Final settlement and service benefit when a worker leaves
Checked 22 October 2026. A plain-language summary, not legal advice. Points marked "check the current gazette" changed recently or are reported differently by different sources.
When a worker leaves, the factory owes a final settlement: wages still unpaid, unused earned leave, notice pay where notice fell short, and a service benefit that depends on how the job ended. All of it is due within 30 working days of the last day.
Notice
- A permanent worker who resigns gives 60 days written notice, or pays wages in lieu for the days short.
- An employer ending a permanent monthly-rated worker's job gives 120 days notice, or pays in lieu.
- Retrenchment needs one month's notice, with a copy to the inspector.
- Workers on probation and temporary workers have shorter or no notice periods.
Service benefit, days of wages per year of service
| How the job ended | Benefit |
|---|---|
| Resignation | 14 days a year from 5 to 10 years of service, 30 days a year from 10 years |
| Termination by the employer | 30 days a year, or gratuity if higher |
| Retrenchment | 30 days a year, or gratuity if higher |
| Discharge for ill health | 30 days a year, or gratuity if higher |
| Dismissal for misconduct | 15 days a year after a year of service, as reported for the 2026 amendment |
| Death in service | 30 days a year (45 if the death was at work), after 2 years in the 2018 text |
A part year of more than six months counts as a full year. Where the factory has a gratuity scheme, gratuity is at least 30 days of last wages per year, or 45 days a year after 10 years. The resignation tiers after the 2026 amendment are reported differently by different sources, so check the current gazette.
A worked example
A grade 3 worker on ৳13,550 gross (basic ৳7,400) resigns after 7 years and 8 months with full notice and 12 days of unused earned leave. Service counts as 8 years. Service benefit: ৳7,400 / 30 x 14 x 8 = ৳27,627. Earned leave: ৳13,550 / 30 x 12 = ৳5,420. Total ৳33,047, plus any unpaid wages, less any advance still owed.
Also in the settlement
- Wages and overtime for days worked since the last payroll.
- Unused earned leave at gross / 30 a day.
- A share of the festival bonus, where that is the factory's practice.
- The provident fund balance, where there is one.
- The service book, handed back to the worker.
How Ovelit Comply applies this
Choose how the job ended and the last day; the settlement is worked out from the worker's record, attendance and leave, with the pay-by date set 30 working days ahead and an alert before it passes. Try it with the final settlement calculator.