Exploited and unprotected: Why Bangladesh must fix its labour laws now

The employment laws in Bangladesh have more holes than Swiss cheese, and both local and foreign businesses often exploit these gaps to take advantage of the workforce. The country's labour laws have frequently come under scrutiny for failing to adequately safeguard workers' rights. 

While Bangladesh has legislation aimed at protecting workers, enforcement remains notably weak. Many employers continue to exploit workers through excessively long hours, unsafe working conditions, lack of health and safety measures, and by denying employees the freedom of association and access to collective bargaining. 

Bangladesh is a rapidly growing economy, with a significant portion of its GDP reliant on labour-intensive sectors, particularly textiles and garments. The garment industry is the largest revenue-generating industry and garment workers still struggle for fair wages and dignified working conditions. They are paid poverty wages and frequently face harassment, intimidation, violence, and legal threats when they attempt to organise union activities to demand fair wages and safer working conditions. 

Urgent reforms are needed to bring Bangladesh's labour framework in line with international standards. Strengthening labour laws would not only improve compliance with global conventions but also contribute to a more equitable working environment which will ensure job security, fair pay, and decent working conditions for all. In turn, this would enhance worker morale, reduce labour market mismatch, and support a more equitable and productive economy. The interim government should reflect on the grey areas within Bangladesh's employment laws and workers' rights, and take strategic steps to close these gaps.

The contract of employment

The employment contract between employers and employees in Bangladesh is highly prone to exploitation. Reports reveal that both local and foreign companies routinely deny workers access to legal entitlements such as profit sharing, paid leave, public holidays and employment contracts. There is evidence of factory workers enduring shifts longer than 19 hours, restaurant workers regularly working 14-hour days, and barbers often working 12 hours a day, seven days a week. 

A recent report highlights that job security for journalists in Bangladesh is virtually non-existent, with media owners able to terminate employment at any time without justification. This lack of security is not limited to the media sector only but is a widespread issue across many industries as there is no comprehensive or enforceable policy that guarantees job security. 

In terms of compensation, the National Minimum Wage in Bangladesh is set at 12,500 taka (approximately £80 or $102 per month). However, many employers continue to pay well below this minimum threshold. The NMW is widely regarded as inadequate for meeting the basic needs of workers, particularly in urban centres such as Dhaka. As the cost of living continues to rise steadily, the minimum wage has failed to keep pace with inflation, placing additional financial strain on low-income households.

The interim government must implement reforms to ensure all employers provide a formal contract of employment and these contracts should clearly define working hours, overtime compensation, leave entitlements, and dismissal procedures. Labour laws must be strictly enforced, particularly those related to working hours and overtime pay. The government should also take steps to address unfair dismissal practices by employers and actively promote job security for all workers. 

Additionally, the government should establish a minimum wage structure that reflects regional cost of living differences. This wage should be reviewed regularly, with adjustments made to reflect inflation and economic conditions. These reviews must be conducted through transparent consultations involving employers, trade union representatives, and other relevant stakeholders. 

Occupational Health and Safety

Occupational health and safety (OHS) remain critical areas of concern in Bangladesh, particularly in high-risk industries such as textiles, construction, and shipbreaking, where workers face hazardous conditions daily. Health and safety laws in Bangladesh are often seen as redundant, as workplace accidents have become a regular occurrence. In 2024 alone, 905 workers lost their lives and 218 were injured due to unsafe working conditions across various industries (The Daily Star, 2024). These figures reflect deep concerns for the OHS standards in workplaces. The lack of proper OHS practices not only endangers employees but also affects the general public. A tragic example is the March 2024 fire at a restaurant in Baily Road, Dhaka, which claimed at least 46 lives (Dalton, 2024). 

The Bangladesh Labour Act (BLA) 2006 includes provisions to ensure safe working environments, such as regular inspections and the maintenance of safety equipment. Although the Bangladesh National Building Code (BNBC) 2020, the Fire Prevention and Extinguishing Act 2003, and the Fire Prevention and Extinction Rules 2014 provide clear guidelines for health and safety standards, these laws have long been neglected in practice (Afrose, 2023). Many factories fail to provide essential safety measures or adequate compensation for occupational injuries and diseases (Hossain, 2025).

Substantial reforms are required to improve inspections, monitoring, and penalties for non-compliance. Updating OHS regulations to reflect international best practices, such as stricter building codes, improved fire safety, and robust emergency response protocols are essential. Additionally, OHS training programmes must be implemented to raise awareness and promote safer working environments throughout Bangladesh.

Workers' rights and freedom of association

The BLA 2006 grants workers the right to form and join trade unions. Although the law provides for unionisation, enforcement mechanisms and protection against anti-union retaliation remain weak. In recent years, garment workers have taken part in several industrial actions. These protests were primarily over demands for better wages and improved working conditions. Protests around minimum wage in late 2023 led to the deaths of at least four garment workers and left hundreds injured. Following the protests, at least 35 criminal cases were filed against garment workers in 2023. Despite the presence of over 9,000 enterprise-level trade unions, data from the Department of Labour indicates that these unions represent only 5.1% of the national workforce.

The interim government should consider amending labour laws to modernise and strengthen them, ensuring that trade unions are more inclusive and effective. Future reforms must guarantee that trade unions are able to operate freely and fulfil their intended role. Simplifying the processes for union registration and participation would encourage broader engagement and enhance their legitimacy.

In addition, stronger legal protections and stricter penalties for anti-union discrimination and retaliation should be introduced to safeguard the rights of both employers and employees. It is also essential to take meaningful steps to improve social dialogue between employers, trade unions, and other key stakeholders.

Labour courts and Alternative Dispute Resolution

Bangladesh has dedicated labour courts to address employment disputes. However, the number of cases has risen sharply from 5,923 in 2006 to 13,739 in 2010, reaching 17,394 by April 2018. This significant increase highlights the urgent need to strengthen dispute resolution mechanisms, as such backlogs can be both costly and time-consuming for employees and employers alike.

One effective solution is the implementation of Alternative Dispute Resolution (ADR) approaches, which have been successfully adopted in many countries to reduce the burden on employment courts. ADR methods offer timely, less adversarial, and more cost-effective means of resolving disputes. In cases where either party remains unsatisfied with the outcome, they should retain the right to escalate the matter to the labour court. Overall, strengthening the capacity and resources of labour courts is essential to ensure fair, efficient, and accessible justice, ultimately fostering a more constructive relationship between employers and employees.

Raising awareness to foster positive employment relationships

According to the International Labour Organization (ILO), many workers are unaware of their rights in Bangladesh. Conflicts between employers and employees often stem from a lack of legal awareness, advocacy, and the limited influence of trade unions in many sectors. Workers must be aware of their rights, and trade unions can play a vital role in this respect, as demonstrated by past successes in the Ready-Made Garment (RMG) sector.

It is crucial that the interim government raises awareness of labour rights and employment laws among both workers and employers. Special emphasis should be placed on promoting awareness of protective laws, such as the Whistleblower Protection Act 2011, which provides legal safeguards for individuals who report wrongdoing.

Despite its potential, the Whistleblower Protection Act remains underutilised due to a lack of awareness, and its effectiveness in promoting transparency, accountability, and good governance in Bangladesh is still largely unknown. Raising awareness and implementing legal reforms will be essential to empower workers and ensure sound business practices.

Sketch: TBS

Saad Ahmed Baset is an associate lecturer and research assistant at the University of Salford, Manchester.

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.