HR services in Bangladesh are outsourced human resources operations delivered on a recurring basis: preparing appointment letters and ID cards, maintaining personnel files and service books, tracking leave and attendance, supplying payroll inputs, handling confirmations and exits, and keeping the business compliant with the Bangladesh Labour Act 2006, Labour Rules 2015 and salary tax withholding rules under the Income Tax Act 2023.
HR services suit businesses that need professional human resources work done every month but are not ready to build a full HR department. Typical clients are SMEs with 10 to 150 staff, foreign subsidiaries and liaison offices in Dhaka run by a small management team, and startups whose founders are tired of drafting letters at midnight.
This page describes our ongoing, operational HR service: the routine documents, records and compliance tasks we handle each month for a fixed fee. If you need a one-time redesign of policies, grading and HR systems, see our HR solutions page; for day-to-day people management support, see employee management.
On this page
What outsourced HR services include
- Appointment letters and identity cards for every worker, as required by Section 5 of the Labour Act
- Service book or digital equivalent and personnel files
- Probation tracking and confirmation letters
- Leave records for casual, sick, annual, festival and maternity leave
- Monthly payroll inputs: joiners, leavers, increments, deductions, overtime
- Show-cause notices, warning letters and inquiry documentation
- Resignation, termination and final settlement calculations
- Experience and release certificates
Who benefits most from HR services
Foreign-owned companies are a frequent fit. The parent company expects a clean employee file for every hire, while local law expects Bangla or English appointment letters, statutory registers and compliance with Bangladesh-specific leave and termination rules. We bridge the two, producing documents that satisfy both the head office and DIFE inspectors.
Local SMEs benefit because a single error, such as terminating a permanent worker without the notice or compensation required by Section 26 of the Act, can cost more than a year of outsourced HR fees.
Growing businesses also use HR services as a bridge. While you recruit your first HR manager, we keep the files and monthly cycle running, then hand over a clean, documented system rather than a pile of unsorted papers.
Need this done for you?
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Labour Act compliance built into the routine
Good HR services are preventive. Every month we check that letters, registers and payments line up with the Bangladesh Labour Act 2006 and the Labour Rules 2015, so the business is ready for an inspection rather than scrambling when one is announced.
- Worker classification and probation periods
- Wage payment within the period the Act prescribes
- Festival bonus entitlement under the Labour Rules
- Leave balances and leave encashment
- Notices, displays and registers required at the workplace
Connecting HR to payroll tax and funds
HR records feed payroll, and payroll feeds tax. When HR data is wrong, the employer withholds the wrong amount of tax at source on salaries, issues incorrect certificates and files inaccurate withholding returns under the Income Tax Act 2023. We keep HR and payroll records reconciled and coordinate with your provident fund and gratuity fund trustees where those funds exist, including any recognition or approval requirements with the tax authority.
Common HR administration mistakes
- Hiring without a written appointment letter
- Missing nominee forms for deceased worker dues
- Ending employment by verbal instruction
- Final settlement without a clear calculation sheet
- Personnel files kept in someone's personal email
How the process works
- HR health checkWe review existing letters, files, registers and policies to identify gaps against the Labour Act.
- Agree the service scopeTogether we define monthly deliverables, turnaround times and who approves what.
- Fix the backlogMissing appointment letters, ID cards, files and registers are brought up to date.
- Monthly HR cycleWe process joiners, leavers, leave, confirmations and payroll inputs each month.
- Quarterly compliance reportYou receive a short report on open issues, upcoming deadlines and recommended actions.
Typical timeline: Onboarding a new HR services client typically takes two to four weeks, depending on headcount and the condition of existing records; the monthly cycle starts once the backlog is cleared.
How Tax & VAT Associates helps
- Labour Act-compliant letters, ID cards and personnel files
- Monthly HR administration and payroll input preparation
- Disciplinary and exit documentation with settlement calculations
- HR and payroll reconciliation supporting correct salary TDS
- Inspection-ready registers and workplace notices
- A single contact for HR questions in English or Bangla
Frequently asked questions
What are HR services?
HR services are the ongoing administrative and compliance tasks of human resources: letters, records, leave, payroll inputs, discipline and exits. When outsourced, an external team performs these tasks for your business each month, usually for a fixed fee, so you do not need a full in-house HR department to stay organised and compliant.
Is outsourcing HR legal in Bangladesh?
Yes. Outsourcing HR administration is a normal service arrangement. Your company remains the employer, signs the appointment letters and stays legally responsible under the Bangladesh Labour Act 2006. The service provider prepares and maintains the documents on your behalf and advises on compliance, but does not take over your legal duties as employer.
How is this different from HR solutions?
HR services are recurring operational work done every month. HR solutions are project-based: designing service rules, salary grades, policies, job descriptions and HR systems. Many clients start with an HR solutions project to set the framework, then move to monthly HR services so the framework is actually applied consistently.
Do you also run payroll?
We can. HR services cover payroll inputs such as joiners, leavers and leave deductions. Our payroll service covers salary calculation, tax deduction at source under the Income Tax Act 2023, payslips, bank transfer files and withholding returns. Clients often take both so that HR and payroll records stay consistent.
Can you handle HR for a foreign company's liaison office?
Yes. Liaison and branch offices approved through BIDA employ local staff who are covered by the Labour Act, even though the office does not trade. We prepare compliant documents, coordinate expatriate work permit and visa timelines, and keep records in a format the head office can audit remotely.
What does it cost to outsource HR in Bangladesh?
Fees depend mainly on headcount, the number of locations and how much of the HR cycle you hand over. We usually quote a fixed monthly fee after the initial HR health check, with any backlog clean-up priced separately so you know exactly what you are paying for.
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Learn more →Last reviewed: . Bangladesh tax and regulatory rules change with each Finance Act, SRO and authority circular. This page is general guidance; confirm current requirements for your case before filing.