Offboarding & Severance
Offboarding and severance pay in Bangladesh go wrong for one reason: the exit is run on home-country habits while the Labour Act fixes the notice, the wage base, the settlement window and the paperwork. As a Dhaka-based company, we run exits for international employers — termination, resignation, retrenchment or misconduct — with the right section applied and your approval on every figure. A human resources (HR) administrator and a payroll accountant work inside your HR system under a non-disclosure agreement (NDA); your owner approves every settlement before a taka is paid.
One exit at each step. No long-term commitment at any of them. We start with the leaver: the appointment letter, whether the role is a worker’s or a managerial one, the reason for exit, service length, the wage split, and the last working day you want. Each item is marked against the Labour Act section that governs it, and the settlement is computed in writing.
You get a written verdict — a notice-and-settlement plan for this exit, a records fix because the file cannot support a calculation, offboarding inside our employer of record (EOR) because we are the employer, or a lawyer because a case is already in play. If the exit is already right, you stop here and keep the review.
30 minutes 01 Scope · free call
3 working days 02 Diagnose · exit review, credited to the exit
One exit 03 Pilot · the exit itself, per leaver, fixed price
Per leaver 04 Production · as they occur, or inside the monthly price for teams we employ
Monthly 05 Managed Ops · per employee, cancel any month
What is included in offboarding and severance administration in Bangladesh?
Offboarding and severance administration in Bangladesh covers the six things a lawful exit involves beyond a last salary: the right notice for the route, severance or gratuity on the right wage base, final dues computed and approved, the service certificate the Act requires, equipment and access closed, and a settlement statement both sides keep. One card each.
The right notice for the route
Termination, resignation, retrenchment, dismissal for misconduct and expiry each carry their own section and notice period under the Labour Act; we identify the route from the facts and the appointment letter, draft the notice, and record the date it was served and by whom.
Severance on the right wage base
Thirty days’ wages per completed year, or gratuity where higher, computed on the wage base the Labour (Amendment) Act defines — basic plus dearness allowance and any ad hoc or interim wage, not gross salary — with the arithmetic shown line by line for your approval.
Final dues, computed and approved
Unpaid wages, leave encashment, severance or gratuity, any contractual benefit and lawful deductions in one statement, sent to your owner for approval, and paid only after that approval inside the thirty-working-day window the Act sets.
Service certificate and records
The certificate of service every worker except casual and substitute workers is entitled to on leaving, issued in the employer’s name on the last day, with the employee file closed and dated so the exit can be evidenced later.
Equipment and access closed on the date
Each item issued to the employee listed, collection in Bangladesh arranged before the last working day, system access removed on the date you set, and the handover recorded with the settlement; we do not collect items we never issued.
Settlement statement both sides keep
One statement showing every amount paid, the section it rests on, the approval and the payment date, given to the employee and kept in your HR system, so the employee, you and any later tribunal hold the same record of the exit.
Not included: Deciding to end anyone’s employment · advising on law or representing you before a labour court · collecting items we never issued · the statutory amounts owed, which are separate · new routes, new entities or changes in the law, priced first as a change request.
Which exit route applies, and what does each one owe under the Labour Act?
Every exit in Bangladesh follows one of four routes, and the route decides the notice, the money and the paperwork; competitors’ pages mix them up, which is how a settlement ends in a complaint. The review names the route. Where we are the employer of record, the duty is ours and the evidence yours. Each card is one route.
Termination (s.26)
120 days’ written notice for a monthly-rated permanent worker, 60 for others, or wages in lieu; 30 days’ wages per completed year, or gratuity if higher.
Resignation (s.27)
60 days’ notice from a permanent worker; benefit per completed year by service tier under the Labour (Amendment) Act, or gratuity if higher.
Retrenchment (s.20)
One month’s written notice stating the reason, copied to the Chief Inspector; 30 days’ wages per year or gratuity if higher; last hired goes first.
Misconduct (s.23–24)
No notice, but only after written charges, at least seven days to reply and a hearing; 15 days’ wages per year for a worker past one year, except for the gravest misconduct.
What does one offboarding contain, from last-day decision to settlement?
One offboarding contains five logged steps, because “we handle offboarding” tells you nothing. Every item in the log below traces to a section, a figure, an approver and a date; the example is the termination of a monthly-rated permanent worker with four years and two months of service, employed by a client’s own entity. Yellow marks where a person signs.
