Monthly retainer · Labour and employment
RMG and factory labour compliance on a monthly retainer
A fixed monthly retainer that keeps your factory's RMG labour compliance aligned with the Bangladesh Labour (Amendment) Act 2026 and its rules, prepares you for buyer audits and gives you a lawyer to call when a dispute starts.
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Who this is for
Why it matters now
RMG labour compliance
RMG labour compliance changed on 10 April 2026, when the Bangladesh Labour (Amendment) Act 2026, Act No. 43 of 2026, amended more than sixty sections of the Labour Act 2006, including the definitions, trade union registration, collective bargaining and provident fund provisions [1]. The Act converted the Labour (Amendment) Ordinance 2025 into law with changes made in Parliament [3]. Factory policies, standing orders and audit files drafted against the Ordinance therefore need a second look, because several of its positions did not survive into the final Act.
Union rules are now more structured. At least 20 workers can apply to register a union, required membership scales from 20 members for establishments of up to 300 workers to 400 for those above 3,000, and no more than three unions may be registered at any one time in an establishment or group of establishments [3]. Where there is more than one union, the collective bargaining agent is chosen by secret ballot [2]. New unfair labour practice provisions bar employers from blacklisting workers, funding or backing rival unions and retaliating against complaints [3].
Establishments with at least 100 permanent workers must set up a provident fund, but the final Act exempts an establishment where two-thirds of workers apply to join the national Progoti pension scheme [2]. Parliament also removed employees and officers from the Ordinance's wider definition of worker [2], which affects who is counted for these thresholds. Penalties have risen too: one clause of section 309 now carries a fine of Tk 50,000 to Tk 1 lakh [5]. Implementing rules will add procedure, and the retainer tracks them as they are published.
What is included
What our rmg labour compliance service includes
A scheduled call each month with your HR and compliance team to review new issues, upcoming audits, union activity and legal changes, followed by a short written note of actions agreed and who owns each one.
Review and update of service rules, leave and holiday policies, grievance and anti-harassment procedures and workers' register practices to match the 2026 Act, including 120 days' maternity leave and 13 days' festival leave.
Advice on whether the establishment must set up a provident fund, how the Progoti exemption works, how workers' applications should be collected and recorded, and the trust or scheme documents needed for either route.
Guidance on union registration notices, the three-union cap, secret ballot elections for the collective bargaining agent and conduct during negotiations, so management avoids actions that could be treated as unfair labour practices.
Pre-audit review of the legal documents auditors usually request, help answering legal findings, and corrective action plans that cite the correct provision of the amended Act rather than an outdated version.
Prompt advice when a dispute, protest, termination or inspection arises, including letters, show-cause notices, inquiry procedures and settlement papers, with any Labour Court case quoted separately.
A running tracker of rules, gazette notifications, wage board decisions and official guidance issued under the amended Act, with a note on what each one means for your factory.
How it works
RMG labour compliance, step by step
- Onboarding reviewFirst month
We review your standing orders, policies, appointment letters, workers' register, union records and recent audit reports, and list the gaps against the 2026 Act in order of risk, with a proposed timetable for each fix.
- Priority fixesFirst and second months
We update the highest-risk documents first, such as service rules, leave policies and provident fund arrangements, and agree a realistic timetable for the remaining documents with your HR and compliance team.
- Monthly RMG labour compliance cycleMonthly
Each month we hold the check-in call, answer questions raised by HR and management, update the rules tracker and send a short written note of the actions agreed, the owners and the deadlines.
- Audit preparationAs audits are scheduled
Before each buyer or brand audit we review the legal documents likely to be requested, brief the compliance team on likely questions and help respond to any legal findings raised after the audit.
- Dispute responseWhen issues arise
When a dispute, protest or inspection arises, you call us and we advise on the immediate steps, prepare letters and notices, and tell you promptly if a matter needs separate litigation support.
- Quarterly reviewQuarterly
Every quarter we review the issues handled, the status of corrective actions and new legal developments, and agree written priorities for the next quarter with management and the compliance team.
The retainer is a fixed monthly fee for an agreed scope of advice, check-ins and document work. The fee depends on the number of establishments and workers, the volume of audits and union activity, and how much onboarding work is needed. Litigation and government fees fall outside the retainer, and the scope and fee are confirmed in writing before work starts.
We confirm the fee in writing before any work starts. Government fees, court fees and stamp duty are passed through at cost.Questions
RMG labour compliance: questions
What changed for RMG labour compliance under the 2026 Act?
The Bangladesh Labour (Amendment) Act 2026, Act No. 43 of 2026 dated 10 April 2026, amended the Labour Act 2006 in more than sixty places, including sections 2, 179, 202 and 264 [1]. Parliament passed it on 9 April 2026 to convert the 2025 Ordinance into law with changes [3]. Key changes cover union registration, collective bargaining, unfair labour practices, anti-discrimination, layoff compensation and the provident fund [2][3]. Maternity leave is now 120 days and festival leave 13 days [2].
How many trade unions can a factory have now?
No more than three unions may be registered at any one time in an establishment or group of establishments [3]. The Ordinance had allowed up to five, and Parliament reduced it to three [2]. At least 20 workers can apply to register a union, and the required membership scales with the size of the establishment, from 20 members where there are up to 300 workers to 400 members where there are more than 3,000 [3].
When is a secret ballot needed to choose the CBA?
Where an establishment has more than one union, the collective bargaining agent is chosen by secret ballot. Where there is only one union, it is automatically the collective bargaining agent [2]. Management's conduct around a ballot matters, because the amended Act bars employers from controlling or funding unions, backing rival unions or retaliating against workers [3]. We advise on notices, communications and neutrality before and during the ballot.
Do we need a provident fund if we have 100 or more workers?
Establishments with at least 100 permanent workers must set up a provident fund, but under the Act as passed an establishment is exempt if two-thirds of workers apply to join the national Progoti pension scheme [2]. The owner contributes half and workers contribute the rest [2]. Commentary on the 2025 Ordinance described employee contributions of 7% to 8% of basic pay with an employer match [4]; the rates and procedure should be checked against the Act and its rules.
Who counts as a worker after the amendment?
The Ordinance had brought employees and officers within the definition of worker, but the bill passed by Parliament removed both terms [2]. The Act amends section 2 of the Labour Act 2006, which contains the definitions [1]. In practice the answer depends on what each person actually does, so the retainer includes a role review for supervisors, merchandisers and office staff whose status affects union rights, benefits and headcount thresholds.
Does the retainer cover buyer audits and Labour Court cases?
Buyer and brand audit support is included: we review documents before the audit, help respond to legal findings and draft corrective action plans that cite the amended Act correctly. Labour Court, appellate and High Court proceedings are outside the retainer and are quoted separately, usually as a phased budget with a cap. The first response to a dispute, such as letters, notices and settlement advice, is covered by the retainer.
Sources
- Bangladesh Labour (Amendment) Act 2026 (Act No. 43 of 2026), Laws of Bangladesh
- Prothom Alo: Passage of labour law ordinance (13 April 2026)
- Dhaka Tribune: National Parliament passes labour bill
- WTW: Bangladesh new mandate for provident funds for large employers (March 2026)
- Bangladesh Labour (Amendment) Act 2026, section 75 (amendment of section 309), Laws of Bangladesh
Related
Start with a consultation
Tell us the facts and deadlines. We will confirm scope, fee and timeline in writing before we begin.
General information on the law of Bangladesh, not legal advice. Sending an enquiry does not create a lawyer-client relationship.