National Energy Services Limited, commonly known as NESL, is incorporated in Bangladesh in 2004.
NESL provides a wide range of advisory, human resources consultancy and administrative support services for its clients and consultants.
NESL has extensive and diverse experience in supplying and managing expatriate and national personnel to multinational and national clients in specialized industries including gas, power, constructions, telecom and other engineering sectors.
NESL is a registered entity with the Ministry of Labour.
- Hiring local employees
- NESL provide local manpower and payroll services.
- Bangladesh laws require maintaining expatriate: local recruitment ratio.
- NESL helps recruit local staff through NESL in order for the clients to maintain that ratio. Currently the ratio is 5:1 (i.e., five local recruits for each foreign recruit)
- General recruitment for clients
- Job position
- Job Description/ responsibility
- Qualification and experience
- Technical certification
- Offered salary (Daily or monthly)
- Benefits: terminations, bonuses, accommodation, transport, medical, meals, laundry, holiday entitlements etc.
- Contract terms, if applicable
- Work location
- Insurance coverage
- Contract duration
- Onshore/ off shore facilities
- Family entitlements
- Executive Search
Hiring local employees
Employment of local nationals through NESL
Utilize huge NESL database of experienced Bangladeshi employees.
Alternatively, NESL supplies Bangladeshi nationals on our own payrolls for short and mid term contracts without going through client employment.
General recruitment for clients
NESL is engaged in placement services for its clients within the country and outside of county. NESL, through its experience and professionalism provides hiring solutions for its clients who seek to recruit right personnel for their organizations. 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.
There are two options to find a required candidate:
Person required for permanent position; or
Person required for temporary or demand / project based positions.
These positions may be for operational, supervising, mid-management, senior management, senior executive or even at the skilled worker level.
In all cases, the client provides the following information:
NESL provides assistance to its clients in making the right and most cost-effective decision in choosing the right candidate for the role. Our permanent hiring capability can deliver international or national search-based solutions.
The way NESL is offering this service is narrated in the following flowchart:
|Client requisition received by NESL recruitment Team|
|Candidates search through Job portals and also NESL database system|
|CV scrutinized and Screened and sent shortlisted CVs to clients|
|Candidate selection by client for interview|
|Arrange of Interview on behalf of client|
|Final selection by Client|
Reference checks, medical examinations are done as per requirement of the client.
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.
When fee is payable
Our fee is calculated and based on salary for the position being filled in. Cost to be reimbursed for expenses incurred for conducting interview, selection and medical examinations which are required prior to finalization of candidate.
The fees are payable up on appointment of the candidate once the search, screening and interviews are completed. Should the recruit leave the client’s employment within 90 days without valid reason, NESL would be obliged to find a suitable replacement at no cost, provided client settled the previous/ relevant invoice.
NESL has been successful in recruiting people in all areas of operation, maintenance, construction, product design and development, particularly where unusual or rated skills are required.
- Payroll Diagnostic
- Review existing employee compensation policies:
- Identify components which are not cost effective due to administrative costs or potential litigation costs
- Suggest tax efficient compensation items wherever possible
- Review withholding tax (tax deduction at source) computations, statements and payments for adequacy of compliance
- Verify documents with regard to reimbursement claims to ascertain the adequacy from a tax compliance perspective
- Identify potential tax and penalty exposures due to non-compliance
- Highlight tax positions which may lead to litigation and recommend suitable measures to mitigate the exposure (if any)
- Evaluate cost saving opportunities for viability and consistency with the organisation’s corporate philosophy
- Recommend ‘leading practices’ on payroll policies and procedures, which can be implemented by the organisation across businesses and locations.
- Review applicability of Bangladesh Labour laws.
- Employee Compensation Structure
- 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
- Use our 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.
- Warning for unauthorized employment
- Local staffing through NESL employment
- Process recommended CVs forwarded by client for engagement
- If client requires, run circulation of advertisement, CV collection, Primary shortlisting and sending CVs to client.
- Oversee Medical fitness test of personnel.
