Bangladesh’s labour reform push is entering a decisive phase as a key ordinance heads for parliamentary committee scrutiny, with employers stepping up efforts to dilute provisions they warn could raise costs and disrupt operations.
The Labour (Amendment) Ordinance 2025, issued on 17 November by the interim administration, is among 133 ordinances awaiting approval and is now under review by a parliamentary committee, officials and industry leaders said.
The reform, introduced under pressure from the United States (US) and the European Union (EU), has drawn a sharp divide between labour groups and employers, highlighting tensions between compliance with global standards and safeguarding industrial competitiveness.
Bangladesh Employers Federation (BEF) has flagged 17 objections and sought amendments, while Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders said they are engaging policymakers to revise specific clauses.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said the ordinance was drafted without adequate consultation.
“There are several provisions that could be harmful and need to be revised,” he said, adding that industry groups have raised concerns with ministers.
He said BGMEA, BKMEA and Bangladesh Textile Mills Association will hold a press conference on Monday to press for changes.
The ordinance introduces a set of structural reforms, including redefining workers, replacing the term “female” with “woman”, allowing domestic workers to form associations, and permitting trade unions with the consent of 20 workers.
It also makes provident funds mandatory for establishments with at least 100 workers, increases maternity leave to 120 days from 112, and raises annual festival holidays to 13 from 11.
Minimum wages would be reviewed every three years, instead of five, for sectors including garments, tannery and pharmaceuticals.
Employers have raised objections to three provisions in particular: expanding the definition of workers to include officers and staff, lowering the threshold for union formation, and mandating provident funds for firms with 100 employees.
They argue the measures depart from earlier understandings reached at the Tripartite Consultative Council, a forum for dialogue among the government, employers and workers.
Labour representatives, however, say the ordinance still falls short of meeting key demands.
Bangladesh Institute of Labour Studies Executive Director Syed Sultan Uddin Ahmmed said parliament must strike a balance between competing interests while safeguarding constitutional rights.
“How it will be passed is up to parliament, but care must be taken to ensure that constitutional rights are not undermined,” he said.
Bangladesh Garments and Industrial Workers Federation General Secretary Babul Akhter said several worker demands remain unaddressed and should be incorporated during parliamentary debate.
He warned against any amendments that could weaken labour protections.
With parliament constitutionally bound to decide on the ordinance, the outcome will test how far Bangladesh can align labour standards with global expectations without unsettling its export-driven economy.
