Quamrun Nahar Mahmud
Advocate, Supreme Court of Bangladesh
The Bangladesh Labour Act recently underwent extensive legislative reform through amendments initially enacted by Presidential Ordinance on 17 November 2025 and later approved by Parliament on 10 April 2026, resulting in significant revisions to the country’s labour law regime through Bangladesh Labour (Amendment) Act, 2026.
The recent amendments mark one of the most extensive labour law reform exercises undertaken in Bangladesh in recent years. While much public discussion has focused on the expansion of worker protections and trade union rights, the broader significance of these reforms lies in their attempt to recalibrate the country’s labour relations framework in light of both international obligations and evolving workplace realities.
From our review of the legislative changes, the amendments reflect a concerted effort by the Government of Bangladesh to modernise labour regulation, strengthen institutional mechanisms, and move closer toward compliance with international labour standards. At the same time, several interpretational and implementation challenges remain unresolved and are likely to shape future policy discussions.
Reform Process and Legislative Background
The reform process gained momentum following the political transition that occurred after the 2024 uprising, which led to the resignation of Prime Minister Sheikh Hasina. Thereafter, the Interim Government undertook a series of labour sector initiatives, including the establishment of the Labour Reform Commission (LRC) and the ratification of three important International Labour Organization (ILO) instruments: Convention No. 155 on Occupational Safety and Health, Convention No. 187 on the Promotional Framework for Occupational Safety and Health, and Convention No. 190 on Violence and Harassment.
The Labour Reform Commission submitted its recommendations to the Government in April 2025. Subsequently, an ordinance amending the Bangladesh Labour Act, 2006 was promulgated on 17 November 2025. The legislative process culminated on 10 April 2026 with Parliament passing the amended law, introducing approximately ninety modifications, deletions and insertions across the Act.
Although the amendments represent a substantial overhaul of the existing framework, a notable number of recommendations proposed by the Labour Reform Commission were not incorporated into the final legislation.
International Commitments as a Catalyst for Reform
The roots of the current reform initiative extend considerably further back. In June 2019, workers’ delegates affiliated with the International Trade Union Confederation (ITUC) filed a complaint under Article 26 of the ILO Constitution. As one of the most serious supervisory procedures available within the ILO system, the complaint alleged non-compliance by Bangladesh with Convention No. 81 on Labour Inspection, Convention No. 87 on Freedom of Association, and Convention No. 98 on the Right to Organise and Collective Bargaining.
The complaint emerged after years of advocacy by trade unions, labour federations and international stakeholders who consistently raised concerns regarding deficiencies in freedom of association, collective bargaining and enforcement mechanisms. Workers’ organisations documented alleged violations, pursued advocacy initiatives and maintained engagement with both national authorities and international institutions.
In response, the ILO Governing Body requested a time-bound reform roadmap from the Government of Bangladesh, which was submitted on 23 May 2021. The roadmap prioritised labour law reform, trade union registration, labour inspection and enforcement, and measures addressing anti-union discrimination and violence against workers.
The 2025–2026 amendments are largely a consequence of these commitments and the sustained pressure for reform. Attention is now expected to shift towards amendments to the Bangladesh Export Processing Zones Labour Act, 2019, particularly in relation to freedom of association concerns within Export Processing Zones.
Existing Dual Labour Law Framework
Workers in Bangladesh continue to be governed under two separate legislative regimes. The Bangladesh Labour Act, 2006 remains the principal labour statute for the formal sector. However, because formal employment constitutes only a limited portion of the national workforce, a significant number of workers remain outside its coverage.
Workers employed within Export Processing Zones are regulated by the Bangladesh Export Processing Zones Labour Act, 2019. While this legislation permits the formation of Workers’ Welfare Associations (WWAs), it does not provide for trade unions. This distinction has long attracted scrutiny because the WWA model falls short of the standards contemplated under Convention No. 87 and Convention No. 98, both ratified by Bangladesh.
