GLOBAL MOBILITY SERVICES
Global Mobility Services (GMS) offered by National Energy Services Ltd (NESL) provides immigration, tax, employment, placement, mobilization related services affecting Bangladesh operations and help organisations manage their statutory compliances in respect of their globally mobile workforce.
Our GMS practice provides tax advisory, compliance and human resource services. These include:
- Placement of local and expatriate personnel on short and mid-term hire
- Payroll Management and administration
- Employment structuring for tax efficiency
- Payroll diagnostics, tax dispute resolution and voluntary disclosures
- Global equity-based remuneration advisory
- Due diligence on employer obligations/tax liabilities
- Applications for tax incentives/rulings
- Tax equalization policy development and implementation
- Assignment tax cost projection
- Immigration advisory including work permit (E-visa) applications and renewals
- Extended business tax treaty review
- HR advisory services: compensation/benefit, contracts, HR policies and practice.
- Remuneration advisory
LOCAL STAFFING THROUGH NESL EMPLOYMENT
Client can decide to source in the local employees from Bangladesh and this can be done through NESL’s employment services.
Employees will be employed by NESL and shall be placed to the client as per agreement.
NESL provides following services in relation to Bangladeshi National staffing:
- If client requires, shortlisted candidates sent to client for selection
- If client requires, NESL processes client’s recommended candidates
- Engage the employees or contractors under contract/employment with NESL
- Oversee background checks and medical fitness of personnel
- Cover employees under group life, hospitalization, WCI etc., in line with client’s requirements
- Collect and verify timesheet from employee on closing of month
- Prepare calculations in relation to monthly salary, OT and other payments for client’s approval
- Process payment to each employee’s bank account
- Send each month pay slip to each of the employee
- Deposit of deducted AIT to Bangladesh tax authority before tax deadlines
- Provide tax receipts copy to employees/ client
- Issue termination notice/letter to employee, as advised by client
- Provide experience certificate/ references to those contracted employees, if required.
EXPATRIATE PLACEMENT THROUGH NESL EMPLOYMENT
With huge concentration in large infrastructural project in Bangladesh and with fast changing technological advancement and cross border opportunities, there has been a substantial increase in the number of foreign nationals (expatriates) employed with multinational corporates coming to Bangladesh for short/long-term assignments.
The purposes of these assignments vary from a highly specialized to company’s managerial representatives as well as from technical know-how to implementation of new projects/policies or bringing in leading industry practices.
Adequate plan, knowledge and preparations are essential in respect to placement and employment of foreign nationals for the purpose of lawful employment and movements, foreign exchange movements, tax and regulatory framework of the country by such corporates and their employees.
Unknown and unmanaged complexities of the tax system could result in higher tax costs, compliance and double taxation issues in relation to expatriates that need resolution.
Further, as per the Bangladesh income tax law, a person may be liable to tax on his global income in Bangladesh after three to four years of his first arrival in Bangladesh. This necessitates the need for planning at the initial stage itself to plan on his tax residency as well as his duration of contract and rotational plans.
Key service offerings:
- Onboarding placement through NESL employment in Bangladesh
- Assistance in securing the work permit
- Pre arrival and pre employment advices to enhance tax efficiency and benefits
- Assistance in reviewing of employment contracts from tax and regulatory perspective
- Assess tax implications on benefits / perquisites enjoyed directly and indirectly in Bangladesh
- Review tax equalization agreements of the employees/employer from regulatory perspective
- Determine tax residency status in Bangladesh during the period of assignment
- Assistance in registering with the Security agencies, depending on nationalities
- Assist taxation related certificates in order to assist assessment in the home country
- Assist tax deductions, deposits, assessments and obtaining tax clearance certificates.
- Assist final tax clearances when cancelling work permits.
- Advise on exemption and tax credit mechanism to employees of different jurisdictions.
- Determine taxability of employer’s and employee’s contributions to retirement benefits
Assist the expatriate for compliance requirements from their time of entry to their departure from Bangladesh including tax registration, deregistration, filings, cancellation of work permits, closing bank accounts, tax clearances etc.
EMPLOYMENT RELATED IMMIGRATION RULES IN BANGLADESH
Immigration guidelines in Bangladesh
Employment by foreign nationals can take the form of following visa categories:
- A) Experts / advisers / employees / Individuals appointed in government / semi-government/ autonomous bodies / projects and equivalent organizations
- b) Individuals employed in local/ foreign government / semi-government/ liaison / Industrial / commercial organizations or other equivalent organizations
- c) Individuals appointed under local / foreign government / semi- government contractor ship and in equivalent organizations
E1 category: (individuals visiting for supply / installations / maintenance of equipment and software / supervision of project etc.). These are issued for 90 days, renewable for another 90 days. No work permit is needed during this time. After that time, the employee will have to apply for the work permit.
