Bangladesh’s labor landscape is governed primarily by the Bangladesh Labour Act, 2006 (BLA), as amended through 2022 and ongoing reforms into 2025, alongside the Bangladesh Labour Rules, 2015 (updated 2022). These laws apply to all industries and establishments, covering over 90 million workers—many in the ready-made garments (RMG) sector. Recent amendments emphasize worker protections, union rights, and compliance, especially post-2024 protests and ILO recommendations. Violations can result in fines up to BDT 500,000, imprisonment, or business shutdowns. Here’s what every employer and employee needs to know for 2025.
Understanding Employee Rights and Employer Obligations
Under the BLA, employees—defined as any worker in technical, manual, skilled, or unskilled roles—have rights to fair wages, safe conditions, non-discrimination, and union formation. Employers must provide written contracts, maintain records for 2–5 years, and contribute 5% of profits to a Workers’ Profit Participation Fund for firms with 100+ employees. Key obligations include timely payments, grievance redressal, and prohibiting child labor (under 14 years). Employees gain permanent status after 6 months of continuous work, shifting from contractual to protected roles.
Key Labor Laws Every Business Must Follow
Core legislation includes:
- Bangladesh Labour Act, 2006 (Amended 2018 & 2022): Covers wages, hours, safety, and disputes.
- Bangladesh Labour Rules, 2015 (Amended 2022): Details implementation, including 99 rule modifications for overtime and leave.
- Minimum Wage Act, 2018: Sector-specific rates, e.g., BDT 12,500/month for RMG.
- EPZ Labour Act, 2019 (Under Amendment 2025): Tailored for Export Processing Zones, aligning with general laws by mid-2025.
- Occupational Safety, Health and Welfare Rules, 2020: Factory compliance.
- ILO-ratified conventions (e.g., No. 138 on minimum age, No. 29 on forced labor).
The Department of Inspection for Factories and Establishments (DIFE) enforces these, with tripartite committees overseeing 2025 updates for better union access and sexual harassment prevention.
Hiring and Termination Rules Explained
Hiring: Contracts must be written, signed, and specify terms like probation (up to 3 months at 80% pay). Background checks require consent; ads cannot discriminate. Foreign workers need work permits from the Ministry of Labour.
Termination: Requires 1-month notice or pay in lieu for permanent staff; just cause (e.g., misconduct via inquiry) for dismissal. Retrenchment mandates 30–120 days’ notice based on service, plus severance (30 days’ pay per year). Mass layoffs trigger consultation with workers’ representatives. Post-2022 amendments, unfair dismissals entitle workers to reinstatement or 3 months’ compensation. Final payments due within 7 days.
Workplace Safety and Compliance Requirements
The BLA mandates risk assessments, PPE, ventilation, and fire safety in factories. Employers must form Safety Committees for 50+ workers, conduct annual training, and report accidents within 7 days. Post-Rana Plaza (2013), RMG factories require third-party audits; non-compliance fines start at BDT 50,000. 2025 updates clarify temporary worker protections during hazards. Mental health and ergonomics are emerging focuses under ILO guidelines.
Wage, Salary, and Overtime Regulations
- Minimum Wage: BDT 12,500/month for RMG (2025); general BDT 8,000–8,800, varying by sector/skill (e.g., BDT 16,000 for skilled RMG).
- Overtime: Capped at 2 hours/day, 12 hours/week; paid at 2x rate (3x on holidays). Weekly average ≤56 hours/year.
- Deductions: Limited to 10% for absences; equal pay for equal work enforced.
- Festival Bonuses: Two annual (Eid), equal to basic salary, for 1+ year service.
Progressive income tax applies (0–30%), with employers withholding and remitting monthly.
Handling Employee Contracts and Agreements
Contracts classify as permanent (post-6 months), temporary (project-based), or casual. Essentials: job description, pay, hours, leave, and termination clauses. Non-competes limited to 2 years, enforceable only if reasonable. IP assignments mandatory for inventions. E-signatures valid under the IT Act, 2006. 2022 amendments eased union joining in contracts, protecting collective bargaining.
Managing Workplace Disputes Legally
BLA requires internal grievance committees; unresolved cases go to Labour Courts (6 new established in 2023). Mediation via Conciliation Officers mandatory before trials; timelines: 45 days for filing. Sexual harassment follows Supreme Court guidelines (2009): complaint committees, inquiries within 30 days. 70% of disputes resolve pre-court via tripartite talks. Evidence preservation (e.g., emails) is key; awards enforceable like civil decrees.
Anti-Discrimination and Equal Opportunity Laws
BLA prohibits bias on race, religion, gender, disability, or origin. Women get equal pay, no night shifts without consent (10 PM–6 AM). High Court mandates anti-harassment policies. 2025 EPZ amendments enhance female protections. Affirmative action in hiring for marginalized groups; violations lead to fines and backpay. Diversity training recommended for multinationals.
Leave, Benefits, and Compensation Rules
- Annual Leave: 10–20 days (1–10 years service); encashable at gross wage.
- Sick Leave: 14 days full pay.
- Maternity: 16 weeks paid (8 pre/post); 6-month nursing breaks. Factories with 40+ women need creches.
- Paternity: 5 days (2022 addition).
- Casual/Festival: 10 days casual; 11 paid holidays (e.g., Eids, Independence Day).
- Other: Pilgrimage leave (10 days Hajj); compassionate (death in family).
No mandatory provident fund, but gratuity after 5 years (30 days’ pay/year). Workers’ fund provides profit shares.
Role of Legal Support in Labor Law Compliance
Labour lawyers or EOR services audit contracts, train on BLA updates, and represent in DIFE inspections (rising 20% in 2024). They structure compliant payroll (e.g., via software for tax filings) and navigate 2025 reforms like EPZ alignments. Costs: 0.5–2% of payroll, saving 5–10x in fines (average BDT 100,000–1M). For RMG exporters, they ensure ILO compliance for global access.