Bangladesh Labour Act 2025 Amendments: A Brief Overview

The Bangladesh Labour Act has undergone numerous amendments since its 2006 enactment. In November 2025, an ordinance promulgated by the interim government substantially revised the Act to align domestic laws with international labour standards and address long‑standing grievances. The amendments marked a transformative shift in the employer‑employee relationship, broadening definitions, enhancing benefits, strengthening worker protections and overhauling union and dispute‑resolution structures.

Expanded definitions and scope

One of the most striking changes is the expanded definition of “worker.” The previous Act allowed employers to exclude staff by simply giving them managerial titles. The 2025 amendment clarifies that any person employed to do skilled, unskilled, manual, technical, clerical or business‑development work is a worker unless specifically appointed in writing to a management or supervisory post. Importantly, domestic workers, digital‑platform (gig) workers, aquaculture and horticulture workers, livestock workers and seafarers are now explicitly recognised. This widens the Act’s coverage to sectors long excluded from formal protections, ensuring these workers can access union rights, accident compensation and dispute‑resolution mechanisms.

The amendment also extends accident and compensation provisions to seafarers, domestic and agricultural workers. New categories like digital-platform workers and gig workers gain recognition for collective bargaining and labour rights. Overall, the scope expansion brings millions of previously informal workers under formal protections.

New resignation compensation tiers

The Act introduces graduated compensation for voluntary resignations. Under earlier law, workers who resigned within three years received no separation payments. Now, workers with three to ten years’ service receive 7 days’ wages per year of employment; those with more than three but less than ten years receive 15 days’ wages per year; and those with ten or more years receive 30 days’ wages per year or gratuity (whichever is higher). This change incentivises longer service and recognises the contribution of resigning employees.

Strengthened protections against discrimination and harassment

The ordinance introduces a comprehensive anti‑discrimination and harassment framework. Employers must now establish a Discrimination, Violence and Harassment Complaint Resolution Committee with a majority of women and at least one external gender‑rights expert. The law defines sexual harassment broadly, covering verbal, physical, digital and quid‑pro‑quo harassment. It also prohibits discrimination based on race, colour, sex, gender identity, religion, political opinion, social origin or disability, and shifts the burden of proof to employers to show that any differential treatment was not discriminatory. Disability is now a strictly protected characteristic, requiring employers to adopt proactive prevention, training and workplace decency standards. The OSH Association notes that the reforms ban gender‑based wage inequality and make sexual harassment and worker blacklisting illegal, reinforcing a respectful and inclusive work environment.

Expanded maternity leave and workplace benefits

Maternity leave has increased from 112 days to 120 days, allowing 60 days before and after delivery. The amendment mandates employers to assign pregnant or lactating workers to non‑hazardous work without wage loss and to provide a private, hygienic space for breastfeeding. Festival holidays rise from 11 to 13 days, and the Act mandates earned leave accrual at one day for every 14 days of work. Maternity benefits now cover domestic and gig workers, aligning Bangladesh with International Labour Organization (ILO) standards.

Improved occupational health and safety (OHS) rules

The amendments modernise OHS provisions by recognising computer vision syndrome, musculoskeletal disorders, mental stress and depression as occupational diseases, requiring employers to implement preventive measures and ensure accessible medical support. Employers must upgrade safety equipment, assess hazards, deliver training and maintain safe working conditions. Factories must provide personal protective equipment, medical check‑ups and clean drinking water. The revised minimum wage revision cycle shortens from five years to three years, enabling faster adjustments to living costs. Death compensation eligibility is relaxed, allowing a worker’s next of kin to claim compensation even if the worker had less than two years of continuous service.

Trade union and collective bargaining reforms

A major reform eases the formation of trade unions. Previously, 20% of workers in an establishment had to support union formation, effectively barring unions in smaller factories. Now, the required number varies by factory size: 20 workers for factories with up to 300 workers, 40 for 301-500 workers, 100 for 501-1,500 workers, 300 for 1,501-3,000 workers and 400 for factories with more than 3,000 workers. The maximum number of unions allowed per factory increases from three to five. The Act formally recognises self‑employed, daily and gig workers as eligible union members and prohibits employers from blacklisting workers for union activities. Employers who attempt to influence union leadership or retaliate against union members commit an unfair labour practice.

The amendments further introduce a National Tripartite Council and National Social Dialogue Forum for dialogue among government, employers and workers. An Alternative Dispute Resolution Authority headed by a retired District Judge provides quicker arbitration options for industrial disputes. Industrial disputes must first undergo negotiation or mediation before litigation, aligning with ILO recommendations to promote harmonious industrial relations.

Provident fund and social protection schemes

The revised Act mandates establishments with 100 or more permanent workers to create a provident fund, with equal employer‑employee contributions. Employers that join the government’s Progoti Universal Pension Scheme are exempt, provided contributions are split 50/50 between employer and employee. The amendments also establish a National Employment Injury Scheme Fund to provide compensation for accidents and injuries inside and outside the workplace. A separate fund ensures financial support for private sector workers and self‑employed people who sustain injuries or disablement.

Ban on blacklisting and protection against forced labour

Employers can no longer maintain or circulate lists of workers deemed undesirable. The amendment expressly bans blacklisting, which is deemed an unfair labour practice. It also criminalises forced labour, defining the offence and bringing criminal penalties. The new anti‑discrimination framework prohibits discriminatory retirement, dismissal or wage payment practices, safeguarding workers from arbitrary termination.

Expansion of “maritime” categories and seafarers’ rights

The Act now recognises seafarers and their unions. The definition of “seafarer” is expanded, and they are granted labour rights and accident compensation under the Act. The amendments ensure Bangladesh meets requirements for ratifying several ILO maritime conventions.

Summary of other amendments

• Shorter wage revision cycles: minimum wage boards must revise wages every three years.
• Festival leave: increases from 11 days to 13 days.
• Mandatory break for midday rest: the Act formalises a break of at least one hour after five hours of work (previously under rules only).
• Compensation for seafarers’ death: the amendment clarifies compensation if death occurs while on duty abroad.
• Equal pay for equal work: the ordinance codifies the principle that employees performing similar work must receive equal remuneration.
• National Labour Inspection Authority: created to monitor compliance with health, safety and labour provisions.
  
  

Navigating the 2025 reforms with Kazi Law Chamber

The 2025 amendments to the Bangladesh Labour Act represent the most comprehensive overhaul of labour legislation in decades. By expanding worker definitions, increasing benefits, strengthening anti‑discrimination provisions, simplifying union formation and introducing new social protection mechanisms, the law aims to harmonise Bangladeshi labour standards with international norms. These reforms, however, significantly increase compliance obligations for employers, who must update workplace policies, payroll systems, union registration procedures and safety protocols to avoid penalties. Workers and unions must also understand the new rights and procedures to exercise them effectively.

Kazi Law Chamber, a leading Dhaka firm renowned for its labour and employment practice, continually advises employers and workers on compliance with the amended Act. Our team assists with policy updates, drafting employment contracts, establishing provident funds, constituting anti‑harassment committees, and representing clients in union disputes and negotiations. By providing practical guidance tailored to each sector, Kazi Law Chamber helps clients navigate the complexities of the reforms, ensuring legal compliance while fostering fair and productive workplaces.