Business and Human Rights in Bangladesh

by Barrister Tahmidur Rahman | Sep 10, 2026

Corporate & FinanceDue diligence that stands up8 min read

Business and Human Rights in Bangladesh

Business and human rights advice for Bangladeshi manufacturers, exporters, international brands, investors, lenders and project companies: supply chain due diligence, labour and safety risk, buyer and lender requirements, grievance mechanisms, internal investigations, remediation and the disputes that follow when serious allegations surface.

Overview

Why business and human rights matters for Bangladesh

Few countries are as closely connected to global consumer supply chains as Bangladesh, and few have seen business and human rights issues tested so publicly. The ready-made garment sector, leather, footwear, seafood, construction, energy and infrastructure all face scrutiny from buyers, investors, lenders, regulators and civil society, both at home and abroad. We advise Bangladeshi companies, international brands and retailers, investors, development finance institutions and project sponsors on identifying, preventing and responding to human rights risks in their operations and value chains. This work draws on our corporate practice, employment lawyers and disputes team.

The reference point is the UN Guiding Principles on Business and Human Rights of 2011, which expect companies to respect human rights, carry out due diligence and provide access to remedy. In recent years many of those expectations have moved into hard law in buyer countries. European supply chain due diligence rules, national laws such as Germany's supply chain act, modern slavery reporting in the UK and Australia, and import controls on goods made with forced labour all reach Bangladeshi suppliers through their customers. EU rules were revised in 2025 and 2026, but the direction is clear.

Bangladeshi law supplies much of the legal substance. The Bangladesh Labour Act 2006 and its rules govern wages, working hours, leave, safety, trade unions and dispute resolution, and the labour framework has been the subject of reform discussions with international partners. Building, fire and electrical safety, child labour restrictions, workplace harassment rules, environmental law and land rights all matter in practice. Migrant recruitment, project impacts and indigenous peoples' rights raise further issues. We help clients map these requirements against the expectations of buyers and lenders, so that compliance programmes are grounded in local law rather than imported templates.

Our role is legal rather than purely advisory. We help companies design business and human rights due diligence that will stand up to scrutiny, draft supplier codes and contract clauses that allocate responsibility fairly, and set up grievance mechanisms that workers and communities can actually use. When allegations arise, through an audit, a complaint, a media report or a buyer inquiry, we conduct or support privileged investigations, advise on remediation and represent clients in negotiations, labour proceedings, litigation and arbitration. The aim is to fix real problems while managing legal exposure in Bangladesh and abroad.

Many of these matters cross borders. A brand may face a complaint in Europe about conditions at a Bangladeshi supplier, a foreign investor may need to assess a target's labour record, or a lender may require compliance with international performance standards. We work with counsel in the UK, US, UAE, Singapore, India and China to coordinate business and human rights strategy across jurisdictions. Barrister Tahmidur Rahman, Barrister Remura Meheruba Mahbub and Adv Syed Wahid lead this work, supported by our employment and private client team, and clients can reach us through our Dhaka office.

01 · What we handle

Core workstreams

  • Supply chain due diligence
  • Contracts and supplier codes
  • Labour and safety compliance
  • Investigations and remediation
02 · How it runs

Four clear stages

  1. 01Understand the context
  2. 02Assess the risks
  3. 03Act and remediate
  4. 04Report and resolve
03 · Start here

Talk to a partner

Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.

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How we help

Our business and human rights services

Workstream 01Corporate & Finance

Supply chain due diligence

  • Understand the context
  • Assess the risks
  • Act and remediate
  • Report and resolve
Workstream 02Corporate & Finance

Contracts and supplier codes

  • Understand the context
  • Assess the risks
  • Act and remediate
  • Report and resolve
Workstream 03Corporate & Finance

Labour and safety compliance

  • Understand the context
  • Assess the risks
  • Act and remediate
  • Report and resolve
Workstream 04Corporate & Finance

Investigations and remediation

  • Understand the context
  • Assess the risks
  • Act and remediate
  • Report and resolve
Workstream 05Corporate & Finance

Projects, land and communities

  • Understand the context
  • Assess the risks
  • Act and remediate
  • Report and resolve
Workstream 06Corporate & Finance

Disputes and complaints

  • Understand the context
  • Assess the risks
  • Act and remediate
  • Report and resolve
01

Supply chain due diligence

We help exporters and buyers build business and human rights due diligence that meets the requirements of buyer-country laws and Bangladeshi law: risk mapping, supplier assessment, audit protocols, corrective action plans and reporting. We focus on what can be evidenced and verified, so that a company can show buyers, auditors and regulators what it has done and why its approach is proportionate to the risks it faces.

