Labour and Employment Transactions


Rahman’s Chambers is one of the leading law firms of Bangladesh when it comes to matters relating to Employment & Labour. The firm holds significant expertise and provides all sorts of support in dealing with issues surrounding this area. We were involved with complex transactions like LDC graduation involving labour laws, formation of HR policy, gratuity and provident fund policy, several HR manuals, formation of employee share scheme and several advisory works and compliance issues involving all aspects of domestic and international employment law. Chambers and Partners Asia Pacific 2022 ranked Rahman’s Chambers for Corporate & Finance and stated:has a recognised practice in such areas as business formation, M&A and employment matters. they added: One source states: ‘Their solution-based and customer-oriented approach is enormously helpful in reaching the best solution.”

Rahman’s Chambers assisted a leading Japanese company over a number of labor issues.

Rahman’s Chambers has been consecutively ranked for Corporate & Finance.

Chambers & Partners, 2022

Advised clients “on various HR and labour compliance issues in Bangladesh.

– Chambers & Partners, 2021

“Additionally has a recognized practice in such areas as business formation, projects and energy, M&A and employment matters.”

– Chambers & Partners, 2020

“he is a knowledgeable and very co-operative person. I have discussed many issues with him and he gives me the right suggestions.”

– Chambers & Partners, 2019

“Their response times are excellent and they make you feel generally very well informed..”

–Chambers & Partners, 2018

The ‘very responsible, responsive and knowledgeable’ Mohammed Forrukh Rahman heads the firm.

–Legal 500, 2018

Recommended for General Business Law

-Asialaw 2021

One of our respected clients was kind enough to comment on our work as follows.

The Key Projects completed so far:

BONUS 

  • Provided legal consultancy regarding Festival Bonus to Woolworths.
  • Drafted employment agreement for a Major Chinese Construction Company.
  • Provided legal consultancy regarding Festival Bonus to Woolworths.

COMPLIANCE 

  • Advised Ralph Lauren on employment law matters.
  • Advised Big W on HR & Labour compliance issues.
  • Advised on several HR & labour compliance issues for Pouchen Group.

DISCIPLINARY 

  • Advised a Japanese MNC by assisting in the formation of a committee and initiating disciplinary proceedings against an employee with alleged involvement in taking bribery involving the company’s business transaction.

EMPLOYEE SHARE SCHEME 

  • We have advised an MNC on the possibilities of introducing an ’employees share scheme’ under the labor law of Bangladesh and its implications under the Companies act, i.e., possible reduction of capital and treatment under tax laws. The work was interesting as this was our first work of such nature and we found that law is required to be updated to effectively deal with such issues.

GRATUITY FUND 

  • Advised OOCL on the formation of trust for constituting gratuity deposit fund and registration with NBR, and also applicable tax exemptions under income tax laws for both employer and employee.
  • Advised an Australian MNC on workers and their family’s insurance policy under the law of Bangladesh.

HR POLICY/RESTRUCTURE

  • We have revised the HR policy of the local subsidiary of an Australian MNC, in particular, anti-bribery corruption, counter-terrorism, child protection, anti-discrimination, harassment & bullying, etc.
  • We have advised Woolworths Group in framing their annual leave policy for operations in Bangladesh.
  • Drafted HR policy for a major Danish garments sourcing company in Bangladesh.
  • Restructured of HR Policy of Pou Chen Group (Bangladesh Pou Hung Industrial Ltd) of KEPZ, Chittagong, Bangladesh.
  • Restructured of HR Policy of Itochu Corporation, Representative Office, Dhaka
  • Restructured of HR benefits of the International Potato Center.
  • Restructured of HR Policy of Uttara Foods & Feeds Pvt. Ltd. (Venky’s)

LAYOFF/RETRENCHMENT/FURLOUGH

  • Advised a garments MNC, leather goods producer MNC based in Chittagong, and a number of local businesses on options of termination, furlough, layoff, and entrenchment due to redundancy and lockdown arising from COVID-19.
  • Provided legal consultancy regarding Retrenchment to Li & Fung.

PROVIDENT FUND 

  • We have advised Lantabur Group in the formation of a provident fund trust and also assisted in the process of registering the trust with the National Board of Revenue to facilitate the process of claiming tax exemptions applicable for payment.

TERMINATION/DISMISSAL

  • Assisted a number of clients in calculating termination benefits and helping with the whole process
  • Assisted a number of clients with dismissal procedures.

WPPF

  • We have advised a Japanese company on several aspects of WPPF calculation, need for creation of fund and related legal compliance issues.