A3 category: Experts / advisers / officials / staff members / labors working in any project under the bilateral / multilateral agreement between Bangladesh government and development partner agencies
FE category: Spouse and other dependent members of the Principal traveling on E /E1 category visa
FA3 category: Spouse and other dependent members of the Principal visiting with A3 category visa
Any default in complying with the immigration guidelines could result in penal consequences including deportation of the foreign citizen and adverse consequences for the organisation.
It is important that appropriate categories of visas are issued for the foreign nationals and their dependents including processing of visa extensions within the stipulated timeline.
Also, multiple issues on the tax and regulatory areas need to be addressed by the companies and their employees including maintaining certain employment ratios. This may require a review of the entire assignment structure from time to time and the underlying international assignment policies.
WARNING FOR UNAUTHORIZED EMPLOYMENT
Apart from enforcement and reputation issues there are severe financial consequences from unlawful employment Bangladesh. Section 16B of Bangladesh Income Tax Ordinance 1984 states that where any person employs or allows, without prior approval of BIDA or any competent authority of Government, any foreign national work at his business or profession at any time during income year, such person (employer) shall be charged additional tax at the rate of 50% of his tax payable on his income or Taka 500,000 whichever is higher.
GENERAL RECRUITMENT FOR CLIENTS
NESL is engaged in placement services for its clients within the country and outside of county. These positions may be for operational, supervising, mid-management, senior management, senior executive or even at the skilled worker level. By collecting details job terms and conditions from clients, NESL recruitment team search for right candidates looking into strategies, research and competitive analysis of its resources and needs of its clients.
Remote candidates are interviewed through Cisco Webex.
Recruitments are done for:
- A) Permanent position
- B) Temporary od demand project based positions
NESL recruitment service narrated in the following flowchart:
This method is usually applied for selection at senior level where we are requested to undertake “complete search” assignment to locate suitable people without going for advertisement procedure. When such head hunting is carried out, it is expected that our client would provide all information and requirement in order to facilitate identify right candidate.
TYPES OF PERSONNEL NESL CAN SUPPLY
Outsourcing is only comfortable and dependable when you have complete trust and confidence in the capability and quality of human resources organization. NESL ensures updated and pro-active database as its inventory to cater all you require right at this moment.
NESL database caters various geographical and technological needs of various local and multinational organizations. NESL services are comprehensive and can be shopped as one-stop services.
NESL has rich database to provide the following categories of personnel:
|EHS Engineer||Tax Analyst|
|HR Manager||Manager – Custom & logistic|
|Medical Specialist||Drilling Engineer|
|Compliance Manager||Office Assistant|
|GP Operation Specialist||Field Representative|
|Contract Administrator||Network Engineer|
|Maintenance Specialist (Mechanical)||Data Analyst|
|Training Coordinator||Procurement Engineer|
|Document Controller||Project Manager (High Voltage & Transmission)|
|Maintenance Engineer||Civil Engineer|
|IT Business and Financial Analyst||Surveyor (Building Construction)|
|Administrative Officer||Transport Coordinator|
|O&M Competency Trainer||Strategic Social Investment Manager|
|Technical Support Specialist-IT||Design Engineer|
|Business Analyst||Project Manager (PV/Solar)|
|Team Assistant||Marine Specialist|
|Warehouse & Logistics Coordinator||Earthworks & Drain Site Engineer|
|Procurement Officer||Civil Foreman|
|Facilities Coordinator||Cost Engineer|
|Computer Operator||Utility Coordinator|
|Project Engineer||Application Support Analyst|
|I&E Site Supervisor||Contract Administrator (D&C)|
|Construction Engineer||Government Affairs|
|Project Manager||Planning & Program Engineer|
|IT Engineer||Technical Support Specialist|
|MIQA Supervisor||Coring Engineer|
|Electrical Engineer||Lift, Escalator, Travellator Engineer|
|Accountant Manager||Sample Catcher|
|Wireline Field Service Supervisor||PSI Engineer|
|Equipment Maintenance Coordinator||Logistic Engineer|
|Manager – Marketing||Pile Work Supervisor|
|Equipment Operator||Production Engineer|
|Payroll Manager||Emergency Preparedness and Response Specialist|
|Structural Engineer||Interface Manager|
|Civil Site Engineer||Mud Logger|
|Construction Supervisor||CAD Operator|
|Mechanical Engineer||Project Control Coordinator|
|Material Coordinator||Chemical Engineer|
|Electrical Inspector||Interface Coordinator|
|PBB/BHS Engineer||Software Developer|
|Well Site Manager||Welder|
|EPC Manager||Civil Site Supervisor|
|QA/QC Supervisor||Surface Well Tester|
|Draftperson (civil)||Subsea Engineer|
|Quality Engineer||Stock Yard Supervisor|
|Laboratory Technician||Construction Manager|
NESL PAYROLL SERVICE COVERAGE
As organizations continue to expand, managing payroll processes merit special consideration. To build, manage and implement payroll related operations and processes, one requires an organised approach. NESL focus payroll services to ensure:
- Tax efficient management
- Efficient and timely administration
- Regulatory compliances
NESL offers following services with regard to the payroll functions:
Most large enterprises transfer payroll services to third party, as outsourced solutions are time and cost effective and more flexible and offers greater control for a Company with large operating networks. NESL offers its services to its client by managing the payroll services with efficient and accurate way.
