By Mostafizur Rahman
The ordinance amends or revises a total of 125 sections of the labour law, reflecting a broad and substantive reform initiative. The interim government appears to have sought a balanced approach, taking into account the interests and concerns of both workers and employers. While certain areas of disagreement between the two sides persist, the progress achieved through these amendments is widely regarded as meaningful and constructive, particularly in strengthening worker protections and advancing the overall development of the labour sector.
• Festival Holidays Increased
The amendment to Section 118(1) increased the number of paid festival holidays from 11 to 13 days per calendar year.
Impact:
This change recognizes Bangladesh’s socio-cultural diversity and provides workers with greater paid time off for religious and national festivals. Employers retain discretion to fix festival dates, but the enhanced entitlement strengthens statutory leave benefits.
• Minimum Wage Revision Cycle Shortened
Under the amended Section 139(6), the minimum wage must now be reviewed and revised every three years, instead of every five years as previously required.
Impact:
This reform allows wages to better reflect inflation, cost-of-living changes, and economic growth, offering improved income protection for workers while maintaining a predictable revision cycle for employers
• Death Compensation Eligibility Relaxed
Section 19, Previously, workers became eligible for death compensation only after two years of continuous service. The amendment reduces this requirement to one year.
Impact:
Families of deceased workers now gain access to statutory compensation sooner, strengthening the law’s social protection objective and reducing hardship for dependents.
• Lay-Off Compensation Eligibility Reduced
Section 16, The qualifying service period for lay-off compensation has been reduced from one year to three months of continuous service.
Impact:
This change significantly benefits newly employed workers by ensuring financial support during unexpected lay-offs, particularly in industries vulnerable to economic fluctuations.
• Resignation Benefits Restructured
Section 27(4) Previously, workers with less than five years of consecutive service were not entitled to resignation benefits. The amended provision introduces a graded benefit structure:
- After 1 year of service: 7 days’ wages for each completed year
- From 3 to 10 years: 15 days’ wages per year
- More than 10 years: 30 days’ wages per year or gratuity, whichever is applicable
Impact:
This amendment ensures fair financial recognition of service even for shorter-tenured employees and aligns resignation benefits more closely with principles of equity and proportionality.
• Prohibition of Worker Blacklisting
The amendment to Section 195 expressly prohibits worker blacklisting. Employers are barred from preparing, maintaining, or circulating any list or database that renders worker’s ineligible for re-employment after termination for any reason.
Impact:
This provision strengthens freedom of employment, protects workers from retaliatory practices, and promotes fair labour mobility
• Extension of Maternity Leave
Maternity leave entitlement has been extended from 112 days to 120 days by amending Section 46 of the Act.
Impact:
Although modest, the extension improves maternal health protection and aligns private-sector maternity benefits more closely with evolving international labour standards.
• Trade Union Formation Simplified
The amendment to Section 179 replaces the earlier percentage-based requirement for trade union registration with fixed numeric thresholds, as follows:
- 20–300 workers: 20 members
- 301–500 workers: 40 members
- 501–1,500 workers: 100 members
- 1,501–3,000 workers: 300 members
- Above 3,000 workers: 400 members
Impact:
This reform simplifies union formation, removes uncertainty caused by fluctuating workforce percentages, and strengthens freedom of association.
• Employment Injury Scheme Fund Introduced
A new Employment Injury Scheme Fund has been introduced under Section 151A to provide compensation for workplace injuries and accidents.
Impact:
The fund creates a more structured and sustainable mechanism for handling employment-related injuries, reducing sole reliance on direct employer liability.
• Mandatory Provident Fund Requirement
Under amended Section 264, establishments with 100 or more permanent employees must now maintain a provident fund or participate in an approved pension scheme. Previously, provident funds were largely discretionary.
Impact:
This change strengthens long-term financial security for workers and formalizes retirement savings obligations for larger employers.
• Anti-Discrimination and Harassment Framework Strengthened
Section 332A mandates the formation of complaint committees to address workplace violence, harassment, and discrimination.
Sections 345A, 345B, and 345C explicitly prohibit discrimination on grounds such as gender, religion, race, social status, and other protected characteristics.
Impact:
These provisions significantly enhance workplace dignity, align domestic law with international labour standards, and impose clear compliance obligations on employers.
The Bangladesh Labour (Amendment) Ordinance, 2025 represents a substantial recalibration of labour rights and employer responsibilities. While consensus between stakeholders is not complete, the reforms introduce meaningful protections in areas such as wages, leave, compensation, union rights, social security, and workplace equality. Collectively, these changes strengthen the legal foundation of Bangladesh’s labour regime and signal progress toward a more balanced and modern employment framework.