An employee agreement helps employers document what an employee must do in their role. It also helps them assess the performance of employees against a particular set of parameters. Bangladesh Labor Law or Labor Act sets the directives for drafting an employment agreement or contract. With multiple types of employment types out there, you must know the rules and formats of setting agreements. In this article, we will discuss employee agreements in Bangladesh and help you create your own employment contract template for HR management.
What Is An Employee Agreement?
An employee agreement is a documented agreement between the employer and the employee. Also known as an employment agreement, the document outlines the terms and conditions of a new hire’s role. The basic structure of an employee agreement includes:
- The identification of the employee and employers (name, address, NID, etc.)
- The role and responsibilities
- Salary structure, benefits, and job tenure
- Terms and conditions related to the job or role
- Non-disclosure and confidentiality clauses
- Termination of employment conditions for both parties
- Date and signature of both employer and employee
The agreement must explain the roles, duties, and expectations clearly. That is because the document can be used as a legal tool by either the employer or employee in case of any dispute. Clarity of the agreement also ensures the employee has a roadmap and knows what and how to perform. The employer also has a set standards against which they can evaluate the employee’s performance.
Is there any difference between an employee agreement and an employee contract?
Employee agreements and employee contracts are used interchangeably across many regions. Both lay out the terms and conditions for a job role. However, a difference lies in terms of the duration of the role.
Usually, employment agreements set the terms for a more permanent role, while employment contracts offer the conditions for a fixed-term role.
What Legal Provisions Govern Employee Agreements In Bangladesh?
The Bangladesh Labor Act 2006 (Amended 2023) and Bangladesh Labor Rules 2015 currently govern employee agreements in Bangladesh.
The primary bodies supervising the enforcement and implementation of labor regulations in Bangladesh are the Department of Labor and the Department of Inspection for Factories and Establishments under the Ministry of Labor and Employment.
The main HR and labor law of the country, the Bangladesh Labor Act 2006 (BLA 2006) has gone through subsequent changes. It was amended in 2013, 2018, 2022, and 2023. The changes set the standard for employee agreements and their terms.
The BLA 2006 provides instruction on matters like:
- Employment terms and conditions
- Working hours and leaves
- Employee benefits & wages
- Health & hygiene
- Termination regulations & notice periods
- Employer-employee disputes
- And much more
The BLA 2006 and its amendments are officially written in Bangla. However, you can find English translations of it. Also, you can get bilingual versions of the labor laws for transparency and clarity.
Depending on the job level and education level of the workers, employment agreements in Bangla and English are offered.
What are the Types of Employee Agreements in Bangladesh?
The labor law of Bangladesh sets out the minimum favorable conditions for employees. However, you always have the right to draft agreements more favorable for the employees and workers. Your employee agreements must meet the BLA 2006 and Bangladesh Labor Rules 2015 to avoid possible legal issues.
Permanent Employment Agreements
In Bangladesh, a permanent employee is a hire who has completed six to nine months of probation period. And, they are confirmed with admissible benefits.
Standard clauses that you can find in this type of agreement are:
- Job Title and Description
- Probation period
- Salary and benefits
- Working hours
- Benefits (like leaves, bonuses, allowances, gratuity, etc.)
- Termination & notice periods
- Promotions & transfers
- Confidentiality and prohibitions
Permanent employment agreements protect employees from wrongful termination or dismissal. The employer must show valid reasons to terminate an employee as per BLA 2006.
The employer must also ensure full benefits to employees who are terminated, except in case of dismissal. The workplace safety of employees is also a responsibility of employers.
Permanent employment is generally open-ended. The relationship continues unless lawfully terminated by either party as per the Act.
Fixed-Term & Project-Based Agreements
Employment contracts set the terms for Fixed-Term & Project-Based Agreements. These agreements are for a specific duration or the completion of a project. Typically, these occur in construction, IT projects, or seasonal works.
The contract duration ranges from a few months to a couple of years. When the contract ends, it may be renewed with the acceptance of both employer and employee.
The contract naturally expires once the project ends or the specified term is fulfilled. Termination before completion of the project by the employer or employee may require a notice or pay in lieu thereof.
Termination benefits are not required because fixed-term contracts are not based on permanency unless it is clearly stated in the contract.
Part-Time & Contract-Based Employment
Part-time employment presents working fewer hours than the standard 48 hours per week. Contract-based roles resemble fixed-term agreements. However, these focus on specific tasks or projects, rather than employer-employee relations.
The BLA 2006 doesn’t directly define “part-time”. However many employers use pro-rated benefits and wages to meet part-time schedules.
