Labour Law in Bangladesh 2026: The Labour Act, Rules, Reforms and Employer Obligations

Labour law in Bangladesh: the 2026 position

Labour law in Bangladesh changed more in the last twelve months than in the previous decade. The Bangladesh Labour Act 2006 remains the core statute, and the Bangladesh Labour Rules 2015 still supply the forms, registers and procedures that make it work. But the interim government's Bangladesh Labour (Amendment) Ordinance 2025, gazetted on 17 November 2025, rewrote large parts of the Act, and Parliament converted it into the Bangladesh Labour (Amendment) Act 2026, Act No 43 of 2026, dated 10 April 2026.[2] [3] [4] Employers that last reviewed their policies against the 2018 text are now out of date.

This guide is the TRW hub for employment and labour law. It explains how the Act and the Rules are structured, who they protect and who they do not, the core obligations every employer carries, what changed in 2025 and 2026, how minimum wages are fixed, how the separate Bangladesh EPZ Labour Act 2019 works inside export processing zones, where to find the official Bangla texts, and when a business needs a labour lawyer rather than a policy template. Contract drafting and termination are covered in our dedicated insights, linked below, rather than repeated here.

Summary: Labour law in Bangladesh is built on the Bangladesh Labour Act 2006 and the Bangladesh Labour Rules 2015, as amended by the Bangladesh Labour (Amendment) Act 2026 (Act No 43 of 2026), which replaced the 2025 Ordinance. The 2026 reforms widened the definition of worker, extended maternity benefit to 120 days, raised festival holidays to 13 days, lowered trade union registration thresholds, shortened the minimum wage revision cycle to three years and sharply increased penalties. Export processing zones follow a separate statute, the Bangladesh EPZ Labour Act 2019.

Key point: Act No 43 of 2026 repealed the Bangladesh Labour (Amendment) Ordinance 2025 (Ordinance No 65 of 2025) and deems anything done under the Ordinance to have been done under the Act. The reforms are therefore settled law, not a temporary measure awaiting Parliament.[2]

At a glance

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Table of Contents

The legal framework for labour law in Bangladesh

The Bangladesh Labour Act 2006 consolidated a long list of older statutes into a single code covering employment conditions, maternity benefit, health and safety, working hours and leave, wages, the Wage Board, compensation for injury, trade unions and industrial relations, disputes and the Labour Court, workers' participation in profits, provident funds and penalties.[1] It applies throughout Bangladesh, subject to a list of excluded establishments and workers in section 1(4).[1] Major amendments followed in 2013 and 2018, and the most extensive set of changes arrived through Act No 43 of 2026.[2]

The Bangladesh Labour Rules 2015

The Bangladesh Labour Rules 2015 were made under section 351 of the Act and published by SRO No 291-Law/2015 on 15 September 2015.[5] They replaced older factory and shop rules and supply the operational detail the Act leaves open: the content of appointment letters, service books, registers, festival bonuses, provident fund management, misconduct enquiries, fire and health safety, wage calculation and the forms used in the Labour Court.[6] Rule 19 prohibits appointment without a letter and lists its required contents, and rule 22 requires a separate service book for each worker within 15 days of appointment or confirmation.[5]

The 2022 amendments to the Rules

The Rules were amended by SRO No 284-Law/2022, dated 1 September 2022.[8] The amendment changed 99 rules and repealed two. Among the practical changes: contractors must pay their deployed staff the same wages as directly employed workers, work that continues for more than six months is treated as permanent work, and a misconduct enquiry must be completed within 60 days from service of the show-cause notice.[7] Further rules implementing the 2026 Act are expected, and employer bodies have said they are waiting for them before taking positions on some reforms.[10]

Other statutes that sit alongside the Act

The Labour Act does not operate alone. Export processing zones follow the Bangladesh EPZ Labour Act 2019, discussed below.[11] Officers outside the statutory definition of worker are governed by their contracts and the general law of contract. Specialist regimes also matter in particular sectors, and foreign nationals need work permits under the immigration framework. For hiring documentation, see our guide to employment contracts in Bangladesh; for exits, see termination of employees in Bangladesh.

