Loopholes in Bangladesh’s labour laws demand immediate reform

Despite relevant laws, most workers are still unprotected. Photo: Rajib Dhar

Despite decades of economic growth and the resilience of its workforce, Bangladesh still struggles with outdated and insufficient labour laws that leave millions of workers vulnerable. While the country pushes towards its goal of becoming a developed nation by 2041, its legal protections for workers remain alarmingly weak, especially when compared to those in countries like the UK and India.

The Bangladesh Labour Act of 2006 was introduced to unify and modernise previous labour regulations. Yet nearly two decades later, it still excludes a vast majority of the workforce. Over 85% of workers—including those in domestic work, gig platforms, agriculture, and informal sectors—are not covered under this law. 

These workers often lack written contracts, safety protections, and access to any formal complaint system. Even those covered face barriers. For example, to form a union in any factory or enterprise, 20% of the workforce must participate—a number that is often difficult to reach in sectors like ready-made garments, where fear of retaliation is common.

Although the law promises rights like maternity leave, workplace safety, and anti-harassment protections, the reality on the ground tells a different story. Many pregnant workers lose their jobs, and most factories do not have Internal Complaints Committees, which are legally required to address workplace harassment. 

Vulnerable groups, including women, religious minorities, people with disabilities, and transgender workers, often remain excluded from any policy consideration. Internationally, Bangladesh still hasn't ratified key International Labour Organization (ILO) conventions such as C155 on occupational safety, C1 on working hours, and C189 on domestic workers, signalling a significant gap between its global commitments and national laws.

A major report published in 2025 by the Labour Law Reform Commission suggested introducing a universal definition of "worker" to include all types of employment (formal and informal) along with a digital ID system and central registration database. Yet enforcement remains weak. The Department of Inspection for Factories and Establishments (DIFE) lacks the manpower and independence needed to hold employers accountable. In Export Processing Zones (EPZs), where union activity is heavily restricted, spontaneous inspections are rare, and reports of corruption are not uncommon.

Justice is often out of reach for workers. As of mid 2025, more than 20,000 labour-related cases were pending across the country's 13 labour courts and the appellate tribunal. Shockingly, as of April 2025, 13,402 of these cases have been pending for more than six months, despite legal deadlines requiring resolution within 60 to 150 days. 

Only 5.1% of Bangladesh's workforce is unionised, leaving millions without any collective bargaining power or voice at the workplace. In most factories, fear of retaliation still silences attempts to organise.

Bangladesh's enforcement mechanisms are also poorly balanced. Court orders are often ignored, there's no independent labour ombudsman, and labour inspectors face little accountability. Meanwhile, devastating tragedies like the Tazreen factory fire and Rana Plaza collapse serve as harsh reminders of the cost of inaction. More than a decade later, many factories, especially subcontractors still underpay, overwork, and operate outside safety audit systems.

To close the gap between legal rights and reality, Bangladesh must implement bold reforms. 

First, redefine "worker" to include all sectors, supported by a digital ID system. Second, lower the union registration threshold and extend rights to unionise to management and EPZ workers. Third, expand the number of labour courts, hire more judges, and introduce digital systems for faster resolution. Fourth, make workplace safety real by requiring safety committees and clear enforcement. Fifth, establish an independent labour ombudsman and regularly audit enforcement agencies. Sixth, form a permanent Minimum Wage Commission to align wages with inflation and extend social protections like pensions and healthcare. Lastly, ratify missing ILO conventions and align local laws with international standards.

Bangladesh can also reduce workplace conflict by adopting alternative dispute resolution systems. These include factory-level mediation boards, mandatory mediation before court filings, tripartite forums involving workers, employers, and government, and anonymous grievance mechanisms inside workplaces. Training workers and managers alike in conflict resolution and legal rights is crucial.

On a positive note, Bangladesh has made some progress. The Labour Act and Labour Rules provide a decent legal foundation, and the country has ratified all eight core ILO conventions. Workers are entitled to maternity leave, earned and sick leave, provident funds, and accident compensation. Trade union formation has become easier in recent years, and dedicated labour courts and tribunals offer avenues for redress. Inspections by DIFE, a Central Welfare Fund, and international partnerships like the Accord have improved safety conditions in many RMG factories.

But legal reforms alone are not enough. Labour protections must be enforced, respected, and adapted to modern work realities. Only 5.1% of the workforce is unionised, and enforcement agencies remain understaffed and underpowered. Deaths and injuries in the workplace continue to rise, particularly in high-risk sectors like construction and shipbreaking.

Bangladesh can learn from the UK's strong anti-discrimination laws and employee protections, as well as India's approach to social security, maternity benefits, and labour codes. A responsive, inclusive and accountable labour system is not a luxury, it is a prerequisite for justice and sustainable development.

If Bangladesh hopes to achieve its 2041 development vision, it must recognise that labour rights are not a privilege, they are a necessity. A fair, safe, and dignified workplace is the foundation of any prosperous nation. Reforming labour laws is not just an economic imperative, it is a moral one. The time to act is now. 

Md Anwar Hossen is a Barrister-at-Law (of Lincoln's Inn) and an advocate at the Supreme Court of Bangladesh. Email: [email protected]

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.