Bangladesh allows unions with min 20 workers; industry rejects move

The law required the consent of 20 per cent of the total workforce to form a trade union earlier.

Bangladesh recently issued a gazette notification announcing a new ordinance amending the Labour Act, allowing trade unions to be formed with the consent of at least 20 workers.
The law required the consent of 20 per cent of the total workforce to form a trade union earlier.
While the Bangladesh Labour Foundation hailed the move, apparel and textile industry leaders rejected the ordinance.

The Bangladesh Labour (Amendment) Ordinance, 2025, was issued by the legislative and parliamentary affairs department.

The number of workers in a factory who apply to form a trade union will be registered based on the total number of workers.

For establishments with 20 to 300 workers, at least 20 workers may apply; with 301 to 500 workers, 40 workers; with 501 to 1,500 workers, 100 workers; with 1,501 to 3,000 workers, 300 workers; and with more than 3,001 workers, 400 workers.

“This is more than just a legal update—it’s a major victory for our dignity and future, ensuring our labour governance is finally brought closer to international standards,” the Bangladesh Labour Foundation (BLF) said in a LinkedIn post.

The ordinance brings sweeping, essential changes that put the workers first, BLF noted.

For the first time, domestic and agricultural workers are explicitly included in key chapters concerning trade union rights, welfare and social security. Their essential work is now formally recognised and protected under the law, BLF said.

Paid maternity leave is now set at 120 days. The high-risk shipbreaking sector is now explicitly included under the definition of a regulated establishment.

“These reforms will strengthen our freedom of association and collective bargaining power, and they are vital for securing our jobs and reinforcing Bangladesh’s global trade standing,” BLF added.

Meanwhile, apparel and textile industry leaders have rejected the ordinance, saying several key provisions had been added to the law outside the consensus reached at the meeting of the Tripartite Consultative Council (TCC), according to domestic media reports.

They urged the government to immediately revise the relevant sections in line with the decisions adopted at the meeting.

Fibre2Fashion News Desk (DS)