NESL payroll system maintains records of all employees irrespective of nature of their payment (monthly or daily or hourly). Details records of take home salary, tax deduction, workman’s liability insurance, medical history, personal accidental insurance, gratuities, leave/severance/holiday/family allowance, medical/mobile/per diem/transport/annual allowances, bonus, termination pay, pensions, payment in lieu, Sick/annual/casual leave calculation, other benefits (accommodation, foreign allowance etc.) are kept for future reference.
Sometimes, depending on the offer and nature of work, separate arrangements for work clothing, personnel protective equipment and medical examinations are provided.
The benefits and packages are up to the client and individual consultant/employee to agree on. NESL executes payroll administration as agreed by the parties.
Due to its sensitivity, compliance and volume, it is a service to be performed with near accuracy. As a result, effective payroll services require specialization and a clear understanding of the applicable laws.
Cross border experience and exposures of NESL in dealing with significant number of multinational companies operating in Bangladesh, NESL stands out to be one of the most experienced companies in dealing with local and expatriate payroll services.
Key service offerings:
NESL’s key service offerings include:
- Review existing employee compensation policies:
- Identify cost ineffective components arising from admin or potential litigation costs
- Suggest tax efficient compensation items wherever possible
- Review withholding tax computations, statements and payments for adequacy of compliance
- Verify documents with regard to reimbursement claims from a tax compliance perspective
- Identify potential tax and penalty exposures due to non-compliance
- Highlight tax exposures which may lead to litigation with mitigating measures
- Evaluate cost saving opportunities for viability and consistency within corporate philosophy
- Recommend implementable ‘leading practices’ on payroll policies and procedures
- Review applicability of Bangladesh Labour laws.
EMPLOYEE COMPENSATION STRUCTURE
Expatriate of high skill category within certain industrial sectors receive significant compensation in the form of salaries, allowances and benefits. However, international competitive biddings, changing global market condition along with resource sourcing from various regions is putting pressure on organisations to be cost conscious while remunerating employees in a tax-efficient manner.
BIDA prescribes a minimum salary structure for expatriates working in Bangladesh.
It is focused that the structure that is offered meet:
- Minimum mandatory BIDA prescribed salary
- Flexible and employee friendly in terms of relocations, rotations, work schedules
- Meets contractual requirement of clients
- Cost effective
- Simple to administer
- Tax efficient
- Aligned with industry practices
Key service offerings:
- Use NESL salary database to match with package offered to the new client
- Use global published salary review
- Examine other compensation structuring options available to the organisation
- Review BIDA salary recommendation
- Analysis of the current employee compensation structure so as to:
- Advise on the tax implications thereof
- Weed out policies which are not cost effective due to administrative costs or potential litigation costs
- Advise on the estimated tax liabilities based on potential compensation offerings
- Design a standard manual containing payroll policies and procedures
- Identify potential tax, interest and penalty exposure (if any) for regulatory violations.
NESL provides taxation services, which in turn saves time and cost to clients and employees from managing complex accounting process and mitigate their related compliance issue.
The services are as follows:
- Cross border tax planning for the client
- Arranging issuance of Tax Identification Number
- Tax planning and management for local personnel
- Tax planning and management for foreign personnel
- Tax deduction / withholding tax at source and deposit to government treasury
- Issue salary certificate mentioning tax deduction and deposit
- Tax return submission, tax assessment and obtain tax certificate
NESL IMMIGRATION SERVICES
NESL has vast experience in mobilizing expatriate consultants to Bangladesh market. NESL is able to advise clients on the best way for them to proceed with their projects in Bangladesh. NESL’s potential clients can and have access to its one-stop service to resolve any employment, labour, contractual, taxation, immigration, compliance and other related matters which affects employment of international consultants / employees.