Expansion of Legal Coverage and Worker Protection
Among the most consequential changes is the extension of statutory protection to sectors that previously fell outside the scope of the Bangladesh Labour Act. Coverage now reaches a wider range of service-oriented and care-based establishments, including hospitals, clinics, diagnostic centres and institutions serving vulnerable populations.
The amendments also introduce a limited recognition of domestic workers as “workers” for specific purposes. While this recognition remains restricted and does not extend to several core entitlements such as minimum wages, regulated working hours, holidays and service benefits, it nevertheless represents an important legal acknowledgement of a historically excluded category of labour.
The amendments further strengthen economic protections available to workers during different stages of employment. Eligibility for lay-off compensation has been substantially relaxed. Whereas one year of continuous service was previously required, entitlement now arises after three months of service. In addition, compensation is fixed at no less than half of the basic wages irrespective of the duration of the lay-off.
The threshold for death compensation has similarly been reduced from two years of service to one year. A significant addition is the introduction of compensation for dismissed workers. Employees completing at least one year of service are now entitled to fifteen days’ wages for every completed year of employment. Resignation benefits have likewise been enhanced through a graded compensation structure linked to length of service.
Worker security has also been strengthened through the extension of the eviction notice period relating to employer-provided accommodation from the previous position to a six-month notice requirement.
Workplace Safety, Social Protection and Welfare Measures
The amendments introduce several measures aimed at improving occupational safety and social protection. A new provision concerning methods of work enables workers to refuse hazardous assignments without fear of retaliation. This change reinforces the principle of a safe and healthy working environment and reflects the broader influence of recent international commitments.
Maternity leave has been increased from 112 days to 120 days. Festival holidays have been expanded from eleven days to thirteen days annually. Institutional reforms include a mandatory review and adjustment of minimum wages every three years, extension of the check-off system to all registered trade unions, and creation of an Employment Injury Scheme Fund.
The requirement for safety committees has also been broadened. Previously confined largely to factories, safety committees must now be established in all establishments employing fifty or more workers.
Collectively, these measures represent a meaningful enhancement of worker welfare, although their practical effectiveness will depend upon implementation and enforcement.
Recognition of Workplace Abuse and Harassment
A notable feature of the amendments is the formal introduction of definitions addressing workplace abuse and misconduct. The amended Act now defines forced or compulsory labour, violence and harassment, gender-based violence, sexual harassment and blacklisting. These concepts were previously either absent or insufficiently articulated within the statutory framework.
Particularly significant is the incorporation of concepts aligned with Convention No. 190. By establishing formal definitions and accompanying provisions, the legislation creates a clearer legal basis for addressing conduct that undermines worker dignity, safety and equality in the workplace.
Nevertheless, the effectiveness of these protections will depend heavily upon the development of detailed implementation rules. Without such regulatory guidance, many of these provisions may prove difficult to operationalise in practice.
Redefining the Concept of “Worker”
The amendments substantially revise the definition of “worker” under section 2(65). The revised provision adopts a broader approach, encompassing persons employed directly or through contractors to perform skilled, unskilled, manual, technical, promotional or clerical work for remuneration, irrespective of designation. Apprentices are expressly included.
At the same time, individuals exercising managerial, administrative or supervisory functions within the meaning of section 2(49)(b) remain excluded. This distinction may generate significant practical disputes. Determining whether a particular employee genuinely exercises managerial, administrative or supervisory authority is frequently contentious. Although the Bangladesh Labour Rules, 2015 attempt to provide guidance, the existing definitions remain open to differing interpretations and may lead to inconsistent application.
An additional development appears within section 175(1), which extends the concept of “worker” for trade union purposes to include self-employed workers and persons engaged through digital labour platforms. While this acknowledges changing employment models, the decision to limit their inclusion primarily to trade union provisions creates an uneven framework that may produce inconsistencies in legal protection.