From the 2023 Bill to Act No 43 of 2026

Understanding labour law in Bangladesh in 2026 means understanding how the current text came about, because many policies and published guides still describe a version of the law that never took effect. Searches for "Bangladesh labour law 2023" usually refer to a Bill that did not become law.

The 2023 Bill that was returned

Parliament passed a Bangladesh Labour (Amendment) Bill on 2 November 2023. On 20 November the President returned it for reconsideration under article 80(3) of the Constitution, citing a provision that could create confusion, an imbalance between the penalties for illegal strikes and illegal lockouts, and an incorrect cross-reference.[13] It never became law, so the Act as amended in 2018 remained the governing text until the reforms of 2025.

The 2025 Ordinance

The interim government's Bangladesh Labour (Amendment) Ordinance 2025 was gazetted on 17 November 2025.[3] It brought domestic workers and seafarers into the definition of worker, applied the law to non-profit organisations, made blacklisting of workers illegal, strengthened anti-harassment and maternity provisions, prohibited gender-based wage discrimination and replaced the old 20 per cent membership requirement for trade union registration with a sliding scale beginning at 20 workers.[3] Garment-sector employer associations publicly rejected the union threshold changes.[3]

Parliament enacts the reforms in April 2026

After the February 2026 elections, the Labour and Employment Minister, Ariful Haque Chowdhury, moved the Bangladesh Labour (Amendment) Bill 2026, which Parliament passed by voice vote on 9 April 2026 to convert the Ordinance into law with some amendments and additions.[4] [14] The resulting Act No 43 of 2026 is dated 10 April 2026. Section 93 repeals Ordinance No 65 of 2025 and saves everything done under it.[2] Any registration, notice or proceeding begun under the Ordinance therefore continues under the Act.

Who is protected: worker, employee and officer

The single most important classification question in labour law in Bangladesh is whether a person is a "worker". The protections in the Act on notice, compensation, leave, overtime, trade unions and the Labour Court attach to workers. Senior staff who fall outside the definition rely on their contracts.

The 2026 definition of worker

The 2026 Act replaced section 2(65). A worker now means any person, including a trainee, employed directly or through a contractor, however described, for wages in skilled, unskilled, manual, technical, business development or clerical work, whether the terms of employment are express or implied.[2] The express inclusion of business development work and of contractor-supplied staff is deliberate: sales and outsourced staff can no longer be assumed to fall outside the Act. The only exclusion is a person employed in the managerial, administrative or supervisory capacity described in section 2(49)(b).[2]

Managers, administrators and officers

The replaced definition of manager or administrator covers persons in managerial, chief executive, administrative or supervisory roles, and any person formally assigned in writing to supervise the establishment.[2] Job titles do not decide the question; actual duties do. A "supervisor" with no power to direct, appraise or discipline staff will usually still be a worker. Employers should test the real functions of anyone they treat as an officer and record supervisory authority in writing. The term "employee" has no separate statutory meaning under the Act; it is a contractual and colloquial label.

Classes of worker and probation

Section 4 classifies workers as apprentice, substitute (badli), casual, temporary, probationer, permanent or seasonal.[1] The probation period is six months for clerical work and three months for other work, extendable by three months for a skilled worker.[1] Section 5 requires an appointment letter and a photographic identity card for every worker.[1] Classification drives entitlements: a worker wrongly kept on rolling temporary or casual status may be treated as permanent, particularly since the 2022 Rules treat work lasting more than six months as permanent work.[7]

Domestic workers, seafarers and farm workers

The 2026 Act defines a domestic worker as a person doing household work full-time or part-time under an oral or written arrangement, with a mess or dormitory treated as a home.[2] Domestic workers and seafarers remain outside most of the Act, but they are now expressly covered by Chapters XII, XIII and XIV, which deal with compensation for injury, trade unions and industrial disputes.[1] [2] Agricultural farms generally employing fewer than five workers remain excluded, again subject to those three chapters.[1]

Core employer obligations under labour law in Bangladesh

Most compliance failures we see are not exotic. They are missing appointment letters, unpaid overtime, incomplete registers and leave balances that nobody tracks. The core obligations are set out below by subject.