- Engage the employment under contract / employment with NESL
- Cover the employee under group life insurance, hospitalization insurance and workman compensation insurance, in line with the requirements of the client.
- Collect and verify timesheet from employee on closing of month.
- Prepare calculation sheet in relation to monthly salary, OT and other payment after taking in to consideration AIT deduction for employees or in line with the requirement of the client company.
- Process payment to each employee’s bank account.
- Send each month pay slip to each of the employee.
- Deposit of deducted AIT to National Exchequer before closing of financial year.
- Provide tax Challan copy to employees.
- Issue termination notice/letter to employee if advised by client.
- Provide experience certificate to those contracted employees, if required.
- Expatriate Assignment
- Advise on planning before taking up assignments in Bangladesh with respect to commencement, tenure etc. to enhance tax efficiency and benefits
- Assistance in reviewing of employment contracts from tax and regulatory perspective
- Assistance in registering with the Security agencies, depending on nationalities.
- Assistance in complying existing Bangladeshi tax issues.
- Determine tax residency status in Bangladesh during the period of assignment
- Assess tax implications on the benefits and other perquisites that are enjoyed directly and indirectly while staying in Bangladesh (within and beyond the contract)
- Analyse tax equalisation agreements (available in certain clients) between the employees and the employer from tax and regulatory perspective
- 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 determine that income is not doubly taxed under different jurisdictions or appropriate credit for foreign taxes is claimed.
- Determine taxability of employer’s and employee’s contributions to retirement benefits, if applicable, during such Bangladesh assignment.
- Employment and service related Immigration Guidelines in Bangladesh
- 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
- General information
- NESL Payroll service coverage
- Tax efficient management
- Efficient and timely administration
- Advisory services in relation to regulatory implications.
- Assistance with the payroll process for the company and its employees
- Advise on the monthly amount to be deposited by the company in respect of its employees under the applicable laws
- Assistance in preparing returns for Tax Deduction at Source (TDS returns) and the TDS certificates to be issued to employees
- Provide payroll reports required by the company and its employees
- Assistance in reviewing employment contracts from tax and regulatory perspective
- Provide relevant information to various authorities in case of scrutiny/ inspection of payroll records
- Discuss tax positions on specific compensation items which may merit attention due to their ambiguous nature
- Timesheet management and data processing
- Manage time sheet approval process for each employee work on single /multiple location/cost centre of client.
- Validation of each time sheet and other related documents.
- Maintain leave register.
- Maintain bank instructions of employees.
- Maintain rotational status for employees.
- Maintain man-hour report for client.
- Maintain audit trail and documentation for future references.
- Issue fund transfer for employee after month end based on time sheet.
- Issue pay slip for each employee.
- Monitor tax compliance related to payroll
- Employees net take home salary
- Statutory deductions of tax
- Workman’s liability insurance
- Medical Evacuation
- Personal accidental insurance
- Leave allowances
- Severance payment
- Holiday allowance
- Family allowance
- Payment in lieu
- Sick leave, annual leave & casual leave
- Medical allowances
- Mobile allowance
- Per diem allowance
- Transportation allowance
- Annual allowance/bonus
- Termination pay
- Any other benefits like housing, accommodation, foreign allowance, children education, foreign allowance etc.,
- Work clothing
- Personnel Protective Equipment
- Medical examinations
- Taxation Services
- 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
- Arrangement of Employment Visa through NESL employment facility
- Arrangement of work permit and visas for foreign nationals through NESL employment facilities.
- 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
- 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
- Medical Advisory and Management Services
- Insurance Coverage and Management
- 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.
Due to its sensitivity, compliance and volume, it is a service to be performed with near accuracy. As a result, effective payroll services require specialisation and a clear understanding of the applicable laws.
Our Cross border experience and exposures in dealing with significant number of multinational companies operating in Bangladesh we stand out to be one of the most experienced company in dealing with local and expatriate payroll services.
Key service offerings:
Based on our extensive tax and regulatory experience in Bangladesh, we can conduct a payroll tax diagnostic review.
Our key service offerings include:
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:
Key service offerings:
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.
