In Bangladesh, employers can terminate the employment of a worker, or workers can terminate their employment. The termination of employment is a regulated process governed by labour laws outlined in the Labor Act of 2006.

This legislation provides a framework for both employers and employees to follow specific procedures and conditions when terminating employment. In this article, we will delve into the termination processes for both employers and employees, highlighting notice periods and compensation entitlements.


Termination of employment in Bangladesh 


Termination of employment in Bangladesh, navigating the intricacies of employment termination in Bangladesh requires a clear understanding of the Labor Act of 2006.

Employers can terminate workers with specific notice periods, payment alternatives, and mandated compensation for permanent employees. Employees, in turn, can resign with specified notice periods and payment options.

The legal framework also addresses situations where employees are absent without notice. CLP in Gulshan, Dhaka, offers expert legal advice on all aspects of employment matters, ensuring compliance with labour laws and safeguarding the rights of both employers and workers.

Contact CLP via email or phone for comprehensive legal support in navigating employment termination issues in Bangladesh.


Termination of employment in Bangladesh 


What will you learn from this post?


  • Termination by Employer (Bangladesh Labor Law Section 26)
  • Payment instead of Notice:
  • Notice Periods for Employees:
  • Payment instead of Notice for Employees:
  • Employee Absence Without Notice:
  • Compensation for Resigning Permanent Workers:
  • Compensation varies based on service duration:
  • Legal Advice by CLP:
  • CLP in Gulshan, Dhaka, offers legal expertise on employment matters.


Termination by the Employer


By Bangladesh Labor Law Section 26, employers can terminate a worker by issuing a written notice, with specific notice periods for permanent and temporary employees.

Payment instead of notice is an option, and compensation is mandated for terminated permanent workers. Strict adherence to these legal provisions is crucial to avoid legal consequences for the employer.


Notice Period


Permanent Workers: Employers are required to provide written notice to permanent workers, with a notice period of 120 days for monthly-rated workers and 60 days for others.T

temporary Workers: The notice period for terminating temporary workers is 30 days for monthly-rated workers and 14 days for others.


Payment instead of Notice


In cases where the employer wishes to terminate employment without notice, wages for the stipulated notice period can be paid instead of providing formal notice.




If the employment of a permanent worker is terminated, compensation is due at the rate of 30 days’ wages for every completed year of service or gratuity, whichever is higher. This is in addition to any other benefits payable under the law.


termination process


Termination by the Employee


Under Bangladesh Labor Law Section 27, employees can terminate their employment by providing written notice to the employer, with specified notice periods for both permanent and temporary workers.


Notice Period


Permanent Workers: Employees are required to give their employer 60 days’ written notice of resignation.Temporary Workers: The notice period for resigning temporary workers is 30 days for monthly-rated workers and 14 days for others.


Payment instead of Notice


If an employee intends to resign without notice, they can do so by paying the employer an amount equal to the wages for the period of notice.


Employee absent from work without notice


In cases where an employee remains absent from work for more than 10 days without notice or permission, the employer has the right to serve a notice. The notice will request to explain the reason for his absence and join the service within 10 (10) days.

Upon failure to submit any written explanation or joining the service within the stipulated time, the employer shall give him a further 7 (seven) days to defend himself.

if the worker does not join the service or defend himself, he shall be deemed to have been released from service on and from the date of such absence.


Compensation for Resigning Permanent Workers


When a permanent worker resigns from their service, the compensation they are entitled to is outlined as follows:

(a) For completed service of 5 years or more but less than 10 years under the same employer, the compensation is calculated at the rate of 14 (fourteen) days’ wages for each completed year of service.

(b) For completed service of 10 years or more under the same employer, the compensation is calculated at the rate of 30 (thirty) days’ wages for each completed year of service.

This compensation is payable in addition to any other benefits owed to the worker under the provisions of the Labor Law. If gratuity is applicable and higher than the calculated compensation, the employee is entitled to receive gratuity instead.

The compensation serves as a financial acknowledgement of the employee’s service tenure and is designed to provide financial support during the transition period following resignation.






The Barristers, Advocates, and lawyers at CLP in Gulshan, Dhaka, Bangladesh, are experts in helping with all kinds of employment matters. If you have any questions or require legal support, don’t hesitate to contact us via email or phone. 


Phone: +8801700920980. +8801947470606.

Address: Jamilla Villa (3rd Floor), Flat No-C2, House No. 4/A/1, Road No. 02, Gulshan-1, Dhaka-1212.

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