The right to resign under the Labour Act

Query

I have been working at an IT firm in Chittagong for about one and a half years. Recently, after receiving a better job offer, I have decided to resign. However, my employer is insisting that I must serve a full three-month notice period. Additionally, he has warned to withhold my provident fund and to not provide me with a certificate of service until all pending tasks are completed. In this context, what are my available legal rights and remedies under the Labour Law?   

Tasnim, Chittagong.

Response

Dear Ms Tasnim, thank you for your query.

First of all, congratulations on your new job opportunity. Moving forward in your career is a natural and positive step and you have every right to do so. I understand that resigning can feel stressful, especially when your employer is insisting on a three-month notice period, warning about withholding your provident fund and linking your service certificate to pending tasks. These are serious concerns, but the laws in Bangladesh do protect employees in such situations

Firstly, you mentioned that your employer is insisting on a three-month notice period. However, you specified neither your employment category nor whether this duration is actually mentioned in your employment contract. Nonetheless, regarding the procedure of resignation under section 27 of the Act, an employee may resign by giving written notice or by paying wages in lieu of the notice period. But the notice period varies depending on the category of employment (for instance, 60 days for permanent workers and 30 or 14 days for temporary workers). In fact, section 123 ensures that all wages due upon resignation, must be paid within 30 working days. Secondly, the right to receive a service certificate for all workers except temporary and substitute workers is also provided under section 31. Hence, I believe, our labour law has already sufficiently recognised and strengthened the employees’ right in terms of resignation.

Needless to say, employees cannot be coerced into remaining in a job through threats, intimidation or withholding of financial entitlements or service certificates. Rather, their rights to fair treatment during resignation, including protection against retaliation and the prompt issuance of service certificates, are explicitly recognised in our law.  It is important to note here that even though employers may have their own internal policies, they cannot override statutory protections or create policies that offer less than what the law provides.

Speaking of provident fund, it is crucial to understand that these are your contributions, often matched by the employer and cannot be withheld as leverage. The same applies to earned salary, leave encashment or other contractual benefits. Any attempt to delay or withhold these payments to pressure you into serving additional months or as a form of intimidation is unlawful.

Employers are, of course, allowed to request reasonable cooperation during the notice period, such as completing ongoing projects, transferring responsibilities and returning company property. These are professional obligations, but they do not justify threats or coercion. Under the law, any attempt to use intimidation such as withholding provident fund, salary or service certificates to force an employee to remain beyond their legal notice period is illegal.

Practically speaking, the best way to protect yourself is to submit a written resignation specifying your intended last working day according to the lawful notice period. Avoid relying solely on verbal communication. Email or hand-delivered letters with acknowledgment are safest, as they provide proof in case of future disputes. Keep records of all communication, including emails or acknowledgment receipts, to strengthen your position. Completing reasonable handover tasks professionally, while documenting them, shows good faith and makes it difficult for the employer to claim non-cooperation.

If your employer continues to pressurise you, delays settlement of the provident fund or salary, or refuses to issue your service certificate, you have certain remedies. Under section 33, the worker can initiate a grievance procedure by submitting a written complaint to the employer within 30 days from the date of knowledge of the issue. If the worker is dissatisfied with the decision or if the employer fails to give any decision, they may refer the matter by filing a written complaint before the Labour Court within the next 30 days. Moreover, section 124A allows a worker to recover unpaid wages and other legal dues through settlement by applying to the Labour Inspector. The authority acts as a mediator and attempts to resolve the matter within 20 days. If mediation fails, you can once again approach the Labour Court to enforce your rights, including the payment of dues and issuance of your service certificate.

In short, you have a legal right to resign. Your provident fund, salary and service certificate are all protected by law.

I hope the above gives you clarity about your concerns and wish you all the best.