Local staffing through NESL employment
NESL provides the following services in relation to Bangladeshi National staffing:
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 of foreign exchange movements, lawful employment and 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.
Apart from enforcement and reputational issues there are severe financial consequences from unlawful employment in 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.
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:
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 and service related Immigration Guidelines in Bangladesh
Immigration guidelines in Bangladesh
Employment by foreign nationals can take the form of following visa categories:
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 fronts need to be addressed by the companies and their employees including maintaining certain employment ratios. This may require a relook at the entire assignment structure and the underlying international assignment policies.
NESL provides wide range of professionals and technical expertise acquired and hired from amongst the best professionals available at home and abroad. NESL maintains excellent management and supervision team for specialized exploration, development and production activities. Our people are dedicated, achiever, productive, adaptable, well qualified and excellent in workmanship.
NESL provides those professional, skilled and semi-skilled foreign workers from all over the world.
Our recent exposures of hiring expatriates originating from the USA, Canada, UK, Australia, EU Countries, Philippines, Malaysia, China, Singapore, Thailand, India, Pakistan, Peru, Columbia, Venezuela, Romania, Russia, Egypt, China can be mentioned.
These expatriates are placed in the maintenance and /or construction on–shore exploration, development and production of oil and gas fields, industrial paints, Technology and communications, power stations and many other major industrial undertakings.
Our excellent database of carefully selected people is our strength. Where we do not have immediate suitable candidate, we arrange to advertise in the print and electronic media to identify required personnel.
NESL has access to personnel data bank with vast range of highly skilled, qualified and experienced personnel. Over the last ten years, NESL have managed approximately positions of150 expatriate and 500 national consultants for covering finance, administrations, legal, communications, catering, IT, engineering, pipelines, explorations, drilling, health safety, seismic, geological, environmental, medical and other related fields of high skilled category.
NESL Payroll service coverage
As organisations continue to expand, managing payroll processes merit special consideration. To build, manage and implement payroll related operations and processes, one requires an organised approach.
We focus payroll services to ensure the following:
Key service offerings:
We offer the following services with regard to the payroll functions:
Offer personal employee support services that enable resolving employee queries.
Most large enterprises transfer payroll services to third party, as out-sourced solutions are more flexible and greater control for the Company. This service saves time and cost for the Company from complex accounting requirements and large operating networks. NESL offers its services to its client by managing the payroll services with efficient and accurate way.
NESL payroll services include the following:
NESL payroll system maintains records of all employees irrespective of nature of their payment (monthly or daily or hourly). The details that are kept on records, if applicable, are as follows :
Sometimes, depending on the offer and nature of work, separate arrangements in addition to remuneration is set aside for the following:
The benefits and packages are upto the client and individual consultant / employee/ recruit to agree on. NESL executes payroll administration as agreed by the parties.
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:
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. Our potential clients can and have access to our one-stop service to resolve any employment, labour, contractual, taxation, immigration, compliance and other related matters which affectsemployment of international consultants / employees.
Wherever they are working in Bangladesh, NESL strives to ensure all of our consultants and employees arrive in country legally and start their project 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:
Immigration requirements vary from country to country. For example, employment from Indonesia, the Philippines, Bangladesh and India require Governments special approval/ clearance. Our fee would then include our pre-agreed professional fees plus such government fees as applicable. Fee would be charged separately for medical, reference checks and any skill training as demanded and expenses would be reimbursed from the the client.
Logistics and Administrative Support Services
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.
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:-
- Referral Check Services
- 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
- Trade license – new and renewal
- Import registration certificate (IRC) – new and renewal
- Export registration certificate (ERC) – new and renewal
- License to Electrical Firms and Contractors – new and renewal
- Indenting registration certificate (IRC) – new and renewal
- Fire license – new and renewal
- Works related to Registrar Joint Stock Companies and Firms ( RJSC)
- Financial services & risk mitigation.
- Documentation of work and inspection procedures
- Managing foreign registered companies in Bangladesh (Bangadesh Investment Development Authority, Bangladesh Bank, RJSC etc)
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:
Professional Support Services
NESL provides advisory services to its clients for various licensing assistance which include: