonable in scope, geography and duration — anything that effectively prevents the ex-employee from earning a living in their trade is likely to be struck down as an unlawful restraint of trade under the Contract Act, 1872. Typical enforceable ranges are six months to two years, narrowly scoped to genuine competitive concerns; take specific advice on the exact wording before you rely on it in court.

Employment & Work

Frequently asked questions

Is a written appointment letter enough, or do I need a full employment contract?: An appointment letter that captures the essentials — position, salary, working hours, leave, notice period, and reference to any employee handbook — is legally sufficient for most SME hires and is what the Labour Act, 2006 largely expects. A longer employment contract adds value when the role involves confidentiality obligations, intellectual property assignment, a non-compete, or a bespoke bonus / equity arrangement. If in doubt, start with a proper appointment letter that at least mentions the handbook and the standard notice period, then add a fuller contract for senior or specialised hires.
How long can a non-compete clause bind an ex-employee for?: Only for a period that a court would find reasonable in scope, geography and duration — anything that effectively prevents the ex-employee from earning a living in their trade is likely to be struck down as an unlawful restraint of trade under the Contract Act, 1872. Typical enforceable ranges are six months to two years, narrowly scoped to genuine competitive concerns; take specific advice on the exact wording before you rely on it in court.