02

Contracts and supplier codes

Buyers increasingly push human rights obligations into supply contracts and codes of conduct. We draft and negotiate these terms for suppliers and brands, including audit rights, remediation duties, responsible exit, price and lead-time commitments and liability caps. Balanced clauses reduce disputes and avoid unrealistic obligations that suppliers cannot meet, while still giving buyers the business and human rights assurance their own regulators demand.

03

Labour and safety compliance

We review labour practices against the Bangladesh Labour Act 2006 and its rules, including wages, overtime, leave, contracts, union rights, participation committees and occupational safety. We advise on building and fire safety obligations, child and young worker restrictions and harassment policies, and help factories respond to inspections by the labour authorities and to findings by buyer and industry safety programmes, prioritising the risks that matter most to workers.

04

Investigations and remediation

When allegations surface, we run or support privileged investigations into issues such as forced labour indicators, unpaid wages, unsafe conditions, harassment, retaliation against union members or community harm. We interview workers and other witnesses with care for their safety, language needs and confidentiality, advise on remediation and compensation, and prepare responses to buyers, investors, auditors, media and regulators that are accurate, consistent and legally sound.

05

Projects, land and communities

Energy, infrastructure, mining and industrial projects can affect land rights, livelihoods and indigenous communities. We advise sponsors and lenders on land acquisition and resettlement, consultation, grievance mechanisms and compliance with the international environmental and social performance standards required by development finance institutions, and help resolve disputes with affected people before they escalate into litigation, protests or complaints to lenders' accountability mechanisms, which can delay disbursement.

06

Disputes and complaints

We represent companies in labour court proceedings, civil claims, writ petitions and arbitration arising from human rights allegations, and in complaints to industry bodies, certification schemes, trade unions' international federations and international grievance mechanisms. Where proceedings are brought abroad against a brand or parent company, we coordinate the Bangladesh evidence and local law input with overseas counsel and protect the client's business and human rights position.

RecognitionThe Legal 500Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.
Cross-border reach6 jurisdictionsMatters coordinated with counsel in the UK, US, UAE, China, India and Singapore.
Bar and admissionsDhaka and LondonBarristers and advocates in Bangladesh, with a solicitor of England and Wales (non-practising).
HeadquartersDhakaHouse 410, Road 29, Mohakhali DOHS. Consultations in person or by video.
Who leads this work

Partner-led, on every matter.

Corporate & Finance matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.

Meet the firm →
01

Do European supply chain due diligence laws apply to Bangladeshi exporters directly?

Usually not directly. European and other buyer-country laws generally impose obligations on large companies in those countries, not on their foreign suppliers. In practice, however, buyers pass the requirements down through supplier codes, contracts, questionnaires and audits, so Bangladeshi exporters must meet them to keep orders. Some rules also allow claims against buyers based on conditions at suppliers, which increases pressure throughout the supply chain and on factory management. We help exporters understand what their buyers are required to do, negotiate reasonable contractual commitments and build business and human rights processes that satisfy buyers without accepting open-ended liability.

02

What does business and human rights due diligence involve in practice for a Bangladeshi garment or textile factory?

It means identifying actual and potential impacts on workers and communities, acting to prevent or address them, tracking results and reporting on what has been done. For a garment factory, typical areas include wages and overtime, working hours, freedom of association, harassment, building and fire safety, subcontracting, recruitment fees, child labour and environmental impacts. Business and human rights due diligence should be risk-based and documented, with clear responsibility at management and board level. We help factories set up practical systems, prepare for buyer audits and respond to findings in a way that improves conditions and protects the business.

