HSBC accused of labor law violations, deprived staff demand fair compensation

Collected Photo

Terminated officials of HSBC Bangladesh on Saturday accused the multinational bank for violating local labor laws, misleading the regulatory authority and depriving employees of their rightful financial benefits following the closure of its retail banking operations.

The allegations were raised in a press conference, organized by the deprived HSBC officials, at the Economic Reporters’ Forum (ERF) auditorium in the capital’s Purana Paltan area.

Reading out a written speech on behalf of the affected employees, Alamgir Kabir claimed that 257 officials lost their jobs when HSBC closed its retail banking division on March 31, 2026.

However, the bank allegedly failed to follow the legal provisions regarding employee retrenchment as mandated by the Bangladesh Labor Act.

The speakers claimed that while HSBC presented the affected employees as “Retrenched Officials” to the central bank (Bangladesh Bank), it handed the workers standard “Termination” letters instead. By doing so, the bank allegedly bypassed legal obligations associated with retrenchment, effectively depriving workers of fair severance packages and statutory compensation.

They further alleged that HSBC Bangladesh failed to properly implement directives issued by Bangladesh Bank and violated multiple sections of the labor law.

The aggrieved officials highlighted several specific issues, including unauthorized deductions from their provident funds, flaws in the loan adjustment process, discrimination in re-employment, arbitrary hikes in home loan interest rates and the withholding of official release letters.

The speakers also pointed out a regional disparity, claiming that HSBC provided significantly higher compensation packages to employees during similar restructuring processes in India and Sri Lanka, whereas Bangladeshi workers were subjected to discrimination.

Attending the briefing, the affected officials’ legal counsel, Mokarram Hossain Saklan, along with former officials Mostafizur Rahman, Monzur Morshed, Subakta Gin Mahmud, and Abu Raihan, urged the government, Bangladesh Bank, the Ministry of Labour and Employment, and the Department of Inspection for Factories and Establishments (DIFE) to investigate the matter and take necessary legal action.

The affected workers placed a three-point demand to the authorities:

1. A thorough legal review of the entire termination process to ensure accountability for those responsible.

2. Payment of fair severance and other dues in line with Bangladesh Bank guidelines.

3. 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.