Working hours and overtime

An adult worker should not ordinarily work more than eight hours a day, extendable to ten hours subject to the overtime rules.[1] Weekly hours are capped at 48 ordinarily; with overtime, total hours must not exceed 60 in any week and must average no more than 56 a week over a year.[1] Overtime is paid at twice the ordinary rate of basic wage, dearness allowance and any ad hoc or interim wage, and this rule does not apply to piece-rated workers.[1]

Leave and holidays

Every worker is entitled to ten days' casual leave and fourteen days' sick leave on full wages each calendar year, neither of which carries forward.[1] Annual leave accrues after one year's continuous service at one day for every 18 days worked in shops, commercial and industrial establishments, factories and road transport, and carries forward up to statutory caps.[1] The 2026 Act increased festival holidays under section 118(1) from eleven days to 13 days.[2] The Labour Rules add two festival bonuses a year for workers with one year's continuous service.[6]

Maternity benefit

A woman worker who has worked for her employer for at least six months before childbirth is entitled to maternity benefit for the 60 days before the expected date of delivery and the 60 days after it, replacing the former eight weeks on each side.[1] [2] A woman with two or more living children at the time of the birth is not entitled to the benefit, though she keeps any other leave.[1] The 2026 Act also redefined maternity benefit by reference to the worker's monthly pay and benefits in the month before leave began.[2]

Wages and payment

Wages must be paid within seven working days after the end of the wage period, and all dues on separation, whatever the reason, within thirty working days.[1] Payment must be made on a working day.[1] Wage registers and payslips should reconcile to the payroll, because a wage claim in the Labour Court is decided on the documents the employer is required to keep.

Provident fund and profit participation

The 2026 Act rewrote section 264. A private-sector establishment with at least 100 permanent workers must establish a provident fund if two-thirds of its permanent workers apply in writing, and must make the rules within six months. The employer is relieved of that duty if it ensures that interested workers join the national universal pension scheme, Progoti, with contributions split equally between employer and worker.[1] Separately, companies covered by Chapter XV, on workers' participation in company profits, must pay 5 per cent of the previous year's net profit into the participation fund, welfare fund and Bangladesh Shramik Kallyan Foundation Fund in the ratio 80:10:10.[1]

Safety and injury compensation

An employer must pay compensation for injury by accident arising out of and in the course of employment, subject to limited exceptions such as injuries that do not disable the worker for more than three days.[1] The 2026 Act inserted a statutory definition of accident that covers physical injury, mental trauma and death occurring in the course of duty, at or outside the workplace.[2] It also replaced section 90A on safety committees.[2] Factories should treat safety records, fire drills and committee minutes as evidence they may one day need to produce.

Discipline, termination and grievances

Ending employment is where labour law in Bangladesh is most often litigated. Our termination guide explains each route in detail; the essentials are below.

Misconduct and the enquiry procedure

Section 23 lists the punishments for proven misconduct, ranging from censure and warning to removal and dismissal.[1] Section 24 requires a written allegation, at least seven days to reply, a hearing and an enquiry, with suspension pending enquiry capped at 60 days.[1] A worker removed or, since the 2026 amendment, dismissed under section 23 with at least one year's continuous service receives 15 days' wages for each completed year, except where dismissal is for the most serious categories of misconduct.[1] [2] An enquiry run without these steps is the most common reason a dismissal is overturned.

Termination without misconduct

Under section 26 an employer may terminate a permanent worker without alleging misconduct on 120 days' written notice for a monthly-rated worker or 60 days for others, or pay in lieu, together with 30 days' wages for each completed year of service or gratuity, whichever is higher.[1] Retrenchment under section 20 requires one month's notice, notice to the Inspector General and the collective bargaining agent, and the same compensation for workers with one year's continuous service.[1] The retirement age is 60.[1]

Resignation and lay-off

A permanent worker resigns on 60 days' notice.[1] The 2026 Act replaced the compensation scale on resignation: seven days' wages for each completed year for service of up to three years, 15 days for more than three but less than ten years, and 30 days or gratuity, whichever is greater, for ten years or more.[2] Lay-off compensation is now payable to a registered worker, other than a badli or temporary worker, after three months' service, and a badli worker with one year's continuous service is no longer treated as badli for that purpose.[2]