- 1Review signedRoute: termination under s.26Worker status confirmed from the letterWage split: basic + dearness allowanceOwner named
- 2Notice served120 days’ written notice, or wages in lieu, dated and acknowledgedLast working day fixedAccess removal date set
- 3Settlement computed4 completed years × 30 days’ wages, or gratuity if higherLeave encashmentDeductionsStatement versioned
- 4Owner sign-offa person signsYour owner approves the settlement statementApproval logged with date and versionPayment scheduled
- 5Settled and closedFinal dues paid inside 30 working daysService certificate issuedEquipment loggedFile closed and dated
Every step logged, each traceable to a section, a figure, an approver and a date.
Illustrative run. Yellow marks where a person signs; four years and 120 days are an example, not a result.
How does offboarding run with us, from exit review to Managed Ops?
Offboarding runs in five steps, each an exit of its own: a free scoping call, a three-day review, the exit with your approval on every figure, production for later leavers, then Managed Ops. Each ends with a document. Exits go wrong when the calculation is done the day before the last day and the notice was never served in writing.
01 30 min · free
Scope A call about the leaver: role and letter, reason, service length, wage split, last working day you want, and anything already said or sent. If the facts are clear, you leave with a review quote.
02 3 working days · credited
Diagnose Appointment letter and file read; worker or managerial status settled; the route and its section named; notice, severance or gratuity, leave encashment and deductions computed in writing on the right wage base; the exit priced.
03 One exit · fixed price
Pilot Notice drafted and served on the date you set; settlement statement approved by your owner; equipment collected and access removed; final dues paid inside thirty working days; service certificate issued; the file closed and dated.
04 Per leaver · as they occur
Production Every later exit run the same way from the same checklist: route named, figures approved, window met, at the per-leaver price fixed in the contract, or inside the monthly price for teams we employ.
05 Monthly · cancel any month
Managed Ops For teams: a standing exit checklist, probation review dates watched, wage split kept clean in every letter so the base is never in doubt, and the rules re-read when the Act or its rules change.
Who runs your offboarding, and with what?
You meet the team on day one: an HR administrator owns the route, notice and certificate, a payroll accountant computes the settlement on the right wage base, and a reviewer checks every figure first.
Named team An HR administrator, a payroll accountant and a reviewer
References The Labour Act and Rules as amended; the appointment letter
Communication One exit lead per leaver, shared channel
Delivery Your HR and payroll systems; nothing stored on our side
Quality assurance Second-person review of every settlement; versioned; approver named
Ownership Every notice, statement and certificate in the employer’s name
Do you need an exit plan, a records fix, offboarding under our EOR, or a lawyer?
Buyers arrive in one of four situations. A leaver next month and nobody sure what is owed: an exit plan. No letter or wage split on file: a records fix first, with the compliance pack behind it. Employed through our employer of record: offboarding inside that service. A court case live: a lawyer, with our file. Five questions decide.
1. Who is the legal employer of the leaver?
2. What is the exit route?
3. Does the file hold a signed appointment letter?
4. Has the employee raised a complaint or a case?
5. When is the intended last working day?
Which one do you need? Answer five questions.
An exit plan for this leaver
A leaver and nobody sure what is owed is the case this page exists for: the three-day review names the route and its section, computes notice, severance or gratuity and final dues on the right wage base, and the exit runs with your approval on every figure and final dues paid inside thirty working days.
A first estimate; the diagnostic confirms it.
How the verdict is decided
A court case or criminal allegation → a lawyer, with our file
Employed through our employer of record → offboarding inside that service
No letter or no wage split → records fix first
Otherwise → an exit plan for this leaver
Why choose us for offboarding and severance in Bangladesh?
An offboarding provider is judged on whether the notice period and the wage base were right, because every competitor page we checked had at least one wrong: temporary-worker notice quoted for permanent staff, out-of-date resignation tiers, a retrenchment period the Act does not contain. The Bangladesh Labour Act keeps the 120-day notice after its amendment; we work from that text.
Without a settled exit process
!!!!!
- Thirty days’ notice given to a permanent worker the Act entitles to 120
- Severance computed on gross salary when the Act now says basic plus dearness allowance
- Final dues paid in the second month, outside the thirty-working-day window
- No certificate, no statement, and a grievance nobody answered in thirty days
With EICRA
Exit report · termination · four years’ service
RouteTermination, s.26Notice120 daysCompleted years4Approvals recorded2VerdictSettled inside the windowAgreed gate✓ Passed
Illustrative example
- The route and its section named in writing before anything is said to the employee
- Severance and gratuity computed on the amended wage base, shown line by line
- Final dues approved by your owner and paid inside thirty working days
- Certificate, statement and a dated file — the evidence a lawyer asks for first
Is it safe to outsource offboarding and severance in Bangladesh?