Wherever they are working in Bangladesh, NESL strives to ensure all of its consultants and employees arrive in country legally and start their projects on time, with right documentations like work permits and visas with assurance that they are lawfully employed.
It must be borne in mind that, like most countries, employment without employment visa and work permit is prohibited in Bangladesh, whether paid or not or wherever they are paid.
NESL immigration services include the following:
- Arrangement of Employment Visa through NESLemployment facility
- Arrangement of work permit and visas for foreign nationals through NESLemployment
- Mobilization / demobilization of personnel
- Transportation, accommodation and travel formalities for field staff.
- Protocol and assistance services to expatriates of other companies:
- Arrange Immigration / Visa services (like visa extension, category change, multiple visa)
- Arrange customs clearance during arrival / departure of the staff.
- Assist employees in obtaining local bank account in Bangladesh.
- Airport reception and protocol
- Work permits and immigration services
- Security Clearance services
- Manage in / outward remittance (FEX) on behalf of Employees
- Settle the income tax routines for the employees as required by GoB
- Manage / settle all personal legal arbitration relating to the employees
- Arrange supplemental insurance not covered in basic insurance of employee.
- Advisory services on Foreign Exchange remittances
Immigration requirements vary from country to country. Employment from Indonesia, the Philippines, Bangladesh and India require Governments special approval/ clearance.
INSURANCE COVERAGE AND MANAGEMENT
NESL arranges medical insurances, medical evacuations, accidental death and other related insurance coverage to its employees and its clients. Actual covered amount varies in line with the requirement of the client and the consultants.
The usual insurances that NESL manages for its foreign and national employees are as follows:-
- Medical Assistance and medical evacuation
- Accidental life insurance including AD&D
- Hospitalization Insurance
- Group life insurance coverage
The charges and fees are pre-arranged with clients.
MEDICAL ADVISORY AND MANAGEMENT SERVICES
NESL manages a dedicated Emergency Medical Response Team to deal with medical emergencies. This division deals medical advisory and referral services to both local and foreign hospitals. Pre-employment medical check-ups, routine and annual medical checks and other job related medical investigations are taken care by this division. This division is independently operated by a group of medical professionals. The team operates within Bangladesh and caters to the need of our clients to look after their overall medical emergencies.
LOGISTICS AND ADMINISTRATIVE SUPPORT SERVICES
NESL offers following logistics and administrative services, if requested by client:
- Rents of offices & houses
- Rents of warehouses and yards
- Transportations including protocol
- Local procurements
- Secretarial services
- Security services on contract
- Arrange transport for local usage at Dhaka as well as at work place.
- Arrange personal house-keeper for the staff at his accommodation
- Arrange ambulance services (as required) for the staff while at Dhaka.
- Arrange doctors on call at residence or at doctor’s chamber as needed by the staff
- Coordination with various government bodies
- Procurement Assistance
- Training on Database management and administration services
- Management services of Foreign registered companies in Bangladesh (see Professional Support Services below)
REFERRAL CHECK SERVICES
NESL offers referrals and background check services for Bangladeshi employees employed by our clients (both local multinational companies).
This referral service includes:
- Police verification
- Academic certificate verification
- Employment document verification
- Residence address verification
- Reference verification
- Any other verification, if required by clients
- The charges and fees are pre-arranged with clients.
PROFESSIONAL SUPPORT SERVICES
NESL provides advisory services to its clients for various licensing assistance which include:
- Managing foreign registered (with Bangladesh Investment Development Authority, Bangladesh Bank, RJSC etc.) companies in Bangladesh.
- Secretarial including works related to Registrar Joint Stock Companies and Firms (RJSC)
- Trade license
- Import registration certificate (IRC)
- Export registration certificate (ERC)
- License to Electrical Firms and Contractors
- Indenting registration certificate (IRC)
- Fire license
- Financial services & risk mitigation.
- Documentation of work and inspection procedures
PROJECT MANAGEMENT SERVICES
- Geo-science, Drilling & Completion
- Engineering & Design
- Health, Safety, Environment & Quality
- Project Management & Services
- Construction, Commissioning, Operations & Maintenance
- Security Maintenance
- Cleaning & Maintenance
- Logistics Management
- Camp Project Services