03

How should a company respond to an allegation of forced labour in its Bangladesh supply chain?

Take it seriously and act quickly, but carefully, because early steps shape the outcome. Secure relevant records, avoid any retaliation against workers who raised concerns, and consider whether an independent, privileged investigation is needed. Indicators of forced labour can include recruitment fees, withheld wages or documents, excessive overtime and restrictions on movement. Import controls in some buyer countries can lead to goods being detained if forced labour concerns are raised, so the commercial stakes are high. We investigate, advise on remediation such as fee reimbursement, and prepare evidence-based responses for buyers, authorities and business and human rights auditors.

04

Can workers or communities in Bangladesh sue a foreign brand or parent company in its home courts abroad?

In some jurisdictions, yes. Courts in the UK, Europe and elsewhere have allowed claims against parent companies or buyers for harm at overseas operations in certain circumstances, and new due diligence laws can create further routes. Whether a claim can succeed depends on the law of the forum, the relationship between the companies and the evidence. Such claims usually need substantial evidence from Bangladesh, including witness statements, documents and local law reports. We work with overseas counsel acting for either side to gather evidence lawfully and advise on Bangladeshi law questions in business and human rights cases.

05

What legal protections do trade unions and workers' representatives have in Bangladesh?

The Bangladesh Labour Act 2006 provides for the formation and registration of trade unions, participation committees and collective bargaining, and prohibits certain unfair labour practices by employers, including retaliation for union activity. Export processing zones have historically had a separate framework for worker associations and dispute resolution. Labour law reform has been active recently, so current provisions should be checked. We advise employers on lawful engagement with unions and representatives as part of their business and human rights commitments, help resolve disputes through negotiation and conciliation, and represent clients before the labour courts where needed.

06

Do international lenders impose business and human rights requirements on Bangladeshi projects?

Yes. Development finance institutions and many commercial lenders require projects to meet international environmental and social performance standards, covering labour and working conditions, community health and safety, land acquisition and resettlement, indigenous peoples and cultural heritage. These requirements appear in loan covenants, environmental and social action plans and periodic reporting obligations, and breaches can lead to defaults or complaints to the lender's accountability mechanism. We advise sponsors and lenders on these standards, help prepare and implement environmental and social action plans, and resolve compliance issues before they become finance problems or trigger a default.

07

How can a company set up a grievance mechanism that workers and communities will actually trust?

A credible grievance mechanism is accessible, safe, predictable and transparent. Workers and community members need to know how to raise concerns, including anonymously, and must be protected from retaliation. The process should have clear timelines, independent review where appropriate, and outcomes that are communicated and tracked. Mechanisms should work in Bangla and suit people with limited literacy or no smartphone. They also need to fit with statutory procedures, such as labour law complaint routes. We help design mechanisms, train the people who run them and review how they operate in practice, so they meet business and human rights expectations.

08

Is a business and human rights review needed when acquiring or investing in a Bangladeshi company?

For investors with human rights commitments, or targets in sensitive sectors, it is increasingly standard. A review can identify labour compliance gaps, safety risks, land and community issues, ongoing complaints and exposure under buyers' requirements, all of which affect value and reputation. Findings can be addressed through price, warranties, indemnities, conditions and post-closing action plans. Lenders financing the acquisition may require the review, and buyers of the target's products may ask about it. We carry out legal due diligence on these issues alongside the usual corporate review, and help investors negotiate protections and plan practical improvements after completion.

How a matter runs

From first call to resolution.

  1. 01

    Understand the context

    We learn the client's operations, supply chain, buyers, lenders and the specific concern, identify the Bangladeshi and foreign legal frameworks involved, and agree what needs to be done urgently, who will lead internally, and what can follow later.

  2. 02

    Assess the risks

    We review policies, contracts, audit reports and records, interview key people where appropriate, and map business and human rights risks by severity and likelihood, distinguishing legal requirements from buyer or investor expectations and voluntary commitments.

