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Employment · 2 July 2026 · 8 min read

Dismissal for misconduct: the procedure employers keep skipping

Most dismissals that unravel in the Labour Court do not unravel on the facts. They unravel because the employer treated an inquiry as a formality.

Punishment is not the same as termination

The Act draws a hard line between ending employment as punishment for misconduct and ending it otherwise. The two routes carry different procedures, different compensation and different exposure. Choosing the punitive route because it feels cheaper, then failing its procedure, is the single most common way an employer converts a defensible separation into a reinstatement risk.

What a lawful inquiry looks like

A charge must be framed in writing and must be specific: dates, acts, and the rule said to be broken. A charge that alleges the worker was generally negligent gives nothing to answer and will not support a dismissal.

The worker must be given a real opportunity to explain, an inquiry must be held, and the worker must be allowed to be present, to hear the evidence against them and to cross-examine. An inquiry report written before the hearing is not an inquiry report.

Suspension pending inquiry is permitted and is not itself a punishment, but it is time-bound and carries subsistence obligations. Employers who suspend indefinitely and forget the file create a claim rather than avoid one.

Where the money is

Separation is rarely just the last pay packet. Earned and accrued leave, provident fund, gratuity where it applies, festival entitlements and notice pay all have to be computed and, importantly, evidenced. A clean, itemised final settlement sheet handed over with the release is worth more in the witness box than any amount of oral assertion.

A note on this article

General information only, and deliberately framed at the level of principle rather than section-by-section detail. Check the current text of the Act and the 2015 Rules, and take advice before dismissing anyone.

General information about Bangladeshi law. Not advice on your matter, and not a substitute for instructing an enrolled advocate.

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