October 24, 2025
DHAKA – The government is planning to relax key labour law requirements, significantly lowering the entry barrier for a trade union in any establishment.
The advisory council yesterday approved a draft ordinance to allow groups of as few as 20 workers to apply to form a trade union, a major regulatory shift in worker representation, particularly in smaller industrial units.
It came after the government recently ratified three ILO Conventions that would guarantee workers’ rights, safety and freedom from violence and harassment in the workplace.
Under the draft ordinance, for the first time, house helps will be recognised as workers while workers of non-profit institutions will be able to claim their labour rights and each worker would be entitled to provident fund or pensions.
The changes will be brought to the existing labour law’s 90 sections and three schedules. A gazette notification will be issued in this regard.
Currently, trade unions require the support of at least 20 percent of the workforce.
Under the new provision, however, registration will depend on the scale of the enterprise.
In companies employing up to 300 workers, a union must have at least 20 members. The threshold rises to 40 members for factories with 301 to 500 workers, 100 members for those with 501 to 1,500, and 300 members for operations employing between 1,501 and 3,000.
The maximum requirement will apply to the country’s largest industrial sites, where companies with more than 3,000 workers must see at least 400 employees join before a union can be formally registered.
The reform marks a long-awaited easing of restrictive unionisation rules in a country where only a fraction of registered trade unions are active.
Of the roughly 10,000 unions officially on record, fewer than 100 are operational in the garment sector; and only about 40 possess collective bargaining authority.
Decades of tight regulation and alleged anti-union tactics by employers have left most workers without effective representation.
However, Bangladesh’s business and employer associations had previously reacted to the Labour Act amendments with anxiety and opposition to certain provisions.
Industry leaders argue that dramatically lowering the union formation threshold could trigger disorder in factories and undermine the country’s competitiveness in global markets.
Rights activists welcomed the changes, saying it was a major step towards improving labour rights and workplace safety.
The draft ordinance prohibits blacklisting of workers, a long-criticised practice by which employers prevent dismissed workers from getting jobs elsewhere.
Besides, strict provisions will be included to address sexual harassment, while maternity welfare benefits will be increased significantly.
The amendment bans gender-based wage discrimination, said Law Adviser Asif Nazrul.
Provisions for alternative dispute resolution have been strengthened.
In case of workplace accidents, a fund will be established to cover treatment and rehabilitation for affected workers, Asif Nazrul said.
The changes were fixed following the recommendations from a 17-member tripartite committee from workers, employers and the government, and a series of meetings and expert consultations, reads the notes of the draft ordinance.
The recent developments regarding labour laws and conventions were historic, said Kalpona Akter, a labour rights activist.
Advocacy and campaigns were ongoing for many years to ratify important ILO conventions, including Conventions 121 and 189, that focus on health, safety, domestic workers’ recognition and compensation for employment injuries.
The interim government ratified at least three conventions, reflecting the persistent efforts of the labour movement, she said.
The government now needs to align current laws with these conventions or introduce new provisions to implement them effectively.
Akter pointed out the confusion surrounding union registration thresholds and emphasised the importance of reviewing the official gazette to understand the actual provisions.
About the recognition of domestic workers, she said she needs to see how far their rights are protected under the new amendment.
Fazlee Shamim Ehsan, president of the Bangladesh Employers’ Federation, expressed concerns over the draft amendments.
He said the interim government is not following the spirit of tripartism by excluding owners and workers from important decisions.
Ehsan also claimed that the final version of the law that was sent to the council of advisers was unclear and seemed different from what was agreed upon in meetings.
He warned that these changes could disrupt factory environments and harm the culture of unions in Bangladesh.