  3. 03

    Act and remediate

    We help implement corrective actions, contract changes, grievance mechanisms and training, or run investigations and remediation where serious allegations arise, keeping privilege, confidentiality and worker safety firmly in view throughout the process.

  4. 04

    Report and resolve

    We prepare accurate reports and responses for buyers, investors, lenders and authorities, and represent the client in negotiations, labour proceedings, litigation or arbitration if a business and human rights dispute cannot be avoided.

“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”

The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback

FAQ

Questions, answered.

Still unsure? Email info@trw.co with a short outline of the matter.

What is business and human rights?
Business and human rights is the field concerned with how companies affect people's rights, including workers, communities, consumers and others, and what companies are expected or required to do about it. It combines international standards, such as the UN Guiding Principles, with national laws on labour, safety, environment, land, data and supply chain due diligence. In practice it covers risk assessment, contracts, compliance, investigations, remediation and disputes. For exporters, business and human rights questions now arise in most supply relationships and financings.
Is business and human rights due diligence mandatory in Bangladesh?
There is no general Bangladeshi law requiring companies to carry out human rights due diligence. However, many of the underlying obligations, such as labour, safety and environmental duties, are mandatory, and buyer-country laws and lender requirements make due diligence a commercial necessity for exporters and projects. We help companies meet both sets of requirements efficiently, using one set of policies, records and evidence where possible, so that factories are not overwhelmed by duplicated audits and questionnaires from different buyers and lenders with slightly different formats.
What changed for factory safety after Rana Plaza?
The collapse of the Rana Plaza building in 2013, which killed more than a thousand garment workers, led to major changes in factory safety in Bangladesh. Brands, unions and the government established safety inspection and remediation programmes, and building and fire safety became central to buyer requirements. Those programmes have evolved, and industry safety initiatives continue to shape how factories are inspected and how findings are resolved. It also shaped international thinking on business and human rights.
Do you act for workers or only for companies in these matters?
Our business and human rights practice mainly acts for companies, investors, lenders and project sponsors. We advise them on respecting rights and resolving problems fairly, which often means improving conditions and providing remedy to affected people. We do not act against existing clients, and we check conflicts carefully before accepting any instruction in this area. Where a matter calls for separate representation of workers or communities, we can suggest that the affected people obtain their own advice.
Are business and human rights investigations protected by legal privilege?
Investigations directed by lawyers for the purpose of legal advice or anticipated litigation can attract privilege, but privilege must be planned from the start and may not extend to every document or to reports shared with buyers. We structure investigations to protect privilege as far as possible while still allowing the company to share findings and remediation plans with those who need them. Summaries given to buyers or auditors can later be disclosed, so sharing decisions need legal advice.
How does Bangladesh's LDC graduation affect labour and human rights expectations of exporters?
Bangladesh's graduation from least developed country status changes the basis on which it accesses trade preferences in some markets. Continued preferential access, particularly in the European Union, is linked to compliance with international conventions on labour and human rights. This gives business and human rights issues national economic significance. Labour reform commitments made by the government are monitored closely by trading partners. We advise exporters on how these trade developments affect buyer expectations, contracts and their own compliance priorities.
Can a Bangladeshi supplier refuse unreasonable buyer requirements in codes and contracts?
Suppliers can negotiate, and often should. Requirements that shift unlimited liability to the supplier, demand data that cannot be produced, or impose costs without corresponding price or lead-time adjustments can be challenged. Buyers subject to due diligence laws are themselves expected to consider how their purchasing practices affect conditions. We help suppliers negotiate balanced terms, propose realistic alternatives and document the discussion, so that the supplier's position is clear if a dispute arises later about who was responsible for a particular risk.
Do you work with auditors and technical experts?
Yes. Business and human rights work often requires input from social auditors, safety engineers, environmental consultants, forensic accountants and interpreters. We work with independent experts, instruct them so that their work supports the legal strategy and protects confidentiality, and integrate their findings into investigations, remediation plans, reports and evidence for disputes. Using the right experts early, and giving them clear instructions, often makes the difference between a credible response and one that buyers or courts reject.

Facing a human rights issue? Talk to us early.

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