Former employees of HSBC Bangladesh have accused the multinational lender of violating Bangladesh’s labour laws and denying workers their legal financial entitlements following the closure of its retail banking operations earlier in 2026.
The allegations were made during a press conference held on Saturday at the Economic Reporters’ Forum (ERF) in Dhaka, where a group of affected former employees called for a formal investigation by the authorities.
Speaking on behalf of the group, former official Alamgir Kabir said that 257 employees lost their jobs after HSBC Bangladesh shut down its retail banking division on 31 March 2026.
He alleged that the bank did not follow the legal procedures governing employee retrenchment under the Bangladesh Labour Act.
According to the former employees, HSBC informed Bangladesh Bank that the affected staff had been retrenched.
However, they claim the bank issued standard termination letters to employees instead of retrenchment notices, a distinction they argue deprived them of severance payments and other statutory benefits available under labour legislation.
The group further alleged that the bank failed to comply fully with directives issued by Bangladesh Bank and breached several provisions of the country’s labour laws during the restructuring process.
They also raised concerns over what they described as unauthorised deductions from employees’ provident funds, irregularities in the settlement of staff loans, unequal treatment in re-employment opportunities, increases in home loan interest rates for former staff and delays in issuing official release letters.
The former employees additionally claimed that HSBC had offered more generous compensation packages to staff affected by similar restructuring exercises in India and Sri Lanka, arguing that workers in Bangladesh received comparatively less favourable treatment.
Their legal representative, Mokarram Hossain Saklan, joined several former HSBC officials at the briefing, including Mostafizur Rahman, Monzur Morshed, Subakta Gin Mahmud and Abu Raihan.
The group urged the government, Bangladesh Bank, the Ministry of Labour and Employment and the Department of Inspection for Factories and Establishments (DIFE) to examine the allegations and take appropriate action if any violations are found.
HSBC Bangladesh had not publicly responded to the allegations at the time of publication.
The affected workers placed a three-point demand to the authorities:
i) A thorough legal review of the entire termination process to ensure accountability for those responsible, ii) Payment of fair severance and other dues in line with Bangladesh Bank guideline, and iii) Immediate refund of the amounts deducted from their provident funds and other benefits, along with accrued interest and penalties.
The speakers concluded by urging the media to investigate the matter independently to bring the facts to public attention.
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