Based on our extensive experience in conducting internal audits on behalf of Japanese companies in Bangladesh, this series provides basic knowledge that may be useful for those in charge of conducting internal audits in Bangladesh (internal auditors and auditors, management posted to Bangladesh, global management at headquarters, and external auditors who need to conduct site visits as part of a group audit).The fifth issue of this series will introduce basic knowledge that may be useful for auditors who need to conduct site visits to Bangladesh as part of group audits.
In this fifth issue, we will discuss paid leave and other leave-related laws and regulations.
Paid Leave System
Under the Bangladesh Labor Law (Labor Law, 2006), all legal entities in the country are obliged to provide various types of paid leave to their employees.
- Annual Leave with Wages
For adult workers who have worked continuously for one year in the same enterprise: factories, commercial establishments, stores, road transport industry: 1 day of paid leave for every 18 working days.
+5
- Casual Leave
10 days of paid leave per year.
Sick Leave
Fourteen (14) days of paid leave per year.A medical certificate is required.
Festival Holidays: 11 paid holidays per year.
11 paid holidays per year.
Alternate Leave: Two (2) days of alternate paid leave are granted for working on public holidays.
Maternity Leave
Female employees who have worked for the same company for at least six months are entitled to a total of 16 weeks of paid leave: eight weeks before and eight weeks after childbirth.
Carryover of Paid Leave
Of the above, only annual paid leave can be carried over to the following year or later, accumulating up to 60 days.
Obligation to purchase (Encashment) unused paid leave
- Worker Rights Workers have the right to request a cash settlement (buyback) from the company for up to 50% of their unused paid annual leave.
- The company is obligated to comply with the worker’s request for buy-back (i.e., if the company “refuses” the request).
（If a worker requests a buyback, the company is obligated to comply (i.e., the company cannot “refuse”). - Timing of Settlement: Typically, the worker exercises this right on an annual basis, or the unused portion is settled together at the time of retirement.