Contract-based employment is usually considered for “independent contractors” rather than for employment. You must mention this in the employment letter to avoid any confusion and also to avail/not avail statutory benefits to the contractee.
Employers must meet the prescribed minimum wage, even for part-time workers. The amount should be adjusted for hours. For contract workers, safety standards under the Labor Act must be met. All the terms and conditions of the engagements should be documented.
Foreign Worker Employment Agreements
The foreign workers must meet the specific legal requirements, including obtaining a work permit. The Bangladesh Investment Development Authority (BIDA) and the Ministry of Home Affairs set regulations on foreign employee (expatriate) hiring.
Employers apply for work permits for expatriates through BIDA. The employer must submit the necessary documents of the foreign employee like passport details, employment contract, employee qualifications, etc.
Work permits are usually issued for 1-2 years. Foreign nationals staying after that period can face fines or deportations. So employers must apply for renewal of contracts if needed.
Foreign employees must receive wages and employment conditions that meet or exceed local standards. Employers must also deduct income tax, as applicable, for foreign employees, as per local tax laws.
Many contracts mention clauses related to repatriation flights or assistance if the foreign national’s employment ends. Contracts may clarify that employment is contingent upon maintaining valid immigration status.
Any change in visa conditions can make the contract void unless updated accordingly.
Essential Clauses & Compliance Details
The BLA 2006 and its amendments cover rules and conditions for private companies only. It does not include not-for-profit entities as well. Like schools, colleges, hospitals, etc.
Fundamental Clauses
The labor law mentions clauses on duration of work, types of workers, probation period, and notice periods. A permanent, full-time employee may resign from his position by giving 60 days’ notice or pay in lieu thereof.
An employer can terminate a permanent employee’s employment by giving him a notice in writing before 120 days. For temporary workers, the notice has to be served 30 days before. If the employee is terminated without any notice, he has to be paid in lieu thereof.
Besides these, all employee agreements must include the reasons for termination and the procedure of termination or dismissal, as per law.
Usually, dispute resolution, as per the BLA 2006, is executed via an Arbitrator or Mediator. This has to be mentioned in the agreement.
Employee Responsibilities & Expected Conduct
All employment agreements must mention the job role and expectations clearly. This should include misconduct policies and actions as well as accountability standards.
Salary, Compensation & Benefits
The labor law lays out the minimum wage. However, employment agreements must mention the salary package with the components of the salary. The salary of a monthly, full-time worker should be broken down into:
- Basic pay
- House rent
- travel/medical allowance
- Provident fund
- Conveyance allowance
- All other prescribed components
If an employee is made to work overtime, they shall be paid 1.5 times the day’s salary.
As per labor law, permanent employees get 14 days of sick leave, 10 days of casual leave, festival holidays, and compensatory leaves. The compensatory leave is offered if the employee works on a holiday or weekend. Maternity leave is provided to female employees, amounting to a total of 16 weeks.
All these must be mentioned in the agreements.
Additional Legal Considerations
The employment agreement should mention confidentiality regarding office property, information, and documents. And, as per law, employers can also enforce non-compete clauses so that employees do not work with competitors simultaneously.
The agreement, as per the Labor Act, should also state the legal consequences of breach of conduct or contract either by employer or employee. It should also mention the rights of both sides if there is a breach of the agreement.
Templates and Sample Agreements
Depending on the level of literacy and English of an employee or worker, employee agreements and contracts are drafted. You must ensure the receiver (employee) understands the terms and conditions of the employment letter.
1. Employee Agreement Template in English
2. Employee Agreement Template in Bangla
3. Bi-Lingual Employee Agreement Template (English and Bangla)
How Does PiHR Simplify Employee Agreements?
PiHR is a comprehensive HR management solution, making the whole employee agreement process smooth. It offers user-friendly digital documentation and automated workflows. The solution automates employment contracts, making the system more efficient and accurate. You can also enjoy a reduced risk of damaged documents. PiHR also helps track compliance details by adding BLA 2006 clauses to the system. The solution also automates reminders and notifications that help you and your employees stay informed about contract renewals, amendments, and policy changes.
PiHR stores and protects employee records and their agreements. The system can retrieve, locate, and review documents at any time, with just a few clicks and entries. Employers can utilize PiHR’s automated contract management tools to simplify every stage of the employee agreement lifecycle.
Final Words
Employee Agreements set the standard for an employee’s work tenure with the employer. That is why it should state all the terms and conditions of the employment very clearly and in accordance with the BLA 2006. HR SaaS solutions like PiHR help employers ensure they can offer employees with proper agreements and contracts. With its multiple HR features and compliance integration, creating employment agreements becomes simplified.