Grievances and the Labour Court

A worker with a grievance about termination or similar action must raise it with the employer in writing within 30 days; the employer has 30 days to decide, and the worker may then go to the Labour Court within 30 days, with an appeal to the Labour Appellate Tribunal.[1] Each Labour Court is chaired by a District Judge or Additional District Judge, sitting with an employers' and a workers' member in industrial disputes.[1] The 2026 Act also creates an Alternative Dispute Resolution Authority under a new section 348C.[2] For mediation options generally, see our guide to alternative dispute resolution in Bangladesh.

Trade unions, harassment and discrimination after 2026

The collective and equality provisions are where the 2026 Act moves furthest from the old law, and where garment and manufacturing employers face the most change.

Trade union registration

Under the replaced section 179(2), at least 20 workers in an establishment may apply jointly to register a trade union, and the union must meet a minimum membership tied to the size of the workforce: 20 members for establishments of 20 to 300 workers, 40 for 301 to 500, 100 for 501 to 1,500, 300 for 1,501 to 3,000, and 400 for 3,001 or more.[2] No more than three registrations may exist at any time in an establishment or group of establishments.[2] The definition of trade union now covers associations of workers, employers or officers, including federations and confederations.[2]

Unfair labour practices and blacklisting

The 2026 Act defines blacklisting as compiling lists or databases to disqualify workers from future employment after dismissal, retrenchment, discharge, removal or other termination.[2] Employers are prohibited from blacklisting workers or union members, setting up employer-controlled unions, funding union activity to influence it and encouraging rival unions.[4] Retaliation against workers who seek an investigation of unfair labour practices is treated as anti-union discrimination, and the Director General may order the employer to stop and to compensate affected workers.[4]

Sexual harassment and violence at work

New section 2(52A) defines sexual harassment through a detailed list of prohibited conduct, including quid pro quo harassment and the creation of a hostile or degrading environment.[2] New definitions of violence and harassment and of gender-based violence and harassment sit beside it.[2] The replaced section 332 requires owners and employers to adopt and implement a workplace policy against violence and harassment, assess and control the risks, train workers, publish the complaint procedure and take legal action against sexual harassment that occurs in the establishment.[2] A new section 332A supplements those duties.[2]

Discrimination and forced labour

New sections 345A to 345C prohibit direct and indirect discrimination on grounds including race, gender, religion, disability, political opinion and social status.[2] [4] The Ordinance also prohibited gender-based wage discrimination.[3] The Act adds a definition of forced or compulsory labour, with limited exceptions such as genuine emergencies and supervised work by persons sentenced by a court.[2] Recruitment, wage-setting and promotion processes should be reviewed against these grounds, with reasons documented.

Penalties

The general penalty in replaced section 307, which applies where no specific penalty is provided, is now imprisonment of up to three months, a fine of Tk 25,000 to Tk 50,000, or both.[2] The Act also inserts new sections 307A and 307B.[2] Compliance failures that once cost a nominal fine now carry real exposure, especially where inspectors find several breaches at once.

Minimum wage decisions and the Wage Board

Minimum wages are fixed sector by sector. Under section 139 the government may direct the Minimum Wage Board to recommend minimum rates for an industry, and the Board must report within six months.[1] The 2026 Act amended section 139(6) so that rates must be revisited every three years instead of five.[2]

The garment sector

The current entry-level minimum wage for garment workers is Tk 12,500 a month, announced in December 2023.[10] On 5 January 2025 the Ministry of Labour and Employment gazetted an increase in the annual increment for garment workers from 5 per cent to 9 per cent, effective from 1 December 2024 and paid with January 2025 wages.[9]

When the next revision falls due

As of August 2026 no new wage board had been formed. Union leaders argue that the three-year period runs out in December 2026; the BKMEA president has argued that the amendment cannot apply retrospectively, placing the next board in 2028.[10] The BGMEA said it was awaiting rules under the amended law.[10] Employers in the sector should model a revision from 2027 rather than assume another two years of stability, and should check each year that the increment has been applied to every grade.