Changes to Freedom of Association and Worker Representation
Freedom of association remains one of the central themes of the amendments. The revised definition of “trade union” under section 2(15) now encompasses associations of persons employed in an establishment who may not fall within the statutory definition of “worker.” Complementary provisions within sections 175 and 176 affirm the right of workers to form and join trade unions without discrimination while simultaneously allowing managerial, administrative and supervisory personnel to establish associations representing their professional interests.
This approach reflects a broader recognition of workplace representation mechanisms. The framework governing trade union registration has also undergone significant restructuring. Although twenty workers remain eligible to apply jointly for registration, membership requirements now operate under a tiered system linked to workforce size.
For establishments employing up to three hundred workers, twenty members are required. The threshold increases to forty members for establishments employing between 301 and 500 workers, one hundred members for establishments employing between 501 and 1,500 workers, three hundred members for establishments employing between 1,501 and 3,000 workers, and four hundred members where the workforce exceeds 3,000.
While intended to facilitate union formation, the structure produces abrupt increases at certain workforce thresholds. A marginal increase in employee numbers can result in a substantial increase in membership requirements, potentially creating unintended barriers to registration.
Practical concerns also remain regarding verification of workforce data and classification of employees. Although employers are now required to certify workforce numbers upon request, difficulties associated with accessing reliable records and distinguishing workers from managerial personnel are likely to continue.
The amendments additionally permit the establishment of trade unions across a group of establishments, provided the minimum membership requirement of twenty workers is satisfied.
Confederations are now expressly brought within the statutory definition of trade unions and are required to obtain registration. While this enhances formal recognition, it simultaneously subjects higher-level labour organisations to additional regulatory obligations.
Emergence of Multi-Level Collective Bargaining
The amendments introduce an important expansion of collective bargaining beyond the enterprise level. Federations and confederations are now permitted to engage in bargaining at broader levels, potentially including sectoral and national arrangements. This development represents a potentially transformative shift in Bangladesh’s industrial relations framework.
However, the legislative framework leaves several critical questions unanswered. The law does not define the scope of these additional bargaining levels. Nor does it establish clear rules identifying which federations or confederations possess authority to negotiate on behalf of workers. In sectors containing multiple federations, competing claims to representation may become inevitable.
Equally concerning is the absence of any requirement to demonstrate representativeness through verifiable membership data. This raises questions regarding legitimacy, enforceability and accountability within the bargaining process.
At the enterprise level, although the existing procedure for determining a Collective Bargaining Agent (CBA) remains unchanged, the revised registration thresholds may result in unions representing a comparatively small segment of the workforce becoming the sole CBA. Furthermore, an increase in the number of registered trade unions is expected to place additional administrative pressure on the Department of Labour, particularly in relation to conducting CBA elections within prescribed statutory timelines.
Looking Forward
The 2025–2026 amendments undoubtedly represent one of the most ambitious labour law reform initiatives undertaken in Bangladesh in recent years. They expand worker protections, introduce new concepts addressing workplace abuse, strengthen aspects of freedom of association and attempt to modernise collective bargaining structures.
However, legislative reform alone will not determine success. Considerable uncertainty remains regarding implementation, interpretation and enforcement. Several provisions require detailed subsidiary rules, while certain structural ambiguities may ultimately require further legislative refinement.
The effectiveness of the reforms will also depend upon the performance of enforcement institutions, including the newly established Alternative Dispute Resolution (ADR) Authority, as well as the willingness of all stakeholders to engage constructively in the reform process.
Notwithstanding these developments, several longstanding concerns raised by workers’ organisations remain unresolved, including the limited protection afforded to domestic workers, the absence of a comprehensive framework for platform and gig workers, and freedom of association issues within Export Processing Zones. Future reforms may also need to consider stronger safeguards against anti-union discrimination, improved trade union registration procedures and broader social protection mechanisms for workers outside the formal sector.
From a legal and regulatory perspective, the amendments should therefore be viewed not as the conclusion of labour reform in Bangladesh, but as the beginning of a broader process. Sustained tripartite dialogue, greater legal certainty, stronger enforcement mechanisms and continued alignment with international labour standards will remain essential to achieving the full objectives of the reform agenda.
