Employee Discharge and Dismissal in Bangladesh
The Bangladesh Labor Act (BLA) outlines specific conditions for discharging and dismissing employees.
Discharge:
- Grounds: An employee can be discharged due to physical or mental incapacity or continued ill-health, as certified by a registered medical practitioner.
- Compensation: If an employee with more than a year of continuous service is discharged, they are entitled to 30 days’ wages for each year of service or gratuity (if applicable), whichever is higher.
Dismissal:
- Grounds: An employee can be dismissed for:
- Conviction of a criminal offense.
- Misconduct as defined in Section 24, such as theft, misappropriation, fraud, disorderly behavior, or willful disobedience.
- Consequences:
- Dismissal without notice or pay is permissible for certain serious offenses (e.g., theft, fraud, serious misconduct).
- Compensation may be applicable for other types of misconduct, such as willful disobedience, habitual absence, or negligence.
Enquiry and Appeal:
- Suspension: If an employee is suspended pending an inquiry, they are generally not entitled to full wages during the suspension period. However, they may be entitled to a subsistence allowance.
- Acquittal: If an employee is dismissed for a criminal offense but later acquitted on appeal, they are entitled to:
- Reinstatement to their original position.
- Appointment to a suitable new position.
- Compensation if reinstatement is not possible, calculated as for a discharged employee.
Important Considerations:
- Due Process: The BLA emphasizes the importance of fair procedures during any disciplinary action, including the right to be heard and the right to legal representation.
- Subsistence Allowance: Employees suspended pending an inquiry are generally entitled to a subsistence allowance.
- Appeal Rights: Employees have the right to appeal disciplinary decisions.

Mazharul Islam,
Corporate Legal Practitioner,
Member of Harvard Business Review Advisory Council.
He can be reached at mazhar@insightez.com
