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Payroll Services in Bangladesh Blog

Employment Agreement – HR Annual Leave of Holiday Entitlement

Regulations on annual leave and holidays according to the Bangladesh Labour Act 2006, amended in 2013, the annual leave entitlements vary according to the worker’s age and industry and are capped on a similar basis.  The qualifying period for all workers’ annual leave entitlement is one year of continuous service in an establishment with a minimum of 240 days of service within the previous twelve months. A year’s service is taken to be continuous despite any interruption in service due to any holiday, leave with wages, leave without or without wages due to sickness or accident, maternity leaves not exceeding 16 weeks, period of lay-off, or legal strike or lock-out.

Labour Act

Under section 117 of the Labour Act, a worker who has completed one year of continuous service in an establishment is entitled to annual leave with wages for days calculated on the basis of the works of the preceding 12 months at the following rate:

  • one day for every 18 days of work, in the case of a shop, commercial, industrial, factory or road transport establishment worker;
  • one day for every 22 days of work, in the case of a tea plantation worker; and
  • one day for every 11 days of work, in the case of a newspaper worker.

The annual leave period is inclusive of any holiday which may occur during such period. The period of annual leave accrued in a year is to be taken in the subsequent period of 12 months, provided that any untaken leave is added to the following year’s entitlement up to a maximum entitlement of 40, 60 or 80 days. In the case of adult workers, accumulated leave may be carried forward to the following year at the rate of up to 40 days in a factory or road transport establishment and up to 60 days in a tea plantation or any shop, commercial or industrial establishment.

Under section 118 of the Labour Act, every worker has a right of 11 days of festival holiday with wages in a year.

Why Is an Employment Agreement Necessary

An employment agreement is necessary for several reasons, including:


An employment agreement helps establish clarity between the employer and employee regarding the terms and conditions of employment.


An employment agreement provides legal protection for both the employer and the employee. For example, the agreement may specify grounds for termination, severance pay, and non-compete agreements.


An employment agreement can ensure that the employer is complying with relevant labor laws and regulations.


An employment agreement can help attract top talent by providing a clear and comprehensive package of compensation, benefits, and job responsibilities.


An employment agreement helps establish accountability by clearly setting out the expectations and responsibilities of both the employer and the employee.

Dispute Resolution

An employment agreement can outline a process for resolving disputes that may arise during the employment relationship.

Public Holidays Under Labour Act In Bangladesh

Employees are generally entitle to 11 days of festival holidays with pay. The holidays are determine by the employer. Employees may be require to work on a festival holiday, but shall receive 2 compensatory paid holidays and a substitute holiday.

Major holidays in Bangladesh include:

  • New Year’s Day
  • Language Martyrs’ Day
  • Birthday of the father of the Nation, Bangabandhu Sheikh Mujibur Rahman
  • Independence Day
  • Bengali New Year
  • May Day
  • Buddha Purnima
  • Jumatul Bidah
  • Eid-ul-Fitr
  • National Mourning Day
  • Shuba Janmashtami
  • Eid-ul-Adha
  • Durga Puja
  • Ashura
  • Eid-e-Miladun-Nabi
  • Victory Day
  • Christmas Day

On public holidays, workers are paid their full-time daily wage, including dearness allowance and ad-hoc or interim pay (if any) but excluding any overtime allowance and bonus.

Some Using Tips for Employment Agreement

Here are some tips for using an employment agreement:

Be Clear

Ensure that the agreement is clear and concise. Use plain language and avoid technical jargon to ensure that the terms are easily understandable.

Seek Legal Advice

Consult with an attorney to ensure that the agreement complies with relevant laws and regulations. A lawyer can also help ensure that the agreement protects your interests.

Revise if Necessary

If the terms of employment change, consider revising the agreement to reflect these changes. This can help ensure that the employment relationship remains clear and transparent.


An employment agreement is a crucial document that outlines the terms and conditions of employment for both employers and employees. It establishes clarity, protection, and accountability in the employer-employee relationship, and can help prevent misunderstandings or conflicts down the line.

Employment contracts can be changing to fit the unique requirements of the employer and the employee, and they should be constantly reexamine to make sure they are still applicable and current.

Source: Sec 118 & 119 of Labour Act 2006, amended in 2013