Other sectors

Separate Wage Board declarations govern other industries, and each declaration fixes rates by grade and sometimes by area.[1] An employer must identify which declaration covers its industry before setting pay, because paying above the national garment figure does not prove compliance with a different sectoral rate.

Labour law in Bangladesh inside export processing zones

Factories inside export processing zones operate under a separate statute. The Bangladesh EPZ Labour Act 2019 (Act No II of 2019) applies to workers and employers of industries in zones under the Bangladesh Export Processing Zones Authority, and section 3 gives it overriding effect over other laws.[11] The Act replaced the earlier EPZ Workers Welfare Association and Industrial Relations Act, and by government notification it was applied to industrial units in economic zones under the Bangladesh Economic Zones Authority.[12]

Workers' welfare associations instead of trade unions

EPZ workers organise through workers' welfare associations rather than trade unions. Formation requires applications from at least 20 per cent of the permanent workers of an industry, registration requires 20 per cent membership, at least 30 per cent of executive council posts go to female workers where women are employed, and only one association is permitted per industry.[11] Disputes go to the EPZ Labour Court and the EPZ Labour Appellate Tribunal.[11] Labour leaders and ILO supervisory bodies have criticised the dual system on freedom of association grounds.[12]

How the EPZ regime differs

Many headline protections mirror the Labour Act: eight hours a day and 48 a week ordinarily, overtime at twice the basic rate, 120 days' notice for terminating a permanent worker and 30 days' wages per year of service.[11] Others differ. The EPZ Act provides eleven days' festival leave and maternity benefit of eight weeks before and eight weeks after delivery.[11] The 2026 amending Act amends only Act No 42 of 2006, so its 120-day maternity and 13-day festival changes do not by themselves extend to zone enterprises.[2] Groups with plants inside and outside a zone need two policy sets.

For investors weighing a zone location, our analysis of relocating a factory to a Bangladesh economic zone covers the regulatory trade-offs, and our factory setup guide covers licensing outside the zones.

Official Bangla sources and labour law resources

The authoritative text of labour law in Bangladesh is the Bangla text. The Laws of Bangladesh website maintained by the Legislative and Parliamentary Affairs Division publishes the Bangladesh Labour Act 2006 as amended, with footnotes identifying each change made by the 2026 Act, and publishes Act No 43 of 2026 itself section by section.[1] [2] English versions in circulation are translations. Several were prepared before 2026 and do not reflect the current text, so they should never be relied on for figures such as notice periods, leave or penalties.

Where to look for each instrument

• Act and amendments: the consolidated Bangla text of Act No 42 of 2006 and the text of Act No 43 of 2026 on the Laws of Bangladesh website.[1] [2]
• Rules: the Bangladesh Labour Rules 2015 (SRO No 291-Law/2015) and the 2022 amendment (SRO No 284-Law/2022), published in the Bangladesh Gazette.[5] [8]
• Wage declarations: Minimum Wage Board recommendations and gazette notifications, including the January 2025 increment notification.[9]
• Zones: the Bangladesh EPZ Labour Act 2019 and the related instruments administered by the zone authorities.[11]

Practitioners working in English should keep the Bangla text open alongside any translation and quote section numbers rather than paraphrases in policies, notices and pleadings. Where a translation and the Bangla text differ, the Bangla text governs.

Compliance roadmap for employers

A structured review is the fastest way to bring a workforce into line with labour law in Bangladesh as it stands after the 2026 reforms. The sequence below is the one we follow for clients.

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Mistakes to avoid

• Relying on pre-2026 English texts: maternity, festival holiday, resignation and penalty figures all changed in 2026.[2]
• Misclassifying officers: titles do not take a person outside the definition of worker; duties do.[2]
• Rolling temporary contracts: work continuing beyond six months is treated as permanent work under the Rules.[7]
• Skipping the enquiry: a dismissal without the section 24 steps is vulnerable whatever the misconduct.[1]
• Ignoring contractor staff: workers supplied through contractors fall within the 2026 definition of worker and are entitled to equal wages under the Rules.[2] [7]

When to get labour law advice in Bangladesh

Many questions on labour law in Bangladesh can be answered from a well-drafted handbook. Others carry enough risk that a labour lawyer or consultant should be involved before the employer acts. In our experience the moments that justify advice are predictable.

