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Why Bangladesh's labour reform endeavour sparked industry resistance?

21 Nov '25
4 min read
Why Bangladesh's labour reform endeavour sparked industry resistance?
Pic: Shutterstock/Rehman Asad

Insights

  • The Bangladesh Labour (Amendment) Ordinance 2025 revises labour laws extensively by lowering union formation thresholds, banning gender-based pay gaps, introducing mandatory social security schemes, etc. Some trade bodies reportedly cautioned that the low thresholds may destabilise workplaces, hurt export performance, deter foreign investment, and undermine previously agreed TCC frameworks.

As per reports, the ordinance revises the existing labour regulations significantly by lowering the threshold for forming trade unions, extending legal coverage to previously excluded categories of workers, and tightening safeguards against workplace violence, discrimination, and harassment.

These reforms arrive at a time when Bangladesh faces heightened pressure from the International Labour Organisation (ILO), the European Union (EU), and the United States to improve labour conditions as a prerequisite for restoring GSP trade privileges, attracting foreign investment, and securing future trade agreements.

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