Practice Group – Corporate

Labour and employment legal issues are very common in the business sector of Bangladesh. Whether it is a small enterprise or giant MNC dealing with employment law is a regular affair for them. Legal assistance is often required for drafting appointment letters, service contracts, termination letters, commencing a disciplinary proceeding and so on. On the other hand, established companies often require legal help for preparing the entire HR policy in complaints with labor and employment laws of Bangladesh. Needless to mention that, strong legal support is frequently required for defending cases filed in labor tribunals. In order to help the business community, our ADR, Land and Tribunals team comprising experienced lawyers have been dealing with the above matters efficiently.

Over the last few years, the firm has advised several local & foreign clients, including multinational companies and industries, who employ thousands of workers, on their existing HR policy with a view to ensuring compliance with the applicable labor law & practice.

Our services include as follows:

  • Drafting standard HR policy documents for employers including disciplinary and grievance procedures, written terms of employment and employee handbooks.
  • Reviewing existing HR policy.
  • Drafting & preparing Appointment Letters, Termination Letters, Show Cause Letters, Notice for Promotion, etc., in compliance with labor law.
  • Calculation of wages of the workers.
  • Market Research and recommend the market practice.
  • Advising on inquiry proceeding in compliance with labor law.

We draft template contracts with regard to both labour and non labour employees. Such contracts are tailor made for each particular organization. Such tailor made contracts plays a major role towards avoidance of possible labour disputes.

The firm has been involved in the restructuring of a major public sector power company for nearly three years and also successfully handled litigation involving more than 450 employees. Our practical knowledge and experience in restructuring would surely be useful for the clients under similar situation. The firm has been involved in a major restructuring project of employees of major multinational company having local setup in Bangladesh.

 Our services includes as follows:

  • Ranking & grading of existing employees
  • Restructuring HR policy
  • Restructuring Provident fund, gratuity and bonus
  • Restructuring Annual Leave, Sick Leave, Casual leave etc.

In 2021, Hon’ble High court Division made a fine distinction between employed director and non-employed directors regarding their salary vs remuneration for the purpose of deducting tax at source.

For the first time, in 2022 minimum wage structure fixed by the Bangladesh Bank for bankers.

Legal issues involving senior executives are different compared to workers. Employers often differentiate between worker and senior management and there is nothing which can stop them from doing so. Such variation often works well for the both senior employee, employer, workers and entire company as a whole.  We have formed specialized practice group composed with our lawyers as well as experienced HR professionals for such delicate HR issues.

Contribution to the Workers’ Profit Participation Fund will be no longer considered as deductible expenditure and will be taxable at the regular rate. Filing of returns not mandatory for a recognised provident fund, approved gratuity fund, pension fund and approved superannuation fund. The changes seem to be in line with legal position and clarification provided, will reduce the possibility of potential disputes.

Framing policy for provident fund and gratuity deposit fund, and constituting fund by creation of trust is not easy job as this involves complex legal issues and touches different legal aspects like trust, taxation, NBR regulations, banking regulations etc. We assist have assisted client in this respect on few occasions successfully.

Our Related Clients


  • Itochu Corporation, (Dhaka Liaison Office).
  • The Westin, Dhaka
  • Japan Bangladesh Expanding Company Ltd. (JBEC)
  • Maruhisa Pacific Co. Ltd.
  • How Are You Textile Industry Ltd.
  • EXCEL Communications Ltd.
  • Partners in Population and Development (PPD)
  • International Potato Centre
  • Bangladesh Bank
  • Dhaka Power Distribution Company Limited (DPDC)
  • Bangladesh Power Development Board (BPDB)
  • Roshawa Textiles Ltd
  • GIII Limited, Bangladesh Liasion, Dhaka
  • KB Foods Limited (Khan Bahadur Group)
  • TBEA CO., LTD.
  • Grameen Uniqlo Co. Limited
  • Woolworths
  • Li & Fung
  • Pou Chen Group (Bangladesh Pou Hung Industrial Ltd)

Related Resources - Library


The value of law reports in the legal profession cannot be overemphasized. They can be regarded as the life-wire of the legal profession. We have a rich library with a mixture of printed and online legal databases. We have printed version of All England Commercial Cases, Indian Digest of  Supreme Court cases, Yearbook Commercial Arbitration of Wolter Kluwer and most law reports of Bangladesh. We subscribe to the online legal database Manuputra providing access to most reputed law reports. Read more


Reported Cases


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