Situations that call for a labour lawyer

• Entering Bangladesh: setting up a workforce, choosing between direct hiring and contractors, and building compliant service rules for approval.
• Restructuring: retrenchment, closure, lay-off or transfer of a business, where notice, compensation and consultation errors multiply across the workforce.
• Union activity: a registration application, a collective bargaining demand or an allegation of anti-union discrimination, where the 2026 rules give the Director General direct powers.[4]
• Harassment complaints: where the 2026 duties require a policy, a committee process and, in serious cases, legal action.[2]
• Disputes and inspections: Labour Court claims, inspection findings and criminal complaints under the penalty provisions.

What a labour law consultancy engagement covers

A typical engagement starts with a compliance audit against the Act, the Rules and the relevant Wage Board declaration, followed by redrafted appointment letters, service rules and policies, training for HR and line managers, and a schedule of recurring filings and register checks. Litigation and dispute work runs separately when a claim arises. TRW's employment law compliance practice handles the advisory side, and our employment litigation and workforce disputes practice acts in the Labour Court and Labour Appellate Tribunal. Collective issues are handled through our collective labour relations practice.

Choosing an employment law firm in Bangladesh

Look for a firm that works from the Bangla text, can show recent Labour Court experience, understands the EPZ regime if you operate in a zone, and can explain how the 2026 reforms affect your sector specifically. Ask how the firm will keep your policies current as new rules are issued under the 2026 Act, because that work is still ahead.[10]

Frequently asked questions

What is the main labour law in Bangladesh?

The Bangladesh Labour Act 2006 (Act No 42 of 2006), as amended most recently by the Bangladesh Labour (Amendment) Act 2026 (Act No 43 of 2026), supported by the Bangladesh Labour Rules 2015.[1] [2] [5]

Was the Bangladesh Labour (Amendment) Ordinance 2025 enacted as an Act?

Yes. Parliament passed the Bill on 9 April 2026, and the Bangladesh Labour (Amendment) Act 2026, Act No 43 of 2026, dated 10 April 2026, repealed Ordinance No 65 of 2025 and saved everything done under it.[2] [4]

How long is maternity leave in Bangladesh in 2026?

Under the Labour Act, maternity benefit covers 60 days before and 60 days after childbirth, for a worker with at least six months' service and fewer than two living children.[1] [2] EPZ enterprises follow the EPZ Labour Act, which provides eight weeks before and eight weeks after.[11]

How many festival holidays are workers entitled to?

Thirteen days a year under section 118(1), increased from eleven by the 2026 Act.[2]

Are managers covered by the Bangladesh Labour Act?

Persons employed in a genuinely managerial, administrative or supervisory capacity are excluded from the definition of worker and rely on their contracts. The test is actual duties, not job title.[2]

How many workers are needed to form a trade union?

At least 20 workers may apply, and the minimum membership rises from 20 for establishments of up to 300 workers to 400 for establishments of 3,001 or more. No more than three unions may be registered in an establishment.[2]

What is the minimum wage for garment workers in Bangladesh?

Tk 12,500 a month at entry level since December 2023, with the annual increment raised to 9 per cent from 1 December 2024.[9] [10] Minimum rates must now be revisited every three years.[2]

What notice must an employer give to terminate a permanent worker?

Under section 26, 120 days for a monthly-rated permanent worker and 60 days for others, or wages in lieu, plus 30 days' wages per completed year of service or gratuity, whichever is higher.[1]

Does the Bangladesh Labour Act apply in EPZs?

No. Industries in export processing zones follow the Bangladesh EPZ Labour Act 2019, which overrides other laws and has been applied to economic zones by notification.[11] [12]

Where can I read the official Bangla text of the labour law?

On the Laws of Bangladesh website, which publishes the amended Bangladesh Labour Act 2006 and Act No 43 of 2026. The Bangla text prevails over any translation.[1] [2]