Question
Can a company in Bangladesh legally enforce a five- or ten-year employment bond? If an employee signs such a bond, can the company force them to stay for the entire period? What does the Bangladesh Labor Act say about employment bonds?
Answer
In Bangladesh, the enforceability of employment bonds is governed by the Bangladesh Labor Act, 2006. Here are the key points regarding employment bonds:
- Bond Duration: Employment bonds requiring long-term service, such as five or ten years, may not be fully enforceable if deemed unreasonable or restrictive. The law generally supports reasonable terms but discourages excessively binding conditions that limit a worker’s freedom.
- Freedom to Resign: Employees retain the right to resign, even if they have signed a bond. However, they may be liable to repay any training costs or benefits received if these were included in the bond agreement. The amount should be fair and proportional to the actual expenses incurred by the company.
- Labor Act’s Position: The Bangladesh Labor Act emphasizes workers’ rights, including freedom from forced labor. Any bond restricting a person’s right to leave would likely violate labor rights. Long-term contracts that limit employee mobility may be legally challenged in court as they could be considered a form of forced labor.
- Legal Recourse: If an employee finds a bond excessively restrictive, they can seek legal assistance to review the terms and assess enforceability. Courts in Bangladesh tend to protect employees from unreasonable restraints on their professional freedom.