Outsourcing offboarding is safe when you decide the exit, your owner approves every figure, and the line to a lawyer is clear. The risk is not where the administrator sits but who decides, approves the money and speaks to the employee. As a Bangladesh-based company, we work in your systems under NDA, paying nothing unapproved. Reviewed By Eicra.com team
Which agreements are signed, and when?
NDA — mutual, signed before any appointment letter, salary figure, reason for exit or settlement is shared with anyone.
DPA — processor terms in a data processing agreement (DPA) under Article 28(3) of the General Data Protection Regulation (GDPR) where it applies, and Bangladesh’s personal data protection law for the employee data we process.
Data transfers — standard contractual clauses or the transfer instrument your jurisdiction requires, signed before employee data moves.
Access — the HR and payroll modules the exit needs, nothing more; no bank credentials, no payment authority, no production systems of yours.
Certifications — listed only when held; none are claimed, and we are not a law firm or a licensed representative before any labour court.
What controls, intellectual property (IP) and rework terms apply?
Your accounts Every notice, calculation, settlement statement, certificate and closed file lives in your HR and payroll systems from the first day; nothing is stored on our side.
Document ownership All records belong to the employer under the contract; you may export them, hand them to a lawyer or a tribunal, or move them to another provider at any time.
Boundary We administer the exit; we do not decide to end anyone’s employment, advise on law, represent you before a labour court, or promise that an exit stays out of one — you and your counsel decide, and we give you the file that helps.
Approval No notice is served, no amount paid and no certificate issued until your named owner has approved that exit’s statement; approvals, dates and versions are recorded.
Rework Free when a settlement item fails its agreed checklist within thirty days; new routes, new entities or changes in the law are priced first as a change request.
What proof do you get before you pay?
Before you spend anything, check three things we commit to: final dues and the service certificate inside thirty working days of the last working day, a team named on day one, and a written result at every step, where you can stop. After the exit review you get a fourth: this leaver’s route, section and settlement, in writing.
30 days
Inside 30 working days: from the last working day to final dues paid and the service certificate issued, with the calculation approved by you first.
Day one
Named on day one: an HR administrator and a payroll accountant you meet on the first call, one exit lead per leaver.
Any step
Stop at any step: a written result at every step; no offboarding fee if the settlement misses its agreed checklist.
Case studies: client results with numbers are added here as clients give permission to name them. Ask on the scoping call for references in your industry.
What do employers ask about offboarding and severance pay?
How much does offboarding and severance administration cost?
Prices are fixed per leaver, never per hour, with each step on the price cards at the top: a three-working-day exit review ending in the route, the section and the settlement in writing, credited to the exit; then the exit itself, per leaver; teams under our employer of record have offboarding inside the monthly price. Statutory amounts owed are separate.
What notice is required to end employment in Bangladesh?
For a permanent worker paid monthly, the employer must give 120 days’ written notice, or 60 days for other permanent workers, under section 26 of the Bangladesh Labour Act; wages for the notice period may be paid instead. The 30-day and 14-day figures many pages quote apply to temporary workers only. We name the route before drafting notice.
How is severance calculated, and on which wage?
Termination without misconduct pays 30 days’ wages for each completed year of service, or gratuity if higher, under section 26. Since the Labour (Amendment) Act the wage used is the last monthly basic wage plus dearness allowance and any ad hoc or interim wage, not gross salary. We show the arithmetic line by line for approval.
Do managers get the same notice and severance?
Not necessarily. The Labour (Amendment) Act keeps people appointed in writing to managerial, chief executive, administrative or supervisory roles outside the Act’s definition of worker, so their notice and severance follow the employment contract rather than sections 26 and 27. We read each appointment letter first and compute nothing until the status is settled in writing with you.
When must final dues be paid after employment ends?
All final dues must be paid within thirty working days of the employment ending, whatever the route, under section 123 of the Bangladesh Labour Act. We schedule the calculation, your owner’s approval and the payment inside that window, record the date each step was completed, and issue the certificate of service the Act requires on leaving under section 31.
Start with a free 30-minute scoping call or the three-day exit review.