Guide · the rules in plain words
Does the Labour Act cover officers and managers?
The Bangladesh Labour Act covers 'workers' as defined in section 2(65): anyone employed for wages in skilled, unskilled, manual, technical, business-development or clerical work. People doing managerial, administrative or supervisory work who are designated as such in writing are excluded, and their exit dues come from their contract and company rules.
Based on the Labour Act 2006 as amended in 2026, checked 12 November 2026 · An estimate, not legal or tax advice.
Who is a worker?
Section 2(65) is broad. It covers skilled, unskilled, manual, technical, business-development and clerical work, whether you are hired directly or through a contractor, and it includes apprentices. In law, many office, sales and field staff are workers, whatever their job title.
Who is outside the Act?
Section 2(49) excludes people in managerial, administrative or supervisory roles, but only when they are designated as such in writing. A title like “Executive” or “Officer” does not decide it by itself. Your real duties and your appointment papers do.
Ask yourself:
- Does my appointment letter name my role as managerial, administrative or supervisory?
- Do I have authority to hire, discipline or approve spending?
- Do I mostly do the work myself, or direct others who do it?
If the answers are no, no and “I do it myself”, you may well be a worker.
Where do officers’ dues come from?
From the appointment letter, the company’s service rules, and any gratuity or provident fund rules. Typical terms:
| Term | Common patterns |
|---|---|
| Notice period | 30, 60 or 90 days, priced on basic or gross |
| Gratuity | One month’s basic per year after a vesting period of 3 to 5 years, sometimes 1.5 months after 10 years |
| Leave encashment | Capped, often at 30 to 60 days |
| Provident fund | Your own part, plus the employer’s part after a set number of years |
These are common practice, not law. Your contract decides.
A worked comparison
An officer with 6 years’ service on a basic of 60,000 taka has a contract paying one month’s basic per year after 5 years: 6 × 60,000 = 3,60,000 taka of gratuity. A worker on the same basic under the Act would get 15 × 6 × 2,000 = 1,80,000 taka on resignation. Here the contract pays more. With a vesting period of 7 years, the same officer would get nothing, and the Act comparison shows what is being missed.
How does Pawna help officers?
Officer mode lets you enter your contract terms, or start from one of three common patterns and edit them. It shows each line of your dues, flags when your contract pays less than the Act would for a worker, and reminds you that the patterns are not law.
What should I ask HR?
- Am I designated in writing as managerial, administrative or supervisory?
- What notice period applies, and is it priced on basic or gross?
- When does gratuity vest, and is it paid from an NBR-approved fund?
- How much of the employer’s provident fund share will I keep?
Common questions
My title is Executive. Am I a worker?
Possibly. A title alone does not decide it. If your work is clerical, sales, technical or business-development and you have not been designated in writing as managerial, administrative or supervisory, the Act may cover you.
Can a company give officers less than the Act gives workers?
For people outside the Act, the contract decides. Pawna shows what the Act would give a worker with the same service, so you can see the gap and raise it.
Are the three officer presets the law?
No. They are common practice, offered as a starting point. Replace every figure with the terms in your own appointment letter.
Try it with your own figures
The calculator runs on your phone. Your figures are not sent anywhere.