The Bangladesh Labour Law (Amendment) Ordinance, 2025 has been approved, introducing significant reforms to modernize labour regulations, raise standards to international levels, and ensure workers’ welfare and rights. The ordinance was approved on Thursday at the Advisory Council meeting chaired by Chief Adviser Professor Muhammad Yunus.
One of the most notable changes concerns trade union formation. Previously, forming a union required the support of 20 percent of a factory’s workers. Under the new law, the number of required supporters will depend on factory size—from 20 workers in smaller factories (20–300 employees) to 400 workers in larger ones (over 3,000 employees). Factories can now form up to five trade unions instead of three, and the Collective Bargaining Agent (CBA) will be elected among them through voting.
The ordinance also brings several worker-friendly provisions. For the first time, domestic workers have been officially included in labour law, prohibiting forced labour and ensuring recognition and protection. Employers are now barred from blacklisting workers for union activity or protests. Factories with 100 or more permanent workers must establish a provident fund or join the national Progoti pension scheme, while maternity leave has been extended from 112 to 120 days.
Additionally, the law mandates the creation of a Workplace Accident Compensation Fund to support injured workers and their families, and introduces an Alternative Dispute Resolution Authority to ease the backlog of labour court cases. The Labour and Employment Adviser, Brigadier General (Retd.) M. Sakhawat Hossain, said the law was developed with broad consensus among workers, owners, and the government.
While labour leaders have welcomed most of the changes, some have expressed concern that smaller factories may find it more difficult to form unions under the new structure. However, others, including union leader Babul Akhter, said the revisions overall will make unionization easier if corruption within the labour department is addressed
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