HSBC accused of Labor Law violations and depriving employees of their rights
Former employees affected by the closure of HSBC Bangladesh's retail banking operations have accused the bank of violating labor laws, misleading regulators, and depriving employees of their lawful rights. They made the allegations during a press conference, demanding fair compensation.
The press conference was held on Saturday at the Economic Reporters' Forum (ERF) auditorium in Paltan, Dhaka.
A written statement was presented by Alamgir Kabir on behalf of the affected former HSBC employees. Also present were Mostafizur Rahman, Monjur Morshed, Subakta Gin Mahmud, Abu Raihan, and the employees' legal counsel, Mokarram Hossain Saklain.
In the statement, the employees alleged that 257 officials were dismissed following the closure of HSBC Bangladesh's retail banking operations on March 31, 2026, but the bank failed to comply with the retrenchment provisions required under the Bangladesh Labour Act. They claimed that although HSBC described them to Bangladesh Bank as "Retrenched Officials," the employees were instead issued ordinary termination letters, thereby depriving them of the legal benefits and compensation to which retrenched workers are entitled.
The speakers further alleged that HSBC Bangladesh failed to properly implement directives issued by Bangladesh Bank and violated several provisions of the country's labor laws. They also raised concerns regarding deductions from provident fund balances, the process of loan adjustments, discrimination in re-employment opportunities, increases in home loan interest rates, and the withholding of release letters.
They further claimed that employees affected by similar restructuring exercises in India and Sri Lanka received substantially higher compensation packages, whereas the affected employees in Bangladesh were subjected to discriminatory treatment.
During the press conference, the affected employees called upon the relevant government authorities, Bangladesh Bank, the Ministry of Labour and Employment, and the Department of Inspection for Factories and Establishments (DIFE) to investigate the matter and take appropriate legal action.
On behalf of the affected employees, three key demands were presented:
A comprehensive legal review of the retrenchment process and accountability for those responsible for any violations.
Payment of fair severance benefits and all other lawful entitlements in accordance with Bangladesh Bank's directives.
Refund of all amounts deducted from provident funds and other dues, together with applicable interest and penalties.
At the conclusion of the press conference, the speakers urged the media to investigate the matter impartially and